Iowa Code 554.9204 – After-acquired property — future advances
Current as of: 2023 | Check for updates
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1.
After-acquired collateral.
Except as otherwise provided in subsection 2, a security agreement may create or provide for a security interest in after-acquired collateral.
Terms Used In Iowa Code 554.9204
- Chattel paper: means the same as defined in section 554. See Iowa Code 554E.1
- property: includes personal and real property. See Iowa Code 4.1
- Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
2.
When after-acquired property clause not effective.
A security interest does not attach under a term constituting an after-acquired property clause to:
a. consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten days after the secured party gives value; or
b. a commercial tort claim.
3.
Future advances and other value.
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.