Management and Organizational Studies 2275A/B Lecture Notes - Unfair Preference, Pawnbroker, Personal Bankruptcy

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Cristin Keller

Document Summary

Other than federal bankruptcy and insolvency legislation, creditors" rights are under provincial jurisdiction. Methods of securing debt: secured creditor: a creditor who has priority over other creditors in the event of bankruptcy or insolvency. Both real & personal property can be used as security: mortgages often use real property as security real property: land or anything attached to land (buildings, fixtures) Personal property: divided into chattels (tangible, movable things) & choses in action (intangible rights that re legally enforceable claims example: promissory notes) Pledge: situation where a pawnbroker lends money and holds an item (ring, watch) as security until the loan is repaid. If loan isn"t repaid, pawnbroker gains right to sell the item. Personal property security involves right to take possession upon default: default may occur when payment is missed or when debtor fails to meet any obligations (such as maintaining sufficient insurance)