8.9A-204 - A-204. After-acquired property; future advances. - Virginia Statutes

§ 8.9A-204. After-acquired property; future advances.

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

(b) When after-acquired property clause not effective. A security interestdoes not attach under a term constituting an after-acquired property clauseto:

(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) Future advances and other value. A security agreement may provide thatcollateral secures, or that accounts, chattel paper, payment intangibles, orpromissory notes are sold in connection with, future advances or other value,whether or not the advances or value are given pursuant to commitment.

(1964, c. 219, § 8.9-204; 1973, c. 509; 2000, c. 1007.)