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 ?
The reason for this is apparently that garnishees who have no connection with the judgment debtor on Monday are not expected to watch for after-acquired property thereafter.
Oddly, if we read the CPLR literally, the after-acquired property clause of the third sentence is triggered if the creditor designated (wrongly) some thing that the garnishee owns is really debtor property.
To be sure, after-acquired property clauses are routine in security agreements pertaining to accounts receivable--but only where the accounts are collateral for a loan.
It was certainly good enough to terminate Rimmer's after-acquired property rights, which should not have encumbered the debtor's assets as a matter of state law.(367)
[subsections] 9-204, -306 (discussing after-acquired property and proceeds).
[subsections] 9-204, -306 (lacking concrete guidance on whether after-acquired property is involved in the sale of proceeds).
Nor can anything in Article 2 authorize after-acquired property clauses, even by analogy.
A lender facing the possibility of having federal law control its security interest in intellectual property is subject not only to great uncertainty, but also to the high risks regarding after-acquired property, priority, and exposure to potential liability posed by infringement suits.
Under the current federal system, lenders encounter serious difficulties in attempting to establish a blanket lien allowing for the automatic perfection of after-acquired property. For example, the only proper method of filing a security interest under the Copyright Act is to file a document that "specifically identifies the work to which [such document] pertains."(79) In practice, the lender usually creates a collateral assignment requiring that subsequent property be "conveyed" to the creditor.
The ability to establish a claim in after-acquired property is often critical when dealing with intellectual property.
Under the current federal system, therefore, the lender is exposed to considerable risk and expense when attempting to establish a claim in after-acquired property. This risk and expense is passed on to the debtor in the form of higher costs and interest rates and, in some instances, the refusal of the lender to accept intellectual property as collateral.
(a) that notice filing registries indexed by debtor name (preferably only one registry, though it could be more) be established by the [Patent and Trademark Office] and the Copyright Office; (b) that the various "look-back" periods [found in the federal statutes] will be eliminated or substantially reduced; (c) that secured parties will be given the ability to file prior to federal registration and prior to imposition of the security interest; and (d) that a filing would apply to after-acquired property and proceeds.(107)