When a lender uses trust receipts in financing a borrower's inventory:
A)the specific units of inventory pledged as collateral are identified.
B)the lender has a general claim on all of the borrower's inventory.
C)the lender retains physical control over the inventory.
D)public warehouses are frequently utilized.

Question

Quizplus · Accepted Answer

Trust receipts specifically identify the units of inventory pledged as collateral, giving the lender targeted security for their loan.

When a Lender Uses Trust Receipts in Financing a Borrower's