1. (a) Except as otherwise provided in subsection (b), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

   1. (1) the debtor acquired the collateral subject to the security interest created by the other person;
   2. (2) the security interest created by the other person was perfected when the debtor acquired the collateral; and
   3. (3) there is no period thereafter when the security interest is unperfected.

2. (b) Subsection (a) subordinates a security interest only if the security interest:

   1. (1) otherwise would have priority solely under Section 36-9-322(a) or 36-9-324; or
   2. (2) arose solely under Section 36-2-711(3) or 36-2A-508(5).

HISTORY: 2001 Act No. 67, Section 12.