400.9-323. Future advances.

MISSOURI STATUTES AND CODES

Future advances.

400.9-323. (a) Except as otherwise provided in subsection (c), forpurposes of determining the priority of a perfected security interest undersection 400.9-322(a)(1), perfection of the security interest dates from thetime an advance is made to the extent that the security interest secures anadvance that:

(1) Is made while the security interest is perfected only:

(A) Under section 400.9-309 when it attaches; or

(B) Temporarily under section 400.9-312(e), (f), or (g); and

(2) Is not made pursuant to a commitment entered into before or whilethe security interest is perfected by a method other than under section400.9-309 or 400.9-312(e), (f), or (g).

(b) Except as otherwise provided in subsection (c), a securityinterest is subordinate to the rights of a person that becomes a liencreditor to the extent that the security interest secures an advance mademore than forty-five days after the person becomes a lien creditor unlessthe advance is made:

(1) Without knowledge of the lien; or

(2) Pursuant to a commitment entered into without knowledge of thelien.

(c) Subsections (a) and (b) do not apply to a security interest heldby a secured party that is a buyer of accounts, chattel paper, paymentintangibles, or promissory notes or a consignor.

(d) Except as otherwise provided in subsection (e), a buyer of goodsother than a buyer in ordinary course of business takes free of a securityinterest to the extent that it secures advances made after the earlier of:

(1) The time the secured party acquires knowledge of the buyer'spurchase; or

(2) Forty-five days after the purchase.

(e) Subsection (d) does not apply if the advance is made pursuant toa commitment entered into without knowledge of the buyer's purchase andbefore the expiration of the forty-five-day period.

(f) Except as otherwise provided in subsection (g), a lessee ofgoods, other than a lessee in ordinary course of business, takes theleasehold interest free of a security interest to the extent that itsecures advances made after the earlier of:

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

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

(g) Subsection (f) does not apply if the advance is made pursuant toa commitment entered into without knowledge of the lease and before theexpiration of the forty-five-day period.