John, an avid gambler, borrowed $50,000 from Bob, and as collateral John turned over to Bob possession of John's 1927 New York Yankees baseball card collection. Unfortunately, John quickly blew the loan from Bob and took out another loan for $50,000 from Charlie and once again offered his baseball card collection as collateral. Charlie called Bob and demanded the cards, but Bob would not relinquish possession. Which of the following is true?
1) If Bob had a security interest in the cards, it was never perfected.
2) Charlie can get the cards because Bob never executed a security agreement describing the baseball cards.
3) Bob can retain possession of the card collection until John repays him in full.
4) Charlie is out of $50,000 and has no legal remedies.