B LAW403 Lecture Notes - Lecture 10: Security Interest, Chattel Mortgage, Ankole-Watusi

• School: University of Alberta
• Department: Business Law
• Course: B LAW403
• Professor: Jeffrey Bone

Document Summary

Pmsi was only eligible to receive ,000 because the interest was in the value of the equipment and not what it could be sold for, so the extra. A furniture store that sells to customers sometimes on credit and sometimes customers pre-pay goes bankrupt. Ordinary course of business = essentially if someone goes to a store and buys a good and pays fair market value then the creditors typically can"t argue and say they still have an interest in the good. Creditors get an interest in the money rather than the good. The customer is still allowed to buy the car. 4-classes of customers: those who paid but goods not identified, those who paid for identified goods, those who have paid part of the price for an unidentified good, those who are owed cash refunds. As long as the sale took place in the ordinary course of business then the customer is free and clear of prior registered security interests.