Asked by arianna denn-thiele on Jun 23, 2024
Verified
Wen purchased an automobile from Nick for $10,000. Unknown to Wen, Nick had used the automobile as security for a loan from his bank, and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation. A few months after the sale, Nick defaulted on the loan, and the bank discovered that Wen was in possession of the automobile. Wen has a good and clear title to the automobile, because he purchased it without knowledge of the bank's claim.
Provincial Personal Property
Assets or belongings that are considered movable and are within the jurisdiction of a specific province or region.
Security Interest
A legal claim or lien on collateral that has been pledged, usually to secure repayment of a debt.
Security Registration Legislation
Laws and regulations that govern the process and requirements for registering securities, aimed at protecting investors and ensuring transparency in financial markets.
- Assess the impact that registration of personal property security has on transactions involving security.
- Fathom the repercussions of secured dealings on legitimate purchasers in exchange for value.
Verified Answer
BG
Breanne GnackeJun 29, 2024
Final Answer :
False
Explanation :
Wen does not have a good and clear title to the automobile because the bank's security interest, having been properly registered, takes precedence over Wen's claim, regardless of Wen's knowledge of the claim at the time of purchase.
Learning Objectives
- Assess the impact that registration of personal property security has on transactions involving security.
- Fathom the repercussions of secured dealings on legitimate purchasers in exchange for value.