Section 58Sec./Art. 58

Priority of Prior Interest.

(a) The priority of a prior interest as against the rights of a competing claimant is determined by the prior law if:

(1) The security interest and the rights of all competing claimant arose before the effectivity of this Act; and

(2) The priority status of these rights has not changed since the effectivity of this Act.

(b) For purposes of subsection (a)(2) of this section, the priority status of a prior interest has changed only if:

(1) It was perfected when this Act took effect, but ceased to be perfected; or

(2) It was not perfected under prior law when this Act took effect, and was only perfected under this Act.