State Codes and Statutes

Statutes > Connecticut > Title42a > Art009 > Sec42a-9-323

      Sec. 42a-9-323. 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 subdivision (1) of subsection (a) of section 42a-9-322, 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 42a-9-309 when it attaches; or

      (B) Temporarily under subsection (e), (f) or (g) of section 42a-9-312; 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 42a-9-309 or subsection (e), (f) or (g) of section 42a-9-312.

      (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.

      (P.A. 01-132, S. 43.)