As outlined in previous e-lerts, the registration of security
agreements, leases and other documents relating to railcars in
Canada is governed 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
Until recently, registration of railway documents required
in-person registration at the offices of Corporations Canada in
Ottawa, Ontario. However, Industry Canada has launched an online
deposit function which allows for the electronic deposit of railway
documents with the Registrar General of Canada. This article
outlines some of the restrictions associated with online deposit
and additional considerations to be mindful of when registering
security interests over railcars in Canada.
Documents submitted for registration using the online deposit
function must be in readable PDF format. Documents submitted for
registration must continue to meet the requirements under section
104 or 105 of the CTA, as applicable. Please refer to our previous
e-lert here for more information. A document that
does not meet these requirements will not be deposited.
In addition to the restrictions noted above, there are a few
other considerations to be mindful of when depositing railway
Only individuals with an Industry
Canada username and password and who have been authorized access to
the Railway Tool may submit documents for deposit.
If the document submitted for deposit
satisfies all requirements for deposit, Corporations Canada will
send a Notice of Acceptance which will indicate the date and time
the document was deposited and the document title and number.
However, Corporations Canada will no longer include a copy of the
deposited document with the Notice of Acceptance. If a copy of the
deposited document is required, it must be obtained using the
search function of the Railway Tool.
Although the online deposit function
reduces the time required to register railway documents, deposit is
not instantaneous. If confirmation of registration is a condition
of closing a transaction, documents should be deposited with enough
lead time to allow for confirmation of deposit before closing.
Overall, the new online deposit function improves the efficiency
of the system governing security over rolling stock in Canada and
brings the registration process for railcar security in line with
the registration process under the Personal Property Security
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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