cu pieser veure security of the mortgage against subsequent encumbrancers or purchasers? Mini-Case Problems 1 X purchased an automobile under a conditional sale agreement from Y. Y registered the agreement in accordance with the provincial security registration requirements. X sold the automobile to Z without revealing the fact that it was subject to a conditional-sale agreement. X defaulted on the payments to Y. Advise Y of his rights at law. 2. A engaged B to build a garage for her on her property. B constructed the garage with materials purchased on credit from C Co. A paid B. B did not pay C Co. Advise C Co. of its rights. 3. Alymer had a credit card with a $25,000 credit limit. He arranged for a supplementary card on his account for Annya, his 18-year-old daughter. Annya used the card to purchase goods worth $3,000, but Aylmer disapproved of her purchases. He demanded that she return them, but Annya refused to do so. An identity thief obtained details from Annya's card and ran up another $25,000 in charges. Who is responsible for payment of the card account, and in what proportions? 4. A corporation borrowed $200,000 from a commercial lender by way of a mortgage on its plant and building. The corporation later borrowed $1,000,000 from a bank, and as security for the loan gave the bank a debenture containing a floating charge. The corporation later defaulted on the payment of both the loan and the debenture. The total corporate assets are $1,000,000. Discuss the rights of the security holders and shareholders