Alice owns and operates a clothing store in Columbia, Missouri named “Alice’s Wonderland, LLC,” which is a registered limited liability company. Lender Smith grants Alice a loan for $10,000, and requires her to give him a security interest in all of her “present and after-acquired inventory.” Smith perfects by filing a financing statement with the Missouri Secretary of State on October 10, 2005.

On October 10, 2008, Alice’s decides to change the name of her store to “Wonderland Clothing by Alice, LLC” to attract more customers. What is the status of Smith’s security interest on October 11, 2008?

1. Lender’s security interest is no longer perfected because the financing statement is seriously misleading.

2. Lender has a perfected security interest in inventory purchased by Alice before October 10, 2005 and during the 4 months after October 10, 2005.

3. Lender’s security interest is no longer perfected because he failed to file a continuation statement after three years.

4. Lender has a perfected security interest in inventory purchased by Alice before October 10, 2008 and during the 4 months after October 10, 2008.