Charles Brown,a Fisherman,gave Security to a Bank Under Section 427

question 41

Essay

Charles Brown,a fisherman,gave security to a bank under section 427 of the Bank Act in order to finance the purchase of a fishing boat from Triumph Ship Builders Ltd.The bank duly registered the standard form of notice with the Bank of Canada in relation to the fishing boat.A year later,Charles sold the fishing boat to Sea Traders Inc.,who were marine mercantile agents.Sea Traders were unaware of the bank's section 427 security and made no attempt at searching for encumbrances against the fishing boat.Sea Traders in the normal course of business sold the fishing boat to Harold Walker,a bona fide purchaser for value.Charles left the country permanently after his sale to Sea Traders.Discuss the bank's position against each of Sea Traders,Charles Brown,and Harold Walker.

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Definitions:

Legislative

Pertaining to the process of making or enacting laws.

Branches Of Government

Refers to the division of government responsibilities into distinct sectors to prevent any one group from gaining too much power, typically including the executive, legislative, and judicial branches.

Probable Cause

A reasonable basis for believing that a crime may have been committed, used as a standard by law enforcement to make arrests and obtain search warrants.

Search Warrant

A court order that authorizes law enforcement agents to search for or seize items specifically described in the warrant.