Amanda is the mother of Lila, who was born with cerebral palsy and has had special needs her whole life. In order to meet Lila's needs, Amanda frequents a medical equipment store, Medi-Equip. Inc., that carries items that help facilitate Lila's development and mobility. Amanda and Lila have gotten to know the owner of Medi-Equip, Sarah, over the past several years.

Motivated by the desire to provide for her daughter's needs, as well as wanting to help other children like Lila, Amanda decides to open a day-care center for children with special needs. The daycare will cost $300 per week per child.

Amanda decides to run the day-care out of her home, which has already been outfitted in wheelchair-friendly accommodations. However, in order to accommodate many children in wheelchairs at once, Amanda decides to renovate the basement of her home. She puts in multiple wheelchair accessible restrooms, a chairlift up the stairs, a ramp to the basement's exterior entrance, among other alterations. Wanting to support the store that supported her and her daughter for so many years, Amanda purchases all the necessary items from Medi-Equip. She does this on Oct. 12, with Medi-Equip taking a security interest in the items to secure Amanda's obligation to pay the purchase price. Sarah, the owner, is grateful for all the business and wishes Amanda luck on her endeavor. Sarah then files a financing statement the next day, Oct. 13.

Amanda realizes she still needs some start up money for the first couple of weeks to cover food, toiletries, etc. On Oct. 14, Amanda applies for a loan from Commerce Bank, using the supplies she purchased from Medi-Equip as collateral. Commerce runs a search on the property, but finds no filed financing statements covering Amanda's property, because the financing statement Sarah filed has not been indexed yet. Commerce then files a proper financing statement covering the collateral.

A few months later, Amanda defaults to both Medi-Equip and Commerce Bank. Who has priority as to the collateral, Medi-Equip or Commerce Bank?

A. Commerce Bank, because Sarah knew/should have known that Amanda was not purchasing all these items for personal use.

B. Medi-Equip, because its purchase money security interest was automatically perfected as soon as it attached

C. Medi-Equip, because it perfected its security interest before Commerce Bank.

D. Commerce Bank, because even though Medi-Equip perfected its security interest, it did not do so in time.