The Registration Systems Established Under Provincial Personal Property Security Laws

question 70

Multiple Choice

The registration systems established under provincial personal property security laws in most provinces are superior to the systems that existed previously.Which of the following best describes why the new systems are better?

• A)A creditor can search in one place to find all security interests in the property of a debtor.
• B)The priority of all security interests and other types of claims against a debtor are determined under personal property security law.
• C)Most security interests in a debtor's assets in a province are governed by one set of rules.
• D)A creditor need only make one registration against a debtor to perfect a security interest in the debtor's assets no matter where they are situated in Canada.
• E)The interests taken by banks in a debtor's assets under the Bank Act are now governed under provincial personal property security law.

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Definitions:

Originally Issued

Pertains to securities or stocks that have been made available for sale to the public for the first time.

Par-Common Stock

The face value of a share of common stock as designated in the corporate charter.

Paid-In Capital

Money that investors have given to a corporation in exchange for equity, representing the capital contribution from shareholders when issuing and selling shares.

Common Stock

A type of security that represents ownership in a corporation, with holders typically having voting rights and receiving dividends.