Identify Which of the Following Statements Is True About Secured

question 14

Multiple Choice

Identify which of the following statements is true about secured transactions in provinces having a personal property security act.

• A)All kinds of security arrangements involving personal property as collateral now come under one statute.
• B)Only tangible personal property can be used as security.
• C)An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved.
• D)Various kinds of secured transactions,such as conditional sales,chattel mortgages,etc.,are regulated by their own distinct statutes.
• E)This kind of transaction,which formerly was legal,is now prohibited by law in all provinces.

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Definitions:

Surety

A person or entity that takes responsibility for someone else's performance, such as repaying a loan, appearing in court, or fulfilling a contract.

Creditor's Risk

The risk that a creditor will not receive the outstanding debt owed by a borrower, due to the borrower's default or inability to pay.

Cheerful Demeanor

Exhibiting a consistently happy and positive attitude in one’s behavior and interactions with others.

Impending Death

The situation or condition of being near to or approaching the end of life.