Ky. Rev. Stat. § 355.9-323

Current through Acts Received April 24, 2024
Section 355.9-323 - [Effective 1/1/2025] Future advances
(1) 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).
(2) 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.
(3) 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.
(4) Except as otherwise provided in subsection (5) of this section, a buyer of goodstakes 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.
(5) 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.
(6) Except as otherwise provided in subsection (7) of this section, a lessee of goodstakes 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.
(7) 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.

KRS 355.9-323

Amended by 2024 Ky. Acts ch. TBD,§ 68, eff. 1/1/2025.
Effective:7/1/2001
Created 2000, Ky. Acts ch. 408, sec. 63, effective7/1/2001.
This section is set out more than once due to postponed, multiple, or conflicting amendments.