§ 9-204. 9-204
132 words·~1 min read·
/us/ucc/a9/s9-204A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)[After-acquired collateral.] Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral.
(b)[When after-acquired property clause not effective.] A security interest does not attach under a term constituting an after-acquired property clause to:
(1)consumer goods , other than an accession when given as additional security, unless the debtor acquires rights in them within 10 days after the secured party gives value; or
(2)a commercial tort claim .
(c)[Future advances and other value.] A security agreement may provide that collateral secures, or that accounts , chattel paper , payment intangibles , or promissory notes are sold in connection with, future advances or other value, whether or not the advances or value are given pursuant to commitment .