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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.

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