Question
Tyler Prairie borrows money from City Bank to purchase inventory for his business, Farmers Galore. The bank takes a security interest in all of Tyler's
Tyler Prairie borrows money from City Bank to purchase inventory for his business, Farmers Galore. The bank takes a security interest in all of Tyler's inventory. Farmer Fiona purchases a tractor from Tyler. Which of the following is true?
Select one:
a.City Bank loses its security interest in the tractor and the proceeds as soon as the tractor is sold.
b.
City Bank's security interest in the tractor automatically switches to a security interest in Tyler's car.
c.
City Bank has an automatic security interest in the proceeds from the sale of the tractor for a limited time.
d.
City Bank retains its security interest in the tractor that Fiona now owns.
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