Exam 16: Priority of Creditors

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?

Identify which of the following statements best describes the legal position of a conditional seller.

The owner of the house had contracted with a general contractor,Mr.Hadrian,for a greenhouse addition to the house at a cost of $20 000.In accordance with the legislation,the owner withheld 10 percent and waited the legislated period of time within which any liens are to be filed.Which of the following correctly describes the owner's liability?

A guarantee must be supported by consideration,just like any other contractual obligation.Explain what consideration is present when one person guarantees the debt of another.

When a supplier of goods such as a wholesaler transfers those goods to a debtor,who then goes bankrupt,explain the supplier's legal position.

Which of the following is false with regard to property?

If no builders' liens are registered within the specified time,the owner gives the holdback to the general contractor.

Distinguish between receivership and bankruptcy where corporations are concerned.

Distinguish between bankruptcy and insolvency.

Provide an example of legislation that gives the federal government priority over all other creditors,including secured creditors.

Explain what happens when the owner of property fails to hold back the appropriate amount when making payments to the general contractor.

A "confirmed letter of credit" is another name for a "standby letter of credit."

Which of the following is the consequence of an unpaid subcontractor failing to file his lien on time? The owner had contracted with the general contractor who in turn had contracted with this subcontractor.

Real and personal property can be used to secure a loan.

What is the result of a settlement that takes place within a year of bankruptcy?

Distinguish between a conditional sale and a chattel mortgage.

Distinguish between bankruptcy and insolvency.

What is the effect on a corporation when it goes bankrupt?

Give three examples of types of things that can be used as security under the Personal Property Security Act.

Identify which of the following statements is true about secured transactions in provinces not having a personal property security act.