Grant bought a washer from Frank's Appliances on an installment contract under which he promised to pay in 12 monthly installments. Unde the express terms of the contract, Frank's Appliances retained a security interest inthe washer. Frank's did not file a UCC-1.  Six months later, Grant filed a chapter 7 bankruptcy petition.  Can the bankruptcy trustee set aside Frank's Appliances' security interest in the washer?

1. Yes, Frank's Appliances had an unperfected security interest in the washer which a lien creditor could take priority over.

2. No, a bankruptcy trustee cannot set aside a valid security agreement.

3. Yes, because Frank's  failed to file a UCC-1 to put the bankruptcy trustee on notice as to its interest in the property. 

4. The answer depends on Grant's use of the washer.