§ 554.9204 — After-acquired property — future advances

Iowa § 554.9204

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

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. Subject to subsection 4, 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.
4. Limitation on subsection 2. Subsection 2 does not prevent a security interest from
attaching:
a. to consumer goods as proceeds under section 554.9315, subsection 1, or commingled
goods under section 554.9336, subsection 3;
b. to a commercial tort claim as proceeds under section 554.9315, subsection 1; or
c. under an after-acquired property clause to property that is proceeds of consumer goods
or a commercial tort claim.