Kyle owned and operated a retail sporting goods shop. A new ski resort was built in the area and, to take advantage of increased activity, Kyle decided to expand his shop. He borrowed money from his bank, which took a security interest in his present inventory and any after-acquired inventory as collateral for the loan. A year later, an avalanche destroyed the ski lodge. Kyle’s business suffered, and he was left with double the inventory he had when he obtained the loan. When he defaulted on his payments, the bank seized all of his inventory. Kyle claims the bank is entitled only to the value of the inventory at the time of the loan. How much inventory can the bank claim? Could Kyle have negotiated better terms in the beginning?