Where a secured party makes an advance, incurs an obligation, releases a perfected security interest, or otherwise gives new value which is to be secured in whole or in part by after-acquired property his security interest in the after-acquired collateral shall be deemed to be taken for new value and not as security for an antecedent debt if the debtor acquires his rights in such collateral either in the ordinary course of his business or under a contract of purchase made pursuant to the security agreement within a reasonable time after new value is given.
CREDIT(S)
(Dec. 30, 1963, 77 Stat. 750, Pub. L. 88-243, § 1.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 28:9-108.
1973 Ed., § 28:9-108.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.