In August, Shazad Borrowed $20 000 from the Bank of Nova

Multiple Choice

In August, Shazad borrowed $20 000 from the Bank of Nova Scotia in order to finance his pool cleaning business. The Bank and Shazad entered into a general security agreement under which the Bank took a security interest in all of the present and future assets of Shazad. Jacqueline is a car mechanic who did some repairs in September on a truck that Shazad uses to carry on his business. The truck is still in her shop in Hamilton, Ontario. Shazad has not paid Jacqueline the $2000 bill she gave him in September for repairs to the truck, and he is in default under his loan agreement with the Bank. Which of the following is TRUE?

A) The Bank is entitled to the truck because its security interest was created before any interest that Jacqueline has in the truck.
B) The Bank is entitled to the truck because Shazad did not give Jacqueline a security interest in the truck.
C) The Bank is not entitled to the truck because it has not filed a financing statement to perfect its security interest.
D) Jacqueline's possessory lien on the truck prevails over the Bank's security interest.
E) Jacqueline's possessory lien is excluded from the application of the Ontario Personal Property Security Act so the Bank's security interests prevails over her interest.