Paul and Debbie just recently decided to build a new home. In order to finance the project, the two received a construction loan from Bank of America (BOA) and in return the two granted BOA a mortgage on the real estate. Immediately after the meeting and before the construction began, BOA properly recorded the mortgage. During the construction process Debbie had to take a business trip for a couple of days. Paul thought he would surprise Debbie by picking out the cabinets at a local store, Cabinets Cabinets. After paying in full for the cabinets, they were installed and the house was completed.

When Debbie returned home to a completed house, she was furious about the cabinet selection. She had the cabinets removed and returned them. Unable to find cabinets she wanted locally, she purchased cabinets from the next town over at Cabinet’s ‘R Us. Debbie paid nearly the entire bill off with her refund from the other cabinets, but the proprietor of Cabinets ‘R Us took a security interest in the cabinets to secure Debbie’s payment of unpaid purchase price. The next day, the owner of Cabinet’s ‘R Us filed an Article 9 fixture filing.

In what priority are the interests in the cabinets Debbie had installed?

A. Bank of America first, Cabinets Cabinets second, Cabinets ‘R Us third.

B. Cabinets ‘R Us first, Bank of America second

C. Cabinets Cabinets first, Bank of America second, Cabinets ‘R Us third

D. Bank of America first, Cabinets ‘R Us second