KRS 355.9-204: After-acquired property -- Future advances.

(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) Subject to paragraph (b) of this subsection, 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 (10) days

after the secured party gives value; or

2. A commercial tort claim.

(b) Paragraph (a) of this subsection does not prevent a security interest from

attaching:

1. To consumer goods as proceeds under KRS 355.9 -315(1) or

commingled goods under KRS 355.9-336(3);

2. To a commercial tort claim as proceeds under KRS 355.9-315(1); or

3. Under an after -acquired property clause to property that is proceeds of

consumer goods or 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.