N.Y.
Uniform Commercial Code Law Section 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 only: (A) under Section 9--309 when it attaches; or (B) temporarily under Section 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 Section 9--309 or 9--312(e), (f), or(g)
.(b)
Lien creditor. Except as otherwise provided in subsections (c) and (h), 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. * NB Effective until June 3, 2026 * (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 the buyer’s purchase; or(2)
45 days after the purchase. * NB Effective June 3, 2026 (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. * NB Effective until June 3, 2026 * (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 the lease; or(2)
45 days after the lease contract becomes enforceable. * NB Effective June 3, 2026 (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.(h)
Priority with respect to cooperative interests. The following rules apply for purposes of determining under Section 9--322(a)(1) the priority of a perfected security interest in a cooperative interest:(1)
Perfection of the security interest with respect to a future advance dates from the time of the filing under Section 9--310(d) if all of the following are true: (A) The security agreement states the maximum amount to be advanced pursuant to commitment; (B) The future advance is made pursuant to that commitment; (C) The future advance plus the outstanding sum of any prior advances is not more than the stated maximum amount; and (D) The filed financing statement includes a cooperative addendum disclosing that the security agreement contains a commitment to make future advances.(2)
Except as provided in paragraph (1), perfection of the security interest with respect to a future advance dates from the time the advance is made.(3)
For purposes of paragraph (1), no amendment of a security agreement shall adversely affect the priority of any other security interest in the same cooperative interest that was perfected prior to the amendment.(4)
This subsection applies only to advances made subsequent to an initial advance.
Source:
Section 9-323 — Future Advances, https://www.nysenate.gov/legislation/laws/UCC/9-323 (updated Dec. 12, 2025; accessed Dec. 20, 2025).
