Luxury Larry acquires a construction loan from First Rate Bank to build the home of his dreams. The loan is secured by a properly executed mortgage on the land, which is recorded in the local land records. Larry then uses the funds from the loan to purchase the bulk of the materials for the home. Having overspent on expensive materials for the property, Larry then obtains a state-of-the-art Maytag washer and dryer from Sears, granting Sears a purchase money security interest in the washer and dryer. Sears never files a financing statement covering the washer and dryer. Larry later defaults to Sears. Can Sears repossess the washer and dryer?

1) Yes, because Sears has a valid mechanics' lien.

2) No, because Sears has not perfected its interest.

3) Yes, regardless of whether Sears has a perfected security interest.

4) No, because the washer and dryer becomes part of the land, and is no longer subject to Article 9, but instead is covered by the mortgage.