Future advances.2
Holders of consensual liens frequently make additional advances to their debtors pursuant to a future advances clause (see Commentary.Future advances.1). Assuming that a consensual lien has priority over a lien creditor, buyer, or other consensual lien creditor with respect to advances made prior to the time a lien creditor, buyer, or other consensual lien creditor acquires its interest, should that priority extend to advances made after the time a lien creditor, buyer, or other consensual lien creditor acquires its interest? National Bank of Waterloo v. Moeller and Problem.Future advances (Questions B and C) explore this question.