Chemco Inc. ("Chemco") makes and sells cleaning supplies in liquid form. Packager LLC ("Packager"), a customer, is a company that bottles and packages cleaning supplies and sells them to retailers. Packager places an order with Chemco for 1,000 ounces of Master Orange Floor Cleaning Liquid, a product Chemco sells. Chemco delivers the liquid to Packager along with an invoice requiring payment in full by Packager within 30 days after delivery. Chemco and Packager have each borrowed money from different banks and have pledged all of their personal property to secure those loans. On the 30th day after delivery of the liquid, Packager is in financial trouble and can't afford to pay Chemco. Chemco agrees to take a promissory note under which Packager will pay Chemco over the course of a year. What type of collateral is the note? 

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The promissory note given by Packager to Chemco serves as collateral for the outstandin... View the full answer