§ 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) 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) 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) 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 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.

Legislative History

Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2024, No. 773, §1.