Jane Smith owns “Jane’s Bakery” which she operates as a sole proprietorship. On February 1, 2003, Jane gets a business loan from Bank of America (BOA) for $50,000, and grants BOA a security interest in Jane’s present and after-acquired inventory and equipment. BOA properly perfects their security interest by filing a financing statement under the name “Jane Smith” (Jane's legal name).

On April 1, 2004, Jane marries Bill Tarzan and changes her name to Jane Tarzan. Bank of America is unaware of Jane’s marriage and doesn’t amend its financing statement to reflect her name change.

On May 1, 2004, Jane purchases a new oven from Big John’s Bakery Suppliers for $10,000 on a purchase-money security agreement, with the oven as collateral. Jane takes possession of the oven the same day. Big John’s manager searched for any financing statements covering "Jane Tarzan" but found none. Big John's manager prepares a financing statement using Jane's married name, but forgets to file it until June 1, 2004.

On July 1, 2004, BOA learns that “Jane Smith” has married and changed her name to “Jane Tarzan,” so it files an amendment to its original financing statement to properly reflect “Jane Tarzan” as the debtor.

On December 1, 2005, Jane Tarzan files for bankruptcy after her business fails. BOA, Big John’s, and the bankruptcy trustee all claim rights to the oven Jane bought on May 1, 2004. Which statement is correct regarding first priority in the oven and why?

A. BOA has priority over Big John's because it was first to file or perfect, thereby preventing Big John's from obtaining priority as to the oven. BOA has priority over the trustee because it amended its financing statement in a timely manner to reflect Jane’s new name.

B. BOA has priority over Big John's because it was first to file or perfect and because Big John’s did not file its financing statement in time to obtain priority. BOA would have had priority over the trustee even if BOA had not amended its original financing statement to reflect Jane’s new name.

C. Big John’s has priority because BOA had not amended its financing statement to reflect Jane’s name change by the time Big John's sold her the oven.

D. Big John’s has priority, because it took a purchase money security interest in the oven and thus took priority over BOA even though BOA was first to file.

E. Trustee, because neither BOA nor Big John's had a perfected security interest in the oven at the time Jane filed bankruptcy.