Acts and Regulations

P-7.1 - Personal Property Security Act

Section 29
Disposition versions

Full text
Perfection and priority with respect to returned, seized or repossessed goods
29(1)If a debtor sells or leases goods that are subject to a security interest under circumstances in which the buyer or lessee takes free of the security interest under paragraph 28(1)(a) or section 30, the security interest reattaches to the goods if
(a) the goods are returned to, seized or repossessed by the debtor or a transferee of chattel paper created by the sale or lease, and
(b) the obligation secured remains unpaid or unperformed.
29(2)If a security interest reattaches under subsection (1), the perfection of the security interest and the time of registration or perfection shall be determined as if the goods had not been sold or leased if
(a) the security interest was perfected by registration under section 25 when the goods were sold or leased, and
(b) the registration is effective when the goods are returned, seized or repossessed.
29(3)If a sale or lease of goods creates an account or chattel paper that is transferred to a secured party, and the goods are returned to, seized or repossessed by the debtor or the transferee of the chattel paper, the transferee of the account or chattel paper has a security interest in the goods that attaches when the goods are returned, seized or repossessed.
29(4)A security interest in goods arising under subsection (3) is perfected if the security interest in the account or chattel paper was perfected when the goods were returned, seized or repossessed, but becomes unperfected on the expiry of fifteen days after the return, seizure or repossession, unless the transferee registers a financing statement relating to the security interest or takes possession of the goods by seizure, repossession or otherwise, before the expiry of that fifteen day period.
29(5)A security interest in goods that a transferee of an account has under subsection (3) is subordinate to a perfected security interest that reattaches under subsection (1) and to a security interest of a transferee of chattel paper that arises under subsection (3).
29(6)A security interest in goods that a transferee of chattel paper has under subsection (3) has priority over
(a) a security interest in goods that reattaches under subsection (1), and
(b) a security interest in goods as after-acquired property that attaches on the return, seizure or repossession of the goods,
if the transferee of the chattel paper would have priority under subsection 31(6) as to the chattel paper over an interest in the chattel paper claimed by the holder of the security interest in the goods.
29(7)A security interest in goods given by a buyer or lessee of the goods referred to in subsection (1) that attaches while the goods are in the possession of the buyer, lessee or debtor and that is perfected when the goods are returned, seized or repossessed has priority over a security interest in the goods arising under this section.
Perfection and priority with respect to returned, seized or repossessed goods
29(1)If a debtor sells or leases goods that are subject to a security interest under circumstances in which the buyer or lessee takes free of the security interest under paragraph 28(1)(a) or section 30, the security interest reattaches to the goods if
(a) the goods are returned to, seized or repossessed by the debtor or a transferee of chattel paper created by the sale or lease, and
(b) the obligation secured remains unpaid or unperformed.
29(2)If a security interest reattaches under subsection (1), the perfection of the security interest and the time of registration or perfection shall be determined as if the goods had not been sold or leased if
(a) the security interest was perfected by registration under section 25 when the goods were sold or leased, and
(b) the registration is effective when the goods are returned, seized or repossessed.
29(3)If a sale or lease of goods creates an account or chattel paper that is transferred to a secured party, and the goods are returned to, seized or repossessed by the debtor or the transferee of the chattel paper, the transferee of the account or chattel paper has a security interest in the goods that attaches when the goods are returned, seized or repossessed.
29(4)A security interest in goods arising under subsection (3) is perfected if the security interest in the account or chattel paper was perfected when the goods were returned, seized or repossessed, but becomes unperfected on the expiry of fifteen days after the return, seizure or repossession, unless the transferee registers a financing statement relating to the security interest or takes possession of the goods by seizure, repossession or otherwise, before the expiry of that fifteen day period.
29(5)A security interest in goods that a transferee of an account has under subsection (3) is subordinate to a perfected security interest that reattaches under subsection (1) and to a security interest of a transferee of chattel paper that arises under subsection (3).
29(6)A security interest in goods that a transferee of chattel paper has under subsection (3) has priority over
(a) a security interest in goods that reattaches under subsection (1), and
(b) a security interest in goods as after-acquired property that attaches on the return, seizure or repossession of the goods,
if the transferee of the chattel paper would have priority under subsection 31(6) as to the chattel paper over an interest in the chattel paper claimed by the holder of the security interest in the goods.
29(7)A security interest in goods given by a buyer or lessee of the goods referred to in subsection (1) that attaches while the goods are in the possession of the buyer, lessee or debtor and that is perfected when the goods are returned, seized or repossessed has priority over a security interest in the goods arising under this section.