Robert Griffin III, satisfied with the fact that he put up more fantasy points in week 1 than Aaron Rodgers, decides to go down to his local car dealer, Washington Motors, and buy a new Escalade. He takes out a loan from Redskins Bancorp to pay for the new vehicle, and signs an agreement granting Redskins Bancorp a security interest in the Escalade. Redskin Bancorp perfects its security interest in the Escalade.

Griffin decides to sell the Escalade for some quick cash to the tune of $50,000 to Mike Shanahan after practice the following week. Which of the following is true?

1. Mike Shanahan is a buyer in ordinary course, and thus Redskin Bancorp no longer has a security interest in the Escalade but does have a security interest in the $50,000 Griffin received on selling it.

2. Mike Shanahan is not a buyer in ordinary course, and Redskin Bancorp only has a valid security interest in the $50,000 Griffin received upon selling the Escalade.

3. Redskin Bancorp has a valid security interest in both the $50,000 and the Escalade.

4. Redskin Bancorp only has a valid security interest in the Escalade.