In a security agreement with AAA Machine Parts Inc., Business Loan Company wants to include a description of the collateral. A sufficient description would be
A)"all the debtor's personal property."
B)"all the debtor's assets."
C)"all the debtor's present and future inventory."
D)any of the choices.

Question

Quizplus · Accepted Answer

A sufficient description of collateral in a security agreement must reasonably identify what is covered. Choice C, "all the debtor's present and future inventory," provides a specific category of assets, making it a sufficient description. Choices A and B are too broad and unspecific, failing to reasonably identify the collateral.

In a Security Agreement with AAA Machine Parts Inc