Section 22
Priority of security interests in same collateral
(1)
Where the Act does not provide another method for determining priority between security interests in the same collateral —
(a)
a perfected security interest shall have priority over an unperfected security interest;
(b)
priority between perfected security interests shall be determined by the order of whichever of the following first occurs in relation to a particular security interest —
(i)
the registration of a financing statement;
(ii)
the secured party, or another person acting on behalf of the secured party, taking possession of the collateral (except where possession is a result of seizure or repossession); or
(iii)
the secured party, or another person acting on behalf of the secured party, acquiring control of the collateral; and
Secured Transactions 24
(c)
priority between unperfected security interests in the same collateral shall be determined by the order of creation of the security interests.
(2)
For the purposes of subsection (1), a security interest that is first perfected in one manner and later perfected in another manner without a break in perfection is continuously perfected and retains its priority from the date of its original perfection.
(3)
Subject to section 15, the priority of a security interest in original collateral shall also be the priority with respect to its proceeds.