A Car Dealer Borrowed $500,000 from a Bank and Signed

A car dealer borrowed $500,000 from a bank and signed a security agreement giving the bank a security interest in "all current inventory,and all inventory acquired in the future." The bank forgot to file a financing statement.One year later,the car dealer defaults.At the time of default,the dealer owed $400,000 and had 275 cars in inventory,only 15 of which had been in inventory when the security agreement was signed.What can the bank do with respect to the dealer's inventory?

A) Repossess all the cars,sell them,and keep all of the proceeds.
B) Repossess all the cars,sell them,and keep the proceeds,but not more than $500,000.
C) Repossess all the cars,sell them,and keep the proceeds,but not more than $400,000.
D) Repossess only the 15 cars that were in inventory when the security agreement was signed,sell them,and keep the proceeds,but not more than $400,000.
E) Not repossess any of the cars because the bank has not filed a financing statement.