1 Issues Arising When a Company is in Financial Difficulties -
1.1 How does a creditor take security over assets in Canada?
Personal Property -
Personal Property Security Acts (“PPSA”) in force in all of Canada’s common law provinces and territories govern the creation and enforcement of security in personal property. Under the PPSA, before a security interest can be enforced against third parties, the security interest must have “attached” and be “perfected”. Attachment, within the meaning of the PPSA, requires three conditions:
a) a security agreement signed by the debtor, or possession of the collateral by the secured creditor;
b) “value” or consideration sufficient to support a simple contract must be given; and c) the debtor must have rights in the collateral.
Once the security interest has “attached”, it becomes “perfected” under the PPSA by:
a) registration of a financing statement in a computer based registration system administered by the provincial government; or
b) the secured party obtaining possession of the collateral.
Please see full chapter below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.