Changes To PPSA Perfection Rules In Ontario, CanadaUCC
An important perfection rule to Canada’s Personal Property Security Act (Ontario) changed on December 31, 2015. The change aligns Ontario with the US Uniform Commercial Code’s Article 9 with regards to Specified Collateral. Previously in Ontario secured parties were directed to perfect their security interests in Specified Collateral following the law of the jurisdiction regarding a debtor’s “location”—its “place of business”, “chief executive office” or “residence”. Now, the nature and location of the debtor entity will determine where to file a financing statement to perfect a security interest.
The new rules for Ontario do not adopt all the Article 9 perfection rules however. Security interests in inventory other than Specified Collateral will continue to require searches and registrations in the jurisdictions where the collateral is located, for example.
You can read more about it here.
What do you think of these rule changes? Have these new rules affected any PPSA filings for you? Please share your thoughts below.