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

Question

Quizplus · Accepted Answer

In provinces not having a personal property security act, various kinds of secured transactions, such as conditional sales, chattel mortgages, etc., are regulated by their own distinct statutes. Therefore, option B is correct. Option A is incorrect because there is no one statute governing all kinds of security arrangements. Option C is incorrect because an assignment of an account receivable qualifies as a security arrangement even though no tangible property is involved. Option D is incorrect because it is a general statement without any specific context or support. Option E is incorrect because both tangible and intangible personal property can be used as security.

Identify Which of the Following Statements Is True About Secured