Sec. 45.29.323. Future advances.

417 words·~2 min read·/ak/title-45/chapter-29/45-29-323

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Except as otherwise provided in

(c)of this section, for purposes of determining the priority of a perfected security interest under AS 45.29.322 (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)is made while the security interest is perfected only

(A)under AS 45.29.309 when it attaches; or

(B)temporarily under AS 45.29.312 (e), (f), or (g); and

(2)not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under AS 45.29.309 or 45.29.312(e), (f), or (g).

(b)Except as otherwise provided in

(c)of this section, a security interest is subordinate to the rights of a person who 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)The provisions of

(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

(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)The provisions of

(d)of this section do 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

(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)The provisions of

(f)of this section do 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.