On November 1, 2007, Kevin’s Bank extended a $100,000 line of credit to Cody’s Restaurant and took a security interest in all of its present and after-acquired equipment. On the same day, Kevin’s Bank filed a financing statement covering the equipment. On February 1, 2008, Cody’s Restaurant, needing another loan, granted Ben’s Bank a security interest in the same collateral. Ben’s Bank perfected by filing on that same day.
On November 1, 2012, Kevin’s had not yet filed a continuation statement, but on November 2, filed a new financing statement covering the same collateral. Ben’s Bank did not file a continuation statement by Feb. 1, 2013.
On Jan. 15, 2013, Conor, a cook that had previously worked for Cody’s Restaurant, got a judgment against his former employer for wrongful discharge in the amount of $100,000. On February 2, 2013, Cody’s Restaurant had not paid any portion of that judgment and Conor’s sent the sheriff out to levy on Cody’s equipment to help fulfill the judgment. After the levy takes place, what are the relative priorities of Conor, Ben’s Bank, and Kevin’s Bank in the levied-upon equipment?
1. Kevin’s Bank first, Conor second, Ben's Bank third
2. Kevin's Bank first, Ben's Bank second, Conor third
3. Ben's Bank first, Kevin's Bank second, Conor third
4. Conor first, Kevin's Bank second, Ben's Bank third