Aruna Ran a Grocery Store Business in Niagara Falls

Essay

Aruna ran a grocery store business in Niagara Falls.As security for a term loan to her,she had given Eaton Bank a security interest in her assets under s 427 of the Bank Act.Eaton Bank failed to register its interest under the Bank Act and made several other errors in creating the interest so that it was not effective under the Bank Act.Instead,Eaton Bank filed a financing statement under the Ontario Personal Property Security Act.Subsequently,Natasha lent Aruna $5000 and took a security interest in Aruna's assets.Natasha filed a financing statement under the Ontario Personal Property Security Act to perfect her interest.Later Aruna defaulted on her obligations to both Eaton Bank and Natasha.Whose interest in the assets of Aruna's grocery store business has priority? Would your answer be any different if Aruna's business had not been in Ontario?