On January 1, 2012, Capaha Bank made a loan to Widgetech, a small-scale widget manufacturer, in the amount of $50,000. Dave, Widgetech’s CEO, properly authenticated a security agreement granting Capaha Bank a security interest in “all of Widgetech’s equipment, now owned and after-acquired.” At the time the loan was made, Widgetech owned one widget press (a machine used to give widgets their shape) and one widget sorting machine. On January 5, Widgetech sold the widget sorting machine to Earl for $2,000, because Widgetech has never had that much business and thus has decided to cut down on overhead by sorting the widgets by hand. Earl had no idea that Capaha Bank had a security interest in the widget sorting machine. Earl took possession of the sorting machine on January 5 and Widgetech put the cash from the sale in a safe at Widgetech headquarters. On January 12, Capaha Bank finally filed a UCC-1 financing statement with the appropriate authority covering its security interest in all of Widgetech’s equipment, now owned or after-acquired.
By March of 2012, Widgetech had defaulted. Which of the following describes all of the collateral that Capaha Bank may legally repossess?
1. The widget press only.
2. Both the widget press and the widget sorting machine.
3. The widget press and the $2000.
4. The widget press, the widget sorting machine, and the $2000.