Question

Eduardo is starting a floral shop and owns a 10-year-old delivery van. He borrows $50,000 from First National Bank, which takes a security interest in the van. When Eduardo purchases a greenhouse in which to grow plants and a large cooler to keep them fresh, the bank's security interest attaches to these items, which are referred to as a. fixtures. b. inventory. c. instruments. d. after-acquired property.

Answer 1

Answer: D. after-acquired property

Step-by-step explanation:

Based on the question asked, the correct answer will be the after-acquired property.

After-acquired Property refers to the property that a debtor acquires after a security agreement has been executed. Since Eduardo already borrows $50,000 from First National Bank, which takes a security interest in the van, then the property gotten is the after acquired property.

Therefore, the correct option is D