Define future advances and explain how covering future advances in the security agreement benefits the creditor.
What will be an ideal response?
A security agreement may cover extensions of credit to be made in the future. Such later extensions of credit are known as future advances. By covering future advances in the security agreement, the creditor can use the collateral to protect his interest in repayment of the money advanced to the debtor at a later time. The creditor also saves transaction expense; the creditor does not need a new agreement for each future advance.
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Hole Sailors, Inc sold merchandise on credit with a list price of $12,000. Terms were 1/20, n/45. Which of the following entries correctly applies the indicated method to record the sale?
A) ?Net Price MethodAccounts Receivable 10,800Sales 10,800 B) Net Price MethodAccounts Receivable 11,400Sales 11,400 C) ?Net Price MethodAccounts Receivable 12,000Sales 12,000 D) ?Gross Price MethodAccounts Receivable 12,000Sales 12,000
A(n) ________ refers to a security interest in property that was not in the possession of the debtor when the security agreement was executed
A) floating lien B) after-acquired property C) attachment D) future advance
Online IPOs are a frequent occurrence that has brought ________ to the marketplace of securities
A) efficiency B) predictability C) privacy D) accountability
My English professor said that my paper could ____ been better organized and more concise
A) of B) have