(a) When Priority Based on Time of Advance. - Except as otherwise provided in subsection (c) of this section, for purposes of determining the priority of a perfected security interest under G.S. 25-9-322(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 meets both of the following conditions: (1) The advance is made while the security interest is perfected only under either of the following: a. Under G.S. 25-9-309 when it attaches. b. Temporarily under G.S. 25-9-312(e), (f), or (g). (2) The advance is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under G.S. 25-9-309 or G.S. 25-9-312(e), (f), or (g). (b) Lien Creditor. - 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 45 days after the person becomes a lien creditor unless the advance is made under either of the following circumstances: (1) Without knowledge of the lien. (2) Pursuant to a commitment entered into without knowledge of the lien. (c) Buyer of Receivables. - 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) Buyer of Goods. - Except as otherwise provided in subsection (e) of this section, a buyer of goods takes free of a security interest to the extent that it secures advances made after the earlier of the following: (1) The time the secured party acquires knowledge of the buyer's purchase. (2) Forty-five days after the purchase. (e) Advances Made Pursuant to Commitment; Priority of Buyer of Goods. - 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 45-day period. (f) Lessee of Goods. - Except as otherwise provided in subsection (g) 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 the following: (1) The time the secured party acquires knowledge of the lease. (2) Forty-five days after the lease contract becomes enforceable. (g) Advances Made Pursuant to Commitment; Priority of Lessee of Goods. - 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 45-day period.
‹ Prev All North Carolina sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.