Utah Code 70A-9a-323. Future advances
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(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:
Terms Used In Utah Code 70A-9a-323
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: means :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5(1)(a) is made while the security interest is perfected only:(1)(a)(i) under Section
70A-9a-309 when it attaches; or(1)(a)(ii) temporarily under Subsection70A-9a-312(5) ,(6) , or(7) ; and(1)(b) is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under Section70A-9a-309 or Subsection70A-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:
(2)(a) without knowledge of the lien; or
(2)(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 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:
(4)(a) the time the secured party acquires knowledge of the buyer’s purchase; or
(4)(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, 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:
(6)(a) the time the secured party acquires knowledge of the lease; or
(6)(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.