Hummmm,
I have been a Canadian banker for 25 years but still don't understand the US ways :hmmm:
What if a guy purchase a boat, lets say from a USA Bayliner dealership on Jan 1, 2008 with a cheque from his chequing account (thus no borrowing) , does this mean that the Bayliner dealership gives him a clear title ?
Then on Jan 5, 2008 this same guy goes to a USA bank and gets a collateral loan against his 100,000 boat for 20,000 , the bank now has a lien.
Lets say I then go to the guy on Jan 8, 2008 and I ask for the clear title and he gives me the clear title he got from the Bayliner dealership not telling me about the collateral mortgage he gave to the bank on Jan 5, 2008 and I give him the certified funds.
Were would the USA bank security interest show up on the document ?
Eventhough the guy could give me a clear title (from the bayliner dealership) what good would it be to me.
In Canada we ; 1) Sign documents
2) Registered a secured interest on the serial number on the PPSA and Borrower
3) We request all debtors release their interest (giving our registration a prior secured interest)
4) Funds disbursed
I am not sure what happens in the US , maybe that's why they got a $700 billion dollar bail out going on but, I would be very Leary giving someone 100,000 or just 5,000 for just a "Clear Title" document and then going to the boarder to find out what they say :hmmm: but still how would they know (you have a clear title )
But maybe its just my banking background

but I still don't feel comfortable with it :hmmm:
Cape R
PURCHASER BEWARE !!