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336.9-204 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. 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; 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.

HIST: 2000 c 399 art 1 s 14

* NOTE: This section, as added by Laws 2000, chapter 399, *article 1, section 14, is effective July 1, 2001. Laws 2000, *chapter 399, article 1, section 130.

* NOTE: Minnesota Statutes 1998, section 336.9-204, which *reads as follows, is repealed July 1, 2001. Laws 2000, chapter *399, article 1, section 130.

* "336.9-204 After-acquired property; future advances.

* (1) Except as provided in subsection (2), a security *agreement may provide that any or all obligations covered by the *security agreement are to be secured by after-acquired *collateral.

* (2) No security interest attaches under an after-acquired *property clause to consumer goods other than accessions (section *336.9-314) when given as additional security unless the debtor *acquires rights in them within ten days after the secured party *gives value.

* (3) Obligations covered by a security agreement may include *future advances or other value whether or not the advances or *value are given pursuant to commitment (subsection (1) of *section 336.9-105)."

Official Publication of the State of Minnesota
Revisor of Statutes