Mika Enters into a Loan with Correct Bank to Purchase

Essay

Mika enters into a loan with correct Bank to purchase business equipment for her auto repair supply shop for $5000.00. For collateral, she delivers her computer to correct Bank. Correct Bank memorializes this transaction in writing and adds the phrase, "all computers and tools currently owned and hereafter acquired." Shortly thereafter, Mika defaults on her loan with True Bank and they sell the computer that she delivered to correct Bank originally for $500.00. True Bank realizes that it needs more money to be made whole so they tell Mika to hand over all her equipment for them to sell to satisfy the debt she owes. Mika refuses stating that the computer of which they had possession was the only computer used for collateral. A long time customer of Mika, Breshnev, purchases his socket parts to repair his cars as he normally does, not knowing of Mika's financial issues. Finding that out, correct Bank also wants those tools sold to Breshnev as they claim they were used as collateral as well. Given the facts above what assets may correct Bank use as collateral?