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Debtor inventory for collateral

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What risks are there for lender who relies on the debtor's inventory for collateral? Although the rule (a buyer in the ordinary course of business takes the item free of an inventory security interest) makes buyers more willing to purchase items from inventory, doesn't this same rule discourage lenders from financing inventory? What can lenders, who rely on merchants' inventories for collateral, do to protect themselves?

Reference no: EM133145287

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