On Thursday, Leroy Jenkins decides he needed some new bling to wear to the Alabama game so he went down to Tiger Jewelers and bought a gold Rolex on an installment contract. The contract specified that Tiger Jewelers would retain title to the Rolex until Leroy Jenkins completed all installment payments.
TJ sold the Jenkins contract to Ed’s Financing 21 days later. Several days later, the sheriff levied on the watch to satisfy Creditor's judgment against Leroy Jenkins.
Which of the following statements is true?
1. Ed's Financing has a PMSI in the Rolex and therefore has priority over Creditor.
2. Ed's Financing has priority over Creditor because its security interest in the Rolex was first to attach.
3. Creditor has priority over Ed's Financing because no financing statement was filed covering the Rolex within 20 days after Leroy Jenkins took possession of the watch.
4. Creditor has priority over Ed's Financing because Ed's Financing has an unperfected security interest.