Ludmilla and Sudash Carry on a Catering Business

Ludmilla and Sudash carry on a catering business. They form ICING Inc, a caterer that specializes in frozen desserts and elaborate ice sculptures used for centerpieces. The corporation purchases a refrigerated truck with the help of a loan from Bank X. The Bank takes a security interest in the truck to secure the full amount of the loan, which is $70 000. Unknown to the bank, however, the truck is worth substantially more than the value of the loan. If ICING goes bankrupt and the Bank seizes and sells the truck for $80 000, it will

A) not be allowed to retain the $80 000 proceeds from the sale of the truck. Any value beyond $70 000 will have to be paid into the bankrupt's estate for distribution to other creditors.
B) have to share the $80 000 proceeds from the sale of the truck with ICING's other creditors, whether secured or unsecured.
C) have to share the $80 000 proceeds from the sale of the truck with other secured creditors on a pro rata basis.
D) be able to keep only a portion of the $80 000 proceeds from the sale of the truck and sue ICING Inc for any deficiency.
E) be allowed to retain the entire proceeds of the sale, $80 000.