If a person with a legitimate interest (for example. B Another creditor) wants more details on the full terms of a security agreement, the Personal Security Act gives that party the right to demand the details of the respective security agreement (section 18). Creditors who have security rights under the Property Security Act also have special rights under the Bankruptcy and Insolvency Act (see sections on bailiffs, bailiffs and sheriffs and bankruptcy assignments). In general, creditors with properly registered security agreements can free themselves from most of the effects of the Insolvency and Insolvency Act, including: “Bank C assumes a security interest through all the chats (personal and mobile property) that a consumer now owns and could acquire in the future. (The Personal Property Security Act allows for this type of agreement.) If the consumer now owns household appliances and a car and later buys a second car with cash, the second car becomes a guarantee under the bank guarantee agreement C. But consider whether the consumer only owned household furniture when the security agreement was reached with the bank. Suppose later that the consumer wants to buy a car and does not have the money to buy it. If a dealer sells a car on credit to the consumer, they will probably want security. (Or if another creditor – like a bank – gives the consumer a loan to buy the car, he or she will probably want security as well.) When the dealer has searched the personal property registry, he discovers that bank C has a security agreement that stipulates that he can request guarantees on the car that the consumer will buy. There is a lot of legal terminology in the Personal Property Security Act, and the law defines many of these terms (section 1). The borrower is referred to as a debtor.
A creditor is certainly called a “secure party.” The security contract between the debtor and the insured party is referred to as a “security agreement.” The property on which a debtor and an insured party enter into a guarantee contract is a “guarantee.” In practice, the debtor can only avoid withdrawal by ceding a new agreement with the creditor for the “purchase” of the guaranteed commodity at the resale value. A security agreement may be oral if the guaranteed party (the lender) is in possession of the guarantees. If the guarantee is physically held by the borrower or if the guarantee is an intangible value (. For example, a patent, [1) of claims or a debt title), the guarantee agreement must be made in writing to comply with the fraud law. The security contract must be authenticated by the debtor, i.e. it must bear the debtor`s signature or be marked electronically. It must provide an appropriate description of the guarantees and use words that show an intention to create an interest in securities (the right to claim repayment of the loan through stolen property). In order for the security contract to be valid, the borrower must normally have rights to the guarantees at the time the contract is implemented. If a borrower promises as collateral a car owned by a neighbour and the neighbour does not know or support this promise, the security agreement is ineffective. However, a security agreement may specify that it contains post-acquired properties. If such a specification is included, then a promise of “all cars in the borrower`s possession” would include the neighbor`s car if the borrower were to buy that car from the neighbor.