Identify Which of the Following Statements Is True About Secured

question 61

Multiple Choice

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

• A) This kind of transaction, which formerly was legal, is now prohibited by law in all provinces.
• B) Various kinds of secured transactions, such as conditional sales, chattel mortgages, etc., are regulated by their own distinct statutes.
• C) An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved.
• D) All kinds of security arrangements involving personal property as collateral now come under one statute.
• E) Only tangible personal property can be used as security.

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Definitions:

Personal Property

Any movable property owned by an individual or entity, as opposed to real estate.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a loan.

Debtor's Possession

Referencing an instance where individuals or entities in debt retain control over their assets while undergoing legal or financial proceedings.

Secured Transaction

A transaction in which the payment of a debt is guaranteed by personal property owned by the debtor.