§ 4-9-323 — 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 section 4-9-322 (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 section 4-9-309 when it attaches; or

(B) Temporarily under section 4-9-312 (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 section 4-9-309 or 4-9-312 (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 while
the security interest is perfected only 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 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 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.

Legislative History

Source: L. 2001: Entire article R&RE, p. 1359, � 1, effective July 1. L. 2002: IP(b) amended, p. 938, � 5, effective August 7. L. 2023: IP(d) and IP(f) amended, (SB 23-090), ch. 136, p. 555, � 63, effective August 7.