B LAW403 Lecture Notes - Lecture 7: Chattel Mortgage, Security Interest, Canadian Imperial Bank Of Commerce

• School: University of Alberta
• Department: Business Law
• Course: B LAW403
• Professor: Jeffrey Bone

Document Summary

Perfection occurs when a security interest has been attached and all steps required for perfection under this act have been completed, regardless of the order of occurrence. Registry system is used to generate fairness in circumstances that unfairness may arise. The registered information needs to be exact because if there are differences then this could test the validity of the attachment. Perfection can mean status (says you have higher priority) or it is a. Perfection = nothing beats perfection because it is suggesting that it is the highest form of interest that you can have. 3 ways to perfect under the ppsa: registering, possession, temporary possession (i. e. canada post has possession of the collateral on the secured parties behalf). Prior to going bankrupt he had a heavy piece of manufacturing equipment in his possession. Morgenstern had a security interest in the equipment through a chattel mortgage (improperly registered). The trustee in bankruptcy did not recognize morgenstern"s security interest as perfected.