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Difference between revisions of "Conditional Sales Contracts and Security Agreements (11:VI)"
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Conditional Sales Contracts and Security Agreements (11:VI) (view source)
Revision as of 05:25, 13 August 2016
, 05:25, 13 August 2016→C. Disqualification from “Seize or Sue” Provisions
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*b) the secured party discovers after seizure that an accession that was collateral has been removed and not replaced by other goods of equivalent value and free from prior security interests; a claim may be advanced against the debtor for the value of the accession (s 67(8)). | *b) the secured party discovers after seizure that an accession that was collateral has been removed and not replaced by other goods of equivalent value and free from prior security interests; a claim may be advanced against the debtor for the value of the accession (s 67(8)). | ||
The seizure of consumer goods generally extinguishes the debt in relation to the security agreement. However, there are exceptions: | The seizure of consumer goods generally extinguishes the debt in relation to the security agreement. However, there are exceptions under s 67: | ||
*If the creditor returns the consumer goods within 20 days after the seizure, that will revive the debt; | *If the creditor returns the consumer goods within 20 days after the seizure, that will revive the debt; | ||
*If the security agreement is a mortgage or an agreement for sale and the consumer goods are part of this security | *If the security agreement is a mortgage or an agreement for sale and the consumer goods are part of this security, in the case that the lender exercises his or her rights under the mortgage or agreement of sale but does not seize the goods, the debt is not extinguished; | ||
*If the creditor has a purchase money security interest in the seized consumer goods and other consumer goods, the debt is extinguished to the extent identified in the security instrument as relating to the seized consumer goods. | *If the creditor has a purchase money security interest in the seized consumer goods and other consumer goods, the debt is extinguished to the extent identified in the security instrument as relating to the seized consumer goods. | ||
These qualifications also apply in the event of a voluntary foreclosure and a voluntary surrender of consumer goods rather than a seizure. | These qualifications also apply in the event of a voluntary foreclosure and a voluntary surrender of consumer goods rather than a seizure. | ||
== D. Third Party Purchaser’s Rights == | == D. Third Party Purchaser’s Rights == | ||