![]() A Brief Introduction to the Personal Property Security Act (Ontario) has a system that allows parties to register a security interest over another person's personal property. This affords a creditor greater protection than relying solely on a security agreement. The governing legislation in Ontario that guides the operation of this system is the (Ontario) Personal Property Security Act (the PPSA). Most other provinces and all of the territories have their own version of the PPSA, each with certain differences. It is imperative to consult legal counsel to determine how and in which jurisdiction a security interest may need to be registered. lending, the giving of guarantees, purchasing on credit and facilitates business in general. Therefore, the PPSA is important, and registering your security interest is a key component of conducting business in Ontario. The PPSA is similar to Article 9 of the Uniform Commercial Code (UCC) in the United States and should not be a source of intimidation to solicitors in the United States whose clients may have dealings in Canada. under the PPSA, a person must first ensure that he/she has a bona fide security interest. A security interest is by definition an interest in personal property that secures payment or performance of an obligation. To determine if your agreement creates a security interest in personal property under the PPSA, you need to look at the overall effect of the agreement and the intention of the parties. A security agreement must include the following: form of transaction. For example, the (when something is fully paid for at the time of the sale), real estate (generally) and various statutory liens. If you are in doubt as to whether the PPSA applies, we recommend you contact legal counsel. Registration: Accuracy party must file a financing statement in the registry system and deliver a copy of the financing statement to the debtor within 30 days of filing. The registration system in Ontario is computerized and only accessible electronically. At a minimum, the financing statement will provide basic information regarding the debtor, the collateral and the duration of the registration. Minor errors in the financing statement can lead to big problems, such as the registration being held invalid and losing priority status among creditors. The test to determine if an error or omission will invalidate the financing statement is whether a reasonable person is likely to be misled materially by the error or omission. name, inputting debtor names correctly is of paramount importance. If the debtor is an individual, we recommend obtaining that person's passport or birth certificate (a driver's private companies and their owners in a range of corporate matters with a particular emphasis on mergers and acquisitions. His other areas of expertise include employment law and wills and estates. Suite 2701 (27th Floor) 145 King Street West Toronto, Ontario M5H 1J8 416.362.3757 Fax houserhenry.com |