§ 6A-9-323 - Future advances.
SECTION 6A-9-323
§ 6A-9-323 Future advances. – (a) When priority based on time of advance. Except as otherwise providedin subsection (c), for purposes of determining the priority of a perfectedsecurity interest under § 6A-9-322(a)(1), perfection of the securityinterest dates from the time an advance is made to the extent that the securityinterest secures an advance that:
(1) Is made while the security interest is perfected only:
(i) Under § 6A-9-309 when it attaches; or
(ii) Temporarily under § 6A-9-312(e), (f), or (g); and
(2) Is not made pursuant to a commitment entered into beforeor while the security interest is perfected by a method other than under §6A-9-309 or § 6A-9-312(e), (f), or (g).
(b) Lien creditor. Except as otherwise provided insubsection (c), a security interest is subordinate to the rights of a personthat becomes a lien creditor to the extent that the security interest securesan advance made more than 45 days after the person becomes a lien creditorunless the advance is made:
(1) Without knowledge of the lien; or
(2) Pursuant to a commitment entered into without knowledgeof the lien.
(c) Buyer of receivables. Subsections (a) and (b) donot apply to a security interest held by a secured party that is a buyer ofaccounts, chattel paper, payment intangibles, or promissory notes or aconsignor.
(d) Buyer of goods. Except as otherwise provided insubsection (e), a buyer of goods other than a buyer in ordinary course ofbusiness takes free of a security interest to the extent that it securesadvances made after the earlier of:
(1) The time the secured party acquires knowledge of thebuyer's purchase; or
(2) 45 days after the purchase.
(e) Advances made pursuant to commitment: priority ofbuyer of goods. Subsection (d) does not apply if the advance is madepursuant to a commitment entered into without knowledge of the buyer's purchaseand before the expiration of the 45-day period.
(f) Lessee of goods. Except as otherwise provided insubsection (g), a lessee of goods, other than a lessee in ordinary course ofbusiness, takes the leasehold interest free of a security interest to theextent that it secures advances made after the earlier of:
(1) The time the secured party acquires knowledge of thelease; or
(2) 45 days after the lease contract becomes enforceable.
(g) Advances made pursuant to commitment: priority oflessee of goods. Subsection (f) does not apply if the advance is madepursuant to a commitment entered into without knowledge of the lease and beforethe expiration of the 45-day period.