Alberta Record

· Order in Council / Personal Property Security Amendment Regulation · in-force

Oic 2023 107 personal property security amendment regulation

This Order in Council enacts the Personal Property Security Amendment Regulation, which significantly revises definitions, rules for determining the location of a debtor, and collateral description requirements, along with transitional pro…

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What changed

  • Repeals and replaces Section 19 of the Personal Property Security Regulation, establishing new, detailed criteria for determining the 'location of debtor' for individuals, Canadian entities, and US-based registered organizations.
  • Introduces Section 19.1, requiring secured parties to specify whether a debtor's or secured party's name is an individual or an artificial body on financing statements.
  • Amends rules for collateral description in Sections 34, 35, 36, and 37, providing secured parties with more flexibility in describing serial number goods and adjusting the scope of certain descriptions.
  • Adds Section 18.1, prescribing a $1500 limit for purchase price and market value for specific purposes under section 30(5)(b) of the Personal Property Security Act.
  • Establishes transitional provisions in Section 68.1 to clarify how the new 'location of debtor' rules apply to pre-existing security agreements and interests.

Why it matters

  • The revised 'location of debtor' rules aim to provide greater clarity and certainty for secured parties and debtors in cross-jurisdictional commercial transactions, particularly those involving US entities.
  • Changes to collateral description requirements may streamline the process for registering security interests, potentially reducing administrative burden for businesses and lenders.
  • The new requirement to specify debtor/secured party type (individual vs. artificial body) enhances data accuracy in the personal property registry, which can improve searchability and reduce errors.
  • Transitional provisions ensure a smooth implementation of the new rules, mitigating potential disruptions to existing commercial agreements and legal frameworks.

Other governance concerns

  • Clarity of legal obligations for secured transactions
  • Consistency of commercial law across jurisdictions
  • Administrative burden on businesses

Primary sources (1)

Secondary sources (1)