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?
A) Chattel mortgage.
B) A debenture issued by a manufacturing firm with a floating charge over its inventory of products.
C) A sale of goods in which the buyer will obtain title when he finishes paying the price in installments.
D) Assignment of book accounts.
E) A transaction under section 427 of the Bank Act, whereby a bank takes security over a farmer's growing crops with respect to a loan to purchase the seed and fertilizer necessary to grow those crops.

Question

Quizplus · Accepted Answer

Assignment of book accounts involves the transfer of rights to receive payments for accounts receivable or other intangible assets. The creditor does not take title to any physical property, but instead secures the right to receive payments from the debtor's customers or other third parties.

In a Secured Transaction, the Creditor's Right to Payment of a Debt