After-Acquired Property


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After-Acquired Property

1. Property that a person buys after an activity has taken place, usually after either a bankruptcy has been filed or a will has been made. For example, if one buys 10 acres after filing bankruptcy, those 10 acres are considered after-acquired property. How after-acquired properties affect an activity (such as whether they can be used to repay creditors in a bankruptcy or how they are distributed in a will) differs according to individual situations.

2. In law, property one sells without owning but then subsequently buys. For example, suppose Joe sells Bob 10 acres, but those 10 acres in fact belong to Frank. If Joe takes Bob's money and buys Frank's 10 acres afterward, they are automatically transferred to Bob. See also: Fraud.
References in periodicals archive ?
621) If none of the enumerated forms of knowledge exists, the restraining notice is not effective as to after-acquired property or after-arising debts.
Air Canada's obligations under the Credit Agreement are secured by a security interest and hypothec over substantially all of the present and after-acquired property of Air Canada and its subsidiaries.
The senior secured bonds are secured with a first priority lien on substantially all of Kincaid's tangible and intangible assets, rights and interests in the financing and project documents, insurance policies and proceeds thereof, assignable permits and governmental approvals and any after-acquired property.
The Corporation's obligations to Macquarie are secured by all of the Corporation's present and after-acquired property.
The principal balance of the loan and accrued but unpaid interest from time to time will be secured by a charge of all present and after-acquired property of the Company and its wholly-owned subsidiaries in Canada and the United States.