Ben Hawkenstein takes out a loan for his start-up beach side water-skiing business in Missouri. He signs a security agreement with First Bank, giving First Bank a security interest in "all equipment, deposit accounts or otherwise, proceeds, etc. etc." First Bank properly files a financing statement on September 2. At the time, Ben Hawkenstein has $12,000 in his personal account at First Bank, and the $100,000 loan proceeds which are in a separate deposit account at First Bank in the name of "BH Water Skis."

On September 3, Ben Hawkenstein says to his buddy Brian Mess, "This is my big opening weekend, I need your boat for this weekend only, until mine arrives, be my partner!" Mess, remembering Hawkenstein as a slippery no good in law school, replies, "You can use the boat this weekend, all I want is $200 plus gas, and I'm coming with you to make sure...NO FUNNY BUSINESS!" Hawkenstein replies, "It's fully insured, what you got to lose?" as he slaps a 'BH Water Skis' sticker on the side of Mess's boat. "You won't regret this."

Unfortunately, they both perish the next morning when they were run over by a larger boat after forgetting to post their light in the harbor. The wreckage is salvaged, with the 'BH Water Ski's' sticker emblazoned on the side. First Bank claims a security interest in Hawkenstein's personal deposit account, the BH Water Skis deposit account, and the insurance money from the boat. Which statement is correct?

1. First Bank has a perfected security interest in the two deposit accounts and in the insurance funds.

2. First Bank has a perfected security interest in the two deposit accounts, but not in the insurance funds.

3. First Bank has a perfected security interest in the deposit accounts, but First Bank never enforced that security interest before Hawkenstein's death, so his estate will have priority over First Bank.

4. First Bank does not have a perfected security interest in the two deposit accounts or the insurance funds.