Betty Blaine, owner of Ad Consult Ltd., acquired five new computers and two laser printers from Computing Supplies Inc., a major wholesale supplier of word-processing equipment to business and institutions. Each piece of equipment was acquired pursuant to a lease that Betty signed on behalf of her company. The cost of each computer was $2,700, and the printers were $3,600 each. Bettys company was required to pay $75 monthly for each computer lease and $100 monthly for each printer, for three years.

In addition to the monthly payments Bettys company was to make, Betty was required by Computing Supplies Inc. to sign a personal guarantee for payment on each lease in the event that her company should default. The wording of the guarantee stated that Betty would be liable to make payments under the lease even if the lease turned out to be void or voidable against her company or its creditors.

Shortly after the acquisition of the computing equipment, Betty borrowed a sum of money from the bank for some improvements to her offices. As security for the bank, she executed a general security agreement over all assets of her business.

After about a year of making regular payments on the computer leases and to the bank, Bettys business began to slow down considerably. She struggled to make the payments for a few more months, but eventually found herself unable to continue. First, Betty failed to make payments on the leases. The following month she defaulted on her bank loan. The bank immediately seized the computing equipment, and the other assets of the business, pursuant to the terms of its general security agreement.

In the legal argument that followed, it became apparent that the bank had registered its security agreement under provincial personal property security legislation, but Computing Supplies Inc. had not registered any of its leases.

Identify the legal issue or issues that have arisen, and the arguments that each party will rely upon, including the legal principles upon which they are based. Render a decision.