Can a party claim status as a purchase money security holder if one of the parties does not identify the agreement as such?
British Columbia, Canada
The following excerpt is from Instant Auto Loans Inc. v. Spak, 2000 BCSC 228 (CanLII):
Whether a party can claim status as a purchase money security holder is a matter of law applied to the facts and failure of the parties to identify the agreement as such does not take that status away (Saskatchewan Wheat Pool v. Polowick, 1994 CanLII 5127 (SK QB), [1994] 4 W.W.R. 128). As well, the fact that one of the parties, without knowledge of the other, wrote on the document verifying the agreement that it was a purchase money security interest does not determine its status. What is determinative is whether the agreement fulfilled the conditions for being a purchase money security interest.
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