(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 7-9A-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 Section 7-9A-309 when it attaches; or
(B) temporarily under Section 7-9A-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 Section 7-9A-309 or 7-9A-312(e), (f), or (g).
(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 knowledge of the lien.
(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 the buyer's purchase; or
(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 the lease; or
(2) 45 days after the lease contract becomes enforceable.
(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.
Structure Code of Alabama
Article 9A - Secured Transactions.
Part 3 - Perfection and Priority.
Section 7-9A-319 - Rights and Title of Consignee With Respect to Creditors and Purchasers.
Section 7-9A-320 - Buyer of Goods; Alabama Farmers Credit Protection Fund.
Section 7-9A-323 - Future Advances.
Section 7-9A-324 - Priority of Purchase-Money Security Interests.
Section 7-9A-325 - Priority of Security Interests in Transferred Collateral.
Section 7-9A-326 - Priority of Security Interests Created by New Debtor.
Section 7-9A-327 - Priority of Security Interests in Deposit Account.
Section 7-9A-328 - Priority of Security Interests in Investment Property.
Section 7-9A-329 - Priority of Security Interests in Letter-of-Credit Right.
Section 7-9A-330 - Priority of Purchaser of Chattel Paper or Instrument.
Section 7-9A-332 - Transfer of Money; Transfer of Funds From Deposit Account.
Section 7-9A-333 - Priority of Certain Liens Arising by Operation of Law.
Section 7-9A-334 - Priority of Security Interests in Fixtures and Crops.
Section 7-9A-335 - Accessions.
Section 7-9A-336 - Commingled Goods.
Section 7-9A-337 - Priority of Security Interests in Goods Covered by Certificate of Title.