AI-assisted research summary: A security agreement may cover after-acquired collateral, but an after-acquired property clause does not attach to several listed items, including consumer goods (with limits), tort claims, judgments, life insurance policies, trust interests, estate interests, and collateral mortgage notes.
§9-204. 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 in after-acquired collateral. (b) When after-acquired property clause not effective. Subject to Subsection (b.1) of this Section, a security interest does not attach under a term constituting an after-acquired property clause to: (1) 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; (2) a tort claim; (3) a judgment; (4) a life insurance policy; (5) a beneficial interest in a trust; (6) an interest in an estate; or (7) a collateral mortgage note. (b.1) Limitation on Subsection (b). Subsection (b) of this Section does not prevent a security interest from attaching: (1) to consumer goods as proceeds under R.S. 10:9-315(a) or commingled goods under R.S. 10:9-336(c); (2) to a tort claim as proceeds under R.S. 10:9-315(a); (3) under an after-acquired property clause to property that is proceeds of consumer goods or a tort claim; or (4) to a judgment as proceeds under R.S. 10:9-315(a). (c) 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. Acts 1988, No. 528, §1, eff. Jan. 1, 1990; Acts 1989, No. 135, §7, eff. Jan. 1, 1990; Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2024, No. 773, §1.