Royce Bardones, is a professional race car driver that races on the NASCAR circuit. On May 1, Royce entered into a security agreement with Bank, in which the Bank loaned Royce $100,000 in exchange for a security interest in Royce’s three race cars. The security agreement with the Bank explicitly states that Royce cannot sell his race cars without the Bank’s prior approval. It also states that if debtor sell his race cars without Bank's prior approval, he is in default of the agreement. The Bank properly perfected this security interest on May 2.

On July 1, Royce sold his first race car to Carl Esbeck. Although the Bank had knowledge of Royce’s sale, it did not object or give express authorization.

On July 10, Royce sold his 2nd race car to Dan Sokol. Again, the Bank had knowledge of Royce’s sale, but it did not object or give express authorization.

On August 1st, Royce sold his third race car to Thom Lambert. Once again, the Bank had knowledge of the sale, but it did not object or give express authorization. On September 1st, Royce paid back the $100,000, along with the interest that he owed the Bank.

On November 1st, Royce bought another race car. This time he decided he wanted to add a pair of chrome bullhorns and a fancy computer inside the car. In order to borrow the money to add his chrome bullhorns and computer, he borrowed another $5,000 from the bank on November 10, and gave the Bank a security interest in his race car. The security agreement with the Bank explicitly states that Royce will be in default if he sells his race car without the Bank’s prior approval. The Bank properly perfected its security agreement on November 2.

On December 1, Royce decides he wants to stop racing and sells his race car to James Devine in default of the security agreement. Royce then decides to move to Greenland and the Bank cannot contact him. In order to recoup its loss, the Bank decides to repossess the race car from James Devine. What is the result of the Bank’s attempted foreclosure?

(A) James Devine takes free of Bank's security interest as a buyer in the ordinary course of business.

(B) James Devine takes free of Bank's security interest because Bank, through its course of performance with Royce, impliedly authorized the sale of the race car free and clear of its interest.

(C) James Devine takes free of Bank's security interest because Bank, through its course of dealing with Royce, impliedly authorized the sale of the race car free and clear of its interest.

(D) Bank can repossess the car from James Devine.