Commercial Code section 9325

(a)

Except as otherwise provided in subdivision (b), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if all of the following apply:

(1)

The debtor acquired the collateral subject to the security interest created by the other person.

(2)

The security interest created by the other person was perfected when the debtor acquired the collateral.

(3)

There is no period thereafter when the security interest is unperfected.

(b)

Subdivision (a) subordinates a security interest only if either of the following conditions is satisfied:

(1)

The security interest otherwise would have priority solely under subdivision (a) of Section 9322 or under Section 9324.

(2)

The security interest arose solely under subdivision (3) of Section 2711 or subdivision (5) of Section 10508.

Source: Section 9325, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=9325.­ (accessed May 4, 2025).

Last Updated

Apr. 24, 2025

§ 9325’s source at ca​.gov