floating lien

floating lien
A security interest retained in collateral even when the collateral changes in character, classification, or location. An inventory loan in which the lender receives a security interest or general claim on all of a company's inventory. Security interest under which borrower pledges security for present and future advances. John Miller Supply, Inc. v. Western State Bank, 55 Wis.2d 385, 199 N.W.2d 161, 163.
Such security is not only in inventory or accounts of the debtor in existence at the time of the original loan, but also in his after-acquired inventory or accounts. U.C.C. No. 9-204(4)

Black's law dictionary. . 1990.

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Look at other dictionaries:

  • floating lien — see lien Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. floating lien …   Law dictionary

  • Floating Lien — A legal claim placed on a set of assets rather than on a single asset. A floating lien is used when the smaller components of the general asset can change over time, such as in the case of the outstanding balances in a company s accounts… …   Investment dictionary

  • Floating lien — General lien against a company s assets or against a particular class of assets. The New York Times Financial Glossary …   Financial and business terms

  • floating lien — The name for and the nature of a creditor s interest in a debtor s accounts receivable and inventory. In the natural operation of any business, the specific receivables and inventory owned at one point in time are replaced over time by new… …   Financial and business terms

  • floating lien — (Finance) general attachment against the assets of a company or against a specific type of assets …   English contemporary dictionary

  • floating lien — A security interest retained in collateral even when the collateral changes in character, classification, or location. An inventory loan in which the lender receives a security interest or general claim on all of a company s inventory. Security… …   Black's law dictionary

  • LIEN — (Heb. שִׁעְבּוּד נְכָסִים, Shibud Nekhasim). The Concept Jewish law enables the creditor to exercise a lien over all the debtor s property, in addition to his remedies against the debtor personally. This lien automatically comes into existence on …   Encyclopedia of Judaism

  • Floating charge — A floating charge is a security interest over a fund of changing assets of a company or a limited liability partnership (LLP), which floats or hovers until conversion into a fixed charge, at which point the charge attaches to specific assets. The …   Wikipedia

  • Lien — For other uses, see Lien (disambiguation). Property law …   Wikipedia

  • lien — /liy(a)n/ A claim, encumbrance, or charge on property for payment of some debt, obligation or duty. Sullins v. Sullins, 65 Wash.2d 283, 396 P.2d 886, 888. Qualified right of property which a creditor has in or over specific property of his debtor …   Black's law dictionary

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