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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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