Dependable Credit Corporation asks Elevator 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
A)a first-in,first-out rule.
B)a floating lien.
C)a funds guaranty.
D)a future advance.

Question

Quizplus · Accepted Answer

A floating lien allows for collateral to be added to a security agreement after it has been established, which includes the proceeds from the sale of after-acquired property. A first-in,first-out rule pertains to inventory management, a funds guaranty pertains to the guarantee of funds from a specific source, and a future advance pertains to a loan agreement where funds will be advanced at a later date.

Dependable Credit Corporation Asks Elevator Supply Company to Agree to a Security