In hopes of improving his social life Peter purchased a new MX-5 Miata from Midlife Mazda for $35,000, putting $5,000 down and financing the balance with a loan from Shark Lending, for which he made a negotiable promissory note payable to Shark. The note is payable in equal monthly installments, together with interest at 12% per year, for a term of seven years. Peters agreement with Shark provided that in the event Peter defaults on the loan Shark is permitted to repossess the Miata. Shark did all it could under applicable state law relating to promissory notes and secured transactions to help assure that it would ultimately be fully paid on the loan, even though it knew that the Miata Peter purchased partly secured an inventory loan Midlife had with B Bank. Peter took title to the car, and happily drove off to try and find a date. In these circumstances the loan note, and related security transactions are primarily covered under

a. mortgage lending law c. UCC Article 3

b. federal Bankruptcy law d. UCC Article 9 e. c and d, together, are correct

I had previously thought that the question is E, since a negotiable instrument is involved, qualifying for UCC Article 3. In addition, since the car is used for collateral on the loan, it qualifies for UCC Article 9 as well.