Download as PDF
355.9-323 Future advances.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Except as otherwise provided in subsection (3) of this section, for purposes of
determining the priority of a perfected security interest under KRS 355.9-322(1)(a),
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 KRS 355.9-309 when it attaches; or
2.
Temporarily under KRS 355.9-312(5), (6), or (7); 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 KRS 355.9-309 or
355.9-312(5), (6), or (7).
Except as otherwise provided in subsection (3) 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 (45) 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.
Subsections (1) and (2) 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.
Except as otherwise provided in subsection (5) 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:
(a) The time the secured party acquires knowledge of the buyer's purchase; or
(b) Forty-five (45) days after the purchase.
Subsection (4) 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 (45) day period.
Except as otherwise provided in subsection (7) 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:
(a) The time the secured party acquires knowledge of the lease; or
(b) Forty-five (45) days after the lease contract becomes enforceable.
Subsection (6) 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 (45) day period.
Effective: July 1, 2001
History: Created 2000 Ky. Acts ch. 408, sec. 63, effective July 1, 2001.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
