Dependable Credit Corporation asks Electric Supply Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired prop?erty. This is

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A security agreement that covers after-acquired property is known as a floating lien. This means that the lender's security interest "floats" over whatever assets the borrower owns at any given time, including those acquired after the loan is made. This is a common type of security agreement in commercial lending. Choice A is incorrect because it refers to a different concept related to inventory accounting. Choice C (funds guaranty) and choice D (future advance) are not directly related to the concept described in the question.

Dependable Credit Corporation Asks Electric Supply Company to Agree to a Security