The floating lien in American law: from historical accounts to digital assets

Christopher K. Odinet

Chapter 6 in Floating Charges in Comparative Perspective, 2025, pp 200-232 from Edward Elgar Publishing

Abstract: This chapter delves into the history and evolution of the floating lien in American law, paralleling the English floating charge, within the context of small business financing and the legal complexities surrounding security interests in property. It explores the political and practical motivations driving the need for such a mechanism, particularly concerning accounts receivable and inventory: both essential assets for commercial firms. Despite initial theoretical obstacles and judicial resistance, the narrative tracks the gradual acceptance and eventual drafting of Article 9 of the Uniform Commercial Code (UCC), which provided a framework for granting security interests in present and future assets. By tracing the journey from pre-UCC Article 9 to its enactment, the chapter provides valuable historical context and raises pertinent questions about the relevance and adaptation of the floating lien concept in the contemporary digital age under American commercial law.

Keywords: Floating lien; Article 9; Uniform Commercial Code; UCC; Small business financing; Security interests; Digital asset; US law (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035317134
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