Errol Contracts with XYZ Construction to Build His Company,OP Finance,a

Multiple Choice

Errol contracts with XYZ Construction to build his company,OP Finance,a new high-rise office building.The building will cost $3 million.OP Finance has a very high accounts receivable balance.In order to pay XYZ,Errol arranges a loan from CIBC.Which of the following is the most desirable for CIBC?

A) Take a conditional sale of the building,retaining ownership until OP pays the loan
B) Take assignment of accounts receivable
C) Take a general security agreement
D) Take a security interest in the building
E) Use a floating charge