In a secured transaction,the creditor's right to payment of a debt may be secured by his taking title to certain assets.In which one of the following types of transactions do those assets consist entirely of intangible property?
A) chattel mortgage
B) assignment of book accounts
C) A debenture issued by a manufacturing firm with a floating charge over its inventory of products.
D) A sale of goods in which the buyer will obtain title when he finishes paying the price in installments.
E) A transaction under section 427 of the Bank Act, whereby a bank takes security over a farmer's growing crops with respect to a loan to purchase the seed and fertilizer necessary to grow those crops.

Question

Quizplus · Accepted Answer

An assignment of book accounts is a type of secured transaction in which the creditor takes title to intangible assets, specifically the right to payment for goods or services sold or rendered by the debtor. Chattel mortgage involves tangible personal property, a debenture is a type of bond secured by the issuer's general credit rather than specific assets, the sale of goods in installments involves a conditional sales contract with tangible goods, and taking security over growing crops (as in option E) is a specific type of secured transaction.

In a Secured Transaction,the Creditor's Right to Payment of a Debt