The concept of a floating lien applies to a constantly changing inventory.

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A floating lien is a type of security interest that attaches to a constantly changing inventory or group of assets, rather than to specific, identifiable assets. It allows the lender to maintain a security interest in the inventory despite the fact that it is constantly changing, meaning that new items are added and old items are sold or otherwise disposed of. This makes it a useful tool for businesses that need to maintain a revolving inventory, such as retailers or manufacturers.

The Concept of a Floating Lien Applies to a Constantly