[Hang Glider] Monte Borrows Money from A&Z Bank and the Bank

Multiple Choice

[Hang Glider] Monte borrows money from A&Z Bank and the bank has a secured interest in Monte's hang glider. The bank files a financing statement which identifies Dryden, another debtor of the bank, as the debtor for this transaction. Monte also borrows money from his neighbor, and he uses the hang glider as collateral on that transaction. His neighbor was unaware that Monte had used the hang glider as collateral for the bank loan. Monte fails to make his payment to the bank. The bank claims it should take possession of the hang glider because it has a perfected interest. When Dryden learns about the bank's interest in the hang glider, he calls that bank and tells them he has first dibs on the hang glider because their loan to Monte was not public knowledge. The bank tells Dryden that they have priority because they perfected their security interest in the hang glider when they filed the financing statement four years ago.
-Is Dryden correct that the bank does not have priority because the loan was not public knowledge?

A) Yes, private persons should not be expected to search for notification of secured interests.
B) No, once the financing statement is filed, the statement becomes public knowledge and parties considering making a loan to another party are expected to search for notification of secured interests.
C) Yes, although financial statements become public knowledge, only banks and businesses, but not private persons, are expected to search for notification of secured interests.
D) Yes, financial statements are not generally considered public knowledge.
E) No, although financial statements are generally not considered public knowledge, private persons are expected to search for notification of secured interests.