Snow White is stuck in a secluded forest with seven dwarfs until Prince Charming comes to rescue her. Out of sheer boredom, she decides to pick apples and candy them to sell to locals who want a tasty treat. The apples have been selling like hotcakes, and the surrounding crop of apple trees are almost picked bare because of the high demand.
Snow White decides to go public and start mass-producing the apples to sell throughout all the land. She goes to the Forest Bank and offers to put her mother's golden locket up as collateral for money to buy a machine that will help her candy the apples at triple the pace as well as to have crates of apples shipped to her from the kingdom a few miles down the road. Her mother gave her the locket just moments before she passed away years ago, and asked her to keep it in the family to be passed down to the generations. It's Snow White's most prized possession and she cherishes it with all her heart.
How would the collateral, the golden locket, be classified?
1. Consumer goods
2. Inventory, because she can hold it for sale or lease if she so desires
3. Farm product, since her business involves growing and harvesting crops (the apples)
5. None of the above; because the locket is a family heirloom and was not meant to go outside the family for any purpose according to Snow White's mother, the locket cannot be collateral under Article 9.