Question
Cruella Deville owns a pet shop. On January 5, she borrows $50,000 from Feline Bank to purchase puppies. Feline Bank takes a security interest in
Cruella Deville owns a pet shop. On January 5, she borrows $50,000 from Feline Bank to purchase puppies. Feline Bank takes a security interest in all of Cruella's inventory and after-acquired inventory. In March, Devillepurchases a rare Burmese kitten on credit from CatWoman, who notifies Feline Bank before the Burmese is delivered and files a financing statement. If Deville defaults on all her loans, who gets the Burmese kitten?
a.
FelineBank cannot repossess any of the puppies or kittens; how can a Bank properly care for them?
b.
Feline Bankcan repossess all of the puppies and kitten since it had an after-acquired inventory clause.
- Bank can repossess all of the puppies and kitten since it had an after-acquired inventory clause.
- Bank can repossess all of the puppies and kitten since it had an after-acquired inventory clause.
c.
Feline Bankcan repossess all of the puppies but not the Burmese kitten because CatWoman has a PMSI and notified Feline Bank before delivery.
d.
Catwoman can repossess all of the puppies and the Burmese kitten.
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