Chet moves to a new state in order to start a new business. He applies for a loan through a bank in his new state, and uses some valuable antique guns as collateral. Chet does not tell the bank that the guns are collateral for another loan in Chet's former state. That loan is currently in default. The new bank gives him the loan. Chet returns the guns to his vacation home in his former state, and they are immediately repossessed. May the new bank bring an action against Chet?

Question options:

a. Yes, the bank may bring an action for breach of contract.

d. No, the bank should have done a more thorough check of Chet's assets.

b. Yes, the bank may bring an action for fraudulent misrepresentation.

c. No, the bank is at fault for not taking possession of the collateral.