Joan borrows money from Jake under a security agreement. After borrowing the money, Joan buys a new kayak. The kayak is considered
A) a floating lien.
B) after-acquired property.
C) a future advance.
D) proceeds.

Question

Quizplus · Accepted Answer

The kayak is considered after-acquired property because it was acquired by Joan after she borrowed money from Jake under a security agreement. This means that Jake has a security interest in the kayak as collateral for the loan.

Joan Borrows Money from Jake Under a Security Agreement