First Bank loans Elizabeth $100,000 to open a bakery. Elizabeth signed a security agreement granting First Bank a security interest in several industrial ovens, and all of her business equipment. The security agreement did not contain an after-acquired property clause. Six months later, Elizabeth’s business is going well, and so she purchased two additional industrial ovens. One year later, things took a turn for the worse and Elizabeth defaulted on her loan. First Bank seeks to repossess all of Elizabeth’s baking equipment, including the two industrial ovens that she purchased six months after signing the security agreement. Can First Bank repossess those two industrial ovens?
1. No, because no security interest ever attached to the two after-acquired ovens.
2. No, because the security agreement was more than one year old before Elizabeth defaulted.
3. Yes, because the new ovens are proceeds of the original loan.
4. Yes, because they are "business equipment" covered by the terms of the security agreement.