Ione Lives and Conducts Business in Ottawa

Multiple Choice

Ione lives and conducts business in Ottawa.Three months ago, she borrowed $25 000 from Donovan and put up her brand new Jaguar vehicle as collateral.Two months ago, she borrowed $10 000 from a small lending company, called SkyLeitch Inc, and again used her Jaguar as collateral.Unfortunately, as a result of a drop in business revenues, Ione defaulted on Donovan's loan almost immediately.Donovan consequently has seized the car.Which of the following is most likely to be TRUE?

A) As long as he is prepared to give up any claim against Ione, Donovan has an absolute right to retain possession of the vehicle.
B) Ione can redeem the collateral by simply paying the loan instalments that she already has missed.
C) As long as he is prepared to give up any claim against Ione, Donovan has an absolute right to sell the Jaguar to any purchaser for any price.
D) Even if Ione does not redeem the collateral, SkyLeitch may do so.
E) Because she gave up possession of the Jaguar, Ione is not in default, even though she has missed a payment on the loan.