Thrush, a wholesaler of television sets, contracted to sell 100 sets to Kelly, a retailer. Kelly signed a security agreement with the 100 sets as collateral. The security agreement provided that Thrush's security interest extended to the inventory, to any proceeds therefrom, and to the after-acquired inventory of Kelly. Thrush filed his security interest. Later, Kelly sold one of the sets to Haynes who purchased with knowledge of Thrush's perfected security interest. Haynes gave a note for the purchase price and signed a security agreement using the set as collateral. Kelly is now in default. Thrush can
A. Not repossess the set from Haynes, but is entitled to any payments Haynes makes to Kelly on his note.
B. Repossess the set from Haynes as he has a purchase money security interest.
C. Repossess the set as his perfection is first, and first in time is first in right.
D. Repossess the set in Haynes' possession because Haynes knew of Thrush's perfected security interest at the time of purchase.
A. Not repossess the set from Haynes, but is entitled to any payments Haynes makes to Kelly on his note.
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