(Refer to the facts of exercise 16.3.) Lee’s charge over the
Organicola delivery vehicles was documented but the charge was not registered
on the PPS Register. Organicola subsequently borrows another $10 000 from
Common Bank in return for a charge over Organicola’s delivery vehicles. The
bank’s charge is registered correctly. What are the consequences of the failure
to register Lee’s charges?
Lee decides to lend the $2 million to Organicola rather than
purchase shares in the company. Organicola has offered as security: (1) its
factory and the Torrens System land on which it is located; (2) its two
delivery vehicles; and (3) its stock of inventory. Advise Lee about the nature
of his interest in each of these securities and how they can best be protected.