LEGL-260 Lecture Notes - Lecture 1: Unsecured Creditor, Secured Creditor, Unsecured Debt
19 Mar 2018
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What is a creditor/debtor relationship: one owing money to another, element of a contract to enforce, amount can be certain or uncertain, future obligation or currently owing (the right to demand payment) Examples: mortgage (secured creditor, personal loans (student loans, car loans (secured), line of credit, litigation award, payday loans, credit cards, commercial loans (banks, bonds (loan, taxes (preferred creditor, wcb, vendors (unsecured creditor) "whenever one person is liable and bound to pay another an amount of money, certain or uncertain" Secured creditors: given priority over the assets of the debtor pursuant to statutes, creditors by contract, rights governed by: land titles act, law of property act, personal. Property security act: unsecured creditors, no prior rights, rights governed by civil enforcement act. Specified personal property: secured interest in specified property only, if value is less than amount owing, the leftover amount becomes unsecured. All present personal property: security interest in all personal property owned at the time agreement is made.
