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A.R.S. § 47-9204

After-acquired property; future advances

Applied in 1 court decision — leading case In Re Avalon Software Inc. (1997)

Most recently applied in In Re Avalon Software Inc. (June 1997)

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

B. 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.

C. 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.

Official source: Arizona State Legislature. Reproduced from public-domain Arizona statutes; confirm against the official source for the current text. Not legal advice.