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floating lien

Also found in: Medical, Legal, Encyclopedia, Wikipedia, Hutchinson

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Floating lien

General attachment against a company's assets or against a particular class of assets.

floating lien

Sometimes refers to the lien of an anaconda mortgage that attaches to additional property acquired after a mortgage loan is originated. More properly refers to a lien on goods or inventory that change constantly, as in financing for a retail establishment.The lien floats among items as they come into the store and are available for sale,detaching itself as the goods are sold to consumers.

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