floating lien
- 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
- When the company faced financial problems, the bank enforced the floating lien on their assets.
- The floating lien gave creditors the right to claim both current and future assets of the indebted party.
- The businessman had to be careful while negotiating deals due to the floating lien on his properties.
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