Credit (Repossession) Amendment Act 1999

1: Short Title and commencement
1: This Act may be cited as the Credit (Repossession) Amendment Act 1999 and is part of the Credit (Repossession) Act 1997 the principal Act
2: This Act comes into force on a date to be appointed by the Governor-General by Order in Council.
2: Amendment to Title
The principal Act is amended by repealing the Title, and substituting the following Title: An Act to govern the taking of possession of consumer goods by a creditor under a security agreement.
3: Interpretation
1: Section 2 cash price Consumer goods .
2: Section 2 credit agreement
3: Section 2 subparagraphs (ii) (iii) creditor
ii: In relation to a security interest, the secured party within the meaning of section 16 of the Personal Property Securities Act 1999 .
4: Section 2 subparagraphs (ii) (iii) debtor
ii: In relation to a security interest, the debtor within the meaning of section 16 of the Personal Property Securities Act 1999 .
5: Section 2 goods Goods .
6: Section 2 instrument by way of security
7: Section 2 residential premises Security agreement agreement section 16 of the Personal Property Securities Act 1999 .
8: Section 2 security interest Security interest section 17 of the Personal Property Securities Act 1999
a: An interest in personal property created or provided for by a transfer of an account receivable or chattel paper, a lease for a term of more than 1 year, or a commercial consignment:
b: Any security interest created by a company within the meaning of section 2(1) of the Companies Act 1993 Industrial and Provident Societies Act 1908
9: Section 2 subsection (2)
2: For the purposes of this Act, the determination of whether goods are consumer goods is to be made by the debtor as at the time when the security interest in the goods attached within the meaning of the Personal Property Securities Act 1999
4: Security agreements to which Act applies
The principal Act is amended by repealing section 5
5:
1: This Act applies to a security agreement—
a: That creates or provides for a security interest in consumer goods; and
b: That is entered into on or after the date of commencement of the Credit (Repossession) Amendment Act 1999.
2: This Act applies whether or not a financing statement has been registered under the Personal Property Securities Act 1999
3: This Act also applies as provided in section 51
5: New Part inserted
The principal Act is amended by inserting, after Part 3
3A: Rules that apply in relation to taking possession of accessions
19A: Interpretation
In this Part, unless the context otherwise requires,— Accession Other goods Whole
19B: Creditor must not damage consumer goods when removing accession
A creditor who is entitled to take possession of an accession under this Act must remove the accession from the whole in a manner that causes no greater damage to the other goods or that puts the person in possession of the whole to no greater inconvenience than is necessarily incidental to the removal of the accession. Personal Property Security Act 1993, s 38(7) (Saskatchewan)
19C: Person with interest in other goods entitled to reimbursement for damage caused by removal of accession
1: A person, other than the debtor, who has an interest in the other goods at the time the goods become an accession is entitled to reimbursement for any damage to that person's interest in the other goods caused by the removal of the accession.
2: Any reimbursement payable under subsection (1) Personal Property Security Act 1993, s 38(8) (Saskatchewan)
19D: Person entitled to reimbursement may refuse permission to remove accession
A person entitled to reimbursement under section 19C Personal Property Security Act 1993, s 38(9) (Saskatchewan)
19E: Secured party may apply to Court for order in respect of removal of accession
The Court may, on an application made by a creditor, make an order—
a: Determining who is entitled to reimbursement under section 19C
b: Determining the amount and kind of security to be provided by the creditor:
c: Prescribing the amount and kind of security to be provided by the creditor:
d: Prescribing the depository for the security:
e: Dispensing with the need for the permission of any or all persons entitled to reimbursement under section 19C Personal Property Security Act 1993, s 38(10) (Saskatchewan)
19F: Secured party must give notice of removal of accession
1: The creditor who is entitled to remove the accession from the whole must give notice of the creditor's intention to remove the accession to each of the following persons:
a: A person who is known by the creditor to have an interest in the other goods or in the whole:
b: A person who has registered a financing statement in the name of the debtor and referring to the other goods:
c: A person who has registered a financing statement containing the serial number of the other goods as required or authorised by regulations made under the Personal Property Securities Act 1999
2: The notice referred to in subsection (1)
a: The name and address of the creditor; and
b: A description of the goods to be removed; and
c: A description of the other goods; and
d: The amount due to the creditor and the value of the accession if the accession were removed from the other goods; and
e: A statement of intention to remove the accession, unless the lesser of the amount secured or the value of the accession is paid on or before a specified date that is not less than 10 working days after the notice is given.
3: This section does not apply if—
a: The creditor believes on reasonable grounds that the consumer goods will decline substantially in value if they are not disposed of immediately after default; or
b: The cost of care and storage of the consumer goods is disproportionately large in relation to their value; or
c: For any other reason, a court on an ex parte Personal Property Security Act 1993, s 38(12), (13) (Saskatchewan)
19G: When person with interest in whole may retain accession
A person, other than the debtor, who has an interest in the whole that under this Act is subordinate to a security interest in the accession may retain the accession on payment to the creditor with a security interest that has priority over all other security interests in the accession of the lesser of—
a: The amount due to the creditor; or
b: The value of the accession if the accession were removed from the other goods.
19H: Court may make order concerning removal of accession
The Court may, on the application of a person entitled to receive a notice under section 19F
a: Postponing the removal of the accession:
b: Determining the amount payable to the creditor under section 19G Personal Property Security Act 1993, s 38(15) (Saskatchewan)
6: Notice of sale of consumer goods to other creditors
The principal Act is amended by inserting, after section 21
21A:
1: A creditor who intends to sell consumer goods must, in addition to any other notices that the creditor must give under this Act, give notice to the following persons, within 21 days of taking possession of consumer goods:
a: Any person who has registered a financing statement in respect of the consumer goods that is effective at the time the creditor took possession of the consumer goods:
b: Any other person that has given the creditor notice that that person claims an interest in the consumer goods.
2: Subsection (1)
a: The consumer goods may perish within 21 days of the creditor taking possession; or
b: The creditor believes on reasonable grounds that the consumer goods will decline substantially in value if they are not disposed of immediately after default; or
c: The cost of care and storage of the consumer goods is disproportionately large in relation to their value; or
d: For any other reason, a court on an ex parte Personal Property Security Act 1993, s 59(6), (16) (Saskatchewan)
7: New sections inserted
The principal Act is amended by inserting, after section 32
32A: Disposal of consumer goods to purchaser for value and in good faith
1: A purchaser for value and in good faith who takes possession of consumer goods sold by a creditor takes the consumer goods free from the following interests:
a: The interest of the debtor:
b: Any interest subordinate to that of the debtor:
c: Any interest subordinate to that of the creditor.
2: Subsection (1) Personal Property Security Act 1993, s 61(7) (Saskatchewan)
32B: Extinguishment of subordinate security interests on sale
If consumer goods have been sold under section 26 or section 32
8: Creditor to give statement of account to debtor, etc
Section 33 debtor and the persons referred to in section 21A(1)
9: New sections substituted
The principal Act is amended by repealing section 34
34: Distribution of surplus
1: If a creditor has sold consumer goods under section 26 or section 32
a: Any person who has registered a financing statement in the name of the debtor over the consumer goods that are sold where—
i: The registration was effective immediately before the consumer goods were sold; and
ii: The security interest relating to that registration was subordinate to the security interest of the creditor who sold the consumer goods:
b: Any other person who has given the creditor notice that that person claims an interest in the consumer goods that are sold and in respect of which the creditor is satisfied that that person has a legally enforceable interest in the consumer goods:
c: The debtor.
2: The security interests to which subsection (1)﻿(a) Part 7 or Part 8 of the Personal Property Securities Act 1999
3: Subsection (1) section 32B Personal Property Security Act 1993, s 60(2) (Saskatchewan)
34A: Surplus may be paid into court
1: The creditor may pay the surplus into court if there is a question as to who is entitled to receive payment under section 34
2: The surplus may be paid out only on an application by a person claiming an entitlement to the surplus. Personal Property Security Act 1993, s 60(4) (Saskatchewan)
34B: Debtor's, etc, right to recover surplus
The persons referred to in section 34
10: No contracting out
The principal Act is amended by repealing section 42
42:
1: The provisions of this Act have effect despite any provision to the contrary in any security agreement.
2: Section 56 of the Sale of Goods Act 1908
3: Every creditor commits an offence against section 13(i) of the Fair Trading Act 1986
11: Technical amendments to principal Act
The principal Act is amended in the manner indicated in the Schedule