Acts and Regulations

P-7.1 - Personal Property Security Act

Section 39
Disposition versions

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Security interests in processed or commingled goods
39(1)A perfected security interest in goods that subsequently become part of a product or mass continues in the product or mass if the goods are so manufactured, processed, assembled or commingled that their identity is lost in the product.
39(2)Subject to subsections (4) and (6), if more than one perfected security interest continues in the same product or mass under subsection (1), and each was a security interest in separate goods, the security interests are entitled to share in the product or mass according to the ratio that the obligation secured by each security interest bears to the sum of the obligations secured by all security interests.
39(3)For the purpose of section 35, perfection of a security interest in goods that subsequently become part of a product or mass is also perfection of the security interest in the product or mass.
39(4)For the purpose of subsection (2), the obligation secured by a security interest that continues in the product or mass under subsection (1) is limited to the market value of the goods when the goods become part of the product or mass.
39(5)Any priority that a perfected security interest that continues in the product or mass under subsection(1) has over an interest in the product or mass is limited to the market value of the goods when the goods become part of the product or mass.
39(6)A perfected purchase money security interest in goods that continues in the product or mass under subsection (1) has priority over a non-purchase money security interest
(a) in the goods that continues in the product or mass under subsection (1), and
(b) in the product or mass, other than as inventory, given by the same debtor.
39(7)A perfected purchase money security interest in goods that continues in the product or mass under subsection (1) has priority over any non-purchase money security interest in the product or mass as inventory given by the same debtor if
(a) the secured party with the purchase money security interest gives a notice to any secured party with a non-purchase money security interest in the product or mass who has registered, before the identity of the goods is lost in the product or mass, a financing statement that includes a description of the product or mass,
(b) the notice referred to in paragraph (a) states that the person giving the notice has acquired or expects to acquire a purchase money security interest in goods supplied to the debtor as inventory, and
(c) the notice is given before the identity of the goods is lost in the product or mass.
39(8)A notice under subsection (7) 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 (7)(a).
39(9)This section does not apply to a security interest in an accession to which section 38 applies.
1994, c.22, s.8
Security interests in processed or commingled goods
39(1)A perfected security interest in goods that subsequently become part of a product or mass continues in the product or mass if the goods are so manufactured, processed, assembled or commingled that their identity is lost in the product.
39(2)Subject to subsections (4) and (6), if more than one perfected security interest continues in the same product or mass under subsection (1), and each was a security interest in separate goods, the security interests are entitled to share in the product or mass according to the ratio that the obligation secured by each security interest bears to the sum of the obligations secured by all security interests.
39(3)For the purpose of section 35, perfection of a security interest in goods that subsequently become part of a product or mass is also perfection of the security interest in the product or mass.
39(4)For the purpose of subsection (2), the obligation secured by a security interest that continues in the product or mass under subsection (1) is limited to the market value of the goods when the goods become part of the product or mass.
39(5)Any priority that a perfected security interest that continues in the product or mass under subsection(1) has over an interest in the product or mass is limited to the market value of the goods when the goods become part of the product or mass.
39(6)A perfected purchase money security interest in goods that continues in the product or mass under subsection (1) has priority over a non-purchase money security interest
(a) in the goods that continues in the product or mass under subsection (1), and
(b) in the product or mass, other than as inventory, given by the same debtor.
39(7)A perfected purchase money security interest in goods that continues in the product or mass under subsection (1) has priority over any non-purchase money security interest in the product or mass as inventory given by the same debtor if
(a) the secured party with the purchase money security interest gives a notice to any secured party with a non-purchase money security interest in the product or mass who has registered, before the identity of the goods is lost in the product or mass, a financing statement that includes a description of the product or mass,
(b) the notice referred to in paragraph (a) states that the person giving the notice has acquired or expects to acquire a purchase money security interest in goods supplied to the debtor as inventory, and
(c) the notice is given before the identity of the goods is lost in the product or mass.
39(8)A notice under subsection (7) 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 (7)(a).
39(9)This section does not apply to a security interest in an accession to which section 38 applies.
1994, c.22, s.8