The inventory loan arrangement in which all of the borrower's inventories are used as collateral is termed a
A) terminal warehouse agreement.
B) floating lien agreement.
C) chattel mortgage agreement.
D) field warehouse financial agreement.

Question

Quizplus · Accepted Answer

A floating lien agreement is a type of inventory loan arrangement where all of the borrower's inventories are used as collateral. This means the lien "floats" over the entire inventory, regardless of changes in the quantity or type of inventory.

The Inventory Loan Arrangement in Which All of the Borrower's