A(n) ________ is property that a debtor acquires after the execution of a security agreement.
A) floating lien
B) after-acquired property
C) attachment
D) future advance

Question

Quizplus · Accepted Answer

After-acquired property refers to property that a debtor acquires after the execution of a security agreement. It becomes collateral that secures the unpaid balance of a loan. The creditor has the right to repossess this property in case of default. Floating lien refers to a lien on a specific asset that changes its identity continually, while attachment is the legal process of seizing property to satisfy a judgment. Future advance refers to a credit facility where a creditor agrees to lend funds to a debtor on a revolving basis.

A(n) ________ Is Property That a Debtor Acquires After the Execution