New York Uniform Commercial Code Code § 9-325

Priority of Security Interests in Transferred Collateral
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Section 9--325. Priority of Security Interests in Transferred\n                  Collateral.\n  (a) Subordination of security interest in transferred collateral.\nExcept as otherwise provided in subsection (b), a security interest\ncreated by a debtor is subordinate to a security interest in the same\ncollateral created by another person if:\n       (1) the debtor acquired the collateral subject to the security\n           interest created by the other person;\n       (2) the security interest created by the other person was\n           perfected when the debtor acquired the collateral; and\n       (3) there is no period thereafter when the security interest is\n           unperfected.\n  (b) Limitation of subsection (a) subordination. Subsection (a)\nsubordinates a security interest only if the security interest:\n       (1) otherwise would have priority solely under Section 9--322(a)\n           or 9--324; or\n       (2) arose solely under Section 2--711(3) or 2-A-508(5).\n

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