Commercial Code - COM - COM § 9323

Summary

(a) Except as otherwise provided in subdivision (c), for purposes of determining the priority of a perfected security interest under paragraph (1) of subdivision (a) of Section 9322, perfection of the security interest dates from the time an advance is made to the extent that the

Text

(a)
Except as otherwise provided in subdivision (c), for purposes of determining the priority of a perfected security interest under paragraph (1) of subdivision (a) of Section 9322, perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that satisfies both of the following conditions:
(1)
It is made while the security interest is perfected only under either of the following:
(A)
Under Section 9309 when it attaches.
(B)
Temporarily under subdivision
(e), (f), or (g) of Section 9312.
(2)
It is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under Section 9309 or under subdivision (e), (f), or (g) of Section 9312.
(b)
Except as otherwise provided in subdivision (c), a security interest is subordinate to the rights of a person who becomes a lien creditor to the extent that the security interest secures an advance made more than 45 days after the person becomes a lien creditor unless either of the following conditions is satisfied:
(1)
The advance is made without knowledge of the lien.
(2)
The advance is made pursuant to a commitment
entered into without knowledge of the lien.
(c)
Subdivisions (a) and (b) do not apply to a security interest held by a secured party who is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor.
(d)
Except as otherwise provided in subdivision (e), a buyer of goods takes free of a security interest to the extent that it secures advances made after the earlier of the following:
(1)
The time the secured party acquires knowledge of the buyer’s purchase.
(2)
Forty-five days after the purchase.
(e)
Subdivision (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 45-day period.
(f)
Except as otherwise provided in subdivision (g), 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 either of the following:
(1)
The time the secured party acquires knowledge of the lease.
(2)
Forty-five days after the lease contract becomes enforceable.
(g)
Subdivision (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 45-day
period.

Retrieval chunks

• #1 | Commercial Code - COM - COM § 9323

  (a) Except as otherwise provided in subdivision (c), for purposes of determining the priority of a perfected security interest under paragraph (1) of subdivision (a) of Section 9322, perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance …