North Dakota § 41-09-43 - (9-323) Future advances

§ 41-09-43. (9-323) Future advances

1. Except as otherwise provided in subsection 3, for purposes of determining the priority of a perfected security interest under subdivision a of subsection 1 of section 41-09-42, 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: (1) Under section 41-09-29 when it attaches; or (2) Temporarily under subsection 5, 6, or 7 of section 41-09-32; 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 41-09-29 or subsection 5, 6, or 7 of section 41-09-32. 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 forty-five 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 5. 6. 7. b. Forty-five days after the purchase. 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 forty-five-day period. 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. Forty-five days after the lease contract becomes enforceable. 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 forty-five-day period.