Exam 28: Secured Transactions

Charles Brown,a fisherman,gave security to a bank under section 427 of the Bank Act in order to finance the purchase of a fishing boat from Triumph Ship Builders Ltd.The bank duly registered the standard form of notice with the Bank of Canada in relation to the fishing boat.A year later,Charles sold the fishing boat to Sea Traders Inc.,who were marine mercantile agents.Sea Traders were unaware of the bank's section 427 security and made no attempt at searching for encumbrances against the fishing boat.Sea Traders in the normal course of business sold the fishing boat to Harold Walker,a bona fide purchaser for value.Charles left the country permanently after his sale to Sea Traders.Discuss the bank's position against each of Sea Traders,Charles Brown,and Harold Walker.

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.

When dealing with security interest,the failure of a creditor to register

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

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

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

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

B,a car dealership,sells A a car on terms that provide that A will have possession of the car for a period of three years,during which A will make monthly payments; however,ownership in the car remains with the dealership until A makes the last payment.In this case,A and the dealership have effected

Sometimes conditional sale contracts exist between the manufacturer and the retailer.How does the consumer know she or he is getting clear title to the goods purchased?

Can the chartered banks require security for loans outside section 427 of the federal Bank Act?

Some provinces have provided relief to conditional buyers by

Milton ordered a fancy telescope from a catalogue,using his bank credit card.When it arrived it seemed quite different from the telescope of the catalogue description.Neither the catalogue company nor the manufacturer would take the telescope back.Milton now wants the chartered bank that issued the credit card to reverse the charges.Does Milton have a legal claim against the bank?