Tom and Kevin have been best friends since they were in middle school. Tom recently told Kevin that he has decided to get married. Kevin decided to go to Best Buy and purchase two 60-inch TV’s for Tom’s wedding present. When Kevin reached the checkout, he realized that he could not afford the $2,000 price tag for the two items. At that moment Kevin decided to open a Best Buy 0% interest for six month credit card to make the purchase. When Kevin opened the credit card account, he signed an agreement that said that (1) Best Buy would have a security interest in "all goods purchased by Cardholder using the card." Kevin also signed the credit card receipt for the purchases, which described the TV sets and stated that Kevin was purchasing them “for personal use."
When Tom’s wedding came around, Kevin decided to keep one of the TVs for himself and mounted it in the lobby of his office to show product advertisements for his company. Shortly after the wedding, Kevin defaulted in making the required payments to Best Buy. As a result, Kevin took a $1,000 loan from College Bank to enable him to make the necessary monthly payments to Best Buy (to which he still owed over $3,500). College Bank provided the loan and Kevin signed a security agreement that granted a security interest in all of Kevin’s office equipment, including the TV in his lobby. College Bank also filed a UCC-1 properly perfecting its security interest.
Which statement is correct regarding Kevin's TV?
1. Both Best Buy and College Bank have a security interest in the TV, but College Bank has priority because Best Buy did not file a financing statement.
2. Best Buy has priority because it was first to perfect.
3. College Bank has priority because Best Buy's security interest was invalid since Kevin did not buy the TV for personal use
4. Best Buy has priority because its security interest was first to attach.