400.9-204. After-acquired property--future advances. - Missouri Statutes

After-acquired property--future advances.

400.9-204. (a) Except as otherwise provided in subsection (b), asecurity agreement may create or provide for a security interest inafter-acquired collateral.

(b) A security interest does not attach under a term constituting anafter-acquired property clause to:

(1) Consumer goods, other than an accession when given as additionalsecurity, unless the debtor acquires rights in them within ten days after thesecured party gives value; or

(2) A commercial tort claim.

(c) A security agreement may provide that collateral secures, or thataccounts, chattel paper, payment intangibles, or promissory notes are sold inconnection with, future advances or other value, whether or not the advancesor value are given pursuant to commitment.

(L. 1963 p. 503 § 9-204, A.L. 1988 S.B. 583, A.L. 2001 S.B. 288)

Effective 7-01-01