This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 590.— 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 as 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 other than a chartered bank?
Answer.—The provisions of the Bank Act are applicable only to chartered banks, and a private bank could not validly acquire unregistered security in 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.