Choice "B" is correct. When there is a conflict between perfected security interests in the same collateral, priority goes to the creditor who was first either to file or to perfect, even if perfection is not completed upon filing (there can never be perfection until there is attachment; attachment did not occur until after the date on which National Bank filed). Because National Bank filed before Local Town Bank either filed or perfected, Local Town Bank has constructive notice of National Bank's interest.Choices "d" and "c" are incorrect. The first to file or perfect has priority; priority is not determined by the date of attachment.
Choice "a" is incorrect. When perfected security interests in the same collateral conflict, priority goes to the first to file or perfect. National Bank filed on January 5, so it has priority even though Local Town Bank perfected its interest before National Bank perfected.