Question: In August, Shazad borrowed $ 2 0 0 0 0 from the Bank of Nova Scotia in order to finance his pool cleanin business. The
In August, Shazad borrowed $ from the Bank of Nova Scotia in order to finance his pool cleanin business. The bank and Shazad entered into a general security agreement under which the bank took security interest in all of the present and future assets of Shazad. Jacqueline is a car mechanic who did some repairs in September on a truck that Shazad uses to carry on his business. The truck is still in her shop in Hamilton, Ontario. Shazad has not paid Jacqueline the $ bill she gave him in September repairs to the truck, and he is in default under his loan agreement with the bank. Which of the followir is TRUE?
Select one:
A Jacqueline's possessory lien on the truck prevails over the bank's security interest.
B The bank is entitled to the truck because its security interest was created before any interest that Jacqueline has in the truck.
C Jacqueline's possessory lien is excluded from the application of the Ontario Personal Property Security Act, so the bank's security interest prevails over her interest.
D The bank is entitled to the truck because Shazad did not give Jacqueline a security interest in the truck.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
