On January 1 First National Bank agrees, in writing, to loan Sandy Johnson $30,000 to enable her to buy a new family car, a Nissan Pathfinder, and Sandy signs a security agreement granting a security interest in the Nissan. One year after Sandy purchases the Nissan, she exchanges the vehicle at Columbia Car Classics for a used Mercedes. Sandy stops making the loan payment to First National and is in default.

Which statement is correct?

a) If First National did not authorize the disposition of the Nissan, they can repossess it and foreclose.

b) First National can repossess the Mercedes, but only if First National did not authorize the disposition of the Nissan.

c) First National can repossess the Mercedes or the Nissan, but only if First National filed a financing statement identifying the Nissan as collateral within 20 days after Sandy took possession of the Nissan.

d) First National can repossess the Nissan, but only if it noted its security interest on the on the certificate of title for the Nissan.