After-Acquired Clause

A provision included in legal contracts ensuring that subsequent acquisitions of assets will be included in the debtor's liability to the lender.

This clause is used to provide extra protection to lenders. The clause ensures that new purchases can be seized if previously held loan payments are defaulted. This type of clause is commonly included in bond indentures and mortgage agreements.


Investment dictionary. . 2012.

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  • after-acquired — Acquired after a particular date or event. Thus, a judgment is a lien on after acquired realty, i.e., land acquired by the debtor after entry of the judgment See also after acquired property; after acquired property clause after acquired title …   Black's law dictionary

  • after acquired property — Property of debtor which is acquired after security transaction covering property already owned is perfected. Property acquired after the date of the agreement usually becomes additional security for payment of the indebtedness if an after… …   Black's law dictionary

  • after-acquired property — Property of debtor which is acquired after security transaction covering property already owned is perfected. Property acquired after the date of the agreement usually becomes additional security for payment of the indebtedness if an after… …   Black's law dictionary

  • after acquired property clause — A clause in a mortgage providing that any property acquired by the borrower after the date of the loan and mortgage will automatically become additional security for the loan …   Black's law dictionary

  • after-acquired property clause — A clause in a mortgage providing that any property acquired by the borrower after the date of the loan and mortgage will automatically become additional security for the loan …   Black's law dictionary

  • after-acquired property clause — A provision in a bank s documents, the purpose of which is to extend the bank s interest in the debtor s property to property not owned by the debtor at the time of the transaction but subsequently acquired by the debtor. American Banker Glossary …   Financial and business terms

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  • Grandfather clause — A grandfather clause is a term used in U.S. English for an exception that allows an old rule to continue to apply to some existing situations, when a new rule will apply to all future situations. It is often used as a verb: to grandfather means… …   Wikipedia

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