A field warehouse, under Article 9 of the UCC, is:
A) one kind of a pledge.
B) a common arrangement for financing inventory.
C) an agreement that allows the debtor access to the pledged goods and simultaneously gives the secured party control over the pledged property.
D) All of these are true of a field warehouse.

Question

Quizplus · Accepted Answer

A field warehouse arrangement under Article 9 of the UCC can act as a form of pledge where inventory is used as collateral for financing. It allows the debtor to access the goods while the secured party maintains control, making it a common inventory financing method.

A Field Warehouse, Under Article 9 of the UCC, Is