Exam 28: Secured Transactions

Where a bank gives a loan,taking back and perfecting security under section 147 of the Bank Act,why is registration under provincial personal property security legislation a prudent practice?

A purchases a chattel from B under a conditional sales agreement.A few days later and unknown to B,A sells the chattel to C,who believes A is the owner.At common law,B

In what way could a consignment contract be an indirect type of credit? Use an example to explain.

Use the fact situation in Q6 to answer the related question that follows. Also in this case,B's security interest is perfected

Does a bank have a right of lien against property left in its safekeeping by one of its borrowers?

Sometimes a lease agreement can be construed as a security agreement rather than a true lease.Why is this distinction important for the lessor to determine?

Sonny bought a computer from The Bad Guys on a conditional sales contract.Two months later Sonny sold the computer to Fred without mentioning it was not paid for.Can The Bad Guys recover the computer from Fred?

Why is it important for a creditor who intends to give a loan taking chattels as security to first do a PPSA search?

A decides to purchase B's office,which consists of an industrial condominium unit and inventory and equipment.However,A only has enough money for the deposit and B agrees to help him.In this case,to help A finance the purchase,

Identify in relation to each of the statements below what security device is being described. (1)The lender takes possession of the assets or of documents evidencing the borrower's ownership. (2)The borrower retains possession of the property and the lender's security interest is in the title to specific goods or after acquired property. (3)The seller retains title until the purchase price is paid but in the meantime the buyer has possession of the subject matter of the sale. (4)The manufacturer or wholesale distributor retains title to the merchandise while the retailer obtains possession of the merchandise.

At common law,a bona fide purchaser for value without notice acquires ownership in goods from a seller who appears to own them,but does not.

How is it that security devices mislead innocent third parties?

When may a secured creditor choose not to register its security interest?

For consumer goods,how much value to a creditor is the right of repossession?

Each of the following may create consensual security interests EXCEPT

One of the rights of a lending bank in the event a borrower defaults is the right to sell the security without notice to the borrower.

Use this fact situation to answer the related questions that follow. A is buying a video business including the inventory of DVDs,which is valued at half the worth of the business,but A only has half the purchase price,so B agrees to help A out. In this case,to help A buy the business,B will

What is "perfection" of a secured interest under personal property security legislation? Why is "perfection" relevant to the rights of a secured lender?

An acceleration clause permits a chattel mortgagor to pay off the mortgage more quickly.

Some provinces have provided relief to conditional buyers by