| Notice filing has proved to be of great use in financing |
transactions involving inventory, accounts, and chattel paper, |
because it obviates the necessity of refiling on each of a series |
of transactions in a continuing arrangement under which the |
collateral changes from day to day. However, even in the case of |
filings that do not necessarily involve a series of transactions |
(e.g., a loan secured by a single item of equipment), a financing |
statement is effective to encompass transactions under a security |
agreement not in existence and not contemplated at the time the |
notice was filed, if the indication of collateral in the |
financing statement is sufficient to cover the collateral |
concerned. Similarly, a financing statement is effective to |
cover afteracquired property of the type indicated and to perfect |
with respect to future advances under security agreements, |
regardless of whether after-acquired property or future advances |
are mentioned in the financing statement and even if not in the |
contemplation of the parties at the time the financing statement |
was authorized to be filed. |