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 Oklahoma Statutes (Last Updated: September 18, 2014)
 Title 12A. UNIFORM COMMERCIAL CODE

  § 12A-1-9-323. Future advances.  

Latest version.

  • FUTURE ADVANCES

    (a)  Except as otherwise provided in subsection (c) of this section, for purposes of determining the priority of a perfected security interest under paragraph (1) of subsection (a) of Section 1-9-322 of this title, 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 1-9-309 of this title when it attaches; or

    (B)temporarily under subsection (e), (f), or (g) of Section 1-9-312 of this title; 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 1-9-309 or subsection (e), (f), or (g) of Section 1-9-312 of this title.

    (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 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:

    (1)  without knowledge of the lien; or

    (2)  pursuant to a commitment entered into without knowledge of the lien.

    (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.

    (d)  Except as otherwise provided in subsection (e) 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:

    (1)  the time the secured party acquires knowledge of the buyer’s purchase; or

    (2)  forty-five (45) days after the purchase.

    (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.

    (f)  Except as otherwise provided in subsection (g) 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:

    (1)  the time the secured party acquires knowledge of the lease; or

    (2)  Forty-five (45) days after the lease contract becomes enforceable.

    (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.

Added by Laws 2000, c. 371, § 50, eff. July 1, 2001.