Which one of the following statements about the Personal Property Security Act is true?
A) This legislation applies only to all present transactions where personal property is given as security interest to enforce an obligation.
B) Unless a creditor in a secured transaction covered by this Act takes steps to "attach and perfect" her security interest, she could lose that interest to someone outside the contract.
C) In a situation where a debtor fraudulently attempts to transfer property that she has given as security, the Act is designed to protect both the debtor and secured creditor.
D) If a secured creditor fails to register her security interest in the Personal Property Registry, she loses his rights against the debtor.
E) If someone suspects that an item of personal property has been given as security by a particular person, she can sue on the breach of a condition.

Question

Quizplus · Accepted Answer

The Personal Property Security Act requires that a creditor takes steps to "attach and perfect" their security interest in order to protect their interest against someone outside the contract. Therefore, if they fail to do so, they could lose their interest. The other statements are not entirely accurate. A) The Act applies to both present and future transactions involving personal property. C) The Act is designed to protect the secured creditor only, and not the debtor if they are attempting to fraudulently transfer property. D) Failing to register does not automatically result in the loss of rights against the debtor. E) This statement does not relate to the Personal Property Security Act.

Which One of the Following Statements About the Personal Property