The Vermont Statutes Online

Title 9A : Uniform Commercial Code

Article 009 : Secured Transactions

• § 9—323. 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 subdivision 9—322(a)(1) 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 9—309 of this title when it attaches; or

  (B) temporarily under subsection 9—312(e), (f), or (g) 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 9—309 or subsection 9—312(e), (f), or (g) 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 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) 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 45 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) 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 45-day period. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)