A security agreement provides that the agreement and collateral covers the current loan but also any future loans from this creditor to this debtor.This provision covers:

Question

Quizplus · Accepted Answer

The provision that covers any future loans from the creditor to the debtor is known as a future advance clause. This means that any additional loans given to the debtor will be covered by the same security agreement and collateral. Therefore, the correct choice is C, which represents future advances.

A Security Agreement Provides That the Agreement and Collateral Covers