Which of the following methods can be employed by lenders to control inventory that has been used as security for a loan?

Question

Quizplus · Accepted Answer

Lenders can employ blanket liens, trust receipts, and warehousing to control inventory that has been used as security for a loan. 
1. Blanket Liens: allow lenders to have a lien on all the borrower's assets that are collateral for a loan. In case the borrower defaults, the lender can seize the collateral to recover their money. 
2. Trust Receipts: are used when the borrower receives goods, but the title and ownership remain with the lender. The borrower holds the goods in trust and has a fiduciary responsibility to keep them secure until the loan is repaid. 
3. Warehousing: is the process of storing goods in a warehouse that is under the control of the lender. The borrower has to pay a fee to store the goods, and the lender can take possession of the goods if the borrower defaults on the loan.

Which of the Following Methods Can Be Employed by Lenders