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 is called a floating lien. This is legal and allowed under secured transactions law. A first-in, first-out rule is a method of inventory accounting, and a funds guaranty is a promise to ensure the availability of funds for a particular transaction or purpose.

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