A(n)________ provision in the security agreement allows the security interest of the creditor to also apply to goods the debtor acquires at a later time.

Question

Quizplus · Accepted Answer

A floating lien provision allows the creditor's security interest to cover not only the goods currently owned by the debtor but also any goods they acquire in the future. This contrasts with an attachment provision, which only covers the specific goods listed in the security agreement.

A(n)________ Provision in the Security Agreement Allows the Security Interest