floating lien means: A general attachment can be made against the assets of a company or against one class of assets. (in Stock Market Dictionary)
What else does floating lien mean?
- Security interest in property remains intact even after specific items are changed. A business may be able to obtain loans by providing collateral such as a general security right in its inventory and accounts receivable. While the actual property may change, such as winter boots becoming summer sandals in an inventory, a floating lien will continue to ensure that the creditor is protected by valuable assets. (in Legal Dictionary)