Module 3

Question 1

What is a secured creditor?

Answer 1

One that takes collateral

Question 2

What is an unsecured creditor?

Answer 2

One that does not take collateral; does not have automatic right to take any of the debtor’s assets

Question 3

What will a Secured Credit Contract contain?

Answer 3

• Name of secured creditor and debtor
• Amount of money loaned
• Terms and conditions of loan
• Description of assets given as collateral
• Address for service for both secured creditor and debtor

Question 4

What docs will need to be provided to a Civil Enforcement Agency?

Answer 4

-Letter of Instruction
-Copy of Secured Credit Contract
-Warrant

Question 5

What docs does the Civil Enforcement Agency prepare?

Answer 5

-Notice of Seizure of Personal Property
-Notice of Surrender
-Bailee’s Undertaking
-Bailiff’s Report

Question 6

What is a Notice of Seizure of Personal Property?

Answer 6

purpose is to describe the property being seized and provide notification to any affected party

Question 7

What is a Notice of Surrender?

Answer 7

it acknowledges that the Bailiff is surrendering the seized property to another party i.e. bailiff giving up possession of seized vehicle to creditor

Question 8

What is a Bailee’s Undertaking?

Answer 8

used when the seized property is left with the debtor. allows property to still be used by debtor but they must promise to keep it safe

Question 9

What are some examples of when a Bailee’s Undertaking may be used?

Answer 9

-if the property can still be used by the debtor to earn a living
-if it decreases the storage costs to the creditor

Question 10

What is a Bailiff’s Report?

Answer 10

an official statement of work completed by the Bailiff.

Question 11

What is contained in a Bailiff’s Report?

Answer 11

-was property surrendered or removed?
-location of property
-if Bailee’s Undertaking was used, name and address of person giving the undertaking

Question 12

Who must the Secured Creditor notify in order to dispose of seized property?

Answer 12

-the debtor
-anyone else to be known as the owner of the collateral
-another creditor with lesser interest in the seized property
-any other party that has notified the creditor that they have an interest in the property

Question 13

How much notice to interested parties need to be given in order to dispose of seized property?

Answer 13

at least 20 days

Question 14

What info is contained in a Notice to Debtor of Intention to Dispose of Seized Property form?

Answer 14

-desc of property
-amount of money needed to satisfy the debt owed
-amount of expenses incurred to complete seizure and sale
-ability of the debtor to keep the collateral or reinstate the agreement
-notification that if the sale of the seized property does not cover the debt owed, that the debtor may still be responsible for difference
-date, time, place and any other instructions with respect to the sale if done by public auction

Question 15

What is the right to redeem?

Answer 15

the debtor can pay full amount of debt and get the collateral back before the proposed sale

Question 16

What is the right of reinstatement?

Answer 16

right to bring the agreement back into good standing by paying all arrears prior to the sale

Question 17

What are three docs to prepare or gather when enlisting the help of a Civil Enforcement Agency?

Answer 17

-Letter of Instruction
-Warrant
-copy of the Secured Credit Agreement

Question 18

What info should be contained in the Letter of Instruction to the Civil Enforcement Agency?

Answer 18

-any urgency with the matter
-unusual circumstances which might occur
-if the seized property is to be removed
-if the property is to be surrendered to an agent
-if the debtor is a farmer, confirmation that s.22 of the Farm Debt Mediation Act has been followed
-Civil Enforcement Agency will be indemnified

Question 19

What two docs may be prepared upon the conclusion of a file for a Secured Creditor?

Answer 19

-Statement of Account
-Reporting Letter