A Purchase Money Security Interest

question 27

Multiple Choice

A purchase money security interest

• A) will be automatically subordinate to any general security agreement, even if registered within the specified time period.
• B) will prevail over a general security agreement covering all of a merchant's assets if it registered within the specified time period.
• C) is also known as a floating charge.
• D) is now obsolete in light of the Personal Property Security Act.
• E) is prohibited in most provinces.

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