§ 41-09-14 — (9-204) After-acquired property - Future advances

North Dakota § 41-09-14

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-09: Secured Transactions

Text

1. Except as otherwise provided in subsection 2, a security agreement may create or
provide for a security interest in after-acquired collateral.
2. 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 if given as additional security, unless
the debtor acquires rights in the consumer goods within ten days after the
secured party gives value; or
b. A commercial tort claim.
3. 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, regardless of whether the advances or value is given
pursuant to commitment.
4. Subsection 2 does not prevent a security interest from attaching:
a. To consumer goods as proceeds under subsection 1 of section 41-09-35 or
commingled goods under subsection 3 of section 41-09-56;
b. To a commercial tort claim as proceeds under subsection 1 of section 41-09-35;
or
c. Under an after-acquired property clause to property that is proceeds of consumer
goods or a commercial tort claim.