The after acquired property clause is a requirement in a bond issue stipulating that any new equipment purchased after the issue be placed under the original mortgage.

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The after acquired property clause is a common provision in bond issues to protect the bondholders' interests. This clause requires that any new property or assets acquired by the issuer after the bond issue must be pledged as collateral to secure the bondholders' claims. This ensures that the bondholders have a claim not only on the original assets but also on any new property purchased later by the issuer.

The After Acquired Property Clause Is a Requirement in a Bond