Section 3: Creation of Security Interest

(1) A Security Interest is created by a Security Agreement between a Grantor and Creditor.
(2) The Security Interest in any asset acquired by a Grantor after the coming into force of the Security Agreement shall take effect without further consent or any other act of the Grantor at the moment the Grantor acquires such asset where:
(a) the asset falls under the Collateral description in the Security Agreement; and
(b) the Security Agreement provides that the Security Interest extends to the Grantor's present and future assets.