(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) of this section subordination. Subsection (a) of this section subordinates a security interest only if the security interest: (1) Otherwise would have priority solely under RCW 62A.9A-322(a) or 62A.9A-324; or (2) Arose solely under RCW 62A.2-711(3) or 62A.2A-508(5).
‹ Prev All Washington 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.