Kwik Credit Corporation asks Little Supply Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired prop?erty. This is

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A security agreement that covers the proceeds from the sale of after-acquired property is called a floating lien. It means that the lender has a security interest in whatever property the borrower acquires during the term of the loan. This type of security agreement is allowed under secured transactions law as long as it meets certain requirements, such as being properly documented and filed.

Kwik Credit Corporation Asks Little Supply Company to Agree to a Security