N.Y. Uniform Commercial Code Law Section 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. 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. * NB Effective until June 3, 2026 * (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. * NB Effective June 3, 2026 * (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. * NB Effective June 3, 2026 (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.

Source: Section 9-204 — After-acquired Property; Future Advances, https://www.­nysenate.­gov/legislation/laws/UCC/9-204 (updated Dec. 12, 2025; accessed Dec. 13, 2025).

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Verified:
Dec. 13, 2025

Last modified:
Dec. 12, 2025

§ 9-204. After-acquired Prop.'s source at nysenate​.gov

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