This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 376.— Is a lien note made in the North-West Territories negotiable as a promissory note when not registered? i.e., can a holder for value sue a previous endorser in his own name ? Does the omission to register deprive the payee of the note of his lien on the chattels?
Answer.—The ordinary lien note is not a promissory note within the meaning of the Bills of Exchange Act and is not negotiable in the usual sense of the word; registration does not affect the matter one way or the other. The person who acquires such a note has therefore no remedy against the endorsers such as the Act provides in regard to bills of exchange.
The non-registration of the note does not, as we understand the matter, deprive the payee of his lien, but it leaves the goods open to be claimed by a subsequent mortgagee or purchaser. This would however depend upon the wording of the statute requiring registration.