Liza borrows money from First Finance Company for miscellaneous expenses. Liza and First Finance agree that Liza's diamond ring shall serve as collateral for the loan. Two weeks later, Liza takes a loan from Second Finance Company listing the same diamond ring as collateral. Neither First Finance nor Second Finance takes any additional steps. Liza defaults on both loans. Second Finance demands possession of the diamond ring and Liza gives it to them. Which of the following statements regarding this set of facts istrue?

A.Neither finance company possesses a valid security interest in the diamond ring, and neither possesses any remedy due to the failure to file a financing statement.

B.First Finance Company possesses the priority claim because it loaned the money to Liza before Second Finance.

C.Second Finance Company possesses the priority claim because it perfected its security interest first.

D.Both First Finance and Second Finance possess equal rights in the diamond ring and must equally divide any proceeds from the sale of the ring.