Casey, a resident of the United States, visited Canada on his sailboat. While in Canada, he sold the boat to his friend Donald, who resided in Toronto, Ontario. The friend purchased the sailboat for $10,000. Some time later, Donald purchased a power boat from a dealer and used the sailboat as a trade-in to cover part of the purchase price. The dealer made a search for security interests under the provincial Personal Property Security Act and found no claims against the sailboat. The boat dealer sold the sailboat some time later to Morgan, under a conditional-sale agreement, and registered the security interest. Morgan later sold the sailboat to Kidd for $8,000 and moved to the province of Alberta. Kidd did not make a search for creditor claims at the time of the purchase. He had paid over the money unaware of the boat dealer's registered security interest in the property. The conditional-sale agreement went into default when Morgan neglected to make a payment to the boat dealer. However, before the dealer could find the boat, Customs and Excise claimed that the sailboat had been illegally brought into Canada, and the property in the goods, as a result, had vested in the Crown. Discuss the rights of the parties, including the Crown, in this case.

(This question is in the chapter "Security for Debt")