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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Definitions:

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain with functions linked to speech production.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, involved in decision making, problem solving, and control of purposeful behaviors.

Speech Production

The complex process involving the coordination of mental and physical mechanisms to form and express language verbally.

Wernicke's Area

A region of the brain important for language development, located in the temporal lobe.