Header graphic for print
Financial Services Law Analysis and Updates for the Canadian and Cross-Border Financial Community

Category Archives: PPSA

Subscribe to PPSA RSS Feed

Perfection by Control of Deposit Accounts and Cash Collateral – Proposal to Amend The Ontario PPSA

Posted in PPSA

A working group of the Personal Property Security Law Sub-Committee of the Ontario Bar Association’s Business Law Section has developed a proposal for amendments to the Ontario Personal Property Security Act to provide for perfection by control of deposit accounts and other forms of cash collateral. If approved by the Ontario Bar Association, the proposals… Continue Reading

Perfection and Priority: Dealing with Serial Numbered Goods

Posted in PPSA

Lenders should be aware that when taking security in certain goods with serial numbers in Canada, the rules regarding registration of financing statements vary across provincial jurisdictions; a detail that, if overlooked, could impact the priority of the lender’s security interest. In Ontario, where the collateral includes motor vehicles (as defined in Ontario’s Personal Property… Continue Reading

Licences as Personal Property Under Amendments to the British Columbia PPSA

Posted in Legislation, PPSA

The British Columbia (“BC”) legislature has introduced amendments to expressly identify transferable licences as personal property under the BC Personal Property Security Act (the “BC PPSA”). These amendments (the “Amendments”) received Royal Assent on November 24, 2011 and are expected to come into force by regulation in 2012. As a result of the Amendments, the… Continue Reading

Cleaning Up Their Act: Other Ontario PPSA Amendments Made in 2010

Posted in PPSA

At Banking and Financial Services Law, we have posted a couple of entries regarding recent amendments to the Personal Property Security Act (Ontario) (PPSA). One related to the effect of collateral classifications on a financing statement. The other related to an extension of the time period for perfecting a purchase-money security interest ("PMSI") in collateral that… Continue Reading

PMSI Secured Parties in Non-Inventory Get Longer to Perfect Under Ontario PPSA

Posted in PPSA, Purchase Money Security Interests

Secured parties with a purchase-money security interest (PMSI) in collateral other than inventory now have a longer period to perfect under the Ontario Personal Property Security Act (PPSA). Former Bill 68 (An Act to promote Ontario as open for business by amending or repealing certain Acts) received Royal Assent on October 25th, 2010. Included in… Continue Reading

The Fix Is In – Repeal of Former Ontario PPSA Section 46(3) – Collateral Classifications – Has Been “Fixed”

Posted in Legislation, Ontario, PPSA

Secured parties reviewing Ontario Personal Property Security Act (PPSA) searches can now rely upon an appropriate collateral description to limit the scope of a collateral classification to perfect only the collateral described. As described in an earlier entry on our blog, on August 1, 2007 section 46(3) of the PPSA was inadvertently repealed as part… Continue Reading

Security in Cross-Border Financings

Posted in Conflict of Laws, Cross-Border, PPSA

As the cross-border financing market begins to heat up after its long slumber, many U.S. and other foreign lenders are again making their way into the Canadian market place. In addition, as activity in the U.S. debt market returns, many Canadian companies are guaranteeing and providing security for their U.S. affiliates’ debt. While many seasoned… Continue Reading

Inadvertent Subordination Under the PPSA

Posted in PPSA, Priorities

Section 38 of the Ontario Personal Property Security Act (the "Act") contains an exception to the general priority scheme of the Act. It provides that a secured creditor may, in the relevant security agreement or otherwise, subordinate its security interest to any other security interest, and that such subordination will be effective according to its… Continue Reading

PPSA Case Alert – What’s in a Name?

Posted in PPSA, Priorities

The decision of the Ontario Court of Appeal in Fairbanx v. Royal Bank of Canada contains some useful information about how courts view inaccurate debtor names in financing statements and their approach to s. 46(4) of the Personal Property Security Act (Ontario)(“PPSA”) regarding materially misleading filings. The case also reminds secured parties to use a… Continue Reading

Ontario Government to “Fix” Repeal of Former PPSA Section 46(3) – Collateral Classifications

Posted in Legislation, PPSA

The Ontario government has taken steps to “fix” its inadvertent repeal of former section 46(3) of the Personal Property Security Act (Ontario)(“PPSA”). The repeal occurred on August 1, 2007 as part of former Bill 152 which contained a number of amendments to the PPSA. The repealed section 46(3) provided that a collateral description could limit the scope… Continue Reading

PPSA “Location of Debtor” Rules – Moving Towards Uniformity

Posted in Conflict of Laws, PPSA

UPDATE Saskatchewan has also introduced a bill to implement these location of debtor rules in that province’s Personal Property Security Act. ORIGINAL ARTICLE As previously described (PDF) by Rupert Chartrand and Michael De Lellis of Osler, Hoskin & Harcourt LLP, a series of significant amendments to the Personal Property Security Act (Ontario) (the Ontario PPSA) were… Continue Reading

Security Interests in Aircraft and the Quagmire of Conflict of Laws

Posted in Aircraft, Conflict of Laws, Perfection, PPSA

The recent receivership of Skyservice Airlines Inc. highlights the importance to airline creditors of having in place a certain, easily understandable and uniformly applied regime regarding the perfection and priority of various interests in aircraft. The Convention on International Interests in Mobile Equipment, together with the Protocol to the Convention on International Interests in Mobile… Continue Reading

Cash Collateral – Proposed Amendments to the Ontario and Alberta PPSAs

Posted in Cash Collateral, Derivatives, PPSA

At its Canada Legal and Regulatory Committee meeting on February 11, 2010, the International Swaps and Derivatives Association, Inc. (“ISDA”) announced that it would continue to seek legislative reforms designed to reduce uncertainties and increase efficiencies with respect to cash collateral under Canadian personal property security law.   The Current PPSA Regime Currently, if cash collateral is held… Continue Reading