Section 9-323 - Future advances. - Maryland Statutes

§ 9-323. Future advances.
 

(a)  Except as otherwise provided in subsection (b), for purposes of determining the priority of a perfected security interest under § 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) Is made while the security interest is perfected only: 

(A) Under § 9-309 when it attaches; or 

(B) Temporarily under § 9-312 (e), (f), or (g); 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 § 9-309 or § 9-312 (e), (f), or (g). 

(b)  Subsection (a) does 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. 

(c)  Except as otherwise provided in subsection (d), 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. 

(d)  Subsection (c) 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. 

(e)  Except as otherwise provided in subsection (f), 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. 

(f)  Subsection (e) 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. 
 

[1999, ch. 282, § 2; 2001, ch. 408, § 2.]