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 statements is FALSE?

A) The Bank Act limits the assets in which a security interest may be taken.In a security agreement,there is no restriction on the assets in which a bank may take a security interest.
B) 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.
C) 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 effective only in that province.
D) Only banks can take interests under the Bank Act.Anyone can take a security interest created in a security agreement.
E) Bank Act security clearly and always has priority over all prior registered provincial security interests.