Under a Floating Lien

question 425

Multiple Choice

Under a floating lien:

• A) specific collateral only is used
• B) when collateral is sold the lien expires
• C) new inventory is unavailable to replace old collateral
• D) new inventory is used to replace collateral that is sold
• E) real estate is the collateral used

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Definitions:

Escrow Agent

A neutral third party responsible for holding assets in trust until predetermined contractual conditions are met.

Insect Infestation

The presence of large numbers of insects in a place, causing damage or disease to crops, buildings, or animals.

Structural Defects

Flaws or imperfections in the construction or design of a building or structure that can affect its stability, safety, or usability.

Electrical Problems

Issues related to electrical systems and components, characterized by faults or malfunctions in wiring, devices, or circuits, often requiring professional diagnosis and repair.