Kentucky Statutes 355.9-204 – After-acquired property — Future advances
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(1) Except as otherwise provided in subsection (2) of this section, a security agreement may create or provide for a security interest in after-acquired collateral.
(2) 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 (10) days after the secured party gives value; or
(b) A commercial tort claim.
(3) 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.
Effective: July 1, 2001
History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 34, effective July 1, 2001.
— Amended 1986 Ky. Acts ch. 118, sec. 61, effective July 1, 1987. — Created 1958
Ky. Acts ch. 77, sec. 9-204, effective July 1, 1960.
(2) A security interest does not attach under a term constituting an after-acquired property clause to:
Terms Used In Kentucky Statutes 355.9-204
- 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.
(a) Consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten (10) days after the secured party gives value; or
(b) A commercial tort claim.
(3) 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.
Effective: July 1, 2001
History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 34, effective July 1, 2001.
— Amended 1986 Ky. Acts ch. 118, sec. 61, effective July 1, 1987. — Created 1958
Ky. Acts ch. 77, sec. 9-204, effective July 1, 1960.