2007 Minnesota Statutes

336.9-323 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 section
336.9-322(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 336.9-309 when it attaches; or
(B) temporarily under section 336.9-312(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 336.9-309 or 336.9-312(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 45 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) 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), 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:
(1) the time the secured party acquires knowledge of the buyer's purchase; or
(2) 45 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 45-day period.
(f) Lessee of goods. Except as otherwise provided in subsection (g), 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:
(1) the time the secured party acquires knowledge of the lease; or
(2) 45 days after the lease contract 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 45-day period.
History: 2000 c 399 art 1 s 43