47-9323

47-9323. Future advances

A. Except as otherwise provided in subsection C of this section, for purposes of
determining the priority of a perfected security interest under section 47-9322,
subsection A, paragraph 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 section 47-9309 when it attaches; or

(b) Temporarily under section 47-9312, subsection 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 section 47-9309 or section 47-9312,
subsection E, F or G.

B. Except as otherwise provided in subsection C of this section, 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; or

2. Pursuant to a commitment entered into without knowledge of the lien.

C. Subsections A and B of this section 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. Except as otherwise provided in subsection E of this section, 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. Subsection D of this section 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. Except as otherwise provided in subsection G of this section, 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 contract becomes enforceable.

G. Subsection F of this section 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.