Owen had borrowed money from a credit union to purchase a car, and the credit union had required a security against the car, which they registered under the Personal Property Security Act. As well, Owen's father guaranteed the loan. Some months later, Owen decided to go back to school, and he had to sell the car to do so. He returned to the credit union and, at his request, the credit union gave up the security they had against the vehicle, knowing that they still had the loan guaranteed by Owen's father. Owen defaulted and, instead of repossessing the vehicle, the credit union demanded payment from the father.

Applying the relevant and correct principle(s) of law discuss the liabilities of the parties.

(b) After graduating, a student set up a business as a systems analyst. His monthly billings are healthy, about $10 000 a month. He rents his office, hardware, and furniture and owns few assets. He rents his apartment, has no car, and spends most of his income on concerts. If he approaches you, a bank manager, to borrow $50,000 for the purpose of increasing his working capital.

Identify, explain and apply the most appropriate security method required to secure the above transaction.

(c) A petition for bankruptcy against Gold dust Inc., has recently been filed by the creditors on October 1 2020. One of the suppliers of Gold dust Inc., who is owed $500,000, started a court action to reclaim that debt. The company has defended. On October 30^th 2020, the supplier wants to obtain a default judgment against Golddust Inc.

Applying the correct principle(s) of law, explain the legal position of the supplier, whether the action will succeed, and how the supplier would have been protected