Exam 28: Secured Transactions

Explain what is meant by the term "financing leases."

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

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

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

If an owner sells you goods that have been pledged as security for a loan,the claim against those goods is known as

Phillip,who has a loan on his car at the bank,has placed his car on consignment at the local used car lot.His law professor tells Phillip that consignments can amount to a secured type of credit.If this is TRUE,who is the creditor?

Each of the following may create consensual security interests EXCEPT

A prudent creditor who has entered into a chattel mortgage will always conduct a search of title in the local land titles office.

Where security devices are agreed to in advance as terms in the contract,they are often called

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?

Which one of the following requires permission from the security holder before the item(s)used as collateral can be sold?

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

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

An unsecured creditor is no different from a creditor who fails to register a security interest under provincial PPSA legislation.

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?

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?

Self-liquidating financing is usually the best form of financing for farmers.

Financial assets and investment property receive special treatment under personal property security legislation.Investment property includes all of the following EXCEPT

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