When does a security interest not attach under an after-acquired property clause?

A security interest does not attach under an after-acquired property clause specifically when the goods are considered consumer goods acquired more than 10 days after value is given. This principle originates from UCC guidelines governing secured transactions. In the context of consumer goods, the law restricts the effectiveness of after-acquired property clauses to ensure that debtors are protected, particularly when they acquire new consumer goods after the security interest is established.

The rationale behind this limitation is primarily to prevent lenders from having a security interest in consumer goods purchased for personal use, which the debtor did not have when the security interest was created. This helps to maintain fairness in consumer transactions and ensures that consumers are not unduly encumbered by prior debts for property they have acquired after the fact.

In contrast, the other scenarios either do not pertain directly to the limitation on attachment under after-acquired property clauses or are situations where the security interest can still attach. For instance, if a debtor sells property, the existing security interest does not become void purely due to the sale, especially if the security interest was perfected before the sale occurred. Similarly, the issue of a debtor not claiming goods does not inherently affect the attachment of a security interest. Lastly, while a lack of a written agreement