Joe Kline wants to start a traveling basketball tournament, and he borrows $30,000 from the First National Bank of Slater, Missouri (FNBS) on March 1, 2007 to purchase the basketball goals needed for the tournaments. In order to secure the loan, FNBS takes a valid security interest in Joe’s equipment, and on March 15, 2007 FNBS files a financing statement with the Missouri Secretary of State’s office covering Joe’s “equipment.” Joe buys 100 basketball goals with the $30,000.

After one summer traveling the Midwest, Joe decides that he is just not going to be able to compete with Gus Macker in the 3 on 3 tournament business. On August 15, 2007 Joe sells all 100 basketball goals to Play It Again Sports for $20,000 cash. Joe takes the $20,000 and buys a state-of-the-art home entertainment system. FNBS did not have any knowledge of the sale, and upon finding out about the sale on October 1, 2007, wants to know if it has a perfected security interest in the home entertainment system as proceeds of the basketball goals. Assume that FNBS has not amended its initial financing statement or filed any new financing statement expressly covering the home entertainment system. Does FNBS have a perfected security interest (with priority dating back to March 15, 2007) in the home entertainment system?

A. Yes, under the "same office rule"

B. Yes, because a security interest in proceeds is perfected as long as the secured party can trace the proceeds to the original collateral

C. No, because the description ("equipment") in the initial financing statement was insufficient to perfect a security interest in the basketball goals

D. No, because the "same office rule" does not apply and the description ("equipment") in the initial financing statement is not sufficient to cover the home entertainment system