Date Event Work columns (not marked] Type of Type of Priority security interest January He borrows $500,000 from ANZ Bank (ANZ) to buy 2020 premises; he signs a mortgage over the premises which he hands to the bank, with the certificate of title; the bank lodges these documents at Land and Property Information [LPI]. February He needs to fit out the premises for operation, so he 2020 borrows $110,000 from Small Business Finance Ltd (SBF); he signs a security instrument over the office furniture and computer equipment and SBF records the security instrument on the PPSA register. June 2020 His business grows so he decides to expand his agency; he borrows another $65,000 from ANZ to enter into a two year lease of adjoining premises and signs another mortgage over his own premises. ANZ just holds this mortgage in a safe. August He borrows $60,000 from SBF to install an electronic 2020 advertising window display; he signs a second security instrument over his office furniture and computer equipment but SBF does not register it. August He borrows $60,000 from SBF to install an electronic 2020 advertising window display; he signs a second security instrument over his office furniture and computer equipment but SBF does not register it October He decides to upgrade the air conditioning in the 2020 premises. He borrows $40,000 from Westpac and signs a third security instrument over the office furniture and computer equipment; Westpac registers the security instrument on the PPSA register. December He borrows another $50,000 from Westpac to 2020 upgrade his computerised booking system. He signs another mortgage over the premises which Westpac holds in a safe and lodges a caveat at the Land Titles Office. By March 2021 travel restrictions imposed because of covid-19 have reduced travel bookings by 90%. He is unable to keep up interest payments on all his borrowings. Vagor closes the travel agency in July 2021. The building, office furniture and computer equipment are sold to repay his creditors.

1. What type ofSECURITYis held by ANZ for the June 2020 loan?[1 mark]

a. registered mortgage (R/M)

b. perfected security interest (P/S/I)

c. unreigstered mortgage (U/R/M)

d. unperfected security interest (U/S/I)

2. What type ofSECURITYis held by SBF for the August 2020 loan?[1 mark]

a. registered mortgage (R/M)

b. perfected security interest (P/S/I)

c. unregistered mortgage (U/R/M)

d. unperfected security interest (U/S/I)

Clear my choice

3. What type ofSECURITYis held by Westpac for the October 2020 loan?[1 mark]

a. registered mortgage (R/M)

b. perfected security interest (P/S/I)

c. unregistered mortgage (U/R/M)

d. unperfected security interest (U/S/I

4. What type ofSECURITYis held by ANZ for the January 2020 loan?[1 mark]

a. registered mortgage (R/M)

b. perfected security interest (P/SI)

c. unregistered mortgage (U/R/M)

d. unperfected security interest (U/S/I)

5. What type ofSECURITYis held by ANZ for the January 2020 loan?[1 mark]

a. registered mortgage (R/M)

b. perfected security interest (P/SI)

c. unregistered mortgage (U/R/M)

d. unperfected security interest (U/S/I)

6. For the June 2020 loan ANZ has[1 mark]

a. a legal interest and a power of sale

b. a legal interest but not a power of sale

c. an equitable interest and a power of sale

d. an equitable interest but not a power of sale

7.If the premises are sold for $590,000 and the furniture and computer equipmentare sold for a total of $180,000 how much will be received (you may assume no repayments of the capital sums) by

ANZ in total?[1 mark]

a. $565,000

b. $540,000

c. $500,000

d. $65,000

8. SBF in total?[1 mark]

a. $140,000

b. $110,000

c. $170,000

d. $60,000

9. Westpac on its December loan for which the shop is security?[1 mark]

a. $25,000

b. $90,000

c. $40,000

d. $50,000

10. Westpac on its loan for which the furniture and computer equipment are security?[1 mark]

a. $30,000

b. $10,000

c. $40,000

d. $90,000