KRS 355.9-323: Future advances.

(1) Except as otherwise provided in subsection (3) of this section, for purposes of

determining the priority of a perfected security interest under KRS 355.9 -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:

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

1. Under KRS 355.9-309 when it attaches; or

2. Temporarily under KRS 355.9-312(5), (6), or (7); and

(b) Is not made pursuant to a commitment entere d into before or while the

security interest is perfected by a method other than under KRS 355.9 -309 or

355.9-312(5), (6), or (7).

(2) Except as otherwise provided in subsection (3) of this section, a security interest is

subordinate to the rights of a per son that becomes a lien creditor to the extent that

the security interest secures an advance made more than forty -five (45) 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) 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.

(4) Except as otherwise provided in subsection (5) of t his section, 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

(b) Forty-five (45) days after the purchase.

(5) Subsection (4) 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 (45) day period.

(6) Except as otherwise provided in subsectio n (7) of this section, 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 (45) days after the lease contract becomes enforceable.

(7) Subsection (6) 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 (45) day period.