Owen Had Borrowed Money from a Credit Union to Purchase

question 81

Essay

Owen had borrowed money from a credit union to purchase a car, and the credit union had required a security interest against the car, which they registered under the Personal Property Security Act. As well, Owen's father guaranteed the loan. Some months later, Owen decided to go back to school, and he had to sell the car to do so. He returned to the credit union and, at his request, the credit union gave up the security they had against the vehicle, knowing that they still had the loan guaranteed by Owen's father. Explain the wisdom of this move.

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