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0 tracked cards Supplemental - Not MEE July 2026

A retailer signed a security agreement covering "all inventory, now owned or later acquired." At signing, the retailer had no inventory. Two weeks later, the retailer bought inventory from a supplier.
When did the security interest attach to the inventory?

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The security interest attached only after default. The security interest never can attach to after-acquired inventory. With an effective after-acquired property clause, the security interest attached to the inventory when the debtor acquired rights in it. The security interest attached to the inventory only if the debtor paid cash for it.

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