The covariance shows the risk of a single variable

Fogel purchased a TV set for $900 from Hamilton Appliance Store. Hamilton took a promissory note signed by Fogel and a security interest for the $800 balance due on the set. It was Hamilton's policy not to file a financing statement until the purchaser defaulted. Fogel obtained a loan of $500 from Reliable Finance which took and recorded a security interest in the set. A month later, Fogel defaulted on several loans outstanding and one of his creditors, Harp, obtained a judgment against Fogel which was properly recorded. After making several payments, Fogel defaulted on a payment due to Hamilton, who then recorded a financing statement subsequent to Reliable's filing and the entry of the Harp judgment. Subsequently, at a garage sale, Fogel sold the set for $300 to Mobray. Which of the

parties has the priority claim to the set? A. Reliable. B. Hamilton. C. Harp. D. Mobray.

Balance constraints essentially state that "input < output."

Indicate whether the statement is true or false