Button Ltd has decided to liquidate its business. It has a bank loan of 5m, secured on an a machine carried in the balance sheet at a net book value of 4m. The liquidation value of this asset is considered to be 3m. Which of the following statements is/ are true concerning the banks recovery of its loan upon the liquidation of Button?

a. The bank will be guaranteed 3m, and is classed as an unsecured creditor for the remaining 2m

b. The bank will be guaranteed 4m, and is classed as an unsecured creditor for the remaining 1m

c. The bank will be guaranteed 4m, and will forfeit the remaining 1m

d. The bank will be guaranteed 3m, and is classed as a preferred creditor for the remaining 2m