Dupont Feed bought and sold agricultural products. Dupont borrowed $300,000 from Wells Fargo Bank and gave Wells Fargo a security interest in all inventory, including after-acquired inventory. Wells Fargo perfected its interest by filing on June 17, 1982. Later, Dupont borrowed $150,000 from the Rushville National Bank and used the money to buy fertilizer. Dupont gave a PMSI to Rushville in the amount of $150,000. Rushville filed its financing statement in February 1984 at the County Recorder’s office—the wrong place to file a financing statement for inventory. Then Dupont took possession of the fertilizer, and finally, in December 1984, Rushville filed correctly, with the Indiana Secretary of State. Dupont defaulted on both loans. Rushville seized the fertilizer, and Wells Fargo sued, claiming that it had perfected first. Rushville asserted that it had a PMSI, which took priority over an earlier-filed security interest. Does Rushville’s PMSI take priority over Wells Fargo? (Go slowly, the rules are very technical.) Argument for Rushville: It is black-letter law that PMSIs take priority over virtually everything, including interests perfected earlier. We are not fools at Rushville: we would not loan $150,000 to buy inventory if our security interest in that inventory was instantly inferior to someone else’s. Argument for Wells Fargo: A PMSI in inventory gets priority only if the secured party perfects before the debtor receives the collateral. When Dupont obtained the fertilizer, Rushville had not perfected because it had filed in the wrong office. It only perfected long after Dupont bought the inventory; thus, Rushville’s PMSI does not get priority.