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Com. Code, § 9204 · Chapter 2. Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement

Com. Code, § 9204

Verbatim from the official edition

Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)

(a) Except as otherwise provided in subdivision (b), a security agreement may create or provide for a security interest in after-acquired collateral.

(b) Subject to subdivision (c), a security interest does not attach under a term constituting an after-acquired property clause to either of the following:

(1) 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.

(2) A commercial tort claim.

(c) Subdivision (b) does not prevent a security interest from attaching to any of the following:

(1) Consumer goods as proceeds under subdivision (a) of Section 9315 or commingled goods under subdivision (c) of Section 9336.

(2) A commercial tort claim as proceeds under subdivision (a) of Section 9315.

(3) Property that is the proceeds of consumer goods or a commercial tort claim under an after-acquired property clause.

(d) 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.

Notes and commentary — not statutory text

History

Amended by Stats. 2023, Ch. 210, Sec. 31. (SB 95) Effective January 1, 2024.

Source of truth

Edition
As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
Official file
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=COM&sectionNum=9204.
Text hash
sha256 fc4df5d0351ea7a4acc1c69d0d2b680d5884da48dcdf792116dc4685ef1fc245
Composed by
compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section

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