During construction of the building, on September 1, 2008, Chase purchases tile from Mizzou Flooring to be installed in the new building. Mizzou Flooring takes a security interest in the tile to secure Chase’s payment of the unpaid purchase price of the tile. Mizzou Flooring makes a fixture filing on September 5, 2008, the date that the tile is installed. A few weeks after the tile is installed, construction of the building is complete and Chase opens the office for business.
Assuming that the tile becomes a fixture upon installation in the building, which is the most accurate statement regarding priority between Mizzou Flooring and Columbia Bank?
(1) Columbia Bank has priority because it holds an mortgage lien.
(2) Columbia Bank has priority because it holds a construction mortgage.
(3) Mizzou Flooring has priority because it holds a purchase money security interest in the tile.
(4) None of the above.