Battleford Bank Lent Artegal Manufacturing Inc $50 000

Battleford Bank lent Artegal Manufacturing Inc $50 000.The loan is secured by a general security agreement under which Artegal has given Battleford Bank a security interest in all of its equipment.The agreement provides that Artegal must deliver financial statements to the Bank every three months.Failure to do so is defined as a default under the agreement.Artegal fails to deliver financial statements for a three-month period, though it has not missed any loan payments.Which of the following is TRUE?

A) The bank is not entitled to take any enforcement action because Artegal's principal obligation to make the loan payments is not in default.
B) The bank may take enforcement action because Artegal has committed a default as defined in the security agreement.
C) The bank is required to take enforcement action because Artegal has committed a default as defined in the security agreement.
D) The bank must give Artegal time to cure the default before taking any enforcement action.
E) The bank can only take enforcement action if it demands that the financial statements be delivered and they are not.