Barton Owns a Piece of Land Called Finacre

Multiple Choice

Barton owns a piece of land called Finacre.On August 24, when the property was worth $1 000 000, he borrowed $200 000 from Alpha Bank and granted a mortgage over Finacre as security for repayment.Alpha registered its interest on September 18.On September 16, Barton borrowed $800 000 from Omega Bank.He granted another mortgage over Finacre as security.Omega registered its interest on September 17.The economy then collapsed.Barton has not repaid a cent on either loan and he has defaulted on both.The value of Finacre dropped to $500 000.If Finacre is subject to sale, which of the following statements is most likely to be TRUE?

A) Regardless of which bank registered first, Alpha has priority over Omega because Alpha's mortgage was created first.
B) Alpha has priority over Omega as long as Alpha was the first bank to notify Barton that its interest was registered.
C) Neither bank will receive full repayment of its loan.
D) Barton borrowed four times as much from Omega as from Alpha.The sale proceeds will be distributed in the same proportion.Omega will receive $400 000 and Alpha will receive $100 000.
E) If either bank receives less than full repayment from the sale proceeds, it is entitled to compensation from the assurance fund.