Ornak Furniture Inc Had an Operating Line of Credit with the Bank

question 9

True/False

Ornak Furniture Inc had an operating line of credit with the Bank of Brandon.Ornak had given the bank a security interest in all its present and future assets to secure its obligations under the line of credit.The bank had perfected its interest by registration in 2011.Cronin carried on business as a supplier of wicker furniture.In 2012,Cronin delivered 20 wicker chairs to Ornak.Ornak put the chairs on display in its showroom.Under the agreement that Ornak had with Cronin,Ornak was not obliged to buy the chairs,but the act of selling a chair to a customer constituted the agreement by Ornak to buy the chair from Cronin.For every chair sold,Ornak paid Cronin whatever it sold the chair for less 50 percent.In December 2009,Ornak defaulted on its obligations to the bank and the bank seized its assets including the chairs supplied by Cronin.The bank is entitled to the chairs.

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Definitions:

Hyaline Cartilage

Hyaline cartilage is a translucent type of cartilage found in areas such as the nose, trachea, and at the ends of bones, providing smooth surfaces for movement at joints.

Elastic Cartilage

Type of cartilage composed of elastic fibers, allowing greater flexibility.

Osteocytes

Mature bone cells that maintain the bone matrix and are involved in the regulation of bone density.

Canaliculi

Small, channel-like structures in bone tissue that allow for communication and nutrient/waste exchange between osteocytes.