(810 ILCS 5/9-323) (Text of Section before amendment by P.A. 103-1036 ) Sec. 9-323. Future advances. (a) When priority based on time of advance. Except as otherwise
provided in subsection (c), for purposes of determining the priority of a
perfected
security interest under Section 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 |
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(A) under Section 9-309 when it attaches; or
(B) temporarily under Section 9-312(e), (f), or
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(2) is not made pursuant to a commitment entered into
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(b) Lien creditor. Except as otherwise provided in subsection (c),
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:
(1) without knowledge of the lien; or
(2) pursuant to a commitment entered into without
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(c) Buyer of receivables. Subsections (a) and (b) 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) Buyer of goods. Except as otherwise provided in subsection
(e), 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
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(2) 45 days after the purchase.
(e) Advances made pursuant to commitment: priority of buyer
of goods. Subsection (d) 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.
(f) Lessee of goods. Except as otherwise provided in subsection
(g), 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
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(2) 45 days after the lease contract becomes
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(g) Advances made pursuant to commitment: priority of lessee
of goods. Subsection (f) 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.
(Source: P.A. 91-893, eff. 7-1-01.)
(Text of Section after amendment by P.A. 103-1036 )
Sec. 9-323. Future advances.
(a) When priority based on time of advance. Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under Section 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
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(A) under Section 9-309 when it attaches; or
(B) temporarily under Section 9-312(e), (f), or
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(2) is not made pursuant to a commitment entered into
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| before or while the security interest is perfected by a method other than under Section 9-309 or 9-312(e), (f), or (g).
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(b) Lien creditor. Except as otherwise provided in subsection (c), 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:
(1) without knowledge of the lien; or
(2) pursuant to a commitment entered into without
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(c) Buyer of receivables. Subsections (a) and (b) 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) Buyer of goods. Except as otherwise provided in subsection (e), a buyer of goods 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
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(2) 45 days after the purchase.
(e) Advances made pursuant to commitment: priority of buyer of goods. Subsection (d) 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.
(f) Lessee of goods. Except as otherwise provided in subsection (g), 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:
(1) the time the secured party acquires knowledge of
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(2) 45 days after the lease contract becomes
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(g) Advances made pursuant to commitment: priority of lessee of goods. Subsection (f) 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.
(Source: P.A. 103-1036, eff. 1-1-25.)
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