Pierce Electricians Is a New Company That Contracts Out for Electrical

Multiple Choice

Pierce Electricians is a new company that contracts out for electrical work.Upon creating the company,they took out a loan from the Bank of Montreal with a perfected general security agreement as collateral.The agreement was registered on April 30.On June 1,Pierce realizes it needs to expand its fleet.In order to buy 15 new vans on credit,they create a PMSI with the dealer with the vans as collateral,which is registered on June 8.Which of the following statements is true?

A) If Pierce defaults,the GSA must be settled first.
B) If Pierce defaults,the PMSI must be settled first.
C) The PMSI isn't valid because it wasn't perfected within 5 days.
D) Because of the PMSI,the bank cannot recover its entire interest in the event of default.
E) The PMSI isn't valid because PMSIs cannot be used for physical capital.