If a Bank as Chattel Mortgagee Fails to Register the Mortgage

question 95

Multiple Choice

If a bank as chattel mortgagee fails to register the mortgage of a car, which of the following is false?

• A) If the chattel mortgagor would sell the car to a third party and not pay the chattel mortgagee, the third party's claim would override that of the chattel mortgagee.
• B) If a trustee in bankruptcy seizes the car from the chattel mortgagor, the trustee's claim would override that of the chattel mortgagee.
• C) A potential purchaser of the car from the chattel mortgagor would not find the bank's interest recorded in the central registry.
• D) The chattel mortgagee has lost his security and thus all his legal rights.
• E) The failure to register would not affect the rights of the chattel mortgagee against the chattel mortgagor if no third party is involved.

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