floating lien

Definition of "floating lien"
  1. A claim established by a security contract against possessions already held by the debtor when the deal is formed, as well as future possessions that the debtor might acquire
How to use "floating lien" in a sentence
  1. When the company faced financial problems, the bank enforced the floating lien on their assets.
  2. The floating lien gave creditors the right to claim both current and future assets of the indebted party.
  3. The businessman had to be careful while negotiating deals due to the floating lien on his properties.

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