Doug went to First Bank to borrow $50,000 to finance his frozen custard stand. First Bank required Doug to sign a security agreement grating First Bank a security interest in the inventory and equipment of Doug's frozen custard stand. In an effort to perfect its interest, First Bank filed a financing statement on January 1, 2005. However, because of a delay in the actual closing of the loan, First Bank did not give value and thus the security interest did not attach until March 1, 2005.
On July 1, 2009, First Bank reviewed its files and realized that Doug would not pay off his loan in full until the middle of the following year. Worried about the lapse of its financing statement, First Bank filed a continuation statement on August 1, 2009.
Assuming the interest was not perfected by any means other than filing, and the information provided on the continuation statement was sufficient, when will First Bank’s financing statement lapse?
1. March 1, 2010
2. January 1, 2015
3. March 1, 2015
4. August 1, 2014