§ 9—204.

220 words·~1 min read·/vt/9-18

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

§ 9—204. After-acquired property; future advances

(a)Except as otherwise provided in subsection

(b)of this section, a security agreement may create or provide for a security interest in after-acquired collateral.

(b)Subject to subsection (b.1) of this section, 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.

(b.1) Subsection

(b)of this section does not prevent a security interest from attaching:

(1)to consumer goods as proceeds under subsection 9—315(a) of this title or commingled goods under subsection 9—336(c) of this title;

(2)to a commercial tort claim as proceeds under subsection 9—315(a) of this title; or

(3)under an after-acquired property clause to property that is proceeds of consumer goods or a commercial tort claim.

(c)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. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001; amended 2025, No. 17, § 9, eff. July 1, 2025.)