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

2. (b) A security interest does not attach under a term constituting an after-acquired property clause to:

   1. (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. (2) a commercial tort claim.
3. (c) 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.

HISTORY: 1962 Code Section 10.9-204; 1966 (54) 2716; 1988 Act No. 494, Section 5; 2001 Act No; 67, Section 12. "Accession" Section 36-9-102(a)(1) "Account" Section 36-9-102(a)(2) "Chattel Paper" Section 36-9-102(a)(11) "Collateral" Section 36-9-102(a)(12) "Commercial Tort Claim" Section 36-9-102(a)(13) "Consumer Goods" Section 36-9-102(a)(23) "Payment Intangibles" Section 36-9-102(a)(61) "Promissory Note" Section 36-9-102(a)(65) "Security Agreement" Section 36-9-102(a)(73) "Security Interest" Section 36-1-201(37) [see now Section 36-1-203]