PPSA - ENFORCING A SI/PRIORITY

Question 1

if an si is unperfecetd

Answer 1

buyers or lessess of that colateral for value will take free of SI (52)

Question 2

even if a si is unperfceted

Answer 2

the SI extened to proceeds of a sale of the collateral, sale price or lease payments

Question 3

if an si is perfcted two important benefit s

Answer 3

1. the secured partys SI continues in the collateral, in additon to extending to its proceeds 45
2. the secured party takes the collateral over other secured parties whose SIs are not perfected (takes priority) 66

Question 4

s66

Answer 4

priority rule
if more than one party has a perfcted si over th same collateral, the first in time to register take priority
if both unperfecetd, priority is dtermined by order of attchement

Question 5

partners finance

Answer 5

two si over the same collateral, pf was the first to register however it was seriously misleading and therefor invalid, bulldozer was regarded as other when it should have been serial # good or motor vehicle, so other si took priority

Question 6

grey v royal bank of canada

Answer 6

fruad selling of caravan, h borrow money to buy, bank wants si over the caravn but did h have rights in the caravan for nescassary attachemet
since the seller is a theif, under nemo dat, not a valid sale so h only got possession, but mere possession was enough for rights in but couldnt enforce si ove rthe true owner just third parties and H

Question 7

KEY THINGS/POLICY ARGUMENTS for grey v royal bank of canada

Answer 7

• effct on third parties who have got an si w/o knowing its subjet to owners rights
• s40(3) provison os poession sometimes amounting to rights in
• s17(1) transcation is a si regardless of th perosn who has title t the collateral
• brooksbank, mere poession was not sufficnet to give rise to an SI in the context of a mistaken sale