Acts and Regulations

P-7.1 - Personal Property Security Act

Section 20
Disposition versions

Full text
Subordination of unperfected security interests
20(1)An unperfected security interest in collateral is subordinate to the interest of
(a) a judgment creditor who has registered a notice of judgment in the Registry pursuant to subsection 21(1) of the Enforcement of Money Judgments Act if the security interest is unperfected when the notice is registered,
(b) Repealed: 2013, c.32, s.30
(c) a sheriff for the purpose of enforcing the rights of a creditor referred to in paragraph (a).
20(2)An unperfected security interest in collateral is not effective against
(a) a trustee in bankruptcy if the security interest is unperfected at the time of the bankruptcy,
(b) a liquidator appointed under the Winding-up and Restructuring Act (Canada) if the security interest is unperfected when the winding-up order is made, or
(c) a person who has registered a notice of claim in the Registry pursuant to subsection 18(1) of the Enforcement of Money Judgments Act if the security interest is unperfected at the time the notice of claim is registered.
20(3)An unperfected security interest in collateral that is not investment property is subordinate to the interest of a transferee of the collateral if the transferee
(a) acquires the interest under a transaction that is not a security agreement,
(b) gives value, and
(c) acquires the interest without knowledge of the security interest and before the security interest is perfected.
20(4)For the purposes of subsection (3), a purchaser of an instrument or a holder of a negotiable document of title who acquires it under a transaction entered into in the ordinary course of the transferor’s business has knowledge only if the purchaser or holder acquires the interest with knowledge that the transaction violates the terms of the security agreement creating or providing for the security interest.
2008, c.S-5.8, s.109; 2013, c.32, s.30
Subordination of unperfected security interests
20(1)An unperfected security interest in collateral is subordinate to the interest of
(a) a judgment creditor who has registered a notice of judgment in the Registry pursuant to subsection 2.2(1) of the Creditors Relief Act if the security interest is unperfected when the notice is registered,
(b) all persons entitled by the Creditors Relief Act or otherwise to participate in a distribution of personal property subject to the interest of a creditor referred to in paragraph (a), and
(c) a sheriff and a representative of creditors for the purpose of enforcing the rights of a creditor referred to in paragraph (a).
20(2)An unperfected security interest in collateral is not effective against
(a) a trustee in bankruptcy if the security interest is unperfected at the time of the bankruptcy,
(b) a liquidator appointed under the Winding-up and Restructuring Act (Canada) if the security interest is unperfected when the winding-up order is made, or
(c) a creditor, assignee or sheriff who has registered a notice of claim in the Registry pursuant to subsection 2.4(1) of the Creditors Relief Act for the purposes of any enforcement proceedings commenced under the Acts referred to in that subsection if the security interest is unperfected at the time the notice of claim is registered.
20(3)An unperfected security interest in collateral that is not investment property is subordinate to the interest of a transferee of the collateral if the transferee
(a) acquires the interest under a transaction that is not a security agreement,
(b) gives value, and
(c) acquires the interest without knowledge of the security interest and before the security interest is perfected.
20(4)For the purposes of subsection (3), a purchaser of an instrument or a holder of a negotiable document of title who acquires it under a transaction entered into in the ordinary course of the transferor’s business has knowledge only if the purchaser or holder acquires the interest with knowledge that the transaction violates the terms of the security agreement creating or providing for the security interest.
2008, c.S-5.8, s.109
Subordination of unperfected security interests
20(1)An unperfected security interest in collateral is subordinate to the interest of
(a) a judgment creditor who has registered a notice of judgment in the Registry pursuant to subsection 2.2(1) of the Creditors Relief Act if the security interest is unperfected when the notice is registered,
(b) all persons entitled by the Creditors Relief Act or otherwise to participate in a distribution of personal property subject to the interest of a creditor referred to in paragraph (a), and
(c) a sheriff and a representative of creditors for the purpose of enforcing the rights of a creditor referred to in paragraph (a).
20(2)An unperfected security interest in collateral is not effective against
(a) a trustee in bankruptcy if the security interest is unperfected at the time of the bankruptcy,
(b) a liquidator appointed under the Winding-up and Restructuring Act (Canada) if the security interest is unperfected when the winding-up order is made, or
(c) a creditor, assignee or sheriff who has registered a notice of claim in the Registry pursuant to subsection 2.4(1) of the Creditors Relief Act for the purposes of any enforcement proceedings commenced under the Acts referred to in that subsection if the security interest is unperfected at the time the notice of claim is registered.
20(3)An unperfected security interest in collateral that is not investment property is subordinate to the interest of a transferee of the collateral if the transferee
(a) acquires the interest under a transaction that is not a security agreement,
(b) gives value, and
(c) acquires the interest without knowledge of the security interest and before the security interest is perfected.
20(4)For the purposes of subsection (3), a purchaser of an instrument or a holder of a negotiable document of title who acquires it under a transaction entered into in the ordinary course of the transferor’s business has knowledge only if the purchaser or holder acquires the interest with knowledge that the transaction violates the terms of the security agreement creating or providing for the security interest.
2008, c.S-5.8, s.109
Subordination of unperfected security interests
20(1)An unperfected security interest in collateral is subordinate to the interest of
(a) a judgment creditor who has registered a notice of judgment in the Registry pursuant to subsection 2.2(1) of the Creditors Relief Act if the security interest is unperfected when the notice is registered,
(b) all persons entitled by the Creditors Relief Act or otherwise to participate in a distribution of personal property subject to the interest of a creditor referred to in paragraph (a), and
(c) a sheriff and a representative of creditors for the purpose of enforcing the rights of a creditor referred to in paragraph (a).
20(2)An unperfected security interest in collateral is not effective against
(a) a trustee in bankruptcy if the security interest is unperfected at the time of the bankruptcy,
(b) a liquidator appointed under the Winding-up Act (Canada) if the security interest is unperfected when the winding-up order is made, or
(c) a creditor, assignee or sheriff who has registered a notice of claim in the Registry pursuant to subsection 2.4(1) of the Creditors Relief Act for the purposes of any enforcement proceedings commenced under the Acts referred to in that subsection if the security interest is unperfected at the time the notice of claim is registered.
20(3)An unperfected security interest in collateral is subordinate to the interest of a transferee of the collateral if the transferee
(a) acquires the interest under a transaction that is not a security agreement,
(b) gives value, and
(c) acquires the interest without knowledge of the security interest and before the security interest is perfected.
20(4)For the purposes of subsection (3), a purchaser of an instrument or a security or a holder of a negotiable document of title who acquires it under a transaction entered into in the ordinary course of the transferor’s business has knowledge only if the purchaser or holder acquires the interest with knowledge that the transaction violates the terms of the security agreement creating or providing for the security interest.