§ 9-204 — After-acquired Property; Future Advances

Section 9--204. After-acquired Property; Future Advances.\n (a) After-acquired collateral. Except as otherwise provided in\nsubsection (b), a security agreement may create or provide for a\nsecurity interest in after-acquired collateral.\n * (b) When after-acquired property clause not effective. A security\ninterest does not attach under a term constituting an after-acquired\nproperty clause to:\n (1) consumer goods, other than an accession when given as\n additional security, unless the debtor acquires rights in\n them within 10 days after the secured party gives value; or\n (2) a commercial tort claim.\n * NB Effective until June 3, 2026\n * (b) When after-acquired property clause not effective.\n Subject to subsection (b-1), a security interest does not attach\n under a term constituting an after-acquired property clause to:\n (1) consumer goods, other than an accession when given as\n additional security, unless the debtor acquires rights in\n them within 10 days after the secured party gives value; or\n (2) a commercial tort claim.\n * NB Effective June 3, 2026\n* (b-1) Limitation on subsection (b). Subsection (b) does not prevent a\nsecurity interest from attaching:\n (1) to consumer goods as proceeds under Section 9--315(a) or\n commingled goods under Section 9--336(c);\n (2) to a commercial tort claim as proceeds under Section\n 9--315(a); or\n (3) under an after-acquired property clause to property that is\n proceeds of consumer goods or a commercial tort claim.\n * NB Effective June 3, 2026\n (c) Future advances and other value. A security agreement may provide\nthat collateral secures, or that accounts, chattel paper, payment\nintangibles, or promissory notes are sold in connection with, future\nadvances or other value, whether or not the advances or value are given\npursuant to commitment.\n