A security agreementmay provide for coverage of after-acquired property.

Question

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A security agreement may include a provision for after-acquired property, which means that any property acquired after the date of the security agreement will also be subject to the security interest granted by the debtor. This provision provides additional security for the creditor in case the debtor acquires new property or assets that could be used to satisfy the debt.

A Security Agreementmay Provide for Coverage of After-Acquired Property