XYZ is a business that sells farm equipment to individuals. XYZ has a line of credit from Loans R’ US of $500,000. Loans R’US and XYZ have a security agreement covering all of XYZ’s “equipment, inventory, and accounts, presently owned or after-acquired." The security agreement did not restrict the manner in which XYZ could collect accounts and use the proceeds of those accounts, as long as XYZ was not in default. Loans R’US perfected by filing a financing statement.

XYZ maxed out its line of credit with Loans R’US and went to Loans Express to receive additional financing. Loans Express took a security interest in “all of XYZ accounts” and filed a financing statement. Loans Express did not search the UCC records before making this loan.

Who has first priority with respect to XYZ's accounts?

A) Loans R’US, because it was first to file.

B) Loans Express has priority, because it is a holder in due course.

C) Loans R'US, because Loans Express did not make a reasonable search.

D) Loans Express, because Loans R’Us did not restrict the way XYZ collected and used the proceeds from the accounts.