North Carolina General Statutes § 25-9-204 After-acquired property; future advances

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

(b)        When after-acquired property clause not effective. - 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 10 days after the secured party gives value; or

(2)        A commercial tort claim.

(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. (1866-7, c. 1, s. 1; 1872-3, c. 133, s. 1; Code, s. 1799; 1893, c. 9; Rev., s. 2052; C.S., s. 2480; 1925, c. 302, s. 1; 1927, c. 22; 1935, c. 205; 1945, c. 182, s. 2; c. 196, s. 1; 1955, c. 386, s. 1; c. 816; 1957, cc. 504, 999; 1965, c. 700, s. 1; 1967, c. 562, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1.)

Sections:  Previous  25-9-113  25-9-114  25-9-115  25-9-116  25-9-201  25-9-202  25-9-203  25-9-204  25-9-205  25-9-206  25-9-207  25-9-208  25-9-209  25-9-210  25-9-301  Next

Last modified: March 23, 2014