Bean defaulted on a promissory note payable to Gray Co. The note was secured by a piece of equipment owned by Bean. Gray perfected its security interest on May 29, 2010 Bean had also pledged the same equipment as collateral for another loan from Smith Co. after he had given the security interest to Gray. Smith’s security interest was perfected on June 30, 2010. Bean is current in his payments to Smith. Subsequently, Gray took possession of the equipment and sold it at a private sale to Walsh, a good-faith purchaser for value. Walsh will take the equipment

a. Free of Smith’s security interest because Bean is current in his payments to Smith.

b. Free of Smith’s security interest because Walsh acted in good faith and gave value.

c. Subject to Smith’s security interest because the equipment was sold at a private sale.

d. Subject to Smith’s security interest because Smith is a purchase money secured creditor.