Exam 28: Secured Transactions

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,

A,a manufacturer,enters into a conditional sales agreement with B,a retail seller of goods,under which A supplies 100 amplifiers to B.The manufacturer registers the agreement under provincial PPSA legislation.B now sells one amplifier to C and a few days later defaults on the conditional sales agreement.In this case,the manufacturer

A bill of sale can be used as an instrument of credit.Which document is the bill of sale most like when it is used as an instrument of credit?

Use the fact situation in Q8 to answer the related question that follows. Also in this case,as between B and the bank,

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

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?

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

The Hendersons have purchased their new riding lawnmower on a conditional sale contract.They have just been notified that the contract was assigned to a finance company.The Hendersons may now

Some provinces have provided relief to conditional buyers by

Each of the following may create consensual security interests EXCEPT

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.

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

What is the difference between a chattel mortgage and a conditional sale contract?

What advantage does a secured creditor have over an unsecured creditor when they both are forced to collect an overdue account?

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?

Bill owns a small factory which manufactures seatbelt parts for the automobile industry.Although business has steadily increased for the last two years,the company still owes the bank a significant amount of money.In fact,to secure start up monies,the company was required to provide a chattel mortgage to the bank including an after acquired property clause.Bill becomes aware that a machine used to manufacture seatbelt parts has become available from a local businesswoman.However,Bill's company cannot pay cash for the machine and cannot provide the businesswoman with any security in relation to its existing assets.A special priority can in fact arise if the businesswoman reserves a security interest in the seatbelt making machine itself.This interest is known as a)a perfected security interest. b)a purchase-money security interest (PMSI). c)an attachment or performance of agreement. d)an unperfected security interest. e)a trust deed.

Which of the following is NOT included in the categories of persons to whom a bank may loan money under the Bank Act?

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.

A mortgage on land gives the mortgagee security in the land in priority over other secured interests registered under provincial PPSA legislation.

Alvin Smith bought a car from XYZ Autos Inc. ,a car dealership,for the price of $15 000.Alvin paid $5000 cash and entered into a conditional sales contract to finance the remaining $10 000.Alvin had obtained the $5000 from his bank and executed a chattel mortgage for $9000 in favour of his bank.This represented $5000 for the deposit and $4000 in existing indebtedness.After Alvin obtained the car,he provided the bank with a description and its serial number.The bank completed the chattel mortgage with this information and registered a financing statement under the prevailing personal property security legislation.XYZ Autos Inc.similarly registered a financing statement,but did this three days later than the bank.Alvin subsequently defaulted under both securities.Which of the creditors has priority to the car,and why?