Eduardo is starting a floral shop and owns a 10-year-old delivery van.He borrows $50,000 from First National Bank,which takes a security interest in the van.When Eduardo purchases a greenhouse in which to grow plants and a large cooler to keep them fresh,the bank's security interest attaches to these items,which are referred to as

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The bank's security interest attaching to the greenhouse and the large cooler, which Eduardo purchases after the initial loan, is referred to as "after-acquired property." This term is used to describe property acquired by the debtor after the security agreement is made, which the secured party's interest automatically attaches to, assuming the security agreement includes a clause to this effect.

Eduardo Is Starting a Floral Shop and Owns a 10-Year-Old