As I discussed in my post of January 4, the Ontario Personal Property Security Law Sub-Committee of the Ontario Bar Association's Business Law Section has been working on a draft proposal over the last year to amend Ontario's personal property security legislation to deal more effectively with cash collateral. The OBA subcommittee's submission has now been finalized. The OBA highlights that the recommended changes will give secured parties holding cash collateral the same degree of legal certainty as to their priority against other creditors that the Securities Transfer Act, 2006 provides to holders of securities as collateral.
Hopefully the government will accept the recommendations and put these changes on the spring legislative agenda.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
