B) False
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B) False
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A) The failure to register would not affect the rights of the chattel mortgagee against the chattel mortgagor if no third party is involved.
B) If the chattel mortgagor would sell the car to a third party and not pay the chattel mortgagee, the third party's claim would override that of the chattel mortgagee.
C) If a trustee in bankruptcy seizes the car from the chattel mortgagor, the trustee's claim would override that of the chattel mortgagee.
D) A potential purchaser of the car from the chattel mortgagor would not find the bank's interest recorded in the central registry.
E) The chattel mortgagee has lost his security and thus all his legal rights.
G) C) and D)
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To ensure that creditors realize as much...View Answer
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The Bankruptcy and Insolvency Act allows...View Answer
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A) a contract is executed.
B) notice of a security arrangement is given.
C) after-acquired assets are secured.
D) a debtor receives some value under the contract.
E) a purchase money security interest arises.
G) B) and D)
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(1)Voluntary assignment,where the debtor...View Answer
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A) allows a creditor to advance further funds without affecting the obligation of the guarantor to pay in the event of default.
B) is a primary obligation of a third party to pay a debt along with a debtor.
C) is a written commitment not to pursue a legal claim against another.
D) is an equitable principle assuring that when security is repossessed, there will be a period of time during which the debtor can still make payment.
E) allows a breaching party to pay an amount specified in a contract, rather than facing a lawsuit for damages.
G) B) and E)
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A) Bankruptcy law is different in every province.
B) Bankruptcy refers to a situation in which a debtor who cannot pay debts transfers his assets to the creditors directly.
C) Bankruptcy law forces a debtor to pay all his debts, regardless of his financial position.
D) All creditors of a bankrupt debtor are treated equally and will receive shares of the assets directly in proportion to how much is owed to each of them.
E) A debtor who has been discharged from bankruptcy is released from his previous financial obligations.
G) B) and C)
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A) A guarantor can use any defence against the creditor that the debtor could use.
B) A legally binding promise to be primarily responsible for someone else's obligation is an indemnity.
C) A guarantee cannot be enforced in court unless it satisfies the writing requirements set out in statute.
D) Subrogation can result in a guarantor's being able to sue successfully the very debtor whose obligation he guaranteed.
E) A legally enforceable guarantee must satisfy all the elements required to create a binding contract except consideration.
G) A) and B)
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It notifies other people that the goods ...View Answer
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The credit union has every right to dema...View Answer
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A) Holtz has no liability to any of those involved with the job except Joe, because he has a contract only with Joe.
B) Holtz and Joe are equally liable to the lien claimants, because of recent amendments to the builders' lien legislation.
C) Holtz bears the sole liability to the lien claimants for any debts arising out of their work on his property.
D) Holtz's mother will be liable to both Holtz and the lien claimants, as she will be taking the benefit of the renovations.
E) If Holtz has complied with the statutory requirements, his obligation will be limited to the amount of the holdback, even if the amount owed under the liens far greater.
G) B) and E)
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A) If a conditional buyer defaults in his payments, the conditional seller can generally seize the chattel without a court order.
B) A conditional seller can assign the conditional sale contract to a finance company without the consent of the conditional buyer.
C) A chattel mortgagee must register the mortgage in the appropriate registration office, not to protect his claim on the chattel against the chattel mortgagor, but to protect his claim against third parties-e.g., a bona fide purchaser for value.
D) There is no longer a distinction between a chattel mortgage and a conditional sale.
E) These transactions are now governed by the Personal Property Security Act.
G) A) and D)
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B) False
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B) False
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Its purpose is to bring all of...View Answer
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A) It is illegal for you to transfer assets to a spouse or friend to shield them from your creditors
B) If you become bankrupt, your assets are conveyed to a trustee in bankruptcy who deals with them for the benefit of your creditors.
C) If you become bankrupt, you are restricted from carrying certain activities until you are discharged.
D) If your long-time financial well-being would be served by bankruptcy, you must ask your creditors to begin the procedure; you cannot begin it yourself.
E) The Bankruptcy and Insolvency Act provides a procedure to avoid bankruptcy by making a proposal to your creditors for satisfying their claim.
G) C) and D)
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B) False
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