Vista is a wholesale seller of microwave ovens. Vista sold 50 microwave ovens to Davis Appliance for $20,000. Davis paid $5,000 down and signed a promissory note for the balance. Davis also executed a security agreement giving Vista a security interest in Davis' inventory, including the ovens. Vista perfected its security interest by properly filing a financing statement in the state of Whiteacre. Six months later, Davis moved its business to the state of Blackacre, taking the ovens. On arriving in Blackacre, Davis secured a loan from Grange Bank and signed a security agreement putting up all inventory (including the ovens) as collateral. Grange perfected its security interest by properly filing a financing statement in the state of Blackacre. Two months after arriving in Blackacre,
Davis went into default on both debts. Assuming Vista is a partnership, which of the following statements is correct?
A. Grange's security interest is superior because Grange had no actual notice of Vista's security interest.
B. Vista's security interest is superior even though at the time of Davis' default Vista had not perfected its security interest in the state of Blackacre.
C. Grange's security interest is superior because Vista's time to file a financing statement in Blackacre had expired prior to Grange's filing.
D. Vista's security interest is superior provided it repossesses the ovens before Grange does.
B. Vista's security interest is superior even though at the time of Davis' default Vista had not perfected its security interest in the state of Blackacre.
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