A creditor may not be interested in specific pieces of property or inventory so a lien may be used to continue the security interest, even if the is sold, exchanged or otherwise disposed of. In addition, this type of lien may apply to goods that shift from to finished products. It will also apply later, when the products become inventory.

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Business

Kylie Trevino

3 January, 15:18

A creditor may not be interested in specific pieces of property or inventory so a lien may be used to continue the security interest, even if the is sold, exchanged or otherwise disposed of. In addition, this type of lien may apply to goods that shift from to finished products. It will also apply later, when the products become inventory.

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Terrell Stout · Answer 1

A creditor is not interested in specific pieces of inventory, because they are constantly changing, so the lien "floats" from one item to another as the inventory changes.

Explanation:

The withholding right is a conservative measure of the debtor's assets that entitles the creditor to delay the restitution of a body property owned by the debtor as long as he does not satisfy a credit that the retainer has in relation to the same thing. The retention is not an institution regulated in an organic way but is provided casuistically by the Civil, Commercial, General Code of the Process.

The legal effect of withholding is to legitimize the creditor to refuse to return the thing as long as the obligation is not paid or otherwise secured. It can be alleged both extrajudicially, and before a demand of the owner of the property seeking the restitution. In the latter case, the defendant must propose retention as an exception in the answer to the complaint.