Willy Joki was the sole director and only shareholder of Bluster Construction Ltd.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 for $35,000;

2/Framing machine which was purchased for $125,000;

3/Cutting machine which was purchased for $50,000.

The bank registered the security agreement on March 1.However, the serial number of the Crane truck was improperly transcribed.The bank then advanced all the funds.

In October the bank manager became concerned about the money lent.The construction industry was in a recession because of high interest rates.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 Willy an unlimited guarantee for all of the loans of the company and required he, his wife and his father to sign it.Willy took it home where he, his wife and his father signed it after Willy said to them that it was 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 ren