Jerome Is a Farmer Who Has Just Agreed to Borrow

Multiple Choice

Jerome is a farmer who has just agreed to borrow $100 000 from the Bank of Montreal to buy some new farm equipment. He has given the bank a security interest under s 427 of the Bank Act. Which of the following distinguishes a security interest under the Bank Act from a security interest taken by the Bank in specific assets in a security agreement?

A) The Bank Act limits the assets in which a security interest may be taken. In a security agreement, there is no restriction on what assets a bank may take a security interest.
B) A single registration of a security interest under the Bank Act is effective across Canada. Registrations under a province's personal property security laws are only effective in that province.
C) Security interests under the Bank Act are registered under a separate system set up under the Bank Act. Security interests under security agreements are registered under provincial personal property security legislation.
D) Only banks can take interests under the Bank Act. Anyone can take a security interest created in a security agreement.
E) All of the above.