GABBY is a financial planner for a large privately-held investment firm.GABBY is also a 'techie' and finds a gap in the market and has an idea for a new product.GABBY wants to create her own business to develop and sell her product.To obtain capital, GABBY uses part of her own money and contributions from her spouse, AMIN, who also owns a start-up technology company.GABBY wants to run the day-to-day operations and lead the business. KRISTA wants to be involved but wants some oversight on GABBY's behaviour.Other directors include MARKO, JULES, FLO, and HAN.JULES is especially concerned that she may be sued for overseeing GABBY's new venture.

GABBY quits her job to focus on the business, but at the start, the business does not earn any revenue.To earn income, GABBY works as a freelance consultant.GABBY is hired by MALCOLM's firm to do some research and to draft a report.However, both GABBY and MALCOLM do not want the relationship to become permanent.

GABBY goes to the bank (BANK of BANKNESS) and wants to get a loan.BANK of BANKNESS wants to take security in her personal house and her investments and have someone guarantee the loan. GABBY's spouse, AMIN, signs the loan, not realizing what he signed.

1.Help GABBY and AMIN.Compare letters of credit with bills of lading and general security agreements and discuss this type of financing arrangement's requirements.How does the PPSA resolve conflicts when more than one debtor claims a security interest in the same collateral as the debtor?What risks does AMIN face by signing a loan she did not intend to sign?Would this change if the loan was in the form of a mortgage on GABBY's and AMIN's house?