Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 9. · Article 9. SECURED TRANSACTIONS · Part 2. EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT

11-9-204. After acquired property; future advances.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

(a)
After acquired collateral. Except as otherwise provided in subsection (b) of this Code section, a security agreement may create or provide for a security interest in after acquired collateral.#
(b)
When after acquired property clause not effective. Subject to subsection (b.1) of this Code section, a security interest does not attach under a term constituting an after acquired property clause to:#
1. (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. (2)
  A commercial tort claim.#
(b.1)
Limitation on subsection (b) of this Code section. Subsection (b) of this Code section does not prevent a security interest from attaching:#
1. (1)
  To consumer goods as proceeds under subsection (a) of Code Section 11-9-315 or commingled goods under subsection (c) of Code Section 11-9-336;#
2. (2)
  To a commercial tort claim as proceeds under subsection (a) of Code Section 11-9-315; or#
3. (3)
  Under an after-acquired property clause to property that is proceeds of consumer goods or a commercial tort claim.#
(c)
Future advances and other value. 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.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1981, § 11-9-204, enacted by Ga. L. 2001, p. 362, § 1; Ga. L. 2024, p. 817, § 5-47/HB 1240, effective July 1, 2024.

Amendments

The 2024 amendment, effective July 1, 2024, substituted “Subject to subsection (b.1) of this Code section, a security” for “A security” at the beginning of the second sentence of subsection (b), and added subsection (b.1).

Editor's notes

Ga. L. 2024, p. 817, § 1-1/HB 1240, not codified by the General Assembly, provides: “This Act shall be known and may be cited as the ‘Uniform Commercial Code Modernization Act of 2024.’” Ga. L. 2024, p. 817, § 1-2/HB 1240, not codified by the General Assembly, provides: “Nothing in this Act shall be construed to support, endorse, create, or implement a national digital currency.”

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-pdf.pdf, Volume V9, 2022 edition, 2025 supplement, pages 95 to 96; merge action: replaced; file SHA-256 df9393c4ba3b.

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