John owns a restaurant and needs to take out a loan to put an addition to his bar. Local Bank lends John $5,000 and has John sign a security agreement that grants Local Bank a security interest in “all equipment associated with Debtor's restaurant as well as any of the restaurant's accounts.” Payment was due in full on August 31, but was not timely made. When Local Bank begins to investigate further, it discovers that John has not completed the bar; all of the lumber he bought is still on the ground waiting to be used.
Which of the following items of John's property may Local Bank properly repossess or collect in enforcing its security interest?
1. John’s checking account that he uses for operating the restaurant
2. The lumber and materials John intended to build the bar with
3. The BMW convertible John bought during his "midlife crisis," and which he sometimes drives to and from work
4. The right to collect $2,000 from Smith & Smith for a party that John's restaurant catered