US Bank has extended a $1,000,000 line of credit to ABC Restaurant. ABC has granted US Bank a security interest in all present and after-acquired equipment and inventory, and US Bank had properly perfected the security interest. As of January 15, ABC has borrowed $300,000 on its line of credit. In February, ABC began to have financial difficulties and completely stopped paying their food supplier. On May 1, Supplier received a judgment lien against US Bank’s collateral; the judgment was in the amount of $600,000.

Still suffering from financial difficulties and trying to remain open for business, ABC requested and was granted another advance for $200,000 from US Bank on May 15. On July 1, US Bank learned of the judgment lien. On the day US Bank learns of the lien, due to an error in communication, ABC was granted another advance in the amount of $100,000. Which of the following is true?

a) Supplier’s judgment lien has priority over Bank’s security interest

b) Bank’s security interest has priority over Supplier's judgment lien only to the extent of $300,000 (the original advance)

c) Bank’s security interest has priority over Supplier's judgment lien to the extent of $600,000

d) Bank’s security interest has priority over Supplier’s judgment lien to the extent of $500,000