Acts and Regulations

P-7.1 - Personal Property Security Act

Section 51
Disposition versions

Full text
Transfer of debtor’s interest in collateral or change of debtor’s name
51(1)If a security interest is perfected by registration and the debtor transfers all or part of the debtor’s interest in the collateral with the prior consent of the secured party, the security interest in the transferred collateral is subordinate to
(a) an interest, other than a security interest in the transferred collateral, arising in the period from the expiry of the fifteenth day after the transfer to the time the secured party amends the registration to disclose the name of the transferee of the interest in the collateral as the new debtor or takes possession of the collateral,
(b) a perfected security interest in the transferred collateral that is registered or perfected during the period referred to in paragraph (a), and
(c) a perfected security interest in the transferred collateral that is registered or perfected after the transfer and before the expiry of the fifteenth day after the transfer if, before the expiry of the fifteen days,
(i) the registration of the security interest first referred to in this subsection is not amended to disclose the transferee of the interest in the collateral as the new debtor, or
(ii) the secured party does not take possession of the collateral.
51(2)If a security interest is perfected by registration and the secured party has knowledge of
(a) information required to register a financing change statement disclosing the transferee as the new debtor, where all or part of the debtor’s interest in the collateral is transferred, or
(b) the new name of the debtor, if there has been a change in the debtor’s name,
the security interest, in the transferred collateral where paragraph (a) applies, and in the collateral where paragraph (b) applies, is subordinate to
(c) an interest, other than a security interest, in that collateral, arising in the period from the expiry of the fifteenth day after the secured party has knowledge of the information referred to in paragraph (a) or the new name of the debtor to the time the secured party amends the registration to disclose the name of the transferee as the debtor or to disclose the new name of the debtor, or takes possession of the collateral,
(d) a perfected security interest in the collateral that is registered or perfected in the period referred to in paragraph (c), and
(e) a perfected security interest in the collateral that is registered or perfected after the secured party had knowledge of the information referred to in paragraph (a) or the new name of the debtor and before the expiry of the fifteenth day referred to in paragraph (c), if, before the expiry of the fifteen days,
(i) the registration of the security interest first referred to in this subsection is not amended to disclose the transferee of the collateral as the new debtor or to disclose the new name of the debtor, or
(ii) the secured party does not take possession of the collateral.
51(3)This section does not have the effect of subordinating a prior security interest deemed by section 74 to be registered under this Act.
51(4)If the debtor’s interest in part or all of the collateral is transferred by the debtor without the consent of the secured party and there are one or more subsequent transfers of the collateral without the consent of the secured party before the secured party acquires knowledge of the name of the most recent transferee of the collateral, the secured party shall be deemed to have complied with subsection (2) if the secured party registers a financing change statement not later than fifteen days after acquiring knowledge of
(a) the name of the most recent transferee of the collateral, and
(b) the information required to register a financing change statement,
and the secured party need not register financing change statements with respect to any intermediate transferee.
Transfer of debtor’s interest in collateral or change of debtor’s name
51(1)If a security interest is perfected by registration and the debtor transfers all or part of the debtor’s interest in the collateral with the prior consent of the secured party, the security interest in the transferred collateral is subordinate to
(a) an interest, other than a security interest in the transferred collateral, arising in the period from the expiry of the fifteenth day after the transfer to the time the secured party amends the registration to disclose the name of the transferee of the interest in the collateral as the new debtor or takes possession of the collateral,
(b) a perfected security interest in the transferred collateral that is registered or perfected during the period referred to in paragraph (a), and
(c) a perfected security interest in the transferred collateral that is registered or perfected after the transfer and before the expiry of the fifteenth day after the transfer if, before the expiry of the fifteen days,
(i) the registration of the security interest first referred to in this subsection is not amended to disclose the transferee of the interest in the collateral as the new debtor, or
(ii) the secured party does not take possession of the collateral.
51(2)If a security interest is perfected by registration and the secured party has knowledge of
(a) information required to register a financing change statement disclosing the transferee as the new debtor, where all or part of the debtor’s interest in the collateral is transferred, or
(b) the new name of the debtor, if there has been a change in the debtor’s name,
the security interest, in the transferred collateral where paragraph (a) applies, and in the collateral where paragraph (b) applies, is subordinate to
(c) an interest, other than a security interest, in that collateral, arising in the period from the expiry of the fifteenth day after the secured party has knowledge of the information referred to in paragraph (a) or the new name of the debtor to the time the secured party amends the registration to disclose the name of the transferee as the debtor or to disclose the new name of the debtor, or takes possession of the collateral,
(d) a perfected security interest in the collateral that is registered or perfected in the period referred to in paragraph (c), and
(e) a perfected security interest in the collateral that is registered or perfected after the secured party had knowledge of the information referred to in paragraph (a) or the new name of the debtor and before the expiry of the fifteenth day referred to in paragraph (c), if, before the expiry of the fifteen days,
(i) the registration of the security interest first referred to in this subsection is not amended to disclose the transferee of the collateral as the new debtor or to disclose the new name of the debtor, or
(ii) the secured party does not take possession of the collateral.
51(3)This section does not have the effect of subordinating a prior security interest deemed by section 74 to be registered under this Act.
51(4)If the debtor’s interest in part or all of the collateral is transferred by the debtor without the consent of the secured party and there are one or more subsequent transfers of the collateral without the consent of the secured party before the secured party acquires knowledge of the name of the most recent transferee of the collateral, the secured party shall be deemed to have complied with subsection (2) if the secured party registers a financing change statement not later than fifteen days after acquiring knowledge of
(a) the name of the most recent transferee of the collateral, and
(b) the information required to register a financing change statement,
and the secured party need not register financing change statements with respect to any intermediate transferee.