Alphonse Is New to Canada and Decides to Start a Tailoring

Multiple Choice

Alphonse is new to Canada and decides to start a tailoring business with a $30 000 loan from Bank X.Under the terms of the loan,Bank X may recall the loan at any time,but Alphonse has come to know the loan officer well.The officer has given Alphonse verbal assurances that the loan will not be called "unreasonably." Alphonse locates a store for rent on a busy street and decides to set up there.At first,business is good.Alphonse hires his wife and two apprentices from the nearby college to help out.Two more sewing machines are bought and Alphonse gives some thought to starting up a dry-cleaning business on the premises.One day,however,the loan officer stops by to tell Alphonse that the entire loan to Bank X must be repaid within 24 hours.No reason is given.If the loan is recalled,Alphonse will be insolvent and financially destroyed.Which of the following is TRUE?

A) Alphonse would likely be unsuccessful in a court suit challenging the reasonableness of the bank's actions.
B) The bank is entitled to demand its money back without notice.
C) The bank must always give at least one month's notice when demanding payment.
D) Alphonse may be successful in a court suit challenging the legality of the bank's actions.
E) The bank could seize all of Alphonse's assets if he does not repay the loan immediately.