N.Y. Uniform Commercial Code Law § 9-204: After-acquired Property; Future Advances

Section 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. Subject to

subsection (b-1), 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.

(b-1) Limitation on subsection (b). Subsection (b) does not prevent a

security interest from attaching:

(1) to consumer goods as proceeds under Section 9--315(a) or

commingled goods under Section 9--336(c);

(2) to a commercial tort claim as proceeds under Section

9--315(a); or

(3) under an after-acquired property clause to property that is

proceeds of consumer goods or 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.