§ 25-9-204. After-acquired property; future advances. - North Carolina Statutes

§25‑9‑204.  After‑acquired property; future advances.

(a)        After‑acquiredcollateral. – Except as otherwise provided in subsection (b) of this section, asecurity agreement may create or provide for a security interest in after‑acquiredcollateral.

(b)        When after‑acquiredproperty clause not effective. – A security interest does not attach under aterm constituting an after‑acquired property clause to:

(1)        Consumer goods,other than an accession when given as additional security, unless the debtoracquires rights in them within 10 days after the secured party gives value; or

(2)        A commercial tortclaim.

(c)        Future advances andother value. – A security agreement may provide that collateral secures, orthat accounts, chattel paper, payment intangibles, or promissory notes are soldin connection with future advances or other value, whether or not the advancesor value are given pursuant to commitment. (1866‑7, c. 1, s. 1;1872‑3, c. 133, s. 1; Code, s. 1799; 1893, c. 9; Rev., s. 2052; C.S., s.2480; 1925, c. 302, s. 1; 1927, c. 22; 1935, c. 205; 1945, c. 182, s. 2; c.196, s. 1; 1955, c. 386, s. 1; c. 816; 1957, cc. 504, 999; 1965, c. 700, s. 1;1967, c. 562, s. 1; 1975, c. 862, s. 7; 2000‑169, s. 1.)