Can a security interest be created in future accounts?

A security interest can indeed be created in future accounts under the Uniform Commercial Code (UCC), specifically section relating to security interests in accounts and other intangibles. The key factor here is that the security agreement must explicitly allow for the encumbrance of future accounts. This means that while future accounts are not currently in existence at the time the security agreement is executed, the agreement can still encompass those accounts as long as it clearly indicates the intention to include them.

By allowing for future accounts, the security interest remains flexible and applicable to any accounts that may arise later, providing creditors with a wider net for potential security. For there to be a valid security interest in future accounts, it must be adequately described in the security agreement, ensuring that the creditor's rights are enforceable as future accounts come into being.

This is why the answer indicating that a security interest can be created in future accounts, provided the security agreement allows it, accurately reflects the standards established by the UCC.