Debtor owns a museum that displays guitars previously owned by famous musicians. On April 1, Debtor buys a guitar from A on credit and grants A a security interest in the guitar to secure the unpaid purchase price. Debtor does not take possession of the guitar until May 1. On May 15, Debtor signs a security agreement covering the same guitar to B, and B files a financing statement covering the guitar that same day, but B does not give value for the guitar until July 1. On June 1, A files a financing statement covering the guitar. On June 15, Debtor grants yet another security interest in the same guitar to C. C files a financing statement and gives value for the guitar that same day.
Debtor then defaults on all three loans. Which of the following correctly describes the order in which the creditors will have priority in the guitar?
1. A has first priority, B has second priority, and C has third priority
2. A has first priority, C has second priority, and B has third priority.
3. B has first priority, A has second priority, and C has third priority.
4. B has first priority, C has second priority, and A has third priority.