In June,Alicia Borrowed $10 000 from the Toronto-Dominion Bank to Start

In June,Alicia borrowed $10 000 from the Toronto-Dominion Bank to start her record company.She agreed to give the bank a security interest in all of her assets,but the agreement was never recorded in writing.In July,she sold some CD-burning equipment to Record Supply Inc.Which of the following best describes the bank's claim against the equipment?

A) The bank can enforce its security interest in the equipment against Record Supply because the loan predated the sale of the equipment.
B) The bank cannot enforce its security interest in the equipment against Record Supply because the bank's interest never attached to the equipment.
C) The bank cannot enforce its security interest in the equipment against Record Supply because there is no privity of contract between the bank and Record Supply.
D) The bank can enforce its security interest in the equipment against Record Supply because the rights of secured creditors always prevail against people who buy goods that were subject to a security interest.
E) The bank cannot enforce its security interest in the equipment against Record Supply because it has not filed a financing statement to register its security interest.