A Plea for the Financing Buyer (with Thomas Jackson), 85 Yale L.J. 1 (1975)
Article 9 of the Uniform Commercial Code explicitly sanctions a security interest capable of "floating" over all of a borrower's personal property, including property that is "after-acquired." Its firm endorsement of the floating lien constitutes one of the Code's most significant contributions to the law of chattel security. The draftsmen of Article 9 recognized, however, that there are difficulties inherent in allowing unbridled floating liens. Under such a provision, an unyielding creditor may be able to frustrate future outside borrowing by his debtor, since any future lender will be confronted with the fait accompli of a prior perfected security interest that gives the already secured party priority even for subsequent advances.
Date of Authorship for this Version
Kronman, Anthony Townsend and Jackson, Thomas H., "A Plea for the Financing Buyer" (1975). Faculty Scholarship Series. Paper 1076.