Gluco Inc Is a Large Producer of Pharmaceuticals

True/False

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 July 1, 2010, Gluco filed a financing statement to register this interest under the British Columbia Personal Property Security Act. Previously, on May 1, 2010, 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 May 1, 2010. Gluco's security interest has priority over the Bank's because it is a purchase money security interest.