Kahl Printing Enters into a Loan with Universal Bank Wherein

Multiple Choice

Kahl Printing enters into a loan with Universal Bank wherein Kahl Printing uses all of its printing press equipment as collateral. Kahl Printing, including all the business assets, is bought by Scotty Printing. Shortly thereafter, Kahl Printing defaults on its loan to Universal Bank. Which of the following statements is correct?

A) Universal Bank may bring legal actions against the previous owners of Kahl Printing.
B) Universal Bank may sue the owners of Scotty Printing.
C) The security interest stays with the assets of Kahl Printing upon transfer of ownership of the business to Scotty.
D) Universal Bank may reclaim the printing press equipment.