### Question
How does the law define commercial transactions financing agreement?


### Answer
Under *26 U.S.C. § 6323*, **commercial transactions financing agreement** is defined as:

> an agreement (entered into by a person in the course of his trade or business)—



(i) to make loans to the taxpayer to be secured by commercial financing security acquired by the taxpayer in the ordinary course of his trade or business, or



(ii) to purchase commercial financing security (other than inventory) acquired by the taxpayer in the ordinary course of his trade or business

#### Citation:
  - *26 U.S.C. § 6323*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 64-COLLECTION > Subchapter C-Lien for Taxes > PART II-LIENS**

