A Plea for the Financing Buyer

Article 9 of the Uniform Commercial Code explicitly sanctions a security interest capable of floating over all of a borrower\u27s personal property, including property that is after-acquired. Its firm endorsement of the floating lien constitutes one of the Code\u27s 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