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german
3 years ago
15

The after-acquired property clause continues the secured party's claim to any acquired thereafter.True or false?

Law
1 answer:
Katarina [22]3 years ago
6 0

Answer:

TRUE

Explanation:

The after acquired property clause is an item that can be part of a legal contract, which stipulates that that the property that gets acquired rightly after the date the contract was assigned, can be further used as part of security in the legal agreement that was initially signed.

This makes any new property fit to be used as collateral during debt collection. The property clause continues the second party’s claim to any inventory obtained afterwards.

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