70A-9a-323. Future advances.

396 words·~2 min read·/ut/title-70a/chapter-9a/70a-9a-323

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

Effective 5/6/2026

(1)Except as otherwise provided in Subsection

(3), for purposes of determining the priority of a perfected security interest under Subsection 70A-9a-322(1)(a) , perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that:

(a)is made while the security interest is perfected only:

(i)under Section 70A-9a-309 when it attaches; or

(ii)temporarily under Subsection 70A-9a-312(5) ,

(6), or

(7); and

(b)is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under Section 70A-9a-309 or Subsection 70A-9a-312(5) ,

(6), or

(7).

(2)Except as otherwise provided in Subsection

(3), 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:

(a)without knowledge of the lien; or

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

(3)Subsections

(1)and

(2)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)Except as otherwise provided in Subsection

(5), a buyer of goods takes free of a security interest to the extent that it secures advances made after the earlier of:

(a)the time the secured party acquires knowledge of the buyer's purchase; or

(b)45 days after the purchase.

(5)Subsection

(4)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.

(6)Except as otherwise provided in Subsection

(7), 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:

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

(b)45 days after the lease contract becomes enforceable.

(7)Subsection

(6)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.

Amended by Chapter 322 , 2026 General Session