1. Subordination of security interest in transferred collateral. Except as otherwise provided in subsection 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 isunperfected. 2. Limitationofsubsection1 subordination. Subsection1subordinates asecurity interest only ifthe security interest: a. otherwise would have priority solely under section 554.9322, subsection 1, or section 554.9324; or b. arose solely under section 554.2711, subsection 3, or section 554.13508, subsection 5.
‹ Prev All Iowa sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.