Ohio Code § 1309.323
Ohio Code § 1309.323. Reproduced from the official Ohio Revised Code, with a citation summary, verification link, and related provisions.
§ 1309.323.
(A) Except as otherwise provided in division (C) of this section, for purposes of determining
the priority of a perfected security interest under division (A)(1) of section 1309.322 of the Revised Code , 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 1309.309 of the Revised Code when it attaches; or (b) Temporarily under division (E) , (F) , or (G) of section 1309.312 of the Revised Code . (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 1309.309 or division (E), (F) , or (G) of section 1309.312 of the Revised Code . (B) Except as otherwise provided in division (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 advances made more than forty-five 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) Divisions (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) Except as otherwise provided in division (E) of this section, 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) Forty-five days after the purchase. (E) Division (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 forty-five-day period. (F) Except as otherwise provided in division (G) of this section, 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) Forty-five days after the lease contract becomes enforceable. (G) Division (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 forty-five-day period.
Source: official Ohio text · Last verified 2026-08-27
At a glance
- Citation: Ohio Revised Code § 1309.323
- Jurisdiction: Ohio
- Code: Ohio Revised Code
- Text: transcribed from the official source (verify below)
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Common questions
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