HRS §490:9-326
Priority of security interests created by new debtor
This section sets the order of payment or claim when a new debtor takes over collateral and multiple lenders have security interests in it. It says when a filed financing statement is ineffective, other perfected interests come first. It also explains how to rank conflicting interests from different original debtors.
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The statute, as written — Priority of security interests created by new debtor
(a) Subject to subsection (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of section 490:9-316(i)(1) or 490:9-508 is subordinate to a security interest in the same collateral which is perfected other than by such a filed financing statement. (b) The other provisions of this part determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in subsection (a). However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound.
Sections this one refers to
§490:9-316 What happens to a security interest when the debtor or collateral moves
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