Arkansas Code
Subpart 3 - Priority
§ 4-9-323. Future advances

(a) Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under § 4-9-322(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 only:
(A) under § 4-9-309 when it attaches; or
(B) temporarily under § 4-9-312(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 § 4-9-309 or § 4-9-312(e), (f), or (g).

(b) 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 forty-five (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 knowledge of the lien.

(c) 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) 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 the buyer's purchase; or
(2) forty-five (45) days after the purchase.

(e) 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 forty-five-day period.
(f) 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 the lease; or
(2) forty-five (45) days after the lease contract becomes enforceable.

(g) 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 forty-five-day period.

Structure Arkansas Code

Arkansas Code

Title 4 - Business and Commercial Law

Subtitle 1 - Uniform Commercial Code

Chapter 9 - Secured Transactions

Part 3 - Perfection and Priority

Subpart 3 - Priority

§ 4-9-317. Interests that take priority over or take free of security interest or agricultural lien

§ 4-9-318. No interest retained in right to payment that is sold — Rights and title of seller of account or chattel paper with respect to creditors and purchasers

§ 4-9-319. Rights and title of consignee with respect to creditors and purchasers

§ 4-9-320. Buyer of goods

§ 4-9-321. Licensee of general intangible and lessee of goods in ordinary course of business

§ 4-9-322. Priorities among conflicting security interests in and agricultural liens on same collateral

§ 4-9-323. Future advances

§ 4-9-324. Priority of purchase-money security interests

§ 4-9-325. Priority of security interests in transferred collateral

§ 4-9-326. Priority of security interests created by new debtor

§ 4-9-327. Priority of security interests in deposit account

§ 4-9-328. Priority of security interests in investment property

§ 4-9-329. Priority of security interests in letter-of-credit right

§ 4-9-330. Priority of purchaser of chattel paper or instrument

§ 4-9-331. Priority of rights of purchasers of instruments, documents, and securities under other chapters — Priority of interests in financial assets and security entitlements under Chapter 8

§ 4-9-332. Transfer of money — Transfer of funds from deposit account

§ 4-9-333. Priority of certain liens arising by operation of law

§ 4-9-334. Priority of security interests in fixtures and crops

§ 4-9-335. Accessions

§ 4-9-336. Commingled goods

§ 4-9-337. Priority of security interests in goods covered by certificate of title

§ 4-9-338. Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information

§ 4-9-339. Priority subject to subordination