(1) Except as otherwise provided in Subsection (2), a security agreement may create or provide for a security interest in after-acquired collateral. (2) (a) Subject to Subsection (2)(b), a security interest does not attach under a term constituting an after-acquired property clause to: (i) consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within 10 days after the secured party gives value; or (ii) a commercial tort claim. (b) Subsection (2)(a) does not prevent a security interest from attaching: (i) to consumer goods as proceeds under Subsection 70A-9a-315(a) or commingled goods under Section 70A-9a-336; (ii) to a commercial tort claim as proceeds under Section 70A-9a-315; or (iii) under an after-acquired property clause to property that is proceeds of consumer goods or a commercial tort claim. (3) 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.
‹ Prev All Utah sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.