Q: Do we still have to provide debtors with
copies of Ontario PPSA1 Financing Statements registered
against them? I heard that requirement was now gone.
A: Currently secured parties must still provide
those copies, but legislation is on its way to relieve that
Secured Parties are currently required under Section 46 of the
Ontario PPSA to deliver a copy of a verification statement to a
debtor within 30 days after the date of registration of a financing
statement or financing change statement. The failure to deliver the
required copy could result in the secured party having to pay the
debtor $500 if there was no reasonable excuse for that
failure.2 The government policy behind this requirement
was to keep debtors (especially individuals) fully informed of the
financing statements registered against them. Other provisions of
the Ontario PPSA suggested that the right to receive copies could
not be waived by the debtor.3
However, Ontario’s requirement in this regard is different
from the legislation of the other eight common law provinces and
two of the three territories. The personal property security act in
each of those other jurisdictions expressly permits debtors to
waive in writing their right to receive a copy of each financing
statement or verification statement. The remaining territory
(Yukon) simply does not require the delivery of a copy of a
Perhaps in recognition of the fact that its position is
different from that in the rest of the country, the Ontario
Government recently introduced Bill 218 aptly called the Burden
Reduction Act, 2016. Subsection 7(2) of Schedule 12 to that
omnibus Bill amends the Ontario PPSA by adding a new Subsection
46(6.1) which provides that:
“(6.1) A copy of a verification statement is not required
if the debtor has waived in writing the right to receive a
So secured parties will soon be able to add such waiver clauses
to their general security agreements (if they are not already
there) to relieve themselves of the administrative burden of
providing copies to all debtors of all filings made.
Bill 218 received first reading on June 8, 2016 and still has to
work its way through the legislature to ultimately receive Royal
Assent and be proclaimed in force. When it does, it will be a
welcome change to the documentary obligations of secured parties.
It will not, however, have any retroactive effect, and the waiver
shall only be available in respect of Ontario PPSA registrations
made after Subsection 7(2) of Schedule 12 of Bill 218 comes into
* The author acknowledges the assistance of Travis Evens,
Articling Student, and Emily Dies, Summer Law Student, with the
research for and preparation of this article.
1 Personal Property Security Act, RSO 1990, c
P.10 [Ontario PPSA].
2 Ontario PPSA, Section 46(7).
3 Ontario PPSA, Section 67(3) states that any provision
in any security agreement which purports to exclude any duty or
obligation imposed under this Act or to exclude or limit liability
for failure to discharge duties or obligations imposed by this Act
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