Albert Carried on a Jewelry Store Business in Edmonton

Multiple Choice

Albert carried on a jewelry store business in Edmonton.He borrowed $10 000 from the Bank of Edmonton.As security for the repayment of his loan, Albert had given the bank a security interest in his inventory and equipment.The bank failed to file a financing statement to register its interest.Albert sold all his gem-cutting equipment to Bruce who carried on another jewelry store business because he had decided to get out of this aspect of the business.Bruce is not aware of the bank's security interest.Which of the following statements best describes the interest of the bank in the gem-cutting equipment?

A) The bank has no interest because the sale of equipment by Albert was a business decision.
B) The bank's interest follows the equipment into the hands of Bruce.
C) Bruce takes the equipment free of the bank's interest because the bank's interest is not perfected and Bruce was not aware of it.
D) The bank's interest follows the equipment into the hands of Bruce because the bank did not consent to the transfer.
E) The bank never had any interest in the equipment because it failed to file a financing statement to perfect its interest.