1. After-acquired collateral. Except as otherwise provided in subsection 2, a security
agreement may create or provide for a security interest in after-acquired collateral.
2. When after-acquired property clause not effective. Subject to subsection 4, a security
interest does not attach under a term constituting an after-acquired property clause to:
a. 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
b. a commercial tort claim.
3. 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.
4. Limitation on subsection 2. Subsection 2 does not prevent a security interest from
attaching:
a. to consumer goods as proceeds under section 554.9315, subsection 1, or commingled
goods under section 554.9336, subsection 3;
b. to a commercial tort claim as proceeds under section 554.9315, subsection 1; or
c. under an after-acquired property clause to property that is proceeds of consumer goods
or a commercial tort claim.
2000 Acts, ch 1149, §14, 185, 187; 2024 Acts, ch 1023, §48, 49
\n
Notes of Decisions
Citizens Sav. Bank v. Sac City State Bank, 315 N.W.2d 20 (Iowa 1982).
· cites it 4× “9204(5), The Code 1971 (now section 554.9204(3), The Code), provides: 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.”
Matter of Est. of Simpson, 403 N.W.2d 791 (Iowa 1987).
· cites it 6× “§ 9-204, Comment 5, reprinted in Iowa Code Ann. § 554.9204 Uniform Commercial Code Comment 8, at 328-29 (West 1967).”
Shirley Med. Clinic, P.C. v. United States, 446 F. Supp. 2d 1028 (S.D. Iowa 2006).
· cites it 5× “Iowa Code § 554.9204 (1). An exception to the general rule, however, applies in cases of commercial tort claims.”
Matter of Sunberg, 35 B.R. 777 (Bankr. S.D. Iowa 1983).
· cites it 2× “Before the court can consider whether the description of collateral meets the requirements of the UCC, it must examine Section 554.9204. That section requires that the parties “agree” that an interest attach.”
In Re McAllister, 267 B.R. 614 (Bankr. D. Iowa 2001).
· cites it 6× “” Iowa Code § 554.9204 (3). Section 554.9204 comment 5 reveals that after-acquired property and future advance clauses were meant to be a useful tool in commercial finance and harsh restrictions should not be placed on their use.”
In Re Zych, 379 B.R. 857 (Bankr. D. Minn. 2007).
· cites it 2× “Iowa Code § 554.9204 (1). An exception to the general rule, however, applies in cases of commercial tort claims.”
Kenney v. Landis Fin. Grp., Inc., 349 F. Supp. 939 (N.D. Iowa 1972).
· cites it 2× “Iowa Code § 554.9204 (4) provides: “(4) No security interest attaches under an after-acquired property clause to consumer goods other than accessions (Section 554.”
In Re Mulnix, 54 B.R. 481 (Bankr. D. Iowa 1985).
· cites it 2× “Section 554.9204, ICA 1965. Although the Uniform Commercial Code is not applicable to real estate transactions, the analogy is apt.”
Fed. Land Bank v. Terpstra (In Re Porter), 90 B.R. 399 (N.D. Iowa 1988).
· cites it 2× “In doing so, the Supreme Court determined that such a chattel mortgage on future crops is an instrument “in any manner relating to real estate” because of the possibility that a future growing but not yet mature crop would pass to a future vendee with the real estate.”
Swets Motor Sales, Inc. v. Pruisner, 236 N.W.2d 299 (Iowa 1975).
“In support of this contention Swets directs our attention to § 554.9204(1), The Code, 1973, which provides that a security interest cannot attach until there is agreement that it attach and value is given and the debtor has rights in the collateral.”
— Iowa Code § 554.9204(1) — 1 case
Swets Motor Sales, Inc. v. Pruisner, 236 N.W.2d 299 (Iowa 1975).
“In support of this contention Swets directs our attention to § 554.9204(1), The Code, 1973, which provides that a security interest cannot attach until there is agreement that it attach and value is given and the debtor has rights in the collateral.”
— Iowa Code § 554.9204(3) — 3 cases
Citizens Sav. Bank v. Sac City State Bank, 315 N.W.2d 20 (Iowa 1982).
“9204(5), The Code 1971 (now section 554.9204(3), The Code), provides: 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.”
Matter of Est. of Simpson, 403 N.W.2d 791 (Iowa 1987).
“§ 9-204, Comment 5, reprinted in Iowa Code Ann. § 554.9204 Uniform Commercial Code Comment 8, at 328-29 (West 1967).”
— Iowa Code § 554.9204(5) — 1 case
Citizens Sav. Bank v. Sac City State Bank, 315 N.W.2d 20 (Iowa 1982).
“9204(5), The Code 1971 (now section 554.9204(3), The Code), provides: 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.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.