Braudis owns and operates Como Brewing, a microbrewery operation in Columbia, MO, as a sole proprietor. Como has recently enjoyed tremendous success with its delicious, hand-crafted brews. This success has led a number of local bars and retail outlets to begin stocking Como’s prized beers.
To meet this increased demand Braudis borrows $500,000 from Bank to expand his brewing operation. Bank loans Braudis the money subject to a security interest in “all present and after-acquired beer-making equipment located at Como Brewing Co.’s manufacturing facility.” Using the loan proceeds, Braudis doubles his capacity by purchasing a new grain mill, two high-capacity mash tuns, two lautering tuns, two wort kettles, four fermenting vessels, and enough ingredients and supplies to sufficiently meet his demand. He also remodels a room in his building to turn it into a furnished “break room” for his employees. The break room is sports-bar themed and is stocked with Como beer, has a 50 in. plasma TV, a dart board, pool table, and seating area.
Within a year Braudis defaults. At the time of default Como has two grain mills, four mash tuns, four lautering tuns, four wort kettles, eight fermenting vessels, and half of the ingredients and supplies it purchased. Braudis’s only solace comes from spending time in his well-appointed break room, enjoying the few remaining bottles of Como beer, and watching Mizzou football on his 50in plasma TV. Which most likely describes the property is Bank entitled to repossess?
a. All of the grain mills, mash tuns, lautering tuns, wort kettles, and fermenting vessels
b. The plasma TV, dart board, and other equipment Braudis purchased for the break room
c. Only the grain mills, mash tuns, lautering tuns, wort kettles and fermenting vessels acquired using the proceeds of Bank's loan
d. A and B
e. B and C