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.
Otherwise, creditors have an incentive to tell lies in order to trigger the after-acquired property clause contained in the third sentence of CPLR section 5222(b).
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.
subsections] 9-204, -306 (discussing after-acquired property and proceeds).
56) As is explored in greater detail below, however, this "dual filing" approach does little to alleviate lenders' fears that they will become subject to the federal statutes' priority and after-acquired property schemes or, worse yet, liable in an infringement action.
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.
The principal balance outstanding under the Note and accrued but unpaid interest from time to time will be secured by a charge over all present and after-acquired property of the Company and its wholly-owned subsidiaries in Canada and the United States.
First, credit managers for companies that sell business equipment (or other non-inventory items) can still secure the priority position on new sales of business equipment (even over creditors with prior security interests containing after-acquired property clauses) so long as they file a financing statement within 10 days of delivery of the new equipment.
The principal balance of the loan and accrued but unpaid interest from time to time is secured by a charge over all present and after-acquired property of the Company and its wholly-owned subsidiaries in Canada and the United States.
The credit facilities will be secured by liens on all existing and after-acquired property (tangible and intangible) of the company and its subsidiaries.