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Hermione owns a pet shop, selling puppies and kittens to loving families

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Hermione owns a pet shop, selling puppies and kittens to loving families.

On January 5, Hermione borrows $50,000 from Friendly Bank to purchase inventory (more puppies and kittens). The security agreement contains an after-acquired property clause. In March, Hermione purchases a rare Burmese kitten, using money she borrowed from Friendly Bank. If Hermione defaults on her loan to Friendly,


Select one:
a.
Friendly can repossess all of the unsold puppies and kittens, including the Burmese kitten.
b.
Friendly can repossess all of the unsold puppies and kittens, except the Burmese kitten.
c.
Friendly can't do anything. How can a bank care for puppies and kittens.
d.
Friendly can repossess all of the puppies and kittens, even those that were sold.