Hunter H. Helmsley operates a family lineage search business, “HHH Pedigree, Incorporated.” The business is incorporated under the state laws of New Mexico. Hunter lives across the state line in Arizona. Hunter wears a $30,000 platinum-plated and diamond-encrusted Rolex, but it is owned by HHH Pedigree, Inc. Boogeyman Bank holds a properly-perfected security interest in the watch (Boogeyman Bank filed a financing statement in New Mexico covering the watch).

After an argument one night with Roddy Piper (a shareholder in HHH Pedigree, Inc.), Hunter decided to move the business closer to his home, so he relocated the offices of HHH Pedigree, Inc. to Scottsdale, Arizona. At the time of the move, he contemporaneously filed articles of incorporation under Arizona law creating HHH Pedigree, Inc. as an Arizona corporation. To recover funds spent on the move, Hunter granted a properly-perfected second security interest in the Rolex (granted to American Dream Savings & Trust, owned and operated by Dusty Rhodes) three days after he moved the business to Arizona.

Dusty Rhodes has come to you six months after American Dream granted the security interest and after it found out about Boogeyman Bank’s security interest. Boogeyman Bank has not filed a financing statement in Arizona. HHH Pedigree, Inc. has defaulted and Dusty wants to know what American Dream’s priority is relative to the Boogeyman Bank.

A) Boogeyman Bank has priority over American Dream, because American Dream is not a “purchaser for value” because it merely obtained a security interest in the watch.

B) American Dream has priority over Boogeyman Bank, because Boogeyman Bank did not immediately re-perfect its security interest under the laws of Arizona after HHH Pedigree reincorporated there.

C) American Dream has priority over Boogeyman Bank, because Boogeyman Bank did not re-perfect its security interest under the laws of Arizona within four months after HHH Pedigree reincorporated there.

D) Boogeyman Bank has priority over American Dream, because its security interest remains perfected under § 9-316(a)(3); Boogeyman Bank will have to file a financing statement in Arizona within one year after HHH Pedigree was incorporated in Arizona.