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Can you summarize MNST 336.9-323?
UNIFORM COMMERCIAL CODE > FUTURE ADVANCES.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, addresses the priority of perfected security interests, subordination to lien creditors, and priority of buyers and lessees of goods. It states that the perfection of a security interest dates from the time an advance is made, provided certain conditions are met. A security interest is subordinate to the rights of a person who becomes a lien creditor, unless the advance is made without knowledge of the lien or pursuant to a commitment entered into without knowledge of the lien. However, these rules do not apply to security interests held by buyers of specific types of assets or consignors. The document also outlines the priority of buyers and lessees of goods, specifying that a buyer of goods takes free of a security interest to the extent that it secures advances made after a certain period, unless the advance is made pursuant to a commitment entered into without knowledge of the buyer’s purchase. Similarly, a lessee of goods takes the leasehold interest free of a security interest to the extent that it secures advances made after a certain period, unless the advance is made pursuant to a commitment entered into without knowledge of the lease. No specific penalties are mentioned in this document.
Whom does it apply to?
Secured parties, lien creditors, buyers of goods, lessees of goods
What does it govern?
Priority of perfected security interests, subordination to lien creditors, and priority of buyers and lessees of goods
What are exemptions?
Security interests held by buyers of accounts, chattel paper, payment intangibles, promissory notes, or consignors
What are the Penalties?
No penalties mentioned.
Jurisdiction
Minnesota