Debbie’s Décor Depot (“Debbie’s”) has a line of credit with First Bank whereby she is allowed to borrow from the bank up to $100,000 at any given time. The collateral for this hefty agreement are all of Debbie’s accounts, inventory, and equipment, including after-acquired, and First Bank properly perfected its interest by filing a financing statement. The security agreement provides that Debbie’s will not sell off its equipment or assign its accounts without the prior permission of First Bank.

In late March, Debbie’s is looking at its books and surveying its past loans, in preparation of Tax Day, April 15, which is quickly approaching. Realizing that it will probably need $10,000 on August 1, which is when it will need to start buying materials for the winter design season, it approaches First Bank about arranging for a loan in the amount of $10,000 on August 1. This agreement is finalized on April 1.

Also, once upon a time, Carl had also loaned Debbie’s some money. Sadly, Carl did not take a security interest in any of Debbie’s property. Nevertheless, Carl acquired a judgment lien on Debbie’s equipment and conducted a sheriff's sale of the equipment on June 1, at which Carl was the high bidder. On that date, the balance on Debbie's line of credit with First Bank was $35,000.

After the sale, no one at Debbie's informs First Bank of the sheriff's sale of Debbie's equipment. Debbie's borrows $5,000 on the line of credit on June 20 to cover late Independence Day orders. On July 20, Debbie's informs First Bank about Carl Creditor's levy and sheriff's sale. Later that same day, Debbie borrowed another $1,000 on the credit line. Then on August 1, Debbie borrows the $10,000 pursuant to its April 1 agreement with Bank.

First Bank tracks down the equipment and demands that Carl Creditor turn over the equipment. How much will Carl Creditor have to pay to retain possession of the equipment?

A. $35,000

B. $45,000

C. $50,000

D. $51,000