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Kelly's Autos Inc

Question 32

Multiple Choice

Kelly's Autos Inc. borrows funds from Loan Company under a security agreement. Later, Kelly's buys new vehicles to add to its inventory. Loan Company has a security interest in the new vehicles


A) if the security agreement included an after-acquired property clause.
B) if the lender has not yet filed a financing statement.
C) if Kelly's bought the new vehicles with the lender's funds.
D) none of the choices.

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