Arizona Laws 47-9323. Future advances
A. Except as otherwise provided in subsection C of this section, for purposes of determining the priority of a perfected security interest under section 47-9322, subsection A, paragraph 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:
Terms Used In Arizona Laws 47-9323
- Chattel paper: means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods or a lease of specific goods and license of software used in the goods. See Arizona Laws 47-9102
- Consignor: means a person that delivers goods to a consignee in a consignment. See Arizona Laws 47-9102
- Contract: A legal written agreement that becomes binding when signed.
- Goods: means all things that are movable when a security interest attaches. See Arizona Laws 47-9102
- 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.
- Lien creditor: means :
(a) A creditor that has acquired a lien on the property involved by attachment, levy or the like;
(b) An assignee for benefit of creditors from the time of assignment;
(c) A trustee in bankruptcy from the date of the filing of the petition; or
(d) A receiver in equity from the time of appointment. See Arizona Laws 47-9102
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Secured party: means :
(a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(b) A person that holds an agricultural lien;
(c) A consignor;
(d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;
(e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See Arizona Laws 47-9102
1. Is made while the security interest is perfected only:
(a) Under section 47-9309 when it attaches; or
(b) Temporarily under section 47-9312, subsection 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 section 47-9309 or section 47-9312, subsection E, F or G.
B. Except as otherwise provided in subsection C of this section, 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:
1. Without knowledge of the lien; or
2. Pursuant to a commitment entered into without knowledge of the lien.
C. Subsections A and B of this section 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.
D. Except as otherwise provided in subsection E of this section, 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. Forty-five days after the purchase.
E. Subsection D of this section 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.
F. Except as otherwise provided in subsection G of this section, 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. Forty-five days after the lease contract becomes enforceable.
G. Subsection F of this section 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.