GroundRules
← Search the law
Pennsylvania · Through 2025-12-01 (Statute Update stamp, 13 Pa.C.S.)

13 Pa.C.S. § 9204: After-acquired property; future advances.

Read at publisher ↗
Where this section sits in the code
  1. Title 13 - COMMERCIAL CODE
  2. CHAPTER 92 EFFECTIVENESS OF SECURITY AGREEMENT, ATTACHMENT OF SECURITY INTEREST AND RIGHTS OF PARTIES TO SECURITY AGREEMENT
  3. SUBCHAPTER A EFFECTIVENESS AND ATTACHMENT

(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 ten days after the secured party gives value; or

(2) a commercial tort claim.

(b.1) Limitation.--Subsection (b) does not prevent a security interest from attaching:

(1) to consumer goods as proceeds under section 9315(a) (relating to secured party's rights on disposition of collateral and in proceeds) or commingled goods under section 9336(c) (relating to commingled goods);

(2) to a commercial tort claim as proceeds under section 9315(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.

Collected 2026-09-02T16:31:03Z. Source file · JSON

Browse this collection