Problem. Cross collateral

     In January a buyer purchases a refrigerator from Sears, signing a two year retail installment contract granting Sears a security interest in the refrigerator to secure the installment payments. Half a year later, the same buyer purchases a dishwasher from Sears and signs a second retail installment contract. In the second retail installment contract the debtor grants Sears a security interest in the dishwasher to secure repayment of the debt reflected in the second contract. But Sears, like Walker Thomas Furniture, may want more. Sears may want the second contract to provide that the refrigerator purchased earlier serve as additional collateral for the debt on the dishwasher and/or that the dishwasher serve as additional collateral for the remaining debt on the refrigerator. In either case, Sears will have sought cross-collateral.

     Did Walker-Thomas Furniture take cross collateral? Carefully reread the clause quoted by the court in Williams v. Walker-Thomas Furniture. Would Sears be permitted to take cross-collateral under U.C.C.C 3.302?  Under U.C.C.C 3.303 would Sears be permitted to allocate payments in the same way as did Walker-Thomas Furniture? Is U.C.C.C 3.302 consistent with the U.C.C. 9-204(b)(1) limit on the reach of after-acquired property clauses in consumer transactions.