The appellant challenged a priority ruling involving two motor vehicles, arguing its lease agreements were true leases and did not require registration under the Personal Property Security Act.
The Court of Appeal held that the agreements were open-end leases under which the lessee remained liable for any deficiency on disposition and received any surplus, making the arrangements financing agreements in substance.
Because the transactions created security interests under s. 2 of the Act, registration was required to preserve priority.
The appeal was dismissed with costs.
