§ 41-09-43 — (9-323) Future advances

North Dakota § 41-09-43

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-09: Secured Transactions

Text

1. Except as otherwise provided in subsection 3, for purposes of determining the priority
of a perfected security interest under subdivision a of subsection 1 of section
41-09-42, perfection of the security interest dates from the time an advance is made to
the extent that the security interest secures an advance that:
a. Is made while the security interest is perfected only:
(1) Under section 41-09-29 when it attaches; or
(2) Temporarily under subsection 5, 6, or 7 of section 41-09-32; and
b. Is not made pursuant to a commitment entered into before or while the security
interest is perfected by a method other than under section 41-09-29 or
subsection 5, 6, or 7 of section 41-09-32.
2. Except as otherwise provided in subsection 3, 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:
a. Without knowledge of the lien; or
b. Pursuant to a commitment entered into without knowledge of the lien.
3. Subsections 1 and 2 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.
4. Except as otherwise provided in subsection 5, a buyer of goods takes free of a security
interest to the extent that it secures advances made after the earlier of:
a. The time the secured party acquires knowledge of the buyer's purchase; or

b. Forty-five days after the purchase.
5. Subsection 4 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.
6. Except as otherwise provided in subsection 7, 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:
a. The time the secured party acquires knowledge of the lease; or
b. Forty-five days after the lease contract becomes enforceable.
7. Subsection 6 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.