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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 20:37, 12 August 2020
, 20:37, 12 August 2020→C. Disqualification from “Seize or Sue” Provisions
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The seizure of consumer goods generally extinguishes the debt in relation to the security agreement. However, there are exceptions under s 67: | 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, in the case that the lender exercises | *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 their 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. | ||
