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LSDefine

Simple English definitions for legal terms

floating lien

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A quick definition of floating lien:

A floating lien is a way for a business to use its inventory or accounts receivable as collateral for a loan. The lender has a general security interest in the assets, even if they change over time. The business can continue to use the assets as long as they make their loan payments. But if they don't, the lender can take the assets or sell them to make up for their losses. If the business goes bankrupt, the floating lien becomes fixed, and the lender may have to fight with other creditors to get their money back.

A more thorough explanation:

A floating lien is a type of security interest that a business can use to obtain loans. It involves using a group of assets, such as inventory or accounts receivable, as collateral. The assets can change in quantity and value over time, but the lien remains in place to assure the creditor that their loan is secured by valuable assets.

For example, a clothing store may use a floating lien to obtain a loan. The inventory of the store changes with the seasons, but the creditor knows that they can always rely on the value of the inventory as collateral for the loan.

However, if the debtor defaults on payments or triggers another event set out in the loan, the floating lien becomes fixed. This means that the assets become fixed, and the debtor can no longer use the collateral. The creditor can then retrieve missed payments or sell the collateral to make up for losses.

It's important to note that floating liens can become complicated for lenders if the debtor files for bankruptcy. At this point, any floating liens become fixed, and the lender must contend with other lenders and the underleveraged state of the debtor. The lender must make sure to petition during the bankruptcy proceedings to recover the collateral, receive some form of compensation, or negotiate a new lien on assets of the business.

floating easement | Florida

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m10
20:42
Get the ones that are dressed up then!
@JumpySubsequentDolphin: LITERALLY I also just applied to work at garage cuz 50% EMPLOYEE DISCOUNT
m10
20:43
Or legacy collection v1
JumpySubsequentDolphin
20:43
@SplitterusClitterus: GARAGE JEANS FIT ME SO WEIRDLY WHICH SUCKS BC THEYRE SO CUTE
m10
20:43
The cool thing about V2 was it was an infinitely generating collection so they would have never sold out but they ended it early cus of the bear market.
@JumpySubsequentDolphin: NAURRR i need to try them on to see. ive never owned anything from them exceot maybe a tank in middle school?? but ive been a longtime lurker/windowshopper/fan
JumpySubsequentDolphin
20:45
SPLITTY if their jeans fit on my thighs they’re too big on my waist!!! it’s so frustrating
NOOO THEIR WHITE GIRL JEANS actually idk why im surprised
THEYRE**** THAT WAS AUTOCORREXT I SWEAR
babycat
20:46
@m10: infinitely generating means it comes up with new pictures? or new copies of the same pictures?
JumpySubsequentDolphin
20:46
if you’re the slightest bit curvy they are so obnoxious. me and my Abercrombie curve love’s are good together
SHUT UP I LOVE ABERCROMBIE JEANS
m10
20:47
Did y'all see this from ararara last night? https://studicata.com/case-briefs/all/
THOSE FIT SOO GOOD. i desperately need new jeans tho i ahvent gone shopping in millennia so a discount would come in clutch
JumpySubsequentDolphin
20:48
I got these jeans from re/done on a crazy sale and I love them BYT RHEY HAVE FIVE BUTTONS
JumpySubsequentDolphin
20:48
I DIDNT REALIZE WHEJ I BOUGHT THEM BC THEYRE HIDDEN. LIKE INSTEAD OF A ZIPPER THEYREBALL BUTTONS
JumpySubsequentDolphin
20:48
what if I have to pee.
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
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