P.R. Laws tit. 19, § 2275

2019-02-20 00:00:00+00

§ 2275. Priority of security interests in transferred collateral

(a) Subordination of security interest in transferred collateral.— Except as otherwise provided in subsection (b) of this section, a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

(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, and

(3) there is no period thereafter when the security interest is unperfected.

(b) Limitation of subsection (a) subordination.— Subsection (a) of this section subordinates a security interest only if the security interest:

(1) Otherwise would have priority solely under § 2272(a) or § 2274 of this title, or

(2) [Reserved.]

History —Sept. 19, 1996, No. 241, added as § 9-325 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.