Security under Section 427 of the Bank Act gives a Chartered Bank security
A) against bona fide purchasers for value.
B) in goods not yet in existence.
C) against any bulk sale of a corporation's assets.
D) equivalent to that which would otherwise be a mortgage bond.
E) in a wider range of consumer borrowing than Trust Companies.

Question

Quizplus · Accepted Answer

Section 427 of the Bank Act allows banks to take security in goods not yet in existence, providing them with a priority interest once the goods come into existence.

Security Under Section 427 of the Bank Act Gives a Chartered