Identify which of the following statements is true about secured transactions in provinces having a personal property security act.
A) Only tangible personal property can be used as security.
B) All kinds of security arrangements involving personal property as collateral now come under one statute.
C) Various kinds of secured transactions, such as conditional sales, chattel mortgages, etc., are regulated by their own distinct statutes.
D) This kind of transaction, which formerly was legal, is now prohibited by law in all provinces.
E) An assignment of an account receivable does not qualify as a security arrangement because no tangible property is involved.

Question

Quizplus · Accepted Answer

The introduction of the Personal Property Security Act (PPSA) in all provinces has consolidated various kinds of security arrangements, such as chattel mortgages, conditional sales, and others, under one statute. The PPSA provides a legal framework for the creation, perfection, and enforcement of security interests in personal property. It applies to both tangible and intangible personal property, including accounts receivable. However, there may be some specific rules or requirements for certain types of collateral or transactions, depending on the particular province's legislation.

Identify Which of the Following Statements Is True About Secured