On May 4, Clarence, a computer retailer, purchased 30 computers. This comprised Clarence's entire inventory and was financed under a security agreement with Dome Bank which gave the Bank a security interest in all computers on the premises, all future acquired computers, and the proceeds of sales. On May 8, Dome Bank properly filed a financing statement that adequately identified the collateral. On June 9, Clarence sold one computer to Anita for personal use and four computers to Green Co. for his business. If Clarence defaults on his loan to Dome Bank, which of the following statements is correct?

Select one:

a.

The computers sold to Anita will not be subject to Dome's security interest

b.

The computers sold to Green will be subject to Dome's security interest.

c.

The security interest does not include the proceeds from the sale of the computers to Anita, unless so stated in the financing statement.

d.

All of the above are correct.