Acts and Regulations

P-7.1 - Personal Property Security Act

Section 7.1
Disposition versions

Full text
Conflict of laws: investment property
2008, c.S-5.8, s.109
7.1(1)The validity of a security interest in investment property is governed by the law, at the time the security interest attaches,
(a) of the jurisdiction where the certificate is located if the collateral is a certificated security,
(b) of the issuer’s jurisdiction if the collateral is an uncertificated security,
(c) of the securities intermediary’s jurisdiction if the collateral is a security entitlement or a securities account, or
(d) of the futures intermediary’s jurisdiction if the collateral is a futures contract or a futures account.
7.1(2)Except as otherwise provided in subsection (5), the perfection, effect of perfection or non-perfection and priority of a security interest in investment property is governed by the law
(a) of the jurisdiction where the certificate is located if the collateral is a certificated security,
(b) of the issuer’s jurisdiction if the collateral is an uncertificated security,
(c) of the securities intermediary’s jurisdiction if the collateral is a security entitlement or a securities account, or
(d) of the futures intermediary’s jurisdiction if the collateral is a futures contract or a futures account.
7.1(3)For the purposes of this section,
(a) the location of a debtor is determined by subsection 7(1),
(b) the issuer’s jurisdiction is determined by subsection 44(1) of the Securities Transfer Act, and
(c) the securities intermediary’s jurisdiction is determined by subsection 45(1) of the Securities Transfer Act.
7.1(4) For the purposes of this section, the following rules determine a futures intermediary’s jurisdiction:
(a) if an agreement between the futures intermediary and futures customer governing the futures account expressly provides that a particular jurisdiction is the futures intermediary’s jurisdiction for the purposes of the law of that jurisdiction, this Act or any provision of this Act, the jurisdiction expressly provided for is the futures intermediary’s jurisdiction;
(b) if paragraph (a) does not apply and an agreement between the futures intermediary and futures customer governing the futures account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the futures intermediary’s jurisdiction;
(c) if neither paragraph (a) nor (b) applies and an agreement between the futures intermediary and futures customer governing the futures account expressly provides that the futures account is maintained at an office in a particular jurisdiction, that jurisdiction is the futures intermediary’s jurisdiction;
(d) if none of the preceding paragraphs applies, the futures intermediary’s jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the futures customer’s account is located; and
(e) if none of the preceding paragraphs applies, the futures intermediary’s jurisdiction is the jurisdiction in which the chief executive office of the futures intermediary is located.
7.1(5)The law of the jurisdiction in which the debtor is located governs
(a) perfection of a security interest in investment property by registration,
(b) perfection of a security interest in investment property granted by a broker or securities intermediary where the secured party relies on attachment of the security interest as perfection, and
(c) perfection of a security interest in a futures contract or futures account granted by a futures intermediary where the secured party relies on attachment of the security interest as perfection.
7.1(6)A security interest perfected under the law of the jurisdiction designated in subsection (5) remains perfected until the earliest of
(a) sixty days after the day the debtor relocates to another jurisdiction,
(b) fifteen days after the day the secured party knows the debtor has relocated to another jurisdiction, and
(c) the day that perfection ceases under the previously applicable law.
7.1(7)A security interest in investment property that is perfected under the law of the issuer’s jurisdiction, the securities intermediary’s jurisdiction or the futures intermediary’s jurisdiction, as applicable, remains perfected until the earliest of
(a) sixty days after a change of the applicable jurisdiction to another jurisdiction,
(b) fifteen days after the day the secured party knows of the change of the applicable jurisdiction to another jurisdiction, and
(c) the day that perfection ceases under the previously applicable law.
2008, c.S-5.8, s.109
Conflict of laws: investment property
2008, c.S-5.8, s.109
7.1(1)The validity of a security interest in investment property is governed by the law, at the time the security interest attaches,
(a) of the jurisdiction where the certificate is located if the collateral is a certificated security,
(b) of the issuer’s jurisdiction if the collateral is an uncertificated security,
(c) of the securities intermediary’s jurisdiction if the collateral is a security entitlement or a securities account, or
(d) of the futures intermediary’s jurisdiction if the collateral is a futures contract or a futures account.
7.1(2)Except as otherwise provided in subsection (5), the perfection, effect of perfection or non-perfection and priority of a security interest in investment property is governed by the law
(a) of the jurisdiction where the certificate is located if the collateral is a certificated security,
(b) of the issuer’s jurisdiction if the collateral is an uncertificated security,
(c) of the securities intermediary’s jurisdiction if the collateral is a security entitlement or a securities account, or
(d) of the futures intermediary’s jurisdiction if the collateral is a futures contract or a futures account.
7.1(3)For the purposes of this section,
(a) the location of a debtor is determined by subsection 7(1),
(b) the issuer’s jurisdiction is determined by subsection 44(1) of the Securities Transfer Act, and
(c) the securities intermediary’s jurisdiction is determined by subsection 45(1) of the Securities Transfer Act.
7.1(4) For the purposes of this section, the following rules determine a futures intermediary’s jurisdiction:
(a) if an agreement between the futures intermediary and futures customer governing the futures account expressly provides that a particular jurisdiction is the futures intermediary’s jurisdiction for the purposes of the law of that jurisdiction, this Act or any provision of this Act, the jurisdiction expressly provided for is the futures intermediary’s jurisdiction;
(b) if paragraph (a) does not apply and an agreement between the futures intermediary and futures customer governing the futures account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the futures intermediary’s jurisdiction;
(c) if neither paragraph (a) nor (b) applies and an agreement between the futures intermediary and futures customer governing the futures account expressly provides that the futures account is maintained at an office in a particular jurisdiction, that jurisdiction is the futures intermediary’s jurisdiction;
(d) if none of the preceding paragraphs applies, the futures intermediary’s jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the futures customer’s account is located; and
(e) if none of the preceding paragraphs applies, the futures intermediary’s jurisdiction is the jurisdiction in which the chief executive office of the futures intermediary is located.
7.1(5)The law of the jurisdiction in which the debtor is located governs
(a) perfection of a security interest in investment property by registration,
(b) perfection of a security interest in investment property granted by a broker or securities intermediary where the secured party relies on attachment of the security interest as perfection, and
(c) perfection of a security interest in a futures contract or futures account granted by a futures intermediary where the secured party relies on attachment of the security interest as perfection.
7.1(6)A security interest perfected under the law of the jurisdiction designated in subsection (5) remains perfected until the earliest of
(a) sixty days after the day the debtor relocates to another jurisdiction,
(b) fifteen days after the day the secured party knows the debtor has relocated to another jurisdiction, and
(c) the day that perfection ceases under the previously applicable law.
7.1(7)A security interest in investment property that is perfected under the law of the issuer’s jurisdiction, the securities intermediary’s jurisdiction or the futures intermediary’s jurisdiction, as applicable, remains perfected until the earliest of
(a) sixty days after a change of the applicable jurisdiction to another jurisdiction,
(b) fifteen days after the day the secured party knows of the change of the applicable jurisdiction to another jurisdiction, and
(c) the day that perfection ceases under the previously applicable law.
2008, c.S-5.8, s.109