Gluco Inc Is a Large Producer of Pharmaceuticals

Gluco Inc is a large producer of pharmaceuticals.It enters into an agreement to supply Discount Drugs Inc, which operates a chain of drug stores in British Columbia, with its products.In its agreement with Discount, Discount gives Gluco a security interest in the drugs supplied until they are paid for.On 1 July 2017, Gluco filed a financing statement to register this interest under the British Columbia Personal Property Security Act.Previously, on 1 May 2017, Discount had given a security interest in all of its present and after-acquired property to Baker Bank, including inventory.The bank filed a financing statement to register its interest under the British Columbia Personal Property Security Act on 1 May 2017.Gluco's security interest has priority over the Bank's because it is a purchase money security interest.