HRS §490:9-204
When a security agreement can cover property you get later
This section explains when a security agreement can cover property you acquire after signing the agreement. It also covers using future loans or advances as part of the deal. There are special limits for consumer goods and commercial tort claims.
borrowerscreditorsdebtors
The statute, as written — After-acquired property; future advances
(a) Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral. (b) Subject to subsection (d), a security interest does not attach under a term constituting an after-acquired property clause to: (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) A commercial tort claim. (c) 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. (d) Nothing in subsection (b) shall prevent a security interest from attaching: (1) To consumer goods as proceeds under section 490:9-315(a) or commingled goods under section 490:9-336(c); (2) To a commercial tort claim as proceeds under section 490:9-315(a); or (3) Under an after-acquired property clause to property that is proceeds of consumer goods or a commercial tort claim.
Sections this one refers to
§490:9-315 What happens to a lender's claim when collateral is sold or traded
§490:9-336 What happens to security interests when goods are mixed together
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.