Bagels Café Defaults on Debts to Country Bank and Hillside

Multiple Choice

Bagels Café defaults on debts to Country Bank and Hillside Loan Company. Country Bank perfected its security interest before Hillside. The bank takes possession of the collateral in which it has a security interest. On a sale of the collateral, the proceeds will be applied first to​

A) ​the debtor's previous payments on the debts.
B) ​the debtor's unpaid payments on the debts.
C) ​the balance of the debtor's debt to Country Bank.
D) ​the balance of the debtor's debt to Hillside Loan.