Management and Organizational Studies 2275A/B Chapter Notes - Chapter 26: Unsecured Creditor, Security Interest, Subrogation

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Security: collateral can be real property (mortgage) or personal property. Hometown applies for a loan, the bank may register a financing statement under the ppsa. If the loan has not yet been granted, there is no attachment. Once conditions for attachment are meant the interest will immediately be perfected. Transfers of collateral: generally, perfected security interests follow the collateral and take priority over subsequent purchasers of the collateral, the ppsa gives priority to a buyer who buys goods in the ordinary course of the seller"s business, e. g. Hometown buys a car from a car dealer, it does not have to worry about a security interest in the car given by the car dealer. However, if hometown buys a car from a person who doesn"t sell cars in the ordinary course of its business, then the onus is on hometown to conduct a ppsa search prior to purchasing the car, or.