RS 10:9-323 Future advances

§9-323.  Future advances

(a)  When priority based on time of advance.  Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under R.S. 10:9-322(a)(1), perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that:

(1)  is made while the security interest is perfected only:

(A)  under R.S. 10:9-309 when it attaches; or

(B)  temporarily under R.S. 10:9-312(e), (f), or (g); and

(2)  is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under R.S. 10:9-309 or 9-312(e), (f), or (g).

(b)  Lien creditor.  Except as otherwise provided in subsection (c), a security interest is subordinate to the rights of a person that becomes a lien creditor to the extent that the security interest secures an advance made more than forty-five days after the person becomes a lien creditor unless the advance is made:

(1)  without knowledge of the lien creditor's claim; or

(2)  pursuant to a commitment entered into without knowledge of the lien creditor's claim.

(c)  Buyer of receivables.  Subsections (a) and (b) do not apply to a security interest held by a secured party that is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor.

(d)  Buyer of goods.  Except as otherwise provided in subsection (e), a buyer of goods other than a buyer in ordinary course of business takes free of a security interest to the extent that it secures advances made after the earlier of:

(1)  the time the secured party acquires knowledge of the buyer's purchase; or

(2)  forty-five days after the purchase.

(e)  Advances made pursuant to commitment: priority of buyer of goods.  Subsection (d) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the buyer's purchase and before the expiration of the forty-five-day period.

(f)  Lessee of goods.  Except as otherwise provided in subsection (g), a lessee of goods, other than a lessee in ordinary course of business, takes the leasehold interest free of a security interest to the extent that it secures advances made after the earlier of:

(1)  the time the secured party acquires knowledge of the lease; or

(2)  forty-five days after the lease becomes enforceable.

(g)  Advances made pursuant to commitment: priority of lessee of goods.  Subsection (f) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the forty-five-day period.

Acts 2001, No. 128, §1, eff. July 1, 2001.