“The Act to Amend The Personal Property Security Act, SS 2019 c. 15 effects an eclectic range of changes to the 1993 Act, some of which have important commercial significance and some of which can be seen as gap-filling, clarification or modernizing measures. Join Professor Ronald Cuming for this explanation of the amendments to the PPSA.
Among other changes, the amending Act:
– prescribes very different conflict of laws rules relating to the place of registration for security interests in mobile goods and accounts.
– expands the scope of purchase money priority to facilitate cross-collateralization in inventory financing.
– removes the necessity to include the serial numbers of serial number collateral in a registration in order to have priority over the debtor’s trustee in bankruptcy.
– provides a structure in which “electronic chattel paper” can be used.
– implements an approach that minimizes the effect of the Saskatchewan Court of Appeal decision Royal Bank v 216200 Alberta Ltd, 1987] 1 WWR 545 (Sask CA) under which pre-paying buyers’ interests were subordinated to an inventory security interest in the seller’s inventory. Companion amendments to The Sale of Goods Act have the same effect in the context of the seller’s bankruptcy.
– contains a new priority rule designed to enhance protection for pension rights.”
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