February 15, Big Roar used its boat inventory as well as any future inventory as collateral for a loan from Bryer Bank. Bryer Bank perfected by filing a financing statement the same day. May10, Big Roar bought 50 wave runners from Under the Sun, Inc under a purchase money security interest. Under the Sun notified Bryer Bank of the PMSI and perfected the PMSI by filling a financing statement
before delivering the wave runners to Big Roar. Big Roar filed for bankruptcy. As between Bryer Bank and Under the Sun, who has the priority to the wave runners bought on May 10?
a. Bryer Bank. The first to file has the priority interest in the inventory.
b. Under the Sun. In this situation the PMSI in inventory takes priority over a conflicting perfected security interest.
c. Under the Sun and Bryer Bank share proportionally the priority interest in the inventory.
d. Neither Under the Sun nor Bryer Bank have a priority interest. The employees and the IRS have superior claims.
b
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