Fresh out of prison, famous rapper Dwayne Carter goes on spending spree. Expectedly, he is short on cash, so he buys all of these items on credit granting security interests to the sellers of each item. His first purchase is a new Cadillac Escalade from a dealer, granting the dealer a security interest in the Escalade. The dealer files a UCC-1 financing statement covering the Escalade with the Secretary of State’s office. Not stopping there, Carter decides to buy some new rims for his whip, granting a security interest in the wheels to the seller. The seller files a UCC-1 financing statement covering the wheels with the Secretary of State’s office, but lists Carter’s name as his stage name, “Lil Wayne.” Carter, wanting to be more “green” and save some money on gas, then buys a souped-up, tricked-out bicycle. The bicycle dealer properly files a UCC-1 financing statement in the Secretary of State’s office, but the filing is misplaced and the filing officer never indexes it properly. Not stopping with land-based transportation, Carter then decides to buy a G-6 jet. The seller does not file a UCC-1 with the Secretary of State's office, but instead files notice of its security interest in the plane with the Federal Aviation Authority.
Eventually, Carter realizes the purchases were ill-advised and decides to sell all of these items to his friend, Bryan Williams. Williams does not know that the goods were subject to prior security interests. After Carter defaults on all the loans, the secured parties come searching for the items and want to repossess. Which items can they repossess from Williams? (Assume that the jurisdiction is one that has adopted the 2010 amendments to Article Nine).
1. The Escalade, the jet, and the bicycle.
2. Only the jet.
3. The jet and the bicycle.
4. The wheels, the jet, and the bicycle.