George Smith was the sole director and only shareholder of Chameleon Construction Lid. When the construction industry was strong he borrowed $250,000 from the bank. The security agreement gave the bank a fixed charge against the following assets: 1. Crane truck which was purchased or $35,000; 2. Framing machine which was purchased for $125,000; 3. Cutting machine which was purchased for $50,000. The bank registered he security agreement on March 1. However, the serial number of the Crane truck was improperly transcribed. The bank then advanced all the unds. In October the bank manager became concerned about the money ent. The construction industry was in a recession because of high interest ates and the new G.S.T. The bank manager received a directive form the bank's head office telling all bank managers that outstanding loans to construction companies must be reduced by 30%. The bank manager then gave George an unlimited guarantee for all of the loans of the company and required he, his wife and his father to sign it. George took it home where he, his wife and his father signed it after George said to them that it vas a temporary loan to the company. The guarantee was returned to the bank manager. The company continued to make all payments as they became due to the bank. However, the rent on the premises which held the raming and cutting machine fell into arrears in the sum of $20,000. Two veeks later the bank manager, following the directive, demanded that George repay $75,000 of the outstanding loan. The company did not have