Possible Changes to the Canadian Personal Property Security Acts 2000
- Possible Changes to the Canadian Personal Property Security Acts 2000
- Section 2(1) – Definitions
- Section 2(7) – Inter-jurisdictional Harmonization
- Section 3 – Scope of Application of the PPSA
- Section 4 – Exclusions from the Act
- Sections 5-8 – Conflict of Laws Provisions
- Section 9 – Effectiveness of Security Agreements
- Section 10 – Evidentiary Requirements for Security Agreements
- Section 12 – Attachment of Security Interests
- Section 13 – Security in After-Acquired Collateral
- Section 14 – Future Advances
- Section 17 – Rights and Obligations of Secured Party
- Section 18– Secured Party’s Duty to Provide Information about the Security Agreement
- Section 19 – Perfection of Security Interests
- Section 20 – Subordination of Unperfected Security Interests
- Section 21 - Deemed Damages Recoverable
- Section 24 – Perfection by Possession
- Section 29 – Security Interests in Returned, Seized or Repossessed Goods
- Section 30 – Priority of Buyers and Lessees of Goods and Transferees of Licenses
- Section 31 – Priority of Holders and Purchasers of Money and Documentary Intangibles
- Section 32 – Priority of Repairers’ Liens
- Section 34 – Priority of Purchase Money Security Interests
- Section 35 – Residual Priority Rules
- Section 41 – Effects on Account Debtors of an Assignment of Accounts or Chattel Paper
- All Pages
Section 14 – Future Advances
14.(2) Unless the parties otherwise agree, an obligation owing to a debtor to make future advances is not binding on a secured party if:
(a) [Alternative A] the collateral has been seized, attached, charged or made subject to an equitable execution under circumstances described in clause 20(1)(a) or (b), or
(b) [Alternative B] a notice of judgment [or equivalent] has been registered in the Registry; or
(b) the collateral has been sold to a buyer; and
the secured party has knowledge of this fact before making the advances.
COMMENT
1. The addition of proposed clause (b) is explained in the comment to the proposed new section 35(6.1) below.
1. The insertion of a proposed “alternative B” to current clause (a) reflects the fact that some PPSA jurisdictions have adopted registration of a notice of judgment (or judgment enforcement order) in place of (or in addition to) seizure of the collateral as the relevant priority point for assessing priority between a judgment creditor and an unperfected security interest under section 20.
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