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Secured Transactions Under the Uniform Commercial Code
Copyright 2017, Matthew Bender & Company, Inc., a member of the LexisNexis Group.

1A-7C Secured Transactions Under the UCC 7C.syn


The Priority of Future Advances and "Non-Advance" Obligations


Julian B. McDonnell;Peter F. Coogan;William E. Hogan;and Detlev F. Vagts

Chapter Summary


This chapter of Secured Transactions Under the UCC examines the operation of the specific priority rules regarding future advances and non-advance obligations under both the 1972 amendments and Revised Article 9. Although every state has adopted Revised Article 9, the rules of original Article 9 as expressed in the 1972 amendments will continue to prevail where litigation commenced before the effective date of Revised Article 9 or where priorities have been established before that effective date.

The chapter first discusses the history of priority conflicts and rules related to future advances. It then examines the fundamental concepts of consideration, value, advance and obligation. Next, the chapter analyzes the priority of future advances, considering contests with lien creditors, contests with buyers "not in ordinary course," and contests with other secured parties. Finally, the chapter examines the priority of non-advance obligations.

Secured Transactions Under the UCC (also known as UCC Secured Transactions) provides unique scholarly treatment of the history of Article 9 and its interpretation over the years. It examines every facet of secured lending, analyzing in detail difficult issues that tend to be overlooked in other, more abbreviated treatments. Due to its broad focus, the publication has retained a great deal of material on "old" Article 9, which is of value both to contrast with the Revision and for litigating matters governed by the former version of the law.


Uniform Commercial Code,UCC Article 9,UCC Revised Article 9,UCC secured transactions,personal property security interests,future advance priorities,non-advance obligation priorities,UCC 1972 amendments,UCC Revised Article 9 priorities,UCC Revised Article 9 priority rules


For a section-by-section analysis of priority issues under original Article 9, see Ch. 7A, The Priorities Game: A Section by Section Analysis.

For a complete discussion of the first-to-file rule and the purchase-money priorities, see Ch. 7B, Priority Among Secured Creditors: How Revised Article 9 Changes the Game.

For a general discussion of the provisions and impact of Revised Article 9, see Ch. 1A, Revised Article 9: Review and Reevaluation.

For a general discussion of Article 9, see Ch. 3, The Scope of Article 9.


See UCC Forms & Procedures (Matthew Bender) for complete guidance and procedural analysis regarding both the mechanics of completing UCC related forms and the substantive law connected with those forms.

See Commercial Law & Practice Guide (Matthew Bender) for probing Article-by-Article analysis of today's UCC, as well as strategies for applying the Code in specific transactions.

See Corbin on Contracts (Matthew Bender) for authoritative and exhaustive analysis of the rules of contract law, including all exceptions and variations.

See Warren's Forms of Agreements (Matthew Bender) for numerous well-defined, well-prefaced forms covering nearly every transaction that an attorney will encounter in a business practice.

See Debtor-Creditor Law (Matthew Bender) for complete coverage of all aspects of the debtor-creditor relationship, including current case law, practical guidance, and numerous forms.
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