Section 409.325. Priority of security interests in transferred collateral.

 

(1)   Subordination of security interest in transferred collateral. Except as otherwise provided in sub. (2) , a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

(a) The debtor acquired the collateral subject to the security interest created by the other person;

(b) The security interest created by the other person was perfected when the debtor acquired the collateral; and

(c) There is no period thereafter when the security interest is unperfected.

(2)   Limitation of sub. (1) subordination. Subsection (1) subordinates a security interest only if the security interest:

(a) Otherwise would have priority solely under s. 409.322 (1) or 409.324 ; or

(b) Arose solely under s. 402.711 (3) or 411.508 (5) .

2001 a. 10 .