On November 16, 2015 certain amendments to the Ontario
Personal Property Security Act contained in the Ontario
government’s 2015 budget (tabled on April 23, 2015, as Bill
91, Building Ontario Up Act (Budget Measures), 2015) will
come into force.
The amendments pertain to the length of the registration period
applicable to PPSA financing statements and notices of security
interest filed in relation to “consumer goods”
collateral, which the PPSA defines as “goods that are used or
acquired for use primarily for personal, family or household
The amendments repeal subsections 51(5) and 51(6) of the PPSA.
These sections previously deemed any financing statements
pertaining to consumer goods collateral (as well as financing
change statements extending registration periods) to have a maximum
registration period of five years unless a shorter registration
period was specified. The effect of these changes is that financing
statements pertaining to consumer goods (as well as financing
change statements) will no longer be subject to the maximum five
year registration period and can be registered in perpetuity like
financing statements for the other types of collateral
Similarly, subsection 54(2) of the PPSA is also being amended so
that future notices of security interest (or extension notices)
pertaining to consumer goods collateral filed in land registry
offices will no longer be subject to a mandatory five year
expiration date. Like PPSA financing statements, security interest
notices (and extension notices) will now be able to set expiration
dates as appropriate without having to file extension notices every
five years. These changes will reduce the administrative burden on
secured parties of having to file PPSA financing changes statements
for renewals and extension notices every five years and will ensure
that security registrations do not inadvertently lapse as a result
of the old five year limitation.
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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