Acts and Regulations

P-7.1 - Personal Property Security Act

Section 10
Disposition versions

Full text
Evidentiary requirements for enforceability of security interests against third parties
2008, c.S-5.8, s.109
10(1)Subject to section 12.1, a security interest is enforceable against a third party only where
(a) the collateral is
(i) not a certificated security and is in the possession of the secured party or another person on the secured party’s behalf,
(ii) a certificated security in registered form and the security certificate has been delivered to the secured party under section 68 of the Securities Transfer Act pursuant to the debtor’s security agreement, or
(iii) investment property and the secured party has control under subsection 1(2) pursuant to the debtor’s security agreement, or
(b) the debtor has signed a security agreement that contains
(i) a description of the collateral by item or kind or by reference to one or more of the following: “goods”, “document of title”, “chattel paper”, “investment property”, “instrument”, “money” or “intangible”,
(ii) a description of collateral that is a security entitlement, securities account, or futures account if it describes the collateral by those terms or as “investment property” or if it describes the underlying financial asset or futures contract,
(iii) a statement that a security interest is taken in all of the debtor’s present and after-acquired personal property, or
(iv) a statement that a security interest is taken in all of the debtor’s present and after-acquired personal property except specified items or kinds of personal property or except one or more of the following: “goods”, “document of title”, “chattel paper”, “investment property”, “instrument”, “money” or “intangible”.
10(2)A secured party does not have possession of collateral for the purposes of subparagraph (1)(a)(i), if the collateral is in the apparent possession or control of the debtor or the debtor’s agent.
10(3)A description is inadequate for the purposes of subparagraph (1)(b)(i) if it describes the collateral as consumer goods or equipment without further describing the item or kind of collateral, but where the personal property to be excluded from a description of collateral under subparagraph (1)(b)(iv) is the consumer goods of the debtor, the excluded property may be described simply as consumer goods.
10(4)A description of collateral as inventory is adequate for the purposes of paragraph (1)(b) only while it is held by the debtor as inventory.
10(5)A security interest in proceeds is enforceable against a third party whether or not the security agreement contains a description of the proceeds.
1994, c.22, s.3; 2008, c.S-5.8, s.109
Evidentiary requirements for enforceability of security interests against third parties
2008, c.S-5.8, s.109
10(1)Subject to section 12.1, a security interest is enforceable against a third party only where
(a) the collateral is
(i) not a certificated security and is in the possession of the secured party or another person on the secured party’s behalf,
(ii) a certificated security in registered form and the security certificate has been delivered to the secured party under section 68 of the Securities Transfer Act pursuant to the debtor’s security agreement, or
(iii) investment property and the secured party has control under subsection 1(2) pursuant to the debtor’s security agreement, or
(b) the debtor has signed a security agreement that contains
(i) a description of the collateral by item or kind or by reference to one or more of the following: “goods”, “document of title”, “chattel paper”, “investment property”, “instrument”, “money” or “intangible”,
(ii) a description of collateral that is a security entitlement, securities account, or futures account if it describes the collateral by those terms or as “investment property” or if it describes the underlying financial asset or futures contract,
(iii) a statement that a security interest is taken in all of the debtor’s present and after-acquired personal property, or
(iv) a statement that a security interest is taken in all of the debtor’s present and after-acquired personal property except specified items or kinds of personal property or except one or more of the following: “goods”, “document of title”, “chattel paper”, “investment property”, “instrument”, “money” or “intangible”.
10(2)A secured party does not have possession of collateral for the purposes of subparagraph (1)(a)(i), if the collateral is in the apparent possession or control of the debtor or the debtor’s agent.
10(3)A description is inadequate for the purposes of subparagraph (1)(b)(i) if it describes the collateral as consumer goods or equipment without further describing the item or kind of collateral, but where the personal property to be excluded from a description of collateral under subparagraph (1)(b)(iv) is the consumer goods of the debtor, the excluded property may be described simply as consumer goods.
10(4)A description of collateral as inventory is adequate for the purposes of paragraph (1)(b) only while it is held by the debtor as inventory.
10(5)A security interest in proceeds is enforceable against a third party whether or not the security agreement contains a description of the proceeds.
1994, c.22, s.3; 2008, c.S-5.8, s.109
Evidentiary requirements for enforceability of security interests against third parties
10(1)A security interest is enforceable against a third party only where
(a) the collateral is in the possession of the secured party or another person on the secured party’s behalf, or
(b) the debtor has signed a security agreement that contains
(i) a description of the collateral by item or kind, or by reference to one or more of the following: “goods”, “document of title”, “chattel paper”, “security”, “instrument”, “money” or “intangible”,
(ii) a statement that a security interest is taken in all of the debtor’s present and after-acquired personal property, or
(iii) a statement that a security interest is taken in all of the debtor’s present and after-acquired personal property except specified items or kinds of personal property or except one or more of the following: “goods”, “document of title”, “chattel paper”, “security”, “instrument”, “money” or “intangible”.
10(2)A secured party does not have possession of collateral for the purposes of paragraph (1)(a), if the collateral is in the apparent possession or control of the debtor or the debtor’s agent.
10(3)A description is inadequate for the purposes of subparagraph (1)(b)(i) if it describes the collateral as consumer goods or equipment without further describing the item or kind of collateral, but where the personal property to be excluded from a description of collateral under subparagraph (1)(b)(iii) is the consumer goods of the debtor, the excluded property may be described simply as consumer goods.
10(4)A description of collateral as inventory is adequate for the purposes of paragraph (1)(b) only while it is held by the debtor as inventory.
10(5)A security interest in proceeds is enforceable against a third party whether or not the security agreement contains a description of the proceeds.
1994, c.22, s.3