The terminal warehouse agreement differs from the field warehouse agreement in that
A) the cost of the terminal warehouse agreement is lower due to the lower degree of risk.
B) the borrower of the field warehouse agreement can sell the collateral without the consent of the lender.
C) the warehouse procedure differs for both agreements.
D) the terminal agreement transports the collateral to a public warehouse.

Question

Quizplus · Accepted Answer

In a terminal warehouse agreement, the collateral is stored in a public warehouse, whereas in a field warehouse agreement, the collateral remains on the borrower's premises.

The Terminal Warehouse Agreement Differs from the Field Warehouse Agreement