Acts and Regulations

P-7.1 - Personal Property Security Act

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Alienability of debtor’s rights in collateral
33(1)In this section
“transfer” includes a sale, the creation of a security interest or a transfer under judgment enforcement proceedings.
33(2)The rights of a debtor in collateral may be transferred consensually or by operation of law notwithstanding a provision in the security agreement prohibiting transfer or declaring a transfer to be a default, but a transfer by the debtor does not prejudice the rights of the secured party under the agreement or otherwise, including the right to treat a prohibited transfer as an act of default.