Asked by Nabil Abdulkadir on Jun 05, 2024
Verified
A ____ gives the lender a claim against all inventories held by the borrower.
A) warehousing arrangement
B) chattel mortgage agreement
C) trust receipt
D) blanket lien
Blanket Lien
A lien that gives the lienor the entitlement to take possession of any or all of the lienee's real and personal property to satisfy a debt.
Chattel Mortgage Agreement
An arrangement where a loan is secured by moveable personal property, which remains in the possession of the borrower.
Trust Receipt
A document issued by a bank to a buyer who has received merchandise but not yet paid for it, acknowledging that the buyer holds the goods in trust for the bank until payment is made.
- Attain an understanding of the principles involved in the administration of working capital and its parts.
Verified Answer
MH
Malina HernandezJun 11, 2024
Final Answer :
D
Explanation :
A blanket lien is a type of security interest that gives the lender a claim against all assets or inventories held by the borrower. This means that if the borrower defaults on the loan, the lender can seize any or all of the borrower's assets, including inventory, to recover the debt.
Learning Objectives
- Attain an understanding of the principles involved in the administration of working capital and its parts.