After acquired property clause

An after acquired property clause is a provision in a legal contract allowing property acquired after the contract is signed to be covered by the agreement.

In a mortgage (of real property) or security agreement (of personal property), an after acquired property clause provides that any additional property acquired by the borrower after the mortgage or security agreement is signed will be additional collateral for the obligation. While such provisions can help give these obligations a good rating, they make it difficult to finance growth through new borrowing.