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Ohio Rev. Code Ann. § 1309.204

After-acquired property - future advances - UCC 9-204

Known as the Uniform Commercial Code

The act spans §§ 1309–1309 (136 sections).

Applied in 1 court decision — leading case Phar-Mor, Inc. v. McKesson Corp. (2008)

Most recently applied in Phar-Mor, Inc. v. McKesson Corp. (July 2008)

Effective: July 1, 2001; Latest Legislation: Senate Bill 74 - 124th General Assembly

(A) Except as provided in division (B) of this section, 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 accessions 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: Ohio Laws & Administrative Rules (Legislative Service Commission). Reproduced from public-domain Ohio statutes; confirm against the official source for the current text. Not legal advice.