§9-204. After-acquired property; future advances

Link to law: http://legislature.vermont.gov/statutes/section/09A/009/00204
Published: 2015

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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

9-204. After-acquired property; future advances

(a) Except as

otherwise provided in subsection (b), a security agreement may create or

provide for a security interest in after-acquired collateral.

(b) A security

interest does not attach under a term constituting an afteracquired property

clause to:

(1) consumer

goods, other than an accession when given as additional security, unless the

debtor acquires rights in them within 10 days after the secured party gives

value; or

(2) a commercial

tort claim.

(c) 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, whether or not the advances or value are given pursuant

to commitment. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)
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