Gilles has a restaurant business that he operates as a sole proprietorship. He has a line of
Question:
Gilles has a restaurant business that he operates as a sole proprietorship. He has a line of credit with ScotiaBank that is secured by a general security agreement. The bank has perfected its security interest by filing a financing statement under the applicable PPS legislation. Gilles was moving and decided to put some of his furniture in storage for a few months. He agreed to pay Ace Storage Inc $100 per month for 12 months in return for a storage locker. He paid for the first month but made no other payments. At the end of the 12 months, Gilles went to get his furniture. Ace refused to give it to him until he paid his bill. Gilles has also defaulted on his line of credit. Who is entitled to the furniture—ScotiaBank or Ace?
Line of CreditA line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...
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Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0132164429
4th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer