Code of Alabama
Ala. Code § 7-9-204 (2026)
After-Acquired Property; Future Advances.
✓ official Alabama Legislature (ALISON) text, current July 2026
Repealed by Act 2001-481, p. 647, § 4, effective January 1, 2002.
(Acts 1965, No. 549, p. 811; Acts 1979, No. 79-256, p. 390; Acts 1981, No. 81-312, p. 399; Acts 1983, No. 83-605, p. 942, §1.)
Notes of Decisions
Cited in 17
cases, 1979–2006 · leading case: Am. Nat. Bank & Trust Co. v. Robertson, 384 So. 2d 1122 (Ala. Civ. App. 1980).
Am. Nat. Bank & Trust Co. v. Robertson, 384 So. 2d 1122 (Ala. Civ. App. 1980). “The Uniform Commercial Code, Code of Alabama 1975 § 7-9-204 (5) gives effect to future advance clauses and provides: *Page 1124 (5) Obligations covered by a security agreement may include future advances or other value whether or not the advances or value are given pursuant to…”
Waters v. Union Bank of Repton, 370 So. 2d 957 (Ala. 1979). “This follows from the fact that between debtor and creditor, a security agreement is effective according to its terms under § 7-9-201 , if the provisions of § 7-9-203 and § 7-9-204 are met. Section 7-9-203 provides in pertinent part that: [A] security interest is not enforceable…”
Mann v. Bank of Tallassee, 694 So. 2d 1375 (Ala. Civ. App. 1996). “Ala. Code 1975, § 7-9-204; Ex parte Chandler, 477 So.”
Southtrust Bank of Alabama v. Toffel (In Re Blackerby), 53 B.R. 649 (Bankr. N.D. Ala. 1985). “” That section provides: Section 7-9-204. After-acquired property; future advances.”
Bischoff v. Thomasson, 400 So. 2d 359 (Ala. 1981). “As pointed out by Bischoff, this remedy is only available to a secured party who attains that status via the requirements of Code 1975, § 7-9-204 (1), viz.: "A security interest cannot attach until there is agreement (subsection (3) of section 7-1-201 ) that it attach and value…”
Ex Parte Chandler, 477 So. 2d 360 (Ala. 1985). “Cross-collateralization and future advance clauses are valid in Alabama. Code 1975, § 7-9-204; Underwood v.”
Mims v. First Citizens Bank, 913 So. 2d 1098 (Ala. Civ. App. 2005). “This section now brings state law into conformity with the overriding federal policy; where a pledge transaction is contemplated, perfection dates only from the time possession is taken, although a security interest may attach, unperfected, before that under the rules stated in…”
Rocket City Fed. Credit Union v. Kennemer (In Re Kennemer), 143 B.R. 275 (N.D. Ala. 1992). “Code § 7-9-204 (3) (1975) (“Obligations covered by a security agreement may include future advances or other value whether or not the advances or value are given pursuant to commitment.”
Jacklitch v. Redstone Fed. Credit Union, 463 F. Supp. 1134 (N.D. Ala. 1979). “” Plaintiff contends that this language creates a security interest subject to the 10 day limitation of Code of Alabama § 7-9-204(4)(b) (1975). This section provides, (4) No security interest attaches under an after-acquired property clause: (a) .”
S. Ready Mix v. AmSouth Bank, 576 So. 2d 188 (Ala. 1991). “Code (1975), § 7-9-204: "(1) Except as provided in subsection (2), a security agreement may provide that any or all obligations covered by the security agreement are to be secured by after-acquired collateral.”
White v. Dawson (In Re Dawson), 52 B.R. 444 (Bankr. N.D. Ala. 1984). “Code Section 7-9-204 (1975). Because the Bank had possession of the certificate of deposit at all times, a signed security agreement was not necessary.”
Coffee Cnty. Bank v. Hughes, 423 So. 2d 831 (Ala. 1982). “Code 1975, § 7-9-204 (1). Under the facts of this case, defendant and the Kelleys executed an "agreement" within the meaning of § 7-1-201 (3), value was given, and the Kelleys acquired rights in the mobile home.”
— Ala. Code § 7-9-204(1) — 1 case
Citizens & S. Factors, Inc. v. Small Bus. Admin., 375 So. 2d 251 (Ala. 1979).
— Ala. Code § 7-9-204(2) — 1 case
Southtrust Bank of Alabama v. Toffel (In Re Blackerby), 53 B.R. 649 (Bankr. N.D. Ala. 1985). “” That section provides: Section 7-9-204. After-acquired property; future advances.”
— Ala. Code § 7-9-204(3) — 1 case
Gold Kist, Inc. v. Majors, 533 So. 2d 223 (Ala. 1988).
— Ala. Code § 7-9-204(4)(b) — 1 case
Jacklitch v. Redstone Fed. Credit Union, 463 F. Supp. 1134 (N.D. Ala. 1979). “” Plaintiff contends that this language creates a security interest subject to the 10 day limitation of Code of Alabama § 7-9-204(4)(b) (1975). This section provides, (4) No security interest attaches under an after-acquired property clause: (a) .”
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