Page:United States Statutes at Large Volume 77.djvu/784

 752 D.c, Code 40901 to 40-910.

PUBLIC LAW 88-243-DEC. 30, 1963

[77 STAT.

on iiiotor vehicles, and chapter 9 of Title 40, relatinjr to installment sales of motor vehicles, and in the case of conflict between the provisions of this article and any such statute, the provisions of such statute control. Failure to comply with any applicable statute has only the effect which is specified therein. § 28:9—204. When security interest attaches; after-acquired property; future advances (1) A security interest cannot attach until there is agreement (subsection (3) of section 28:1—201) that it attach and value is given and the debtor has rights in the collateral. It attaches as soon as all of the events in the preceding sentence have taken place iniless explicit agreement postpones the time of attaching. (2) For the purposes of this section the debtor has no rights (a) in crops until they are planted or otherwise become growing crops, in the young of livestock until they are conceived; (b) in fish until caught, in oil, gas or minerals until they are extracted, in timber until it is cut; (c) in a contract right until the contract has been made; (d) in an account until it comes into existence. (3) Except as provided in subsection (4) a security agreement may provide that collateral, whenever actjuired, shall secure all obligations covered by the security agreement. (4) Xo security interest attaches under an after-acquired property clause (a) to crops which become such more than one year after the security agreement is executed except that a security interest in crops which is given in conjunction with a lease or a land purchase or improvement transaction evidenced by a contract, mortgage or deed of trust may if so agreed attach to crops to be grown on the land concerned during the period of such real estate transaction; (b) to consumer goods other than accessions (section 28:9— 314) when given as additional security unless the debtor acquires rights in them within ten days after the secured party gives value. (5) Obligations covered by a security agreement may include future advances or other value whether or not the advances or value are given pursuant to commitment. §28:9—205. Use or disposition of collateral without accounting permissible A security interest is not invalid or fraudulent against creditors by reason of liberty in the debtor to use, commingle or dispose of all or part of the collateral (including returned or repossessed goods) or to collect or compromise accounts, contract rights or chattel paper, or to accept the return of goods or make repossessions, or to use, commingle or dispose of proceeds, or by reason of the failure of the secured party to require the debtor to account for proceeds or replace collateral. This section does not relax the requirements of possession where perfection of a security interest depends upon possession of the collateral by the secured party or by a bailee. §28:9—^206. Agreement not to assert defenses against assignee; modification of sales warranties where security agreement exists (1) Subject to any statute or decision which establishes a different rule for buyers or lessees of consumer goods, an agreement by a buyer or lessee that he will not assert against an assignee any Claim or defense which he may have against the seller or lessor is enforceable by an assignee who takes his assignment for value, in good faith and without notice of a claim or defense, except as to defenses of a type which may be asserted against a holder in due course of a negotiable instru-

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