Iowa Code § 554.9204

Current through bills signed by governor as of 4/19/2024

Section 554.9204 - [Effective 7/1/2024] After-acquired property - future advances

1.After-acquired collateral. Except as otherwise provided in subsection 2, a security agreement may create or provide for a security interest in after-acquired collateral.

2.When after-acquired property clause not effective. Subject to subsection 4, a security interest does not attach under a term constituting an after-acquired property clause to:

a. 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

b. a commercial tort claim.

3.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.

4.Limitation on subsection 2. Subsection 2 does not prevent a security interest from attaching:

a. to consumer goods as proceeds under section 554.9315, subsection 1, or commingled goods under section 554.9336, subsection 3;

b. to a commercial tort claim as proceeds under section 554.9315, subsection 1; or

c. under an after-acquired property clause to property that is proceeds of consumer goods or a commercial tort claim.

Iowa Code § 554.9204

Amended by 2024 Iowa SF 2389,s 49, eff. 7/1/2024.

Amended by 2024 Iowa SF 2389,s 48, eff. 7/1/2024.

2000 Acts, ch 1149, §14, 185, 187

Accessions, see §554.9335

This section is set out more than once due to postponed, multiple, or conflicting amendments.