1. (a) Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under Section 36-9-322(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. (1) is made while the security interest is perfected only:

      1. (A) under Section 36-9-309 when it attaches; or
      2. (B) temporarily under Section 36-9-312(e), (f), or (g); and
   2. (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 36-9-309 or 36-9-312(e), (f), or (g).

2. (b) 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 forty-five days after the person becomes a lien creditor unless the advance is made:

   1. (1) without knowledge of the lien; or
   2. (2) pursuant to a commitment entered into without knowledge of the lien.
3. (c) 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.

4. (d) 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. (1) the time the secured party acquires knowledge of the buyer's purchase; or
   2. (2) forty-five days after the purchase.
5. (e) 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 forty-five-day period.

6. (f) 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. (1) the time the secured party acquires knowledge of the lease; or
   2. (2) forty-five days after the lease contract becomes enforceable.
7. (g) 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 forty-five-day period.

HISTORY: 2001 Act No. 67, Section 12. "Account" Section 36-9-102(a)(2) "Buyer in ordinary course of business" Section 36-1-201(9) "Buyer of goods" Section 36-2-103(1)(a) "Chattel paper" Section 36-9-102(a)(11) "Consignor" Section 36-9-102(a)(21) "Goods" Section 36-9-102(a)(44) "Knowledge" Section 36-1-201(25) [see now Section 36-1-202] "Lessee" Section 36-2A-103(1)(n) "Lessee in ordinary course of business" Section 36-2A-103(1)(o) "Lien creditor" Section 36-9-102(a)(52) "Payment intangible" Section 36-9-102(a)(61) "Promissory note" Section 36-9-102(a)(65) "Secured party" Section 36-9-102(a)(72) "Security interest" Section 36-1-201(37) [see now Section 36-1-203]