Please provide guidance to answer below 3 question on Backhoe Exercise based on secured transaction with below details.

Eugene Ables ran an excavation company. He borrowed $500,000 from the Highland Park State Bank. Ables signed a note promising to repay the money and an agreement giving Highland Bank a security interest in all of his equipment, including after-acquired equipment.

Several years later, Ables agreed with Patricia Myers to purchase a Bantam Backhoe from her for $16,000, which he would repay at the rate of $100 per month, while he used the machine.

Ables later defaulted on his note to Highland and the bank attempted to take the backhoe.

Myers and Ables contends that the bank had no right to take the backhoe:

1. Is the backhoe covered by Highland's security interest?
2. Does Ables have sufficient rights in the backhoe for the bank's security interest to attach?
3. Who wins and why?