In 2013, we
provided an overview of the process for registering security
interests over railcars or rolling stock in Canada and outlined
several considerations to be mindful of when taking railcar
security in Canada. Industry Canada has recently launched a new
online search tool for railway documents deposited in Canada. This
article will outline the relevant updates and discuss additional
issues that arise as a result of these changes.
Broadly speaking, the registration of security agreements,
leases and other documents relating to railcars is governed in
Canada by the Canada Transportation Act1 (the
"CTA"). Registration of a document associated with
railways or rolling stock under the CTA is intended to provide
public notice of the interests contained in the documents
deposited. For a fulsome discussion of railcar security interests
in Canada, please refer to our previous e-lert
Up until recently, all searches for documents filed under the
CTA were required to be conducted in person at the offices of
Corporations Canada in Ottawa, Ontario. However, the launch of the
new railway search tool allows the database of railway documents to
be searched online. The online database contains all railway
documents that have been deposited under the CTA, with records as
far back as 1868. Searches can be conducted based on either (a)
text in the documents that have been filed or (b) date (either
deposit date or document date).
Generally speaking, the considerations outlined in our previous
e-lert continue to apply. However, there are a few additional
considerations that warrant discussion.
When conducting a search of the railway document database, it is
important to be mindful of the fact that documents are permanently
maintained in the database. This is true regardless of whether a
document has a fixed term that has expired or has been subsequently
amended, otherwise modified or discharged. As a result, searches
should be conducted on predecessor companies and former corporate
names to ensure that any amalgamations, changes in title and
changes in corporate name are accounted for. Individual search
results should not be viewed in isolation.
It is also important to note that there is no requirement that
documents deposited under the CTA be submitted for deposit in both
official languages. As a result, documents are generally
unilingual. When searching by type of document, both English and
French search terms should be used (e.g. mortgage and
Finally, the implementation of the railway search tool has
resulted in changes to the deposit procedure, particularly with
respect to documents submitted for deposit that contain
deficiencies. Previously, if a document filed for deposit was
deficient, the filing party would be notified of the deficiency by
telephone and, if the deficiency could be explained or remedied,
the document would be held for up to five business days while the
deficiency was remedied. Upon correction of the deficiency
(provided that such correction occurred within the five business
day hold period), the document was deemed deposited on the date and
time originally deposited.
With the introduction of the new railway search tool, the five
day remedy period for deficient documents has been eliminated. If a
document submitted for filing is deficient, the document will not
be deposited and will be returned to the filing party.
Notwithstanding the additional considerations above, the
introduction of the online railway search tool is a considerable
improvement in the system governing security over rolling stock in
Canada. Corporations Canada is also considering the possibility of
allowing railway documents deposited under the CTA to be deposited
by email. These changes have made (and will continue to make) the
system more efficient and, as a result, less expensive for
1. S.C. 1996, c.10.
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.
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The Canadian Office of the Superintendent of Financial Institutions ("OSFI") recently ruled that a bank cannot promote comprehensive credit insurance ("CCI") within its Canadian branches under the Insurance Business (Banks and Bank Holdings Companies) Regulations (the "Regulations").
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