Bagsby owns a business selling insects for organic gardening.Bagsby is seeking a loan from First Natural Bank.The loan officer is asking that the loan be secured by Bagsby's inventory of insects,now owned or hereafter acquired.In order to do this,a new security agreement will need to be signed each time Bagsby gets new insects or sells his insects.

Question

Quizplus · Accepted Answer

A security agreement for a loan can be drafted to include after-acquired property, meaning it can automatically cover inventory that Bagsby acquires in the future without the need to sign a new agreement each time new insects are acquired or sold.

Bagsby Owns a Business Selling Insects for Organic Gardening