Donnie applied to Bank for a $500,000 for the Chevrolet dealership that he owned as an equal general partner with Jeff. The Bank emailed Donnie, informing him that they would approve his loan if he granted Bank a security interest in “all of debtor’s inventory, whether now-owned or after-acquired.” The Bank also wrote in the email that, “Your receipt and acceptance of these funds will operate as your acceptance of these terms.”  The Bank then cut Donnie a check for $500,000, which Donnie endorsed and deposited into the dealership's checking account.  Six months later, the dealership defaulted on the loan.  A week later, Bank learned that the dealership had recently bought a brand new Corvette, which Donnie uses as his primary method of personal transportation and which has the dealership’s logo and contact info splashed across the hood and sides. 

Based on the above facts, can the Bank repossess the Corvette? 

1. No, because Donnie never authenticated a valid security agreement.

2. Yes.

3. No, because the security agreement does not cover the Corvette.

4. No; Donnie and Jeff own the dealership as equal partners, so Bank's security interest could not have attached to the Corvette without Jeff's approval.