1. (a) Except as otherwise provided in subsection (c) of this section, for purposes of determining the priority of a perfected security interest under section 4-9-322 (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:

2. (1) Is made while the security interest is perfected only:

   1. (A) Under section 4-9-309 when it attaches; or
   2. (B) Temporarily under section 4-9-312 (e), (f), or (g); and
3. (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 4-9-309 or 4-9-312 (e), (f), or (g).
4. (b) Except as otherwise provided in subsection (c) of this section, a security interest is subordinate to the rights of a person that becomes a lien creditor while the security interest is perfected only 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:
5. (1) Without knowledge of the lien; or
6. (2) Pursuant to a commitment entered into without knowledge of the lien.
7. (c) Subsections (a) and (b) 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.
8. (d) Except as otherwise provided in subsection (e) of this section, a buyer of goods takes free of a security interest to the extent that it secures advances made after the earlier of:
9. (1) The time the secured party acquires knowledge of the buyer's purchase; or
10. (2) Forty-five days after the purchase.
11. (e) Subsection (d) 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-day period.
12. (f) Except as otherwise provided in subsection (g) of this section, 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:
13. (1) The time the secured party acquires knowledge of the lease; or
14. (2) Forty-five days after the lease contract becomes enforceable.
15. (g) Subsection (f) 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-day period.

Source: L. 2001: Entire article R&RE, p. 1359, § 1, effective July 1. L. 2002: IP(b) amended, p. 938, § 5, effective August 7. L. 2023: IP(d) and IP(f) amended, (SB 23-090), ch. 136, p. 555, § 63, effective August 7.

Editor's note: The provisions of this section are similar to provisions of several former sections as they existed prior to 2001. For a detailed comparison, see the comparative tables located in the back of the index.