After-Acquired Property Clause In A Security Agreement

1. consumer goods that are not granted as an additional guarantee when granted as an additional guarantee, unless the debtor acquires rights to them within ten days of the date of the value of the guaranteed business; Or are quarters and money dollars covered by security interest? Although the use of the real estate clause acquired in In re Salander-O`Reilly acted in this case against the secured lender, it is important to note that the existence of the real estate clause acquired in the guarantee agreement was not the problem. Rather, it was the text of the clause. Therefore, secured creditors, at least with respect to use in guarantee agreements, should not completely remove the acquired real estate clause. Instead, the secured lender should ensure that the language of the acquired ownership clause is not related to ownership or title, but to the language that reflects the language used in sections 9-203, b) (2). In addition, an acquired ownership clause does not always work, even if the property acquired later is included in the basic description. As a result, a properly described post-acquisition interest may fail in the event of bankruptcy. There are several reasons for this and they are examined more closely in chapters 26 (Secured Party Versus Creditor Link) and 30 (Secured Party Versus Trustee in Bankruptcy). You need to understand that the final decision to obtain transferred security may include a priority decision. In other words, if the interest of security is not maintained, it would not be useful for litigation.

However, even if the safety interest persists, a particular purchaser could predominate under the priority rules discussed in Part VI. The new section 9-315(a) (1) expands the old section 9-306 (2) by adding lease and licence transfers to types of transfers that assume continued interest in the security of transferred security. The inclusion of leases reflects PEB`s position in P.E.B. Comment 9 that lease transfers generate « revenue. » The rationale for this comment supports the inclusion of licences as orders for the purposes of the new section 9-315. The art gallery had granted the bank a security interest for all personal items in the art gallery, « now acquired in ownership or in the afterlife. »