Acts and Regulations

P-7.1 - Personal Property Security Act

Section 34
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Priority of purchase money security interest
34(1)Subject to section 28, a purchase money security interest in
(a) collateral or its proceeds, other than intangibles or inventory, that is perfected not later than fifteen days after the debtor, or another person at the request of the debtor, obtains possession of the collateral, whichever is earlier, or
(b) an intangible or its proceeds that is perfected not later than fifteen days after the security interest in the intangible attaches,
has priority over any other security interest in the same collateral given by the same debtor.
34(2)Subject to section 28, a purchase money security interest in inventory or its proceeds has priority over any other security interest in the same collateral given by the same debtor if
(a) the purchase money security interest in the inventory is perfected when the debtor, or another person at the request of the debtor, obtains possession of the collateral, whichever is earlier,
(b) the secured party gives a notice to any other secured party who has registered, before the registration of the financing statement relating to the purchase money security interest in the inventory, a financing statement where the collateral description in the financing statement includes the same item or kind of collateral or includes accounts,
(c) the notice referred to in paragraph (b) states that the person giving the notice expects to acquire a purchase money security interest in inventory of the debtor, and describes the inventory by item or kind, and
(d) the notice is given before the debtor, or another person at the request of the debtor, obtains possession of the collateral, whichever is earlier.
34(3)A notice under subsection (2) may be given in accordance with section 69 or by registered mail addressed to the address of the person to be notified that was registered as part of the financing statement referred to in paragraph (2)(b).
34(4)A purchase money security interest in goods or, subject to section 28, in their proceeds, taken by a seller, lessor or consignor of the collateral, that is perfected
(a) in the case of inventory, when a debtor, or another person at the request of the debtor, obtains possession of the collateral, whichever is earlier, and
(b) in the case of collateral other than inventory, not later than fifteen days after a debtor, or another person at the request of a debtor, obtains possession of the collateral, whichever is earlier,
has priority over any other purchase money security interest in the same collateral given by the same debtor.
34(5)A purchase money security interest in collateral as original collateral has priority over a purchase money security interest in the same collateral as proceeds, if it is perfected
(a) in the case of inventory, when a debtor, or another party at the request of a debtor, obtains possession of the collateral, whichever is earlier, and
(b) in the case of collateral other than inventory, not later than fifteen days after a debtor, or another person at the request of a debtor, obtains possession of the collateral, whichever is earlier.
34(6)If goods are shipped by common carrier to a debtor or to a person designated by a debtor, the debtor does not have possession of the goods for the purposes of this section until the debtor, or another person at the request of the debtor, has obtained actual possession of the goods or a document of title to the goods, whichever is earlier.
34(7)A purchase money security interest in an item of collateral does not extend to or continue in the proceeds of the item after the obligation to pay the purchase price of the item or repay the value given for the purposes of enabling the debtor to acquire rights in it has been discharged.
34(8)A perfected security interest in crops or their proceeds given for value to enable a debtor to produce the crops and given while the crops are growing crops or during a period of six months immediately before the time the crops become growing crops, has priority over any other security interest in the same collateral given by the same debtor.
34(9)A perfected security interest in fowl, cattle, horses, sheep, swine or fish or their proceeds given for value to enable the debtor to acquire food, drugs or hormones to be fed to or placed in the animals or fish has priority over any other security interest in the same collateral or its proceeds given by the same debtor other than a perfected purchase money security interest.
1995, c.33, s.3
Priority of purchase money security interest
34(1)Subject to section 28, a purchase money security interest in
(a) collateral or its proceeds, other than intangibles or inventory, that is perfected not later than fifteen days after the debtor, or another person at the request of the debtor, obtains possession of the collateral, whichever is earlier, or
(b) an intangible or its proceeds that is perfected not later than fifteen days after the security interest in the intangible attaches,
has priority over any other security interest in the same collateral given by the same debtor.
34(2)Subject to section 28, a purchase money security interest in inventory or its proceeds has priority over any other security interest in the same collateral given by the same debtor if
(a) the purchase money security interest in the inventory is perfected when the debtor, or another person at the request of the debtor, obtains possession of the collateral, whichever is earlier,
(b) the secured party gives a notice to any other secured party who has registered, before the registration of the financing statement relating to the purchase money security interest in the inventory, a financing statement where the collateral description in the financing statement includes the same item or kind of collateral or includes accounts,
(c) the notice referred to in paragraph (b) states that the person giving the notice expects to acquire a purchase money security interest in inventory of the debtor, and describes the inventory by item or kind, and
(d) the notice is given before the debtor, or another person at the request of the debtor, obtains possession of the collateral, whichever is earlier.
34(3)A notice under subsection (2) may be given in accordance with section 69 or by registered mail addressed to the address of the person to be notified that was registered as part of the financing statement referred to in paragraph (2)(b).
34(4)A purchase money security interest in goods or, subject to section 28, in their proceeds, taken by a seller, lessor or consignor of the collateral, that is perfected
(a) in the case of inventory, when a debtor, or another person at the request of the debtor, obtains possession of the collateral, whichever is earlier, and
(b) in the case of collateral other than inventory, not later than fifteen days after a debtor, or another person at the request of a debtor, obtains possession of the collateral, whichever is earlier,
has priority over any other purchase money security interest in the same collateral given by the same debtor.
34(5)A purchase money security interest in collateral as original collateral has priority over a purchase money security interest in the same collateral as proceeds, if it is perfected
(a) in the case of inventory, when a debtor, or another party at the request of a debtor, obtains possession of the collateral, whichever is earlier, and
(b) in the case of collateral other than inventory, not later than fifteen days after a debtor, or another person at the request of a debtor, obtains possession of the collateral, whichever is earlier.
34(6)If goods are shipped by common carrier to a debtor or to a person designated by a debtor, the debtor does not have possession of the goods for the purposes of this section until the debtor, or another person at the request of the debtor, has obtained actual possession of the goods or a document of title to the goods, whichever is earlier.
34(7)A purchase money security interest in an item of collateral does not extend to or continue in the proceeds of the item after the obligation to pay the purchase price of the item or repay the value given for the purposes of enabling the debtor to acquire rights in it has been discharged.
34(8)A perfected security interest in crops or their proceeds given for value to enable a debtor to produce the crops and given while the crops are growing crops or during a period of six months immediately before the time the crops become growing crops, has priority over any other security interest in the same collateral given by the same debtor.
34(9)A perfected security interest in fowl, cattle, horses, sheep, swine or fish or their proceeds given for value to enable the debtor to acquire food, drugs or hormones to be fed to or placed in the animals or fish has priority over any other security interest in the same collateral or its proceeds given by the same debtor other than a perfected purchase money security interest.
1995, c.33, s.3