Priority of Future Advances

Question 1

SP v. SP

Answer 1

First party to perfect with respect to future advances.

Question 2

SP v. JLDC

Answer 2

A secured party’s advance made within 45 days of the lien creditor’s existence, SP has priority

Advance made more than 45 days after JLC exists then JLC wins unless

1)The advance was made without knowledge of the lien; or

2) the advance is made pursuant to a commitment entered into without knowledge of the leein