Two years ago, Cook County Bank loaned $750,000 to All Seasons Property Care, LLC (“All Seasons”), repayable in five years. All Seasons is a local company which offers landscaping services, snow removal, and swimming pool maintenance. All Seasons bills customers the day service is provided and gives customers 30 days to pay the bill. The loan was to be secured by all of the debtor’s assets, and All Seasons signed a Security Agreement that described the collateral as “all inventory, equipment, accounts receivable, fixtures and all other tangible personal property of the Debtor.”

Last month, All Seasons defaulted on the loan. Cook County Bank would like to begin collecting the outstanding accounts owed to All Seasons by their customers.

With respect to accounts receivable, which statement best describes Cook County Bank’s security interest?

1. The Security Agreement grants Cook County Bank a security interest only in the accounts receivable held by All Seasons at the time the agreement was executed because, in accordance with the general prohibition in pre-Code law, the UCC does not permit security interests in after-acquired property.

2. The Security Agreement grants Cook County Bank a security interest only in the accounts receivable held by All Seasons at the time the agreement was executed because the UCC requires an after-acquired property clause to create a valid security interest in future assets and this agreement contains no such clause.

3. The Security Agreement grants Cook County Bank a security interest in all accounts receivable held by All Seasons, including after-acquired accounts.

4. The Security Agreement grants Cook County Bank a security interest only in the accounts receivable held by All Seasons at the time the agreement was executed because the UCC does not permit security interests in after-acquired accounts unless the debtor acquires rights in them within 10 days after the secured party gives value.

5. The Security Agreement did not attach to any of the debtor's accounts because the description contains a supergeneric property description and thus does not reasonably identify the collateral.