This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 515.— Would an assignment of merchandise to a private banking firm drawn in the form provided in Schedule C to the Bank Act, 1890, hold good against judgment creditors of the assignor ? Does the said form of security come under the Bills of Sale Act and consequently require registration when taken by another than by a chartered hank ?
Answer.—The provisions of the Bank Act are applicable only to chartered banks, and a private bank could not validly acquire unregistered security on the form of Schedule C of the Bank Act. In the Province of Ontario a private banker is enabled to acquire warehouse receipt security under the provisions of an Act entitled "the Mercantile Amendment Act," but we do not know of any similar legislation in other provinces.