Tex. Bus. & Com. Code § 9.204

AFTER-ACQUIRED PROPERTY; FUTURE ADVANCES

Known as the Uniform Commercial Code

The act spans §§ 1–12 (616 sections).

Applied in 6 court decisions — leading case Community Credit Union v. Conte (2000)

Most recently applied in Evolve Fed. Credit Union v. Barragan-Flores (In re Barragan-Flores) (April 2018)

Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff

How often courts cite this section

citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(a) Except as 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 10 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: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.