Destiny Drilling Finances Its Latest Operation with a General Security

Multiple Choice

Destiny Drilling finances its latest operation with a general security agreement with RBC.They signed a security agreement and received the loan on August 1.RBC filled out the financing statement,but forgot to file.On December 12,Destiny required additional funding for the project,so they entered into a security agreement with CIBC,giving them rights in all their physical capital.CIBC files a one-year financing statement.On December 13 of the following year,Destiny defaults on both loans.Which of the following is true?

A) RBC should be paid first because they have a general security agreement.
B) RBC should be paid first because at the time of default,both interests are unsecured.
C) CIBC should be paid first because they perfected their interest.
D) CIBC should be paid first because their interest is smaller.
E) RBC should be paid first because their interest is larger.