Middling Credit Corporation asks Little Supply Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is

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A security agreement that covers proceeds from the sale of after-acquired property creates a floating lien. This allows the lender to have a security interest in future property (after-acquired property) that is not yet in the possession of the debtor at the time the security agreement is formed. This is a common practice in secured transactions law.

Middling Credit Corporation Asks Little Supply Company to Agree to a Security