BLAW 3100 Chapter Notes - Chapter 15: Operating Lease, Personal Property, Accounts Receivable
Document Summary
Personal property and real property can be used as a security. Offer something of real or personal property. E. g - mortgages - banks will seize the house if need be. Pledge title is retained by debtor but possession provided to lender (e. g. jewellery -- Not giving the property just giving possession. As long as you pay you regain possession. Personal property security involves the right to take title upon default. Conditional sales agreement (real estate through constructor financing) Seller retains title until last payment is made. When you pay the last installment the title is transferred to you. Debtor maintains possession of goods while title is transferred to lender. Uses chose in action as security (rather than goods) In event of default, creditor has right to intercept the payment of accounts receivable. Operating lease: goods are simply rented to the lessee of lease period.
