554.9204  After-acquired property--future advances.

1.  After-acquired collateral.  Except as otherwise provided in subsection 2, a security agreement may create or provide for a security interest in after-acquired collateral.

2.  When after-acquired property clause not effective.  A security interest does not attach under a term constituting an after-acquired property clause to:

a.  consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten days after the secured party gives value; or

b.  a commercial tort claim.

3.  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.

Section History: Recent form

  2000 Acts, ch 1149, §14, 185, 187

Footnotes

  Accessions, see § 554.9335

  Effective July 1, 2001; 2000 Acts, ch 1149, §187; former section repealed effective July 1, 2001; 2000 Acts, ch 1149, §185, 187; for law prior to July 1, 2001, see Code 2001


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