ASSIGNED ACCOUNT
A type of secured transaction whereby an account
receivable is pledged to a bank, factor, or other
lender to secure the repayment of a loan.
It is common commercial practice for a
manufacturer or wholesaler to sell inventory on
open account, a debt owed to the seller of inven-
tory that is to be repaid by its buyer as the mer-
chandise is sold. This arrangement creates an
account receivable that the seller uses as collat-
