Personal Property Securities Act 1999

1: Short Title and commencement
1: This Act may be cited as the Personal Property Securities Act 1999.
2: This Act (except section 190
3: Section 190
4: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 1(2) brought into force 1 May 2002 clause 2 Personal Property Securities Act Commencement Order 2002 Section 1(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
1: Outline of this Act
2: Purpose of this Part
This Part is intended—
a: to give a general indication of what the Act is about:
b: to indicate how the Act is arranged:
c: to assist readers to identify the provisions that are relevant to them.
3: Status of this Part
This Part is only a guide to the general scheme and effect of the Act.
4: What this Act is about
This Act mainly relates to— the enforceability of an interest in personal property created or provided for by a transaction that secures payment of money or performance of an obligation; the interest is called a security interest: how to determine the priority between security interests in the same personal property: how to determine the priority between a security interest and another type of interest (for example, the interest of a buyer of goods) in the same personal property.
5: How Act arranged
1: The Act is arranged in Parts, as follows: Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Part 8 Part 9 Part 10 Part 11 Part 12
2: Sections 6 to 15 Parts 2 to 12 Section 5(1) amended 15 April 2004 section 3 Personal Property Securities Amendment Act 2004
6: Part 2 (Preliminary provisions)
Part 2 describes what various terms used in the Act mean, including some key definitions such as security interest knowledge sets out the status of examples used in the Act: describes the type of transactions and interests in personal property to which the Act applies: describes the type of transactions and interests to which the Act does not apply: provides when New Zealand law applies to personal property that is subject to a security interest.
7: Part 3 (Principles relating to enforceability of security interests)
Part 3 the effectiveness of a security agreement between the parties to the agreement: when a security agreement is enforceable against the parties to the security agreement and third parties (persons who are not parties to the security agreement): the concept of attachment of a security interest (when a security interest comes into existence). Attachment occurs when the secured party gives value for the loan, the debtor has rights in the personal property that is used as security for the loan, and, in the case of third parties, the security agreement is enforceable against third parties: the perfection of security interests. Perfection involves the concept of attachment together with 1 of the methods of achieving perfection, such as registration of a financing statement or the secured party taking possession of the collateral (personal property that is subject to a security interest). Perfection is relevant to giving a secured party priority over a third party.
8: Part 4 (Attachment and perfection of security interests in particular kinds of personal property)
Part 4 the attachment of security interests in particular kinds of personal property, such as after-acquired property: the perfection of security interests in particular kinds of personal property, such as proceeds.
9: Part 5 (When buyers or lessees of goods
or other collateral or other collateral Part 5 or other collateral or other collateral or other collateral Section 9 substituted 1 May 2002 section 3 Personal Property Securities Amendment Act 2001 Section 9 heading amended 15 April 2004 section 4(1) Personal Property Securities Amendment Act 2004 Section 9 amended 15 April 2004 section 4(2) Personal Property Securities Amendment Act 2004
9A: Part 6 (Additional provisions relating to when buyers or lessees of motor vehicles take motor vehicles free of security interest)
Part 6 Section 9A inserted 1 May 2002 section 3 Personal Property Securities Amendment Act 2001
10: Part 7 (Priority between security interests)
Part 7 sets out how the priority between security interests in the same personal property is determined: deals with the priority of particular kinds of security interests, such as purchase money security interests: contains provisions dealing with priority between security interests in particular kinds of personal property, such as accessions and processed, manufactured, or commingled goods: contains provisions dealing with the priority of security interests where the rights of the debtor in the collateral have been transferred.
11: Part 8 (Priority of other interests in collateral)
Part 8 contains provisions relating to the priority between security interests and other interests (which may include other security interests) in particular kinds of personal property, such as money, negotiable instruments, investment securities, chattel paper, and crops: also deals with the priority of liens arising out of materials or services provided in respect of goods, the priority of the rights of an assignee of accounts receivable or chattel paper, and the priority of an execution creditor.
12: Part 9 (Enforcement of security interests)
Part 9
13: Part 10 (Personal property securities register)
Part 10 establishes a personal property securities register: provides for the appointment of the Registrar of Personal Property Securities: contains provisions relating to the registration of financing statements, the amendment of financing statements, and searching the register.
14: Part 11 (Miscellaneous)
Part 11
15: Part 12 (Transitional provisions)
Part 12 provides for a 6-month transitional period during which time prior security interests (security interests that were in existence before the commencement of the Act) may be perfected: contains provisions about the continuation, perfection, and priority, of prior security interests during that transitional period: contains provisions about the priority of third party interests during the transitional period.
2: Preliminary provisions
Interpretation
16: Interpretation
1: In this Act, unless the context otherwise requires,— accessions Example
A replacement motor installed in a car. account receivable advance
a: means the payment of money, the provision of credit, or the giving of value; and
b: includes any liability of the debtor to pay interest, credit costs, and other charges or costs payable by the debtor in connection with an advance or the enforcement of a security interest securing the advance after-acquired property cash proceeds chattel paper Example A hire purchase agreement. collateral commercial consignment
a: means a consignment where—
i: a consignor has reserved an interest in the goods that the consignor has delivered to the consignee for the purpose of sale, lease, or other disposition; and
ii: both the consignor and the consignee deal in the ordinary course of business in goods of that description; but
b: does not include an agreement under which goods are delivered to an auctioneer for the purpose of sale consumer section 57 consumer goods Example A computer for home use. country Court court crops debtor
a: means—
i: a person who owes payment or performance of an obligation secured, whether or not that person owns or has other rights in the collateral; or
ii: a person who receives goods from another person under a commercial consignment; or
iii: a lessee under a lease for a term of more than 1 year; or
iv: a transferor of an account receivable or chattel paper; or
v: a transferee of or successor to the interest of a person referred to in subparagraphs (i) to (iv); or
vi: if the person referred to in subparagraph (i) and the person who owns or has other rights in the collateral are not the same person, includes—
A: the person who owns or has other rights in the collateral, where the term debtor is used in a provision of this Act dealing with the collateral; or
B: the obligor, where the term debtor is used in a provision of this Act dealing with the obligation; or
C: both the person who owns or has other rights in the collateral and the obligor (if the context so requires); and
b: includes a trustee for any of the persons referred to in paragraph (a) default
a: the failure to pay or otherwise perform the obligation secured when due; or
b: the occurrence of an event that, under the security agreement, gives the secured party the right to enforce the security document
a: any writing on any material; and
b: information recorded or stored on, and capable of transmission to or from, a computer or other device; and material subsequently derived from information so recorded, stored, or transmitted; and
c: a book, graph, or drawing; and
d: a photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable of being reproduced by any means document of title
a: that covers goods in the bailee's possession that are identified or are fungible portions of an identified mass; and
b: in which it is stated that the goods identified in it will be delivered to a named person, or to the transferee of that person, or to bearer, or to the order of a named person emissions units
a: units as defined in section 4(1)
b: personal property that—
i: is created by, or in accordance with, any enactment (whether of New Zealand, another country, or any jurisdiction of any country), rule of law, contractual provision, or international treaty or protocol as—
A: one of a fixed number of units issued by reference to a specified amount of greenhouse gas; or
B: evidence of a specified amount of reductions, removals, avoidance, storage, sequestration, or any other form of mitigation of greenhouse gas emissions; and
ii: can be surrendered, retired, cancelled, or otherwise used to—
A: offset greenhouse gas emissions under, or otherwise comply with, any enactment (whether of New Zealand, another country, or any jurisdiction of any country), rule of law, contractual provision, or international treaty or protocol; or
B: enable a person who surrenders, retires, cancels, or otherwise uses it to claim an environmental benefit equipment Example An office computer. existing secured party section 193 financing change statement section 135 financing statement section 135 fund section 57 future advance
a: means the payment of money, the provision of credit, or the giving of value secured by a security interest, occurring after the security agreement has been signed, or assented to by letter, telegram, cable, telex message, facsimile, electronic mail, or other similar means of communication, whether or not provided or given under an obligation; and
b: includes advances, reasonable costs incurred, and expenditures made for the protection, maintenance, preservation, or repair of the collateral, or for the enforcement of the security interest goods
a: means tangible personal property; and
b: includes crops, the unborn young of animals, trees that have been severed, and petroleum or minerals that have been extracted; but
c: does not include chattel paper, a document of title, a negotiable instrument, an investment security, or money greenhouse gas section 31 intangible Example Trademarks, patents, and copyright. inventory
a: held by a person for sale or lease, or that have been leased by that person as lessor; or
b: to be provided or have been provided under a contract for services; or
c: raw materials or work in progress; or
d: materials used or consumed in a business investment security
a: means—
i: a writing (whether or not in the form of a security certificate) that is recognised in the place in which it is issued or dealt with as evidencing a derivative (within the meaning of section 8
A: delivery with any necessary endorsement, assignment, or registration in the records of the issuer or agent of the issuer, or by compliance with restrictions on transfer or withdrawal; or
B: an entry in the records of a clearing house or securities depository; or
C: an entry in the records maintained for that purpose by or on behalf of the issuer; or
D: an entry in the records maintained for that purpose by or on behalf of the nominee:
ii: an emissions unit; but
b: does not include a writing that evidences a monetary obligation that is secured by an interest in land Example Shares in a listed company. knowledge section 19 land lease for a term of more than 1 year
a: means a lease or bailment of goods for a term of more than 1 year; and
b: includes—
i: a lease for an indefinite term, including a lease for an indefinite term that is determinable by 1 or both of the parties not later than 1 year after the date of its execution; and
ii: a lease for a term of 1 year or less that is automatically renewable or that is renewable at the option of 1 of the parties for 1 or more terms, where the total of the terms, including the original term, may exceed 1 year; and
iii: a lease for a term of 1 year or less where the lessee, with the consent of the lessor, retains uninterrupted or substantially uninterrupted possession of the leased goods for a period of more than 1 year after the day on which the lessee first acquired possession of them, but the lease does not become a lease for a term of more than 1 year until the lessee's possession extends for more than 1 year; but
c: does not include—
i: a lease by a lessor who is not regularly engaged in the business of leasing goods; or
ii: a lease of household furnishings or appliances as part of a lease of land where the use of the goods is incidental to the use and enjoyment of the land; or
iii: a lease of prescribed goods, regardless of the length of the lease term money motor vehicle vehicle section 57 negotiable instrument
a: means—
i: a bill of exchange or promissory note within the meaning of the Bills of Exchange Act 1908
ii: any other writing that evidences a right to payment of money and is of a kind that, in the ordinary course of business, is transferred by delivery with any necessary endorsement or assignment; or
iii: a letter of credit, if the letter of credit states on it that it must be presented on claiming payment; but
b: does not include chattel paper, a document of title, or an investment security new value news medium non-purchase money security interest obligation secured
a: the amount originally contracted to be paid under the lease; and
b: any other amount payable under the terms of the lease; and
c: any other amount required to be paid by the lessee to obtain ownership of the collateral;— less any amount paid before the determination organisation other goods Example The car in which a replacement motor is installed. perfected by possession perfected by registration perfected security interest personal information section 7(1) personal property prescribed prior law section 193 prior registration law section 193 prior security interest section 193 prior third party interest section 193 proceeds
a: means identifiable or traceable personal property—
i: that is derived directly or indirectly from a dealing with collateral or the proceeds of collateral; and
ii: in which the debtor acquires an interest; and
b: includes—
i: a right to an insurance payment or other payment as indemnity or compensation for loss of or damage to the collateral or proceeds; and
ii: a payment made in total or partial discharge or redemption of chattel paper, an intangible or investment security, or a negotiable instrument; but
c: does not include animals merely because they are the offspring of the animals that are collateral purchase purchase money security interest
a: means—
i: a security interest taken in collateral by a seller to the extent that it secures the obligation to pay all or part of the collateral's purchase price; or
ii: a security interest taken in collateral by a person who gives value for the purpose of enabling the debtor to acquire rights in the collateral, to the extent that the value is applied to acquire those rights; or
iii: the interest of a lessor of goods under a lease for a term of more than 1 year; or
iv: the interest of a consignor who delivers goods to a consignee under a commercial consignment; but
b: does not include a transaction of sale and lease back to the seller Examples A hire purchase agreement relating to the purchase of a television. A loan by a bank for the purchase of a car where the loan is secured over the car, and the proceeds are applied towards the purchase. purchase price value purchaser receiver section 2 register section 135 registered trader section 57 Registrar section 135 regulations related company section 2(3) Secretary secured party
a: means a person who holds a security interest for the person's own benefit or for the benefit of another person; and
b: includes a trustee where the holders of the obligations issued, guaranteed, or provided for under a security agreement are represented by a trustee as the holder of the security interest security agreement
a: means an agreement that creates or provides for a security interest; and
b: includes a writing that evidences a security agreement (if the context permits) security interest section 17 security trust deed temporarily perfected security interest section 28 Part 4 transitional period section 193 unperfected security interest value
a: means consideration that is sufficient to support a simple contract; and
b: includes an antecedent debt or liability verification statement section 135 whole working day
a: a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign’s birthday, Te Rā Aro ki a Matariki/Matariki Observance Day, and Labour Day; and
ab: if Waitangi Day or Anzac Day falls on a Saturday or a Sunday, the following Monday; and
b: a day in the period commencing on 25 December in any year and,—
i: except in sections 165 167A 168 178
ii: in sections 165 167A 168 178 writing
a: the recording of words in a permanent and legible form; and
b: the recording of words by electronic means that can be retrieved and read; and
c: the display of words by any form of electronic or other means of communication that is subsequently recorded by electronic means that can, by any means, be retrieved and read.
2: For the purposes of this Act, fungible goods fungible securities
3: For the purposes of this Act, the determination of whether goods are consumer goods, equipment, or inventory is to be made at the time when the security interest in the goods attached, unless otherwise provided in this Act. Section 16(1) Court court inserted 15 December 2005 section 3 Personal Property Securities Amendment Act 2005 Section 16(1) dealer repealed 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 16(1) emissions unit substituted 24 November 2009 section 4 Personal Property Securities Amendment Act 2009 Section 16(1) futures contract repealed 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 16(1) greenhouse gas inserted 24 November 2009 section 4(2) Personal Property Securities Amendment Act 2009 Section 16(1) investment security substituted 26 September 2008 section 81(3) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 16(1) investment security amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013 Section 16(1) personal information amended 1 December 2020 section 217 Privacy Act 2020 Section 16(1) registered trader inserted 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 16(1) related company inserted 15 April 2004 section 5 Personal Property Securities Amendment Act 2004 Section 16(1) working day replaced 12 April 2022 wehenga 7 Te Ture mō te Hararei Tūmatanui o te Kāhui o Matariki 2022 section 7 Te Kāhui o Matariki Public Holiday Act 2022 Section 16(1) working day inserted 1 January 2014 section 8 Holidays (Full Recognition of Waitangi Day and ANZAC Day) Amendment Act 2013 Section 16(1) working day amended 13 February 2012 section 4 Personal Property Securities Amendment Act 2011 Section 16(1) working day amended 13 February 2012 section 4 Personal Property Securities Amendment Act 2011
17: Meaning of security interest
1: In this Act, unless the context otherwise requires, the term security interest
a: means an interest in personal property created or provided for by a transaction that in substance secures payment or performance of an obligation, without regard to—
i: the form of the transaction; and
ii: the identity of the person who has title to the collateral; and
b: includes an interest created or provided for by a transfer of an account receivable or chattel paper, a lease for a term of more than 1 year, and a commercial consignment (whether or not the transfer, lease, or consignment secures payment or performance of an obligation).
2: A person who is obligated under an account receivable may take a security interest in the account receivable under which that person is obligated.
3: Without limiting subsection (1), and to avoid doubt, this Act applies to a fixed charge, floating charge, chattel mortgage, conditional sale agreement (including an agreement to sell subject to retention of title), hire purchase agreement, pledge, security trust deed, trust receipt, consignment, lease, an assignment, or a flawed asset arrangement, that secures payment or performance of an obligation. Personal Property Security Act 1993 s 3(1) (Saskatchewan)
17A: Subordinated trusts not security interests
For the avoidance of doubt, a beneficial interest in personal property held by a creditor (the senior creditor insolvent debtor
a: the personal property is property that has been distributed by the Official Assignee under the Insolvency Act 2006 Companies Act 1993 subordinated creditor
b: the beneficial interest was created or provided for under the terms of a financial product (within the meaning of section 7
c: under those terms, the subordinated creditor must hold the personal property on trust for the senior creditor; and
d: the purpose of those terms is to postpone or subordinate the right of the subordinated creditor to the performance of all or any part of an obligation of the insolvent debtor to the right of the senior creditor to the performance of all or any part of another obligation of the insolvent debtor. Section 17A inserted 15 April 2004 section 6 Personal Property Securities Amendment Act 2004 Section 17A(a) amended 3 December 2007 section 445 Insolvency Act 2006 Section 17A(b) amended 1 December 2014 section 150 Financial Markets (Repeals and Amendments) Act 2013
18: Meaning of possession in certain cases
1: For the purposes of this Act, a person takes possession of an investment security, other than an emissions unit,
a: in the case of an investment security that is evidenced by a security certificate, the person takes physical possession of that certificate; or
b: in the case of an investment security that is traded or settled through a clearing house or securities depository, the clearing house or securities depository, as the case may be, records the interest of the person in the investment security; or
c: in the case of an investment security that is not evidenced by a security certificate and that is not traded or settled through a clearing house or securities depository, the records maintained by the issuer, or on behalf of the issuer, record the interest of the person in the investment security; or
d: in the case of an investment security that is held by a nominee, the records of the nominee record the interest of the person in the investment security.
1A: For the purposes of this Act, a person ( person A
a: in the case of an emissions unit that is evidenced by an emissions unit certificate, person A takes physical possession of that certificate:
b: in the case of an emissions unit that is, in the ordinary course of business, traded or settled through a clearing house or securities depository, the clearing house or securities depository, as the case may be, records the interest of person A in the emissions unit:
c: in the case of an emissions unit that is, in the ordinary course of business, held by a nominee, the records of the nominee record the interest of person A in the emissions unit:
d: in the case of an emissions unit that is a unit as defined in section 4(1) section 18
e: in the case of an emissions unit that is not a unit as defined in section 4(1) paragraphs (a), (b), or (c)
2: For the purposes of this Act, a person takes possession of a negotiable instrument if—
a: the person takes physical possession of the negotiable instrument; or
b: in the case of a negotiable instrument that is traded or settled through a clearing house or securities depository, the clearing house or securities depository, as the case may be, records the interest of the person in the negotiable instrument.
3: For the purposes of this Act, a secured party is not in possession of collateral that is in the actual or apparent possession or control of the debtor or the debtor's agent.
4: For the purposes of subsection (1A)﻿(a), emissions unit certificate Section 18(1) amended 26 September 2008 section 81(4) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 18(1A) substituted 24 November 2009 section 5(1) Personal Property Securities Amendment Act 2009 Section 18(4) added 24 November 2009 section 5(2) Personal Property Securities Amendment Act 2009
19: Meaning of knowledge
1: For the purposes of this Act,—
a: an individual knows or has knowledge of a fact in relation to a particular transaction when that person has actual knowledge of the fact or receives a notice stating the fact:
b: an organisation knows or has knowledge of a fact in relation to a particular transaction when—
i: the person within the organisation with responsibility for matters to which the transaction relates has actual knowledge of the fact; or
ii: the organisation receives a notice stating the fact; or
iii: the fact is communicated to the organisation in such a way that it would have been brought to the attention of the person with responsibility for matters to which the transaction relates if the organisation had exercised reasonable care:
c: a government department knows or has knowledge of a fact in relation to a particular transaction when that fact has been brought to the attention of a senior employee of the government department with responsibility for the matters to which the fact relates, under circumstances in which a reasonable person would take cognisance of it.
2: For the purposes of subsection (1),—
a: a person receives a notice when the notice is given to the person in accordance with sections 184 to 189
b: an organisation exercises reasonable care if—
i: it takes reasonable steps to ensure that significant information is brought to the attention of the person within the organisation with responsibility for matters to which a particular transaction relates; but
ii: nothing in subparagraph (i) requires a person acting on behalf of the organisation to communicate information unless the communication is part of that person's regular duties or unless the person has reason to know of the transaction and that the transaction would be materially affected by the information.
3: For the purposes of this section,— government department Part 1 organisation Personal Property Security Act 1993 s 2(2) (Saskatchewan) Section 19(1)﻿(c) added 15 April 2004 section 7(1) Personal Property Securities Amendment Act 2004 Section 19(3) added 15 April 2004 section 7(2) Personal Property Securities Amendment Act 2004
20: Registration of financing statement not to constitute notice or knowledge
Registration of a financing statement is not constructive notice or knowledge of its existence or contents to any person. Personal Property Security Act 1993 s 47 (Saskatchewan)
21: Status of examples
1: Every example used in this Act is part of this Act.
2: An example used in this Act is only illustrative of the provision to which it relates. It does not limit the provision.
3: If an example and the provision to which it relates are inconsistent, the provision prevails. Application
21A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1AA Section 21A inserted 31 August 2019 section 20 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019
22: Act to bind the Crown
This Act binds the Crown.
23: When Act does not apply
This Act does not apply to—
a: the interest of a seller who has shipped goods to a buyer under a negotiable bill of lading or its equivalent to the order of the seller or to the order of an agent of the seller, unless the parties have otherwise evidenced an intention to create or provide for a security interest in the goods:
b: a lien (except as provided in Part 8 (other than section 169 sections 169 184
c: any right of set-off ( but without limiting the effect of section 102
d:
e: an interest created or provided for by any of the following transactions:
i: the creation or transfer of an interest in land:
ii: a transfer of a right to payment that arises in connection with an interest in land, including a transfer of rental payments payable under a lease of or licence to occupy land, unless the right to payment is evidenced by an investment security:
iii: a transfer of an unearned right to payment under a contract to a person who is to perform the transferor's obligations under the contract:
iv: a transfer of present or future wages, salary, pay, commission, or any other compensation for labour or personal services of an employee:
v: an assignment for the general benefit of creditors of the person making the assignment:
vi: a transfer of an interest or claim in or under a contract of annuity or policy of insurance, except as provided by this Act with respect to proceeds and priorities in proceeds:
vii: a transfer of a right to damages in tort:
viii: an assignment of accounts receivable made solely to facilitate the collection of the accounts receivable on behalf of the person making the assignment:
ix: an assignment of a single account receivable or negotiable instrument in whole or in partial satisfaction of a pre-existing indebtedness:
x: a sale of accounts receivable or chattel paper as part of a sale of a business, unless the seller remains in apparent control of the business after the sale:
xi: a transfer, assignment, mortgage, or assignment of a mortgage of a ship (within the meaning of the Ship Registration Act 1992
xii: a transfer, mortgage, or licence of any management rights (within the meaning of the Radiocommunications Act 1989
xiii: a transfer or other transaction by way of security in respect of individual transferable quota or transferable term quota (within the meaning of the Fisheries Act 1983 Fisheries Act 1996 Personal Property Security Act 1993 s 4 (Saskatchewan) Section 23(b) amended 25 November 2003 section 171 Taxation (GST, Trans-Tasman Imputation and Miscellaneous Provisions) Act 2003 Section 23(c) amended 15 April 2004 section 8 Personal Property Securities Amendment Act 2004 Section 23(d) repealed 1 July 2003 section 262 Local Government Act 2002
23A: Act subject to application of Cape Town Convention and Aircraft Protocol
1: This Act is subject to section 106 Part 12
2: In this section,— Aircraft Protocol section 104(1) Cape Town Convention section 104(1) Section 23A inserted 1 November 2010 section 14(1) Civil Aviation (Cape Town Convention and Other Matters) Amendment Act 2010
24: Application of Act not affected by secured party having title to collateral
The fact that title to collateral may be in the secured party rather than the debtor does not affect the application of any provision of this Act relating to rights, obligations, and remedies.
25: Rights or duties that apply to be exercised in good faith and in
accordance with reasonable standards of commercial practice
1: All rights, duties, or obligations that arise under a security agreement or this Act must be exercised or discharged in good faith and in accordance with reasonable standards of commercial practice.
2: A person does not act in bad faith merely because the person acts with knowledge of the interest of some other person. Personal Property Security Act 1993 s 65(3), (4) (Saskatchewan) Section 25 heading amended 15 April 2004 section 9 Personal Property Securities Amendment Act 2004 Conflict of laws
26: When New Zealand law applies
1: Except as otherwise provided in this Act, the validity, perfection, and the effect of perfection or non-perfection of a security interest in goods or a possessory security interest in chattel paper, an investment security, money, a negotiable document of title, or a negotiable instrument, is governed by the law of New Zealand if,—
a: at the time the security interest attaches to the collateral, the collateral is situated in New Zealand; or
b: at the time the security interest attaches to the collateral, the collateral is situated outside New Zealand but the secured party has knowledge that it is intended to move the collateral to New Zealand; or
c: the security agreement provides that New Zealand law is the law governing the transaction; or
d: in any other case, New Zealand law applies.
2: For the purposes of subsection (1), an investment security that is not in the form of a security certificate is situated where the records of the clearing house or securities depository are kept. Personal Property Security Act 1993 s 5(1), (2) (Saskatchewan)
27: Continuity of perfection where goods are moved to New Zealand
1: A security interest in goods that is perfected under the law of the jurisdiction in which the goods are situated when the security interest attached and before the goods are brought into New Zealand continues to be perfected in New Zealand if it is perfected in New Zealand by the earliest of the following:
a: not later than 60 days after the day on which the goods are brought into New Zealand; or
b: not later than 15 days after the day on which the secured party has knowledge that the goods have been brought into New Zealand; or
c: before perfection ceases under the law of the jurisdiction in which the goods were situated when the security interest attached.
2: A security interest that is not perfected as provided in subsection (1) may be otherwise perfected in New Zealand under this Act. Personal Property Security Act 1993 s 5(3), (4) (Saskatchewan)
28: Temporary perfection of security interest in collateral moved to New Zealand in other cases
1: A security interest in collateral that is moved to New Zealand is temporarily perfected
2: If a security interest referred to in section 26 Personal Property Security Act 1993 s 5(5) (Saskatchewan) Section 28(1) amended 15 April 2004 section 10 Personal Property Securities Amendment Act 2004
29: Location of debtor for purposes of sections 30 to 33
For the purposes of sections 30 to 33
a: a debtor that is a body corporate is located in the country of incorporation; and
b: a debtor that is not a body corporate is located at—
i: the debtor's place of business; or
ii: the debtor's principal place of business (if the debtor has more than 1 place of business); or
iii: the debtor's principal residence (if the debtor has no place of business).
30: Validity, perfection, etc, of security interests in intangibles, movable equipment, etc
The validity, perfection, and effect of perfection or non-perfection of a security interest is governed by the law, including the conflict of laws rules, of the jurisdiction where the debtor is located when the security interest attaches, if the security interest is—
a: a security interest in an intangible:
b: a security interest in goods that are of a kind that are normally used in more than 1 jurisdiction, if the goods are equipment or inventory leased or held for lease by a debtor to others:
c: a non-possessory security interest in chattel paper, an investment security, a negotiable document of title, money, or a negotiable instrument. Personal Property Security Act 1993 s 7(2) (Saskatchewan)
31: Position where debtor relocates to another jurisdiction, etc
If a debtor relocates to another jurisdiction or transfers an interest in the collateral to a person located in another jurisdiction, a security interest perfected in accordance with the law applicable, as provided in section 30
a: not later than 60 days after the day on which the debtor relocates or transfers an interest in the collateral to a person located in the other jurisdiction; or
b: not later than 15 days after the day on which the secured party has knowledge that the debtor has relocated or transferred an interest in the collateral to a person located in the other jurisdiction; or
c: prior to the day on which perfection ceases under the law of the first jurisdiction. Personal Property Security Act 1993 s 7(3) (Saskatchewan)
32: Position where no public record, etc, of perfection of security interest
1: If the law governing the perfection of a security interest referred to in section 30 section 31
a: an interest in an account receivable that is payable in New Zealand; or
b: an interest in goods, an investment security, a negotiable instrument, a negotiable document of title, money, or chattel paper, acquired when the collateral was situated in New Zealand.
2: Subsection (1) does not apply if the security interest is perfected under this Act before the interest referred to in paragraph (a) of that subsection or paragraph (b) of that subsection arises.
3: A security interest to which subsection (1) applies may be perfected under this Act. Personal Property Security Act 1993 s 7(4), (5) (Saskatchewan)
33: Validity, perfection, etc, of security interest in minerals
1: Despite section 30
a: is provided for in a security agreement signed, or assented to by letter, telegram, cable, telex message, facsimile, electronic mail, or other similar means of communication, before the minerals are extracted; and
b: attaches to the minerals on extraction or attaches to an account receivable on the sale of the minerals.
2: For the purposes of subsection (1),— minehead minerals Personal Property Security Act 1993 s 7(6), (7) (Saskatchewan)
3: Principles relating to enforceability of security interests
Purpose of Part
34: Purpose of this Part
The purpose of this Part is to outline the main principles that are relevant—
a: to determining the enforceability of a security interest against the debtor and third parties:
b: to determining the priority between security interests in the same personal property:
c: to determining the priority between a security interest in personal property and other interests in the same property (for example, the interest of a buyer of goods). Effectiveness of security agreement
35: Effectiveness of security agreement
Except as otherwise provided by this Act or any other Act or rule of law or equity, a security agreement is effective according to its terms. Personal Property Security Act 1993 s 9(1) (Saskatchewan) Enforceability of security agreements against third parties
36: Enforceability of security agreements against third parties
1: A security agreement is enforceable against a third party in respect of particular collateral only if—
a: the collateral is in the possession of the secured party; or
b: the debtor has signed, or has assented to by letter, telegram, cable, telex message, facsimile, electronic mail, or other similar means of communication, a security agreement that contains—
i: an adequate description of the collateral by item or kind that enables the collateral to be identified; or
ii: a statement that a security interest is taken in all of the debtor's present and after-acquired property; or
iii: a statement that a security interest is taken in all of the debtor's present and after-acquired property except for specified items or kinds of personal property.
2: To avoid doubt, a security agreement may be enforceable against a third party in respect of particular collateral even though the security agreement is not enforceable against a third party in respect of other collateral to which the security agreement relates. Example Person A sells a motor to person B. The invoice relating to the sale of the motor contains contractual terms, including a retention of title clause. Person B has not signed the invoice. Person A has a security interest in the motor which is enforceable against person B, but is not enforceable against anyone else. Personal Property Security Act 1993 s 10(1), (2) (Saskatchewan)
37: Description of collateral as consumer goods or equipment inadequate
A description is inadequate for the purposes of section 36(1)﻿(b)﻿(i) Personal Property Security Act 1993 s 10(3) (Saskatchewan)
38: What constitutes adequate description of collateral held as inventory
Despite section 36(1)﻿(b)﻿(i) Personal Property Security Act 1993 s 10(4) (Saskatchewan)
39: Description of proceeds not required for enforceability against third parties
Except as otherwise provided in this Act, a security interest in proceeds is enforceable against a third party whether or not the security agreement contains a description of the proceeds. Personal Property Security Act 1993 s 10(5) (Saskatchewan) Attachment of security interests generally
40: Attachment of security interests generally
1: A security interest attaches to collateral when—
a: value is given by the secured party; and
b: the debtor has rights in the collateral; and
c: except for the purpose of enforcing rights between the parties to the security agreement, the security agreement is enforceable against third parties within the meaning of section 36
2: Subsection (1) does not apply if the parties to a security agreement have agreed that a security interest attaches at a later time, in which case the security interest attaches at the time specified in the agreement.
3: For the purposes of subsection (1)﻿(b), a debtor has rights in goods that are leased to the debtor, consigned to the debtor, or sold to the debtor under a conditional sale agreement (including an agreement to sell subject to retention of title) no later than when the debtor obtains possession of the goods.
4: To avoid doubt, a reference in a security agreement to a floating charge is not an agreement that the security interest created by the floating charge attaches at a later time than the time specified in subsection (1). Example Person A advances $5,000 to person B in return for a security interest in person B's car and person B has signed a written security agreement in respect of that car. Personal Property Security Act 1993 s 12(1), (2) (Saskatchewan) Perfection of security interests generally
41: When security interest perfected
1: Except as otherwise provided in this Act, a security interest is perfected when—
a: the security interest has attached; and
b: either—
i: a financing statement has been registered in respect of the security interest; or Example Person A registers a financing statement in respect of person B's car. Subsequently, person A's security interest in person B's car attaches. Person A's security interest is perfected.
ii: the secured party, or another person on the secured party's behalf, has possession of the collateral (except where possession is a result of seizure or repossession). Example Person A's security interest in person B's hire purchase agreement (chattel paper) has attached. Person A takes possession of the hire purchase agreement. Person A's security interest is perfected.
2: Subsection (1) applies regardless of the order in which attachment and either of the steps referred to in paragraph (b) of that subsection occur. Personal Property Security Act 1993 ss 19, 24(1), 25 (Saskatchewan)
42: Continuity of perfection where perfected security interest subsequently perfected in another way
A security interest is continuously perfected for the purposes of this Act, if—
a: the security interest is perfected under this Act; and
b: the security interest is subsequently perfected in another way under this Act; and
c: there is no intervening period during which the security interest is unperfected. Example Person A has perfected its security interest in person B's shares by taking possession of person B's share certificates. Person A releases the share certificates to person B so that person B can sell the shares. Person A's security interest in person B's shares, which remains perfected for 10 working days after the share certificates were delivered to person B, is continuously perfected from the time that person A took possession of the share certificates. Personal Property Security Act 1993 s 23(1) (Saskatchewan)
4: Attachment and perfection of security interests in particular kinds of personal property
After-acquired property
43: Security interests in after-acquired property
A security agreement may provide for security interests in after-acquired property.
44: Attachment of security interests in after-acquired property
1: A security interest in after-acquired property attaches without specific appropriation by the debtor, unless the after-acquired property is consumer goods where—
a: those consumer goods are not an accession or do not replace the collateral described in the security agreement; or
b: the security interest in those consumer goods is not a purchase money security interest.
2: However, in relation to an appropriation of after-acquired property that is consumer goods, such appropriation—
a: must be made by the debtor, either personally or by the debtor's agent; and
b: cannot be made by the creditor acting as the debtor's attorney or agent. Example Person A and person B have entered into a security agreement, which provides that person A has a security interest in all of person B's present and after-acquired property. After the security agreement has been entered into, person B purchases a computer for the office. Person A's security interest in person B's computer attaches when person B buys the computer. Personal Property Security Act 1993 s 13(1) (Saskatchewan) Section 44(2) inserted 7 June 2014 section 82 Credit Contracts and Consumer Finance Amendment Act 2014 Proceeds
45: Continuation of security interests in proceeds
1: Except as otherwise provided in this Act, a security interest in collateral that is dealt with or otherwise gives rise to proceeds—
a: continues in the collateral, unless the secured party expressly or impliedly authorised the dealing; and
b: extends to the proceeds. Example Person A has a security interest in person B's car. Person B sells the car without person A's consent. Person A has a security interest in the car and in the money received by person B from the sale of the car.
2: The amount secured by a security interest in collateral and the proceeds is limited to the value of the collateral at the date of the dealing that gave rise to the proceeds, if the secured party enforces the security interest against both the collateral and the proceeds. Example Person A has a perfected security interest in person B's car. The car had a value of $6,000 at the date that person A advanced $4,000 to person B. Two years later, without person A's consent, person B sells the car for $3,500, which is the value of the car at that time. Person A enforces its security interest in the car and the proceeds. Person A can recover only $3,500 as the amount secured by person A's security interest. Personal Property Security Act 1993 s 28(1) (Saskatchewan)
46: When security interest in proceeds is continuously perfected
A security interest in proceeds is a continuously perfected security interest in proceeds if the security interest in the original collateral is perfected by registration of a financing statement that—
a: contains a description of the proceeds that would be sufficient to perfect a security interest in original collateral of the same kind; or
b: contains a description of the original collateral, if—
i: the proceeds are of a kind that are within the description of the original collateral; or
ii: the proceeds are cash proceeds; or
iii: the proceeds consist of a payment made in total or partial discharge or redemption of an intangible, a negotiable instrument, an investment security, or chattel paper; or
iv: the proceeds consist of a right to an insurance payment or any other payment as indemnity or compensation for loss or damage to the collateral or proceeds. Example Person A has registered a financing statement in respect of person B's (a car dealer's) inventory (cars). Person A's security interest in the cash proceeds received from the sale of those cars is continuously perfected. Personal Property Security Act 1993 s 28(2) (Saskatchewan)
47: Temporary perfection of security interests in proceeds in other cases
A security interest in proceeds is temporarily perfected until the expiration of 10 working days after the security interest in the original collateral attached to the proceeds, if—
a: the security interest in the original collateral is perfected; and
b: the security interest in the proceeds is not continuously perfected under section 46 Example Person A has registered a financing statement in respect of person B's (a car dealer's) inventory (cars). Person B sells the cars under hire purchase agreements (chattel paper). Person A has a security interest in the hire purchase agreements as proceeds. Person A's security interest in the hire purchase agreements is temporarily perfected for 10 working days after person A's security interest in the inventory attached to each agreement as proceeds. Personal Property Security Act 1993 s 28(3) (Saskatchewan) Collateral returned to debtor
48: Temporary perfection of security interest in negotiable instrument or investment security returned to debtor
A security interest in a negotiable instrument or an investment security is temporarily perfected until the expiration of 10 working days after the secured party made the negotiable instrument or investment security available to the debtor, if—
a: the security interest was perfected by possession; and
b: the secured party gave possession of Example Person A has perfected its security interest in person B's shares by taking possession of person B's share certificates. Person A releases the share certificates so that person B can sell the shares. Person A's security interest in person B's shares is temporarily perfected for 10 working days after the share certificates were made available to person B. Personal Property Security Act 1993 s 26(1) (Saskatchewan) Section 48(b) amended 15 April 2004 section 11 Personal Property Securities Amendment Act 2004
49: Temporary perfection of security interest in negotiable document of title or goods returned to debtor
A security interest in a negotiable document of title or goods held by a bailee that are not covered by a negotiable document of title is temporarily perfected until the expiration of 10 working days after the secured party made the negotiable document of title or goods available to the debtor, if—
a: the security interest was perfected by possession; and
b: the secured party delivered the negotiable document of title or goods for the purposes of sale, exchange, loading, unloading, storing, shipping, manufacturing, processing, packaging, or otherwise dealing with the goods in preparation for their sale or exchange. Example Person A has a security interest in person B's fruit, which is being held in cool storage on behalf of person A. Person A authorises the release of the fruit to person B for the purposes of sale. Person A's security interest in person B's fruit is temporarily perfected for 10 working days after the fruit comes under the control of person B. Personal Property Security Act 1993 s 26(1) (Saskatchewan) Documents of title and goods held by bailee
50: Perfection where goods in hands of bailee
A security interest in goods in the possession of a bailee is perfected when the security interest has attached and—
a: a financing statement relating to the goods is registered; or
b: the security interest in the negotiable document of title to the goods is perfected (where the bailee has issued a document of title); or
c: the bailee (being a person who is not the debtor)
i: has issued a document of title in the name of the secured party; or
ii: holds the goods on behalf of the secured party under section 41 Example Person A's security interest in person B's fruit, which is held in cool storage on behalf of person B, has attached and person A has registered a financing statement in respect of the fruit. Personal Property Security Act 1993 s 27(1) (Saskatchewan) Section 50(c) amended 15 April 2004 section 12 Personal Property Securities Amendment Act 2004 Crops
51: Security interests in crops
1: Except as otherwise provided in this Act, a security interest in crops is a security interest in the crops while growing and afterwards when cut or separated from the soil.
2: For the purposes of determining whether a security interest in crops cut or separated from the soil exists, it does not matter whether the crops are stored on the land where the crops were grown or on any other land or premises. 1924 No 49 s 35
5: When buyers or lessees of goods
or other collateral or other collateral Part 5 heading amended 15 April 2004 section 13 Personal Property Securities Amendment Act 2004
52: Buyer or lessee of collateral takes collateral free of unperfected security interests
A buyer or lessee of collateral who acquires the collateral for value takes the collateral free of an unperfected security interest in the collateral, unless the unperfected security interest was created or provided for by a transaction to which the buyer or lessee is a party. Example Person A has a security interest in person B's car. Person B sells the car to person C. Person C acquires the car for $3,500 before person A registers a financing statement in respect of the car. Person C takes the car free of person A's security interest. Personal Property Security Act 1993 s 20(3) (Saskatchewan)
53: Buyer or lessee of goods sold or leased in ordinary course of business takes goods free of certain security interests
1: A buyer of goods sold in the ordinary course of business of the seller, and a lessee of goods leased in the ordinary course of business of the lessor, takes the goods free of a security interest that is given by the seller or lessor or that arises under section 45
2: This section prevails over sections 153 154 297 to 300 Example Person A has a perfected security interest in person B's (a car dealer's) inventory (cars). Person B sells a car to person C (a customer). Person C takes the car free of person A's perfected security interest in the car. Personal Property Security Act 1993 s 30(2) (Saskatchewan) Section 53(2) amended 1 September 2017 section 347 Contract and Commercial Law Act 2017
54: Buyer or lessee of consumer goods of certain value takes goods free of security interest
1: A buyer or lessee of goods that are acquired as consumer goods takes the consumer goods free of any security interest, if—
a: the value of the consumer goods did not exceed $2,000 at the time the security interest in the goods attached, or, if there is more than 1 security interest in those goods, at the time the security interest with priority over all other security interests attached; and
b: the buyer or lessee—
i: gave new value for the interest acquired; and
ii: bought or leased the goods without knowledge of the security interest.
2: The Governor-General may, from time to time, by Order in Council, alter the amount specified in subsection (1). Example Person A buys a television for $999 under a hire purchase agreement from person B. Person A sells the television to person C for $500. Person C does not know about person B's security interest in the television. Person C takes the television free of person B's security interest in the television.
3: An order under this section is secondary legislation ( see Part 3 Personal Property Security Act 1993 s 30(3), (4) (Saskatchewan) The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 54(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
55: When buyer or lessee of serial-numbered consumer goods or equipment takes consumer goods or equipment free of security interest perfected by registration
A buyer or lessee of goods that are acquired as consumer goods or equipment, as the case may be, takes the consumer goods or equipment free of a security interest perfected by registration, if—
a: the buyer bought, or the lessee leased, the consumer goods or the equipment without knowledge of the security interest; and
b: the consumer goods are, or the equipment is, of a kind that is required by the regulations to be described by serial number in a financing statement; and
c: the consumer goods were, or the equipment was, not correctly described by serial number in the financing statement relating to the security interest. Example Person A has a security interest in person B's (a company's) cars, which are used by the company's directors. Person A registers a financing statement in respect of those cars, but the financing statement does not contain the cars' serial numbers. Person B sells 1 of the cars to person C who does not know about person A's security interest in the car. Person C takes the car free of person A's security interest in the car. Personal Property Security Act 1993 s 30(6), (7) (Saskatchewan)
56: When buyer or lessee of goods takes goods free of temporarily perfected security interests
A buyer or lessee of goods takes the goods free of a security interest that is temporarily perfected under section 28 section 47 section 49
a: the buyer or lessee gave new value for the interest acquired; and
b: the buyer bought, or the lessee leased, the goods without knowledge of the security interest. Example Person A has registered a financing statement in respect of person B's black car. Person B sells the black car and with the proceeds from the sale of the black car buys a blue car. Person A's security interest, which extends to person B's blue car as proceeds, is temporarily perfected for 10 working days after the original security interest in person B's black car attached to person B's blue car. During those 10 working days, person B sells the blue car to person C for $3,500. Person C, who does not know about person A's temporarily perfected security interest in the blue car as proceeds, takes the blue car free of person A's security interest. Personal Property Security Act 1993 s 30(5) (Saskatchewan)
6: Additional provisions relating to when buyers or lessees of motor vehicles take motor vehicles free of security interest
57: Interpretation
In this Part, unless the context otherwise requires,— consumer registered trader finance company section 6(1) manufacturer motor vehicle vehicle
a: means a vehicle, including a trailer, that—
i: is equipped with wheels, tracks, or revolving runners on which it moves or is moved; and
ii: is drawn or propelled by mechanical power; and
iii: has a registration number or a chassis number, or both of those numbers; but
b: does not include—
i: a vehicle running on rails; or
ii: an aircraft; or
iii: a trailer (not being a trailer designed solely for the carriage of goods) that is designed and used exclusively as part of the armament of any of Her Majesty's forces; or
iv: a trailer running on 1 wheel and designed exclusively as a speed measuring device or for testing the wear of vehicle tyres; or
v: a vehicle designed for amusement purposes and used exclusively within a place of recreation, amusement, or entertainment to which the public does not have access with motor vehicles; or
vi: a pedestrian-controlled machine designed to perform some mechanical operation and not designed for the carriage of persons or goods; or
vii: a pedestrian-controlled forklift registered trader Motor Vehicle Sales Act 2003 used motor vehicle section 6(1) wholesaler
a: a person who engages in the business of selling new motor vehicles to registered traders
b: a person who engages in the business of selling used motor vehicles registered traders Section 57 consumer amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 57 dealer repealed 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 57 finance company inserted 1 May 2002 section 4 Personal Property Securities Amendment Act 2001 Section 57 finance company amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 57 fund repealed 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 57 manufacturer inserted 1 May 2002 section 4 Personal Property Securities Amendment Act 2001 Section 57 registered trader inserted 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 57 used motor vehicle inserted 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 57 wholesaler added 1 May 2002 section 4 Personal Property Securities Amendment Act 2001 Section 57 wholesaler amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 57 wholesaler amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003
58: Buyer or lessee of motor vehicle acquired from registered trader takes motor vehicle free of security interest
A buyer or lessee of a motor vehicle who acquires the motor vehicle for value takes the motor vehicle free of any security interest in the motor vehicle if—
a: the buyer or lessee is a consumer who acquires the motor vehicle from a registered trader (whether or not the motor vehicle trader is acting as a principal or as an agent for the seller or lessor in the transaction under which the buyer or lessee, as the case may be, acquires the motor vehicle); and
b: the security interest was not created or provided for in a transaction to which the buyer or lessee is a party; and
c: before the transaction to which the buyer or lessee is a party is completed, the security interest was not,—
i: in the case of a used motor vehicle, disclosed in accordance with sections 14 15
ii: in any other case, disclosed in writing to the buyer or lessee. Section 58 substituted 15 December 2003 section 145 Motor Vehicle Sales Act 2003
59: Reimbursement of secured party by
registered trader
1: A registered trader
a: the registered trader (whether or not as a principal or as an agent for the seller or lessor)
b: the buyer or lessee of the motor vehicle takes the motor vehicle free of the security interest under section 58
c: the secured party has served a claim for payment on the registered trader
2: The registered trader registered trader
a: the amount outstanding in respect of the debt or other obligation secured by the secured party's security interest in the motor vehicle:
b: the payment received or to be received by the registered trader Section 59 substituted 1 May 2002 section 5 Personal Property Securities Amendment Act 2001 Section 59 heading amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 59(1) amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 59(1)﻿(a) amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 59(1)﻿(c) amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 59(2) amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 59(2)﻿(b) amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003
60: Reimbursement of secured party by fund
Section 60 repealed 15 December 2003 section 145 Motor Vehicle Sales Act 2003
61: Procedure for making claims for reimbursement
Every claim for payment made by a secured party under section 59
a: a printed search result issued by the register under section 175
b: a statutory declaration by the secured party or, if the secured party is a company, by any director or other officer authorised in writing for the purpose, declaring—
i: the amount of the debt or other pecuniary obligation secured by the security interest; and
ii: the amount received by the secured party in satisfaction of that debt or other obligation; and
iii: the amount outstanding in respect of that debt or other obligation at the date when the declaration is made; and
iv: the amount recoverable from the buyer or lessee of the vehicle under section 65 Section 61 substituted 1 May 2002 section 6 Personal Property Securities Amendment Act 2001 Section 61 amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003
62: Subrogation of rights of action against debtor and
registered trader
1: If a secured party is paid under section 59 registered trader
a: the secured party would have had against the debtor, or the debtor's personal representatives (in the event of the death or insolvency of the debtor):
b: the secured party would have had in respect of any act or omission that occurred during the course of the sale or lease of the motor vehicle.
2: Section 62 heading amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 62(1) amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 62(2) repealed 15 December 2003 section 145 Motor Vehicle Sales Act 2003
63: District Court Judge may declare certain persons responsible for repayment to registered trader
Despite anything to the contrary in any other Act or rule of law, a District Court Judge may, on the application of a registered trader, declare that a person is responsible for the repayment to the registered trader of the whole or any part of the amount paid under section 59
a: the claim under that section arose wholly or partly by reason of any act or omission of an officer, employee, or agent of the debtor or the registered trader; and
b: the person was knowingly a party to the act or omission, whether or not that person is a person referred to in paragraph (a). Section 63 substituted 15 December 2003 section 145 Motor Vehicle Sales Act 2003
64: Application of Companies Act 1993, etc, where dealer company in liquidation
Section 64 repealed 15 December 2003 section 145 Motor Vehicle Sales Act 2003
65: Secured party subrogated to rights of
registered trader
1: A secured party is subrogated, to the extent of the amount outstanding in respect of the debt or other obligation secured by a security interest in a motor vehicle, to all rights and remedies that, but for the subrogation, the registered trader
a: the buyer or lessee takes the motor vehicle free from the security interest under section 58
b: the buyer or lessee pays part of the purchase price at the time when the motor vehicle is acquired.
2: Before exercising the rights conferred by this section, the secured party must give notice in writing to the buyer or lessee and, if practicable, the registered trader
a: explaining that the buyer or lessee is obliged to pay to the secured party the balance of the purchase price; and
b: summarising any other rights that the secured party intends to exercise.
3: The buyer or lessee is not liable to the secured party for any money paid in reduction of the purchase price at any time before the buyer or lessee receives the notice.
4: The receipt of the secured party is a complete discharge for the buyer or lessee for any money paid to the secured party in reduction of the purchase price. Section 65 heading amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 65(1) amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003 Section 65(1)﻿(a) amended 15 April 2004 section 14 Personal Property Securities Amendment Act 2004 Section 65(2) amended 15 December 2003 section 145 Motor Vehicle Sales Act 2003
7: Priority between security interests
Priority of security interests generally
66: Priority of security interests in same collateral when Act provides no other way of determining priority
If this Act provides no other way of determining priority between security interests in the same collateral,—
a: a perfected security interest has priority over an unperfected security interest in the same collateral: Example Person A's security interest in person B's car has been perfected by registering a financing statement. Person C's security interest in person B's car has not been perfected. Person A's perfected security interest in person B's car has priority over person C's unperfected security interest in person B's car.
b: priority between perfected security interests in the same collateral (where perfection has been continuous) is to be determined by the order of whichever of the following first occurs in relation to a particular security interest:
i: the registration of a financing statement:
ii: the secured party, or another person on the secured party's behalf, taking possession of the collateral (except where possession is a result of seizure or repossession):
iii: the temporary perfection of the security interest in accordance with this Act: Example Person A registers a financing statement in respect of person B's present and after-acquired property before person C registers a financing statement in respect of the same collateral. Person A's perfected security interest has priority over person C's perfected security interest in the same collateral.
c: priority between unperfected security interests in the same collateral is to be determined by the order of attachment of the security interests. Example Person A and person C have not perfected their respective security interests in person B's car. Person A's security interest in person B's car was the first to attach. Person A's security interest has priority over person C's security interest in person B's car. Personal Property Security Act 1993 s 35(1) (Saskatchewan)
67: Original method of perfection applies to continuously perfected security interest
For the purposes of section 66 Personal Property Security Act 1993 s 35(2) (Saskatchewan)
68: Time of registration, etc, of original collateral is also time of registration, etc, of proceeds
For the purposes of section 66 Personal Property Security Act 1993 s 35(3) (Saskatchewan)
69: Transfer of security interests does not affect priority
A security interest that is transferred has the same priority as it had at the time of the transfer. Personal Property Security Act 1993 s 23(2) (Saskatchewan)
70: Voluntary subordination of security interests
1: A secured party may, in a security agreement or otherwise, subordinate the secured party's security interest to any other interest.
2: An agreement to subordinate a security interest is effective according to its terms between the parties and may be enforced by a third party if the third party is the person, or 1 of a class of persons, for whose benefit the agreement is intended.
3: A security interest is not created only by an agreement or undertaking to postpone or subordinate the following:
a: the right of a person to performance of all or any part of an obligation to the right of another person to the performance of all or any part of another obligation of the same debtor:
b: all or any part of the rights of a secured party under a security agreement to all or any part of the rights of another secured party under another security agreement with the same debtor. Personal Property Security Act 1993 s 40(1) (Saskatchewan) Priority of advances
71: Security agreement may provide for future advances
A security agreement may provide for future advances. Section 71 substituted 1 May 2002 section 7 Personal Property Securities Amendment Act 2001
72: Priority of security interest applies to all advances
A security interest has the same priority in respect of all advances, including future advances. Personal Property Security Act 1993 s 35(5) (Saskatchewan) Priority of purchase money security interests
73: Priority of purchase money security interest in collateral or its proceeds, other than inventory or intangibles
1: A purchase money security interest in collateral or its proceeds, other than inventory or intangibles, has priority over a non-purchase money security interest in the same collateral given by the same debtor if the purchase money security interest in the collateral or its proceeds is perfected not later than 10 working days after the day on which the debtor, or another person at the request of the debtor, obtained possession of the collateral, whichever is earlier. Example Person A has a perfected security interest in all of person B's present and after-acquired property. Person B buys a car on hire purchase from person C. Person C registers a financing statement in respect of person B's car 5 working days after person B took possession of the new car. Person C's security interest in person B's car has priority over person A's security interest in person B's car.
2: However, section 103A Personal Property Security Act 1993 s 34(2)﻿(a) (Saskatchewan) Section 73(2) added 24 November 2009 section 21 Reserve Bank of New Zealand Amendment Act 2009
74: Priority of purchase money security interest in inventory or its proceeds
A purchase money security interest in inventory or its proceeds has priority over a non-purchase money security interest in the same collateral given by the same debtor if the purchase money security interest in the inventory or its proceeds is perfected at the time the debtor, or another person at the request of the debtor, obtains possession of the collateral, whichever is earlier. Example Person A makes a loan to person B (a car dealer) for the purchase of inventory (cars). Person A registers a financing statement in respect of person B's inventory before person B obtains possession of the cars. Before person A registered its financing statement in respect of person B's inventory, person C had registered a financing statement in respect of person B's inventory. Person A's purchase money security interest in person B's inventory has priority over person C's security interest in person B's inventory. Personal Property Security Act 1993 s 34(3) (Saskatchewan)
75: Priority of purchase money security interest in intangible or its proceeds
A purchase money security interest in an intangible or its proceeds has priority over a non-purchase money security interest in the same collateral given by the same debtor if the purchase money security interest in the intangible or its proceeds is perfected not later than 10 working days after the day on which the security interest in the intangible attached. Example Person A has a security interest in all of person B's present and after-acquired property. Person C makes a loan to person B for the purchase of a patent. Person C registers a financing statement in respect of the patent 5 working days after person C's purchase money security interest attached to the patent. Person C's purchase money security interest in person B's patent has priority over person A's security interest in person B's patent. Personal Property Security Act 1993 s 34(2)﻿(b) (Saskatchewan)
75A: Non-proceeds security interest in accounts receivable
1: A non-proceeds security interest in accounts receivable that is given for new value has priority over a purchase money security interest in the accounts receivable as proceeds of inventory if a financing statement relating to the security interest in the accounts receivable is registered before the purchase money security interest is perfected or a financing statement relating to it is registered.
2: In this section, non-proceeds security interest
3: Sections 73 to 75 Personal Property Security Act 1993, s 34(6), (7) (Saskatchewan) Section 75A inserted 15 April 2004 section 15 Personal Property Securities Amendment Act 2004
76: Priority between purchase money security interests in goods or their proceeds taken by seller, etc
A purchase money security interest in goods or their proceeds taken by a seller, lessor, or consignor of the collateral, has priority over any other purchase money security interest in the same collateral given by the same debtor if the first-mentioned purchase money security interest in the goods or their proceeds is perfected,—
a: in the case of inventory, at the time the debtor, or another person at the request of the debtor, obtained possession of the collateral, whichever is earlier; or
b: in the case of collateral, other than inventory, not later than 10 working days after the day on which the debtor, or another person at the request of the debtor, obtained possession of the collateral, whichever is earlier. Example Person A (a bank) loans person B the deposit for the purchase of a car. Person B pays the deposit to person C (a car dealer) for the purchase of a new car and the balance of the car's purchase price is payable to person C under a hire purchase agreement. Person C registers a financing statement in respect of person B's new car 5 working days after the debtor takes delivery of the car. Person C's perfected purchase money security interest in person B's new car has priority over person A's purchase money security interest in person B's new car. Personal Property Security Act 1993 s 34(5) (Saskatchewan)
77: Priority between purchase money security interests in same goods or their proceeds not taken by seller, etc
Priority between purchase money security interests in the same goods or their proceeds that have not been taken by a seller, lessor, or consignor, and that have been given by the same debtor are to be determined in accordance with section 66 Example Person A (a bank) loans money to person B for the purchase of a new car. Person A registers a financing statement in respect of person B's new car. Person C (another bank) loans money to person B for the purchase of the same car. Person C registers a financing statement in respect of person B's new car after person A has registered its financing statement in respect of the same car. Person A's perfected purchase money security interest in person B's new car has priority over person C's perfected purchase money security interest in person B's new car. Priority of security interests in accessions
78: Security interests in accessions
A security interest in goods that become an accession continues in the accession. Example A security interest in a motor continues in the motor even after its installation in a car.
79: Priority of security interest in goods before they become accessions
Except as otherwise provided in this Act, a security interest in goods that is attached at the time when the goods become an accession has priority over a claim to the goods as an accession made by a person with an interest in the whole. Example Person A has a security interest in person B's car. Person C sells a replacement motor to person B under a retention of title agreement. The motor is subsequently installed in person B's car. Person C's security interest in the motor has priority over a claim to the motor made by person A. Personal Property Security Act 1993 s 38(2) (Saskatchewan)
80: Certain interests in whole have priority over security interests in goods before they become accessions
The interest of any of the following persons has priority over a security interest in goods that is attached at the time when the goods become an accession:
a: a person who acquires for value an interest in the whole after the goods become an accession, but before the security interest in the accession is perfected:
b: an assignee for value of a person with an interest in the whole at the time when the goods become an accession, but before the security interest in the accession is perfected:
c: a person with a perfected security interest in the whole who makes an advance under the security agreement relating to the security interest after the goods become an accession, but before the security interest in the accession is perfected, and only to the extent of the advance:
d: a person with a perfected security interest in the whole who acquires the right to retain the whole in satisfaction of the obligation secured after the goods become an accession, but before the security interest in the accession is perfected. Example Person A sells a motor to person B under a retention of title agreement. The motor is installed in person B's car. Person C takes a security interest in person B's car (including the motor) and perfects its security interest by registering a financing statement. Person C's perfected security interest in person B's car, including the motor, has priority over person A's security interest in the motor. Personal Property Security Act 1993 s 38(3) (Saskatchewan)
81: Certain interests have priority over security interests in goods that are not attached when goods become accession
A security interest in goods that attaches after the goods become an accession is subordinate to the interest of—
a: a person who has an interest in the other goods at the time when the goods become an accession and who—
i: has not consented to the security interest in the accession; and
ii: has not disclaimed an interest in the accession; and
iii: has not entered into an agreement under which another person is entitled to remove the accession; and
iv: is otherwise entitled to prevent the debtor from removing the accession; or
b: a person who acquires an interest in the whole after the goods become an accession, but before the security interest in the accession is perfected. Example Person A sells a motor to person B under a retention of title agreement. The motor is installed in person B's car before the retention of title agreement has been signed. Person C takes a security interest in person B's car (including the motor), before person A registers a financing statement in respect of person B's motor. Subsequently, person C registers a financing statement in respect of person B's car (including the motor). Person C's perfected security interest in person B's car (including the motor) has priority over person A's perfected security interest in the motor. Personal Property Security Act 1993 s 38(4) (Saskatchewan) Priority of security interests in processed or commingled goods
82: Continuation of security interests in goods that become part of processed or commingled goods
A security interest in goods that subsequently become part of a product or mass continues in the product or mass if the goods are so manufactured, processed, assembled, or commingled that their identity is lost in the product or mass. Example Person A has registered a financing statement in respect of all of person B's sugar. Person B's sugar is subsequently combined with other ingredients to become ice cream. Person A's perfected security interest continues in the ice cream. Personal Property Security Act 1993 s 39(1) (Saskatchewan)
83: Original method of perfection of goods applies to goods that become part of processed or commingled goods
For the purposes of section 66 Personal Property Security Act 1993 s 39(3) (Saskatchewan)
84: Limit on value of priority of goods that become part of processed or commingled goods
Any priority that a security interest continuing in the product or mass has over another security interest in the product or mass is limited to the value of the goods on the day on which they became part of the product or mass. Personal Property Security Act 1993 s 39(5) (Saskatchewan)
85: Priority where more than 1 security interest continues in processed or commingled goods
1: A perfected security interest continuing in the product or mass has priority over an unperfected security interest continuing in the same product or mass.
2: If more than 1 perfected security interest continues in the same product or mass, each perfected security interest is entitled to share in the product or mass according to the ratio that the obligation secured by the perfected security interest bears to the sum of the obligations secured by all perfected security interests in the same product or mass.
3: If more than 1 unperfected security interest continues in the same product or mass, each unperfected security interest is entitled to share in the product or mass according to the ratio that the obligation secured by the unperfected security interest bears to the sum of the obligations secured by all unperfected security interests in the same product or mass.
4: For the purposes of this section, the obligation secured by a security interest does not exceed the value of the goods on the day on which the goods became part of the product or mass. Example Person A manufactures ice cream from sugar and cream. Person B loans person A the full purchase price of the sugar, which is $1,000. Person C loans person A the full purchase price of the cream, which is $2,000. Person B and person C have registered financing statements. Person A manufactures a batch of ice cream, which sells for $2,000. Person B and person C divide the proceeds in a proportion of 1-to-2. Person B would get one-third of $2,000 and person C would get two-third of $2,000. Personal Property Security Act 1993 s 39(2), (4) (Saskatchewan)
86: Priority of purchase money security interest in goods that continues in processed or commingled goods
Despite section 85
a: a non-purchase money security interest in the goods that continues in the product or mass; and
b: a non-purchase money security interest in the product or mass given by the same debtor. Example Person A has a perfected security interest in person B's sugar, which is to be manufactured into ice cream by person B. Person C loans person B the purchase price of the sugar that is to be used in the manufacture of person B's ice cream. Person C registers a financing statement in respect of person B's sugar. The sugar is manufactured into ice cream. Person C's perfected purchase money security interest in person B's sugar, which continues in person B's ice cream, has priority over person A's security interest in person B's sugar, which also continues in person B's ice cream. Personal Property Security Act 1993 s 39(6) (Saskatchewan) Priority of security interests in transferred collateral
87: Rights of debtor may be transferred
1: The rights of a debtor in collateral may be transferred consensually or by operation of law despite a provision in the security agreement prohibiting transfer or declaring a transfer to be a default.
2: A transfer by the debtor does not prejudice the rights of the secured party under the agreement or otherwise, including the right to treat a prohibited transfer as an act of default.
3: In this section, transfer Personal Property Security Act 1993 s 33 (New Brunswick)
88: General priority of security interest in transferred collateral over security interests granted by transferee
1: If a debtor transfers an interest in collateral that, at the time of the transfer, is subject to a perfected security interest, that security interest has priority over any other security interest granted by the transferee, except to the extent that the security interest granted by the transferee secures advances made or contracted for—
a: after the expiration of 15 days from the date that the secured party who holds the security interest in the transferred collateral had knowledge of the information required to register a financing change statement disclosing the transferee as the new debtor; and
b: before the secured party referred to in paragraph (a) took possession of the collateral or registered a financing change statement disclosing the transferee as the new debtor.
2: Subsection (1) does not apply if the transferee acquires the debtor's interest free of the security interest granted by the debtor. Personal Property Security Act 1993 s 35(8), (9) (New Brunswick)
89: Transfer of debtor's interest in collateral with prior consent of secured party
Despite section 88
a: an interest, other than a security interest in the transferred collateral, arising during the period commencing on the expiration of the 15th day after the transfer to the time the secured party amended the registration to disclose the name of the transferee of the interest in the collateral as the new debtor or took possession of the collateral; and
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 expiration of the 15th day after the transfer if, before the expiration of the 15 days,—
i: the registration of the security interest first referred to in this section 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. Personal Property Security Act 1993 s 51(1) (New Brunswick)
90: Transfer of debtor's interest in collateral where secured party has knowledge of certain information
1: Despite section 88
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.
2: The security interest, in the transferred collateral where subsection (1)﻿(a) applies, and in the collateral where subsection (1)﻿(b) applies, is subordinate to—
a: an interest, other than a security interest, in that collateral, arising during the period commencing on the expiration of the 15th day after the secured party has knowledge of the information referred to in subsection (1)﻿(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; and
b: a perfected security interest in the collateral that is registered or perfected in the period referred to in paragraph (a); and
c: a perfected security interest in the collateral that is registered or perfected after the secured party had knowledge of the information referred to in subsection (1)﻿(a) or the new name of the debtor and before the expiration of the 15th day referred to in paragraph (a), if, before the expiration of the 15 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. Personal Property Security Act 1993 s 51(2) (New Brunswick)
91: Transfer of debtor's interest in collateral without secured party's consent
1: 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 1 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 is deemed to have complied with section 90
a: the name of the most recent transferee of the collateral; and
b: the information required to register a financing change statement.
2: The secured party need not register a financing change statement with respect to any intermediate transferee. Personal Property Security Act 1993 s 51(4) (New Brunswick)
92: Prior security interest not subordinated
Sections 89 to 91 section 195 section 196 Personal Property Security Act 1993 s 51(3) (New Brunswick)
8: Priority of other interests in collateral
Priority of liens
93: Lien has priority over
A lien arising out of materials or services provided in respect of goods that are subject to a security interest in the same goods has priority over that security interest if—
a: the materials or services relating to the lien were provided in the ordinary course of business; and
b: the lien has not arisen under an Act that provides that the lien does not have the priority; and
c: the person who provided the materials or services did not, at the time the person provided those materials or services, know that the security agreement relating to the security interest contained a provision prohibiting the creation of a lien by the debtor. Example Person A has a perfected security interest in person B's car. Person B takes the car to a garage for repairs. The garage repairs the car but keeps possession of it until the garage receives payment for those repairs. The garage's lien has priority over person A's security interest. Personal Property Security Act 1993 s 32 (Saskatchewan) Section 93 heading amended 15 April 2004 section 16 Personal Property Securities Amendment Act 2004 Priority of purchasers of money, negotiable instruments, investment securities, and chattel paper
94: When holder of money takes money free of perfected security interest in money
A holder of money takes the money free of a perfected security interest if the holder—
a: acquired the money without knowledge of the security interest; or
b: is a holder for value, whether or not the holder knew of the security interest at the time the holder acquired the money. Example Person A has a perfected security interest in person B's (a car dealer's) inventory (cars). Person B sells some of those cars. Person A has a perfected security interest in the cash proceeds from the sale of those cars. Person B uses some of the cash proceeds from the sale of 1 of those cars to buy an office computer from person C. Person C takes the money free of person A's security interest in the money. Personal Property Security Act 1993 s 31(1) (Saskatchewan)
95: Priority of creditor who receives payment of debt
1: A creditor who receives payment of a debt owing by a debtor through a debtor-initiated payment has priority over a security interest in—
a: the funds paid:
b: the intangible that was the source of the payment:
c: a negotiable instrument used to effect the payment.
2: Subsection (1) applies whether or not the creditor had knowledge of the security interest at the time of the payment.
3: In subsection (1), debtor-initiated payment
a: a negotiable instrument; or
b: an electronic funds transfer; or
c: a debit, a transfer order, an authorisation, or a similar written payment mechanism executed by the debtor when the payment was made. Example Person A has a perfected security interest in person B's (a car dealer's) inventory (cars). Person B sells some of the cars and deposits the cash proceeds into a cheque account. Person B draws a cheque and pays person C (an unsecured creditor). Person C's interest in the cheque has priority over person A's security interest in the cheque. Personal Property Security Act 1989 s 31(2), (3) (Saskatchewan)
96: Priority of purchaser of negotiable instrument
1: The interest of a purchaser of a negotiable instrument has priority over a perfected security interest in the negotiable instrument if the purchaser—
a: gave value for the negotiable instrument; and
b: acquired the negotiable instrument without knowledge of the security interest; and
c: took possession of the negotiable instrument.
2: For the purposes of subsection (1), the purchaser of a negotiable instrument who acquired it under a transaction entered into in the ordinary course of the transferor's business has knowledge only if the purchaser acquired the interest with knowledge that the transaction is a breach of the security agreement to which the security interest relates. Example Person A has perfected its security interest in person B's (a car dealer's) inventory (cars) by registering a financing statement. Person B sells some of those cars to several customers and deposits the customers' cheques into an overdrawn account that is held at person C's (a bank). Person C, who does not know about person A's security interest in the cheques, has priority over person A's security interest in the cheques. Personal Property Security Act 1993 s 31(4), (6) (Saskatchewan)
97: Priority of purchaser of investment security
1: The interest of a purchaser of an investment security has priority over a perfected security interest in the investment security if the purchaser—
a: gave value for the investment security; and
b: acquired the investment security without knowledge of the security interest; and
c: took possession of the investment security.
2: For the purposes of subsection (1), the purchaser of an investment security who acquired it under a transaction entered into in the ordinary course of the transferor's business has knowledge only if the purchaser acquired the interest with knowledge that the transaction is a breach of the security agreement to which the security interest relates. Example Person A has registered a financing statement in respect of all of person B's shares. Person C also takes a security interest in all of person B's shares, but does not know about person A's security interest. Person C perfects its security interest by taking possession of person B's share certificates. Person C's security interest in person B's shares has priority over person A's security interest in the same shares. Personal Property Security Act 1989 s 31(4), (6) (Saskatchewan)
98: Priority of purchaser of chattel paper
The interest of a purchaser of chattel paper who takes possession of the chattel paper in the ordinary course of the purchaser's business and for new value has priority over a security interest in the chattel paper—
a: that was perfected, if the purchaser took possession of the chattel paper without knowledge of the security interest; or
b: that has attached to proceeds of inventory, whether or not the purchaser took possession of the chattel paper without knowledge of the security interest. Example Person A has registered a financing statement in respect of person B's (a car dealer's) inventory (cars). Person B sells a car to person C (a customer) under a hire purchase agreement (chattel paper). Person B sells the hire purchase agreement to person D. Person D's security interest in the hire purchase agreement has priority over person A's security interest in the same agreement as proceeds of inventory. Personal Property Security Act 1993 s 31(7) (Saskatchewan)
99: Priority of holder of negotiable document of title
1: The interest of a holder of a negotiable document of title has priority over a perfected security interest in the document of title if the holder—
a: gave value for the document of title; and
b: acquired the document of title without knowledge of the security interest.
2: For the purposes of subsection (1), the holder of a negotiable document of title who acquired it under a transaction entered into in the ordinary course of the transferor's business has knowledge only if the holder acquired the interest with knowledge that the transaction is a breach of the security agreement to which the security interest relates. Example Person A has registered a financing statement in respect of person B's document of title to fruit and fruit. Person B sells the fruit to person C who takes possession of the document of title to the fruit without knowledge of person A's perfected security interest in the document of title. Person C's interest in the document of title has priority over person A's perfected security interest in the same document of title. Personal Property Security Act 1993 s 31(5), (6) (Saskatchewan) Priority of certain interests in crops
100: Lessor or mortgagee of land not affected by subsequent security interest in crops
A security interest in crops does not prejudicially affect the rights of a lessor or mortgagee of land on which the crops are growing if—
a: those rights existed at the time the security interest was created; and
b: the lessor or mortgagee has not consented in writing to the creation of the security interest. 1924 No 49 s 37
101: Perfected security interest in crops not prejudicially affected by subsequent sale, etc, of land
A perfected security interest in crops is not extinguished or prejudicially affected by a subsequent sale, lease, mortgage, or other encumbrance of or upon the land on which the crops are growing. 1924 No 49 s 37 Priority of interests on assignment of accounts receivable or chattel paper
102: Priority of interests on assignment of account receivable or chattel paper
1: The rights of an assignee of an account receivable or chattel paper are subject to—
a: the terms of the contract between the account debtor and the assignor and any defence or claim arising from the contract or a closely connected contract; and
b: any other defence or claim of the account debtor against the assignor (including a defence by way of a right of set-off)
2: Subsection (1) does not apply if the account debtor on an account receivable or chattel paper has made an enforceable agreement not to assert defences to claims arising out of the contract.
3: In this section,— account debtor assignee Example Person A (a car dealer) assigns its accounts receivables to person B who perfects its security interest in person A's accounts receivables by registering a financing statement. Person A sells a blue car to person C (a customer) on hire purchase. Person C sells its red car to person A under an unrelated transaction. Person C does not know about person B's security interest in person A's accounts receivables (which include person C's debt owing to person A in respect of the purchase of the blue car). Person C's right to set-off the debt owing by person A in respect of the sale of the red car against person C's debt to person A in respect of the purchase of the blue car has priority over person B's security interest in person C's debt to person A. Personal Property Security Act 1993 s 41(1), (2) (Saskatchewan) Section 102(1)﻿(b) amended 15 April 2004 section 17 Personal Property Securities Amendment Act 2004
103: Execution creditor has priority over unperfected security interest
1: The interest of an execution creditor in any
1A: In this section, time of execution
a: if the collateral is seized by an execution creditor or on an execution creditor's behalf, the time of seizure; or
b: in any other case, the time when a charging order or a garnishee order is made.
2: To avoid doubt, an execution creditor does not include a landlord who exercises a right of distress. Personal Property Security Act 1993 s 20(1) (Saskatchewan) Section 103(1) amended 15 April 2004 section 18(1) Personal Property Securities Amendment Act 2004 Section 103(1A) inserted 15 April 2004 section 18(2) Personal Property Securities Amendment Act 2004 Priority of interests of certain operators of designated settlement system Heading added 24 November 2009 section 22 Reserve Bank of New Zealand Amendment Act 2009
103A: Priority of interests of certain operators of designated settlement system
1: The interest of an operator in personal property has priority over any security interest (including a purchase money security interest) in the same personal property if a participant in a designated settlement system has, in accordance with the rules of that designated settlement system,—
a: either—
i: granted a security interest in that personal property in favour of the operator; or
ii: transferred that personal property, or the participant’s interest
b: taken that action for the purpose of, or in connection with, either—
i: effecting a settlement in accordance with the rules of that designated settlement system; or
ii: mitigating a loss that may be incurred by the operator if the participant defaults.
2: Subsection (3) applies if—
a: the interest of an operator in personal property has priority under subsection (1); and
b: that interest is a security interest; and
c: the relevant participant has defaulted.
3: If this subsection applies, the operator—
a: does not have to comply with section 114(1)
b: may immediately apply the personal property, in accordance with the rules of the designated settlement system,—
i: to satisfy the participant's obligations in respect of which the participant is in default; or
ii: to mitigate any loss incurred by the operator as a result of the participant's default.
4: Whether a loss has been incurred and whether a participant has defaulted, for the purposes of this section, must be determined by reference to, and in accordance with, the rules of the designated settlement system.
5: This section overrides anything in this Act to the contrary.
6: In this section,— operator section 156N(3)﻿(c) Banking (Prudential Supervision) Act 1989 participant
a: means a person who has agreed to participate in a settlement system in accordance with the rules of that system; and
b: includes an operator of a designated settlement system if the designation under section 156N(3)﻿(b) Banking (Prudential Supervision) Act 1989 rules section 156M Banking (Prudential Supervision) Act 1989
7: In this section, designated settlement system settlement section 2(1) 156M Banking (Prudential Supervision) Act 1989 Section 103A added 24 November 2009 section 22 Reserve Bank of New Zealand Amendment Act 2009 Section 103A(1)﻿(a)﻿(ii) amended 11 May 2021 section 162 Financial Market Infrastructures Act 2021 Section 103A(6) operator amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021 Section 103A(6) participant amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021 Section 103A(6) rules amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021 Section 103A(7) amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021 Priority of interests under qualifying derivatives Heading inserted 31 August 2019 section 21 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019
103B: Priority of interests under qualifying derivatives
1: The security interest of a person (the enforcing counterparty
a: the counterparties to the derivative are—
i: 2 qualifying counterparties; or
ii: a qualifying counterparty and an overseas person; and
b: before the enforcement of the security interest, the collateral is transferred or otherwise dealt with so as to be in the possession or under the control of—
i: the enforcing counterparty; or
ii: another person (who is not the debtor that granted the security interest) on behalf of the enforcing counterparty, under the terms of an arrangement evidenced in writing.
2: Terms and expressions defined in section 122A Banking (Prudential Supervision) Act 1989
3: Section 122B Banking (Prudential Supervision) Act 1989 section 122(9A)﻿(b)
4: This section overrides anything in this Act to the contrary (other than section 103A Section 103B inserted 31 August 2019 section 21 Financial Markets (Derivatives Margin and Benchmarking) Reform Amendment Act 2019 Section 103B(2) amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021 Section 103B(3) amended 1 July 2022 section 300(1) Reserve Bank of New Zealand Act 2021
9: Enforcement of security interests
Interpretation
104: Meaning of surplus
1: For the purposes of this Part, there is a surplus
a: a secured party has applied the collateral under section 108
i: the amount of the debt owed to the secured party by the debtor (where the collateral secures payment); or
ii: the monetary value of the obligation owed to the secured party (where the collateral secures performance of an obligation):
b: a secured party has sold the collateral under section 109 section 116A
i: the amount of the debt owed to the secured party by the debtor (if the collateral secures payment); or
ii: the monetary value of the obligation owed to the secured party (if the collateral secures performance of an obligation).
2: In subsection (1)﻿(b), net proceeds Section 104(1)﻿(b) substituted 1 January 2008 section 364(1) Property Law Act 2007 Application
105: Application of this Part
1: Except as provided for in subsection (2), this Part applies to all security interests.
2: This Part does not apply to the following security interests:
a: security interests created or provided for by—
i: a transfer of an account receivable or chattel paper; or
ii: a lease for a term of more than 1 year that does not secure payment or performance of an obligation; or
iii: a commercial consignment that does not secure payment or performance of an obligation:
b: security interests in consumer goods to which Part 3A see section 83I Section 105 replaced 6 June 2015 section 82 Credit Contracts and Consumer Finance Amendment Act 2014
106: Part not to apply to receivers
This Part does not apply to a receiver within the meaning of section 2(1) Section 106 substituted 1 May 2002 section 8 Personal Property Securities Amendment Act 2001
107: When contracting out of certain provisions in this Part permitted
1: The parties to a security agreement may contract out of sections 108 109 111(1) 112 114(1)﻿(a) 120(1) 122 133 134
2: The parties to a security agreement may contract out of the debtor's right to—
a: receive a statement of account under section 116
b:
c: receive notice of a secured party's proposal to retain collateral under section 120(2)
d: object to a secured party's proposal to retain collateral under section 121
e: not have goods damaged when a secured party removes an accession under section 125
f: not be reimbursed for damage caused when a secured party removes an accession under section 126
g: refuse permission to remove an accession under section 127
h: receive notice of the removal of an accession under section 129
i: apply to the court for an order concerning the removal of an accession under section 131
j:
3: The parties to a security agreement may contract out of the secured party's right to apply to a court for an order in respect of the removal of an accession under section 128
4: The provisions of this section, as in force immediately before the commencement of the Property Law Act 2007 Section 107 substituted 1 May 2002 section 9 Personal Property Securities Amendment Act 2001 Section 107(1) amended 1 January 2008 section 364(1) Property Law Act 2007 Section 107(2)﻿(b) repealed 1 January 2008 section 364(1) Property Law Act 2007 Section 107(2)﻿(j) repealed 1 January 2008 section 364(1) Property Law Act 2007 Section 107(4) added 1 January 2008 section 364(1) Property Law Act 2007 Rights of secured party to apply collateral in satisfaction of secured obligation
108: Secured party may apply certain collateral in satisfaction of secured obligation
A secured party with priority over all other secured parties may apply an account receivable, investment security, money, or a negotiable instrument in the form of a debt obligation taken as collateral to the satisfaction of the obligation secured by the security interest if the debtor is in default. Personal Property Security Act 1993 s 57(2)﻿(c) (Saskatchewan) Disposal of collateral on default
109: Secured party may take possession of and sell collateral
1: A secured party
a: the debtor is in default under the security agreement; or
b: the collateral is at risk.
2: In subsection (1), collateral is at risk 1997 No 85 s 7 Personal Property Security Act 1993 s 58(2)﻿(a) (Saskatchewan) Section 109(1) amended 1 January 2008 section 364(1) Property Law Act 2007
110: Duty of secured party selling collateral to obtain best price reasonably obtainable
A secured party who exercises a power of sale of collateral under section 109
a: the debtor:
b: any person who has registered a financing statement in the collateral that is effective at the time the secured party took possession of the collateral:
c: any person who has given the secured party notice that that person claims an interest in the collateral. 1997 No 85 s 26(1)
110A: No defence or indemnity
1: It is not a defence to a proceeding against a secured party for a breach of the duty imposed by section 110
2: A secured party is not entitled to compensation or indemnity from the collateral or from the debtor, any former debtor, or any guarantor for any liability arising from a breach of the duty imposed by section 110
3: This section applies despite anything to the contrary in any instrument or in any rule of law. 1952 No 51 s 103B Section 110A inserted 1 January 2008 section 364(1) Property Law Act 2007
111: Apparent possession of certain collateral permitted in some cases
1: A secured party with priority over all other secured parties may take possession of collateral by taking apparent possession, if the collateral is of a kind that cannot be readily moved from the debtor's premises or is of a kind for which adequate storage facilities are not readily available.
2: If subsection (1) applies, the secured party may dispose of collateral on the debtor's premises, but must not cause the person in possession of the premises any greater inconvenience than is necessary. Personal Property Security Act 1993 s 58(2)﻿(b), (c) (Saskatchewan)
112: Power of sale applies to document of title and related goods
If the collateral is a document of title, the power of sale provided by section 109 Personal Property Security Act 1993 s 58(2)﻿(d) (Saskatchewan)
113: Methods of sale of collateral
A secured party may effect a sale of collateral under section 109 Personal Property Security Act 1993 s 59(3) (Saskatchewan)
114: Notice of sale of collateral
1: A secured party who intends to sell collateral under section 109
a: the debtor:
b: any person who has registered a financing statement in respect of the collateral that is effective at the time the secured party took possession of the collateral:
c: any other person that has given the secured party notice that that person claims an interest in the collateral.
2: Subsection (1) does not apply if—
a: the collateral may perish within 10 working days of the secured party taking possession; or
b: the secured party believes on reasonable grounds that the collateral will decline substantially in value if it is not disposed of immediately
c: the cost of care and storage of the collateral is disproportionately large in relation to its value; or
d: the collateral is foreign currency; or
e: the collateral consists of inventory; or
f: the security interest arises under an instrument creating a charge on the property of a body corporate that comprises all, or substantially all, of the assets of the body corporate (whether or not there is a collateral security interest in the collateral securing the same debt or obligation); or
g: after the secured party takes possession of the collateral, every person entitled to receive notice under subsection (1) consents in writing to the immediate sale of the collateral; or
h: a court grants leave to the secured party to sell collateral under section 109
3: If a security interest is over collateral and some, but not all, of the collateral is described in subsection (2), the secured party may sell the collateral described in subsection (2) under section 109
4: If the security interest is created or provided for by a mortgage over goods,—
a: sections 128 to 136
b: the notice that is given under subsection (1) must be—
i: in the form prescribed by regulations made under that Act (instead of being in the form prescribed by regulations made under this Act); and
ii: given to the persons referred to in sections 128 and 130
5: In subsection (4), mortgage section 4 Personal Property Security Act 1993 s 59(6), (16) (Saskatchewan) Section 114(2)﻿(b) amended 1 January 2008 section 364(1) Property Law Act 2007 Section 114(2)﻿(e) substituted 1 January 2008 section 364(1) Property Law Act 2007 Section 114(2)﻿(f) added 1 January 2008 section 364(1) Property Law Act 2007 Section 114(2)﻿(g) added 1 January 2008 section 364(1) Property Law Act 2007 Section 114(2)﻿(h) added 1 January 2008 section 364(1) Property Law Act 2007 Section 114(3) added 1 January 2008 section 364(1) Property Law Act 2007 Section 114(4) added 1 January 2008 section 364(1) Property Law Act 2007 Section 114(5) added 1 January 2008 section 364(1) Property Law Act 2007
115: Extinguishment of subordinate security interests on sale
If collateral has been sold under section 109
116: Secured party to give statement of account to debtor, etc
If collateral is sold by a secured party under section 109 section 114(1)
a: the amount of the gross proceeds of sale:
b: the amount of the costs and expenses of, and incidental to, the sale:
c: the balance owing by the secured party to the debtor, or by the debtor to the secured party, as the case may be. 1997 No 85 s 33
116A: Secured party selling collateral must pay prior ranking secured parties
1: A secured party who has sold collateral under section 109
a: the registration was effective immediately before the collateral was sold; and
b: the security interest relating to that registration had priority over the security interest of the secured party who sold the collateral.
2: The security interests to which subsection (1) applies must be paid in the order of their priority as determined by Part 7 Part 8
3: The persons who must be paid under subsection (1) are entitled to recover the amount that must be paid from the secured party.
4: In this section, net proceeds section 104(2)
5: This section is subject to sections 153 154 Section 116A inserted 1 January 2008 section 364(1) Property Law Act 2007
117: Distribution of surplus
1: If a secured party has applied collateral under section 108 section 109
a: any person who has registered a financing statement in the name of the debtor over the collateral that is sold where—
i: the registration was effective immediately before the collateral was applied or sold; and
ii: the security interest relating to that registration was subordinate to the security interest of the secured party who applied or sold the collateral:
b: any other person who has given the secured party notice that that person claims an interest in the collateral that is sold and in respect of which the secured party is satisfied that that person has a legally enforceable interest in the collateral:
c: the debtor.
2: The security interests to which subsection (1)﻿(a) applies must be paid in the order of their priority as determined by Part 7 Part 8
3: Subsection (1) applies despite the extinguishment of a security interest under section 115
4: This section is subject to sections 153 154 Personal Property Security Act 1993 s 60(2) (Saskatchewan) Section 117(4) added 1 January 2008 section 364(1) Property Law Act 2007
118: Surplus may be paid into court
1: The secured party may pay the surplus into court if there is a question as to who is entitled to receive payment under section 117
2: The surplus may only be paid out on an application by a person claiming an entitlement to the surplus. Personal Property Security Act 1993 s 60(4) (Saskatchewan)
119: Debtor's, etc, right to recover surplus
The persons referred to in section 117 1997 No 85 s 34 Retention of collateral by secured party
120: Proposal of secured party to retain collateral
1: A secured party with priority over all other secured parties may, after default under the security agreement concerned, propose to take the collateral in satisfaction of the obligation secured by it.
2: The secured party must give notice of the proposal to the persons listed in section 114(1) Personal Property Security Act 1993 s 61(1) (Saskatchewan)
121: Persons entitled to notice may object to proposal
The secured party must sell the collateral under section 109 section 114 section 120 Personal Property Security Act 1993 s 61(2) (Saskatchewan)
122: Person making objection may be requested by secured party to prove interest
1: The secured party may request a person, other than the debtor, who objects to provide proof of that person's interest.
2: If the person to whom subsection (1) applies does not provide proof not later than 10 working days after the secured party's request, the secured party may proceed as if no objection were received from the person. Personal Property Security Act 1993 s 61(5) (Saskatchewan)
123: Position where persons entitled to notice do not object to retention of collateral by secured party
1: If no notice of objection is given, the secured party is, at the expiration of the 10-day period referred to in section 121 section 114(1)
2: If subsection (1) applies, all security interests in the collateral that are subordinate to the security interest of the secured party referred to in subsection (1) are extinguished. Personal Property Security Act 1993 s 61(3) (Saskatchewan)
124: Disposal of collateral to purchaser for value and in good faith
1: A purchaser for value and in good faith who acquires collateral sold by a secured party takes the collateral 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 secured party.
2: Subsection (1) applies whether or not—
a: the secured party has complied with sections 120 to 123
b: registrations relating to security interests that are subordinate to the security interest of the secured party selling the collateral have been removed from the register. Personal Property Security Act 1993 s 61(7) (Saskatchewan) Enforcement of security interests in accessions
125: Secured party must not damage goods when removing accession
A secured party who is entitled to take possession of an accession under section 109 Personal Property Security Act 1993 s 38(7) (Saskatchewan)
126: 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) does not include reimbursement for a reduction in the value of the property caused by the absence of the accession or by the necessity of the replacement of the accession. Personal Property Security Act 1993 s 38(8) (Saskatchewan)
127: Person entitled to reimbursement may refuse permission to remove accession
A person entitled to reimbursement under section 126 Personal Property Security Act 1993 s 38(9) (Saskatchewan)
128: Secured party may apply to court for order in respect of removal of accession
The court may, on an application made by a secured party, make an order—
a: determining who is entitled to reimbursement under section 126
b: determining the amount and kind of security to be provided by the secured party under section 127
c: prescribing the depository for the security under section 127
d: dispensing with the need for the permission of any or all persons entitled to reimbursement under section 126 Personal Property Security Act 1993 s 38(10) (Saskatchewan)
129: Secured party must give notice of removal of accession
1: The secured party who is entitled to remove the accession from the whole must give notice of the secured party's intention to remove the accession to each of the following persons:
a: a person who is known by the secured party 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.
2: The notice referred to in subsection (1) must be given not less than 10 working days before the removal of the accession and must contain—
a: the name and address of the secured party; 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 secured party 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 secured party believes on reasonable grounds that the collateral will decline substantially in value if it is not disposed of immediately after default; or
b: the cost of care and storage of the collateral is disproportionately large in relation to its value; or
c: for any other reason, a court on an ex parte Personal Property Security Act 1993 s 38(12), (13) (Saskatchewan)
130: 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 secured party 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 secured party; or
b: the value of the accession if the accession were removed from the other goods.
131: Court may make order concerning removal of accession
The court may, on the application of a person entitled to receive a notice under section 129
a: postponing the removal of the accession:
b: determining the amount payable to the secured party under section 130 Personal Property Security Act 1993 s 38(15) (Saskatchewan) Right to redeem collateral and reinstate security agreement
132: Entitled persons may redeem collateral
1: At any time before the secured party sells the collateral or is deemed to have taken the collateral in satisfaction of the obligation secured by it, a person who is entitled to receive a notice under section 114
a: tendering fulfilment of the obligations secured by the collateral; and
b: paying a sum equal to the reasonable expenses of seizing, repossessing, holding, repairing, processing, and preparing the collateral for sale, if those expenses have actually been incurred by the secured party, and any other reasonable expenses incurred by the secured party in enforcing the security agreement.
2: The debtor's right to redeem the collateral has priority over any other person's right to redeem the collateral. Personal Property Security Act 1993 s 62(1)﻿(a) (Saskatchewan)
133: Debtor may reinstate security agreement
1: At any time before the secured party sells the collateral or is deemed to have taken the collateral in satisfaction of the obligation secured by it, the debtor may, unless the debtor has otherwise agreed in writing after default, reinstate the security agreement by—
a: paying the sums actually in arrears, exclusive of the operation of an acceleration clause in the security agreement; and
b: remedying any other default by reason of which the secured party intends to sell the collateral; and
c: paying a sum equal to the reasonable expenses of seizing, repossessing, holding, repairing, processing, and preparing the collateral for sale, if those expenses have actually been incurred by the secured party, and any other reasonable expenses incurred by the secured party in enforcing the security agreement.
2: Subsection (1) does not apply to any security agreement made or entered into before the commencement of this Act. Personal Property Security Act 1993 s 62(1)﻿(b) (Saskatchewan) Section 133(2) added 1 May 2002 section 10 Personal Property Securities Amendment Act 2001
134: Limit on reinstatement of security agreement
Unless otherwise agreed, the debtor is not entitled to reinstate a security agreement—
a: more than twice, if the security agreement provides for payment in full by the debtor not later than 12 months after the day on which value was given by the secured party; or
b: more than twice in each year, if the security agreement provides for payment by the debtor during a period greater than 1 year after the day on which value was given by the secured party. Personal Property Security Act 1993 s 62(2) (Saskatchewan)
10: Personal property securities register
Interpretation
135: Interpretation
In this Part, unless the context otherwise requires,— debtor financing change statement financing statement
a: means the data required or authorised by this Act or the regulations to be entered in the register to effect a registration for the purposes of perfecting a security interest in collateral under this Act; and
b: includes a financing change statement (if the context permits) register section 139 Registrar section 136 secured party verification statement Registrar of Personal Property Securities
136: Appointment of Registrar
1: There must be a Registrar of Personal Property Securities who must be appointed by the Secretary under the Public Service Act 2020
2: The person holding office as Registrar of Companies under the Companies Act 1993 1989 No 14 s 4 1993 No 105 s 357(4) Section 136(1) amended 7 August 2020 section 135 Public Service Act 2020
137: Power of Registrar to delegate
1: The Registrar may from time to time, in writing, delegate to any person all or any of the functions, duties, and powers exercisable by the Registrar under this Act, except this power of delegation.
2: Subject to any general or special directions given or conditions attached at any time by the Registrar, the person to whom any functions, duties, or powers are delegated under this section must perform and may exercise those functions, duties, and powers in the same manner and with the same effect as if they had been conferred on that person directly by this section and not by delegation.
3: Every person purporting to act under any delegation under this section is, in the absence of proof to the contrary, presumed to be acting in accordance with the terms of the delegation.
4: Any delegation under this section may be made to a specified person or to persons of a specified class, or may be made to the holder or holders for the time being of a specified office or specified classes of offices.
5: Every delegation under this section is revocable in writing at will, and no such delegation prevents the exercise of any function, duty, or power by the Registrar.
6: Every delegation under this section, until revoked, continues in force according to its tenor, even if the Registrar by whom it was made has ceased to hold office. 1989 No 14 s 63
138: Registrar may refuse to provide certain services relating to register
The Registrar may refuse access to the register or otherwise suspend the operation of the register, in whole or in part, if the Registrar considers that it is not practical to provide any service or services relating to the register. Personal Property Security Act 1993 s 42(7) (New Brunswick) Personal property securities register
139: Personal property securities register
1: The Registrar must keep a register of personal property security interests known as the personal property securities register.
2: The register is to be—
a: an electronic register; and
b: maintained for the purposes of registrations under this Act; and
c: operated at all times, unless—
i: the Registrar suspends the operation of the register, in whole or in part, in accordance with section 138
ii: otherwise provided in the regulations. Personal Property Security Act 1993 s 42(1) (New Brunswick) Section 139(1) replaced 13 January 2020 section 106 Regulatory Systems (Economic Development) Amendment Act 2019
140: Contents of register
The register contains the following data:
a: if the debtor is an individual, the debtor's name, address, and date of birth or, if the debtor is an organisation,—
i: the name and address of the organisation; and
ii: the name or job title, and contact details, of the person acting on its behalf:
b: if the debtor is an organisation that is incorporated,—
i: if it is incorporated in New Zealand, the unique number assigned to it on its incorporation; or
ii: if it is registered under Part 18 Part 3
iii: in any other case, the unique number (if any) assigned to it on its incorporation in its place of incorporation:
c: if the secured party is an individual, the secured party's name and address or, if the secured party is an organisation,—
i: the name and address of the organisation; and
ii: the name or job title, and contact details, of the person acting on its behalf:
d: a description of the collateral, including its serial number if required
e: the date of prior registration, if prior registration law (as defined in section 193
f: any other data specified in the regulations. Section 140(a) substituted 20 September 2007 section 4(1) Personal Property Securities Amendment Act 2007 Section 140(b) replaced 13 January 2020 section 107 Regulatory Systems (Economic Development) Amendment Act 2019 Section 140(c) substituted 20 September 2007 section 4(2) Personal Property Securities Amendment Act 2007 Section 140(d) amended 15 April 2004 section 19 Personal Property Securities Amendment Act 2004 Registration of financing statements
141: Person may register financing statement
A person may register a financing statement in accordance with this Act and the regulations. Personal Property Security Act 1993 s 43(1) (New Brunswick)
142: Data required to register financing statement
1: The following data must be contained in the financing statement in order to register it:
a: if the debtor is an individual, the debtor's name, address, and date of birth or, if the debtor is an organisation,—
i: the name and address of the organisation; and
ii: the name or job title, and contact details, of the person acting on its behalf:
b:
c: if the debtor is an organisation that is incorporated, its unique incorporation or registration number referred to in section 140(b)
d: if the secured party is an individual, the secured party's name and address or, if the secured party is an organisation,—
i: the name and address of the organisation; and
ii: the name or job title, and contact details, of the person acting on its behalf:
e: a description of the collateral, including its serial number if required
f: the date of prior registration, if prior registration law (as defined in section 193
g: any other data required by this Act or the regulations to be contained in the financing statement.
2: Subsection (1) does not limit section 149 Section 142(1)﻿(a) substituted 20 September 2007 section 5(1) Personal Property Securities Amendment Act 2007 Section 142(1)﻿(b) repealed 20 September 2007 section 5(1) Personal Property Securities Amendment Act 2007 Section 142(1)﻿(c) replaced 13 January 2020 section 108 Regulatory Systems (Economic Development) Amendment Act 2019 Section 142(1)﻿(d) substituted 20 September 2007 section 5(2) Personal Property Securities Amendment Act 2007 Section 142(1)﻿(e) amended 15 April 2004 section 20(1) Personal Property Securities Amendment Act 2004 Section 142(2) added 15 April 2004 section 20(2) Personal Property Securities Amendment Act 2004
143: When financing statement or financing change statement not to be registered
A financing statement or financing change statement must not be registered if—
a: it is not submitted in the prescribed manner or in a form that enables the data to be entered directly by electronic means:
b: the prescribed fee has not been paid to the Registrar, unless arrangements for its payment have been made in accordance with the regulations. Personal Property Security Act 1993 s 43(3) (Saskatchewan)
144: When financing statement or financing change statement registered
A financing statement or financing change statement is registered at the time that a registration number, date, and time is assigned to it in the register. Personal Property Security Act 1993 s 43(4) (New Brunswick)
145: Verification statement to be forwarded to person who registered financing statement, etc
A verification statement must, as soon as reasonably practicable after a financing statement or financing change statement has been registered, be given to the person who registered the financing statement or financing change statement.
146: When financing statement may be registered
A financing statement may be registered before or after—
a: a security agreement is made; or
b: a security interest has attached. Personal Property Security Act 1993 s 43(5) (New Brunswick)
147: Financing statement may relate to 1 or more security agreements
A financing statement may relate to 1 or more security agreements. Personal Property Security Act 1993 s 43(6) (New Brunswick)
148: When secured party to notify debtor about registration of financing statement
The secured party who registered a financing statement or financing change statement , or on whose behalf a financing statement or financing change statement has been registered, Personal Property Security Act 1993 s 43(11) (New Brunswick) Section 148 amended 15 April 2004 section 21 Personal Property Securities Amendment Act 2004 Validity of registrations of financing statements
149: Registration of financing statement invalid only if seriously misleading
The validity of the registration of a financing statement is not affected by any defect, irregularity, omission, or error in the financing statement unless the defect, irregularity, omission, or error is seriously misleading. Personal Property Security Act 1993 s 43(7) (New Brunswick)
150: When financing statement seriously misleading
Without limiting the circumstances in which a registration is invalid, a registration is invalid if there is a seriously misleading defect, irregularity, omission, or error in—
a: the name of any of the debtors required by section 142
b: the serial number of the collateral if the collateral is consumer goods, or equipment, of a kind that is required by the regulations to be described by serial number in a financing statement. Personal Property Security Act 1993 s 43(8) (New Brunswick)
151: Proof that person actually misled not necessary
In order to establish that a defect, irregularity, omission, or error is seriously misleading, it is not necessary to prove that any person was actually misled by it. Personal Property Security Act 1993 s 43(9) (New Brunswick)
152: Validity of registration when description of part of collateral is omitted
Failure to include a description of any item or kind of collateral in a financing statement does not affect the validity of the registration in respect of the description of other collateral included in the financing statement. Personal Property Security Act 1993 s 43(10) (New Brunswick) Duration and renewal of registrations
153: Duration of registration of financing statement
1: Except as otherwise provided in this Act or in the regulations, a registration of a financing statement under this Act is effective until whichever is the earlier of—
a: the expiration of the term specified in the financing statement; or
b: the expiration of 5 years commencing on the date on which and at the time at which the financing statement was registered.
2: Subsection (1) does not apply if the registration of the financing statement is discharged or removed before the expiration of the relevant period referred to in that subsection. Personal Property Security Act 1993 s 44(1) (New Brunswick)
154: Renewal of registration
1: A registration may be renewed by registering a financing change statement at any time during the period that the registration is effective.
2: Except as otherwise provided in this Act or in the regulations, the period of time for which a registration of a financing statement is effective is extended until whichever is the earlier of—
a: the expiration of the new term specified in the financing change statement; or
b: the expiration of 5 years commencing on the date on which and at the time at which the financing change statement was registered.
3: Subsection (2) does not apply if the registration of the financing statement is discharged or removed before the expiration of the relevant period referred to in that subsection. Personal Property Security Act 1993 s 44(2) (New Brunswick) Registrations where security interest is transferred
155: Registration of financing change statement in respect of transfer of security interest perfected by registration
1: A financing change statement may be registered if all or part of a security interest that is perfected by registration has been transferred.
2: If a financing change statement is registered under subsection (1) and a security interest in part, but not all, of the collateral is transferred, the financing change statement must include a description of the collateral in which the security interest is transferred. Personal Property Security Act 1993 s 45(1), (2) (New Brunswick)
156: Registration of financing statement in respect of transfer of security interest not perfected by registration
If a secured party with a security interest that is not perfected by registration transfers the security interest, a financing statement may be registered in which the transferee is disclosed as the secured party. Personal Property Security Act 1993 s 45(3) (New Brunswick)
157: When disclosure of transfer of security interest may be registered
A financing change statement or financing statement, as the case may be, relating to a transfer of a security interest may be registered before or after the transfer of the security interest. Personal Property Security Act 1993 s 45(5) (New Brunswick)
158: Transferee of security interest secured party for purposes of Act
For the purposes of this Act, the transferee of a security interest is the secured party after the registration of a financing change statement disclosing the transfer of the security interest. Personal Property Security Act 1993 s 45(4) (New Brunswick) Registrations in respect of subordinated security interests
159: Registration of financing change statement in respect of subordinated security interest
If a security interest has been subordinated by the secured party to the interest of another person, a financing change statement may be registered to disclose the subordination at any time during the period that the registration of the subordinated security interest is effective. Personal Property Security Act 1993 s 45(6) (New Brunswick) Voluntary amendments to registrations
160: Voluntary amendment to or discharges of registrations of financing statements
1: An amendment to a registration or a discharge of a registration may be effected by the secured party registering a financing change statement at any time during the period that the registration is effective, even if an amendment or discharge of the registration is not specifically provided for in this Part.
2: The amendment is effective from the time that the financing change statement is registered to the expiry of the registration being amended. Personal Property Security Act 1993 s 44(3), (4) (New Brunswick) Compulsory discharge or amendment of registration
161: Discharge of registration relating only to consumer goods
If a registration relates exclusively to a security interest in consumer goods, the secured party must discharge the registration within 15 working days after all obligations under the security agreement creating the security interest are performed, unless the registration lapses before the expiration of that period. Personal Property Security Act 1993 s 50(2) (New Brunswick)
162: When debtor, etc, may demand registration of financing change statement
The debtor or any person with an interest in property that falls within the collateral description included in a registered financing statement may give a written demand to the secured party if—
a: all of the obligations under the security agreement to which the financing statement relates have been performed:
b: the secured party has agreed to release part or all of the collateral described in the collateral description included in the financing statement:
c: the collateral described in the collateral description included in the financing statement includes an item or kind of property that is not collateral under a security agreement between the secured party and the debtor:
d: no security agreement exists between the parties:
e: the security interest is extinguished in accordance with this Act. Personal Property Security Act 1993 s 50(3) (New Brunswick)
163: Matters that may be required by demand
A demand under section 162
a: discharging the registration in a case within paragraph (a) or paragraph (d) or paragraph (e) of section 162
b: amending or discharging the registration so as to reflect the terms of the agreement in a case within paragraph (b) of section 162
c: amending the collateral description to exclude items or kinds of property that are not collateral under a security agreement between the secured party and the debtor in a case within paragraph (c) of section 162 Personal Property Security Act 1993 s 50(4) (New Brunswick)
164: Application of sections 165 to 167 in cases not involving security trust deeds
Sections 165 to 167 Personal Property Security Act 1993 s 50(8) (New Brunswick)
165: Procedure where non-compliance with demand and no court order in cases not involving security trust deed
1: The person giving the demand under section 162 section 163
a: fails to comply with the demand within 15 working days after it is given; or
b: fails, within 15 working days after the demand is given, to give to that person a court order maintaining the registration.
2: The Registrar must ensure that the secured party is given a notice stating that the financing change statement will be registered unless a court order maintaining the registration is served on the Registrar within 15 working days of the notice being given to the secured party.
3: The notice referred to in subsection (2) must be given to the secured party as soon as reasonably practicable after the financing change statement is entered in the register. Personal Property Security Act 1993 s 50(5) (New Brunswick)
166: Consequences of non-receipt, and receipt, of court order in cases not involving security trust deed
1: If a court order maintaining the registration is served on the Registrar within 15 working days of the notice referred to in section 165(2)
2: The financing change statement will be registered in accordance with section 144 section 165(2)
167: Secured party may obtain court order in cases not involving security trust deed
1: At any time before the financing change statement referred to in section 163 none section 162
a: be maintained on any condition, and subject to sections 153 154
b: be discharged or amended.
2: The court may make any other orders it thinks proper for the purpose of giving effect to an order under subsection (1).
3: The Registrar must amend or discharge a registration of a financing statement in accordance with a court order made under subsection (1) as soon as reasonably practicable after receiving the order. Personal Property Security Act 1993 s 50(7) (New Brunswick) Section 167(1) amended 1 May 2002 section 11 Personal Property Securities Amendment Act 2001
167A: Financing change statement consequential on sale effected by court under certain enactments
1: This section applies to any personal property (the personal property
a: falls within the collateral description included in a registered financing statement (the applicable financing statement
b: has been sold or disposed of under—
i: section 172 175 178
ii: section 137(1) 138 141(3)﻿(b)
iii: section 100L(1)﻿(a) 100P(1)
iv: a sale order issued under rule 17.63 High Court Rules 2016
2: A court registrar may enter in the register a financing change statement that—
a: discharges the registration of the applicable financing statement if the collateral description in the applicable financing statement relates exclusively to the personal property; or
b: amends the applicable financing statement to exclude the personal property from the collateral description if the collateral description in the applicable financing statement does not relate exclusively to the personal property.
3: As soon as is reasonably practicable after the financing change statement is entered in the register, the Registrar must ensure that the secured party is given a notice stating that the financing change statement will be registered unless a court order, under subsection (4), cancelling that statement is served on the Registrar within 15 working days of the notice being given to the secured party.
4: The court on whose behalf the financing change statement was entered may, on application, order the cancellation of that statement on the ground that the statement would affect collateral that is not personal property within the meaning of subsection (1).
5: An order under subsection (4) may be made by the court registrar of the appropriate court and any order made by that registrar is subject to review by a Judge of the appropriate court.
6: If an order, under subsection (4), cancelling the financing change statement is served on the Registrar within the period of 15 working days referred to in the notice given under subsection (3), the financing change statement will not be registered and may be removed from the register by the Registrar.
7: If an order, under subsection (4), cancelling the financing change statement is not served on the Registrar within the period of 15 working days referred to in the notice given under subsection (3), the financing change statement will be registered in accordance with section 144
8: In this section, court registrar
a: means any registrar of the High Court or of the District Court
b: includes any deputy registrar of the High Court or of the District Court Section 167A inserted 13 February 2012 section 5 Personal Property Securities Amendment Act 2011 Section 167A(1)﻿(b)﻿(i) replaced 1 March 2017 section 261 District Court Act 2016 Section 167A(1)﻿(b)﻿(ii) brought into force 1 August 2012 section 5 Personal Property Securities Amendment Act 2011 Section 167A(1)﻿(b)﻿(iv) brought into force 20 May 2021 section 5 Personal Property Securities Amendment Act 2011 Section 167A(1)﻿(b)﻿(iv) amended 18 October 2016 section 183(c) Senior Courts Act 2016 Section 167A(8)﻿(a) amended 1 March 2017 section 261 District Court Act 2016 Section 167A(8)﻿(b) amended 1 March 2017 section 261 District Court Act 2016
168: Procedure where non-compliance with demand and security trust deed involved
1: The court may, on application by the person making the demand under section 162
a: the registration of a security interest discloses that the security agreement providing for the security interest is a security trust deed; and
b: the secured party fails to comply with the demand within 15 working days after it is given.
2: The court may make any other orders it thinks proper for the purpose of giving effect to an order under subsection (1).
3: The Registrar must amend or discharge a registration of a financing statement in accordance with a court order made under subsection (1) as soon as reasonably practicable after receiving the order. Personal Property Security Act 1993 s 50(8), (9) (New Brunswick)
169: No fee for compliance with demand
A secured party may not charge any fees for compliance with a demand given under section 162 Personal Property Security Act 1993 s 50(10) (New Brunswick)
169A: Restoration of registration
1: The Registrar may restore a registration if it appears to the Registrar that, due to a clerical error made by the Registrar, the registration has been incorrectly discharged or removed.
2: A registration restored under subsection (1) must be regarded as having continued in force throughout the period during which it was incorrectly discharged or removed as if it had not been so discharged or removed. Section 169A inserted 15 April 2004 section 22 Personal Property Securities Amendment Act 2004 Removal of data from register and correction of errors or omissions Heading substituted 15 April 2004 section 23 Personal Property Securities Amendment Act 2004
170: Removal of data from register
1: Data in a registration may be removed from the register—
a: when the registration is no longer effective; or
b: on the registration of a financing change statement discharging or partially discharging the registration; or
c: if the Registrar is satisfied that the data is frivolous or vexatious.
2: The Registrar must, before he or she makes a decision under subsection (1)﻿(c), give the secured party notice to show cause, within 10 working days of the date on which the notice is given, why the data is not frivolous or vexatious.
3: If the secured party fails within 10 working days of the date on which the notice is given to show cause to the Registrar's satisfaction why the data is not frivolous or vexatious, the Registrar may, in the Registrar's discretion, remove the data from the register.
4: If data is removed from the register under subsection (1)﻿(c), the court may, on the application of the secured party, make an order directing that the data be restored to the register if it is satisfied that the data is neither frivolous nor vexatious.
5: The court may make any other orders that it thinks proper for the purpose of giving effect to an order under subsection (4).
6: The Registrar must restore the data to the register in accordance with a court order made under subsection (4) as soon as reasonably practicable after receiving the order. Personal Property Security Act 1993 s 46 (New Brunswick) Section 170 substituted 15 April 2004 section 23 Personal Property Securities Amendment Act 2004
170A: Correction of errors or omissions
The Registrar may, with the consent of the secured party, correct any clerical error or omission made by the Registrar in a registration. Section 170A inserted 15 April 2004 section 23 Personal Property Securities Amendment Act 2004 Searches of register
171: Search of register
A person may search the register, and obtain a printed search result, in accordance with this Act and the regulations.
172: Search criteria
The register may be searched only by reference to the following criteria:
a: the name of the debtor:
b: the name and address of the debtor:
c: if the debtor is an individual, the name and date of birth of the debtor:
d: if the debtor is an organisation that is incorporated, its unique incorporation or registration number referred to in section 140(b)
e: if collateral is required
f: the registration number assigned to the registration under section 144
g: any other criteria specified in the regulations. Section 172(b) replaced 13 January 2020 section 109 Regulatory Systems (Economic Development) Amendment Act 2019 Section 172(c) replaced 13 January 2020 section 109 Regulatory Systems (Economic Development) Amendment Act 2019 Section 172(d) replaced 13 January 2020 section 109 Regulatory Systems (Economic Development) Amendment Act 2019 Section 172(e) amended 15 April 2004 section 24 Personal Property Securities Amendment Act 2004
173: Search purposes, etc
A search of the register may be carried out only by the following persons for the following purposes:
a: an individual, or a person with the consent of the individual, for the purpose of searching for information about that individual in accordance with the Privacy Act 2020
b: a debtor or secured party for a purpose that relates to the debtor's or secured party's security interest in respect of which a financing statement has been registered:
c: a person for the purpose of—
i: establishing whether or not personal property that is to be purchased or otherwise dealt with by the person is subject to a security interest:
ii: establishing whether to provide credit to, or to obtain a guarantee or an indemnity from, the person named in the search or the person with an interest in the personal property described in the search:
iia: establishing whether to provide credit to, or to obtain a guarantee or an indemnity from, a related company of the company named in the search or of the company with an interest in the personal property described in the search:
iii: establishing whether to invest in, with, or through, the person named in the search:
iv: establishing whether to invest in, with, or through, a related company of the company named in the search or of the company with an interest in the personal property described in the search:
d: a liquidator of a company for a purpose that relates to the administration of the liquidation:
e: a receiver for a purpose that relates to the administration of the receivership:
f: the Official Assignee for a purpose that relates to the administration of the bankruptcy of the person named in the search:
g: an executor or administrator of a deceased estate for a purpose that relates to the administration of the deceased estate of the person named in the search:
h: a public sector agency for a purpose that relates to the maintenance of the law (including the prevention, detection, investigation, prosecution, and punishment of offences):
i: the holder of a lien or charge, or a creditor, for a purpose that relates to the enforcement of the lien, charge, or creditor's rights, as the case may be:
j: a bailiff of the High Court of New Zealand or of any other court
k: any news medium for the purpose of verifying or establishing, in relation to a particular record, a fact that relates to its news activities:
ka: the Registrar for a purpose that relates to any of the functions, duties, and powers exercisable by the Registrar in relation to this Act:
l: a person for the purpose of advising another person in connection with any of the purposes referred to in paragraphs (a) to (ka). Section 173(a) amended 1 December 2020 section 217 Privacy Act 2020 Section 173(c)﻿(iia) inserted 15 April 2004 section 25(1) Personal Property Securities Amendment Act 2004 Section 173(c)﻿(iv) added 15 April 2004 section 25(2) Personal Property Securities Amendment Act 2004 Section 173(j) amended 15 December 2005 section 4 Personal Property Securities Amendment Act 2005 Section 173(ka) inserted 20 September 2007 section 7(1) Personal Property Securities Amendment Act 2007 Section 173(l) amended 20 September 2007 section 7(2) Personal Property Securities Amendment Act 2007
174: When search constitutes interference with privacy of individual
A search of the register for personal information that has not been carried out in accordance with sections 171 to 173 section 69 Section 174 replaced 1 December 2020 section 217 Privacy Act 2020
175: Printed search result receivable as evidence
A printed search result that purports to be issued by the register is receivable as evidence and is, in the absence of evidence to the contrary, proof of the registration of any financing statement to which the search relates, including—
a: the date and time of registration of the financing statement; and
b: the order of registration of the financing statement as indicated by the registration number, date, and time set out in the printed search result. Personal Property Security Act 1993 s 48(3) (New Brunswick)
11: Miscellaneous
Entitlement to damages
176: Entitlement to damages for breach of obligations
1: If a person fails to discharge any duty or obligation imposed on that person by this Act, the person to whom the duty or obligation is owed and any other person who can reasonably be expected to rely on performance of the duty or obligation has a right to recover damages for any loss or damage that was reasonably foreseeable as likely to result from the failure.
2: Nothing in subsection (1) limits or affects any liability that a person may incur under any rule of law or enactment other than this Act. Secured party to make security agreement and other information available to debtor and others
177: Secured party to provide certain information relating to security interest
1: The debtor, a judgment creditor, a person with a security interest in personal property of the debtor, or an authorised representative of any of them, may request the secured party to send or make available to any specified person, at an address specified by the person making the request, any of the following:
a: a copy of a security agreement that creates or provides for a security interest held by the secured party in the personal property of the debtor:
b: a statement in writing of the amount of the indebtedness and of the terms of payment of the indebtedness:
c: a written approval or correction of an itemised list of personal property indicating which items are collateral
d: a written approval or correction of the amount of indebtedness and of the terms of payment of the indebtedness.
2: Subsection (1) does not apply if the information requested under that subsection must be, or has already been, made available under any other Act or rule of law, to the person who made the request. Personal Property Security Act 1993 s 18(2) (Saskatchewan) Section 177(1)﻿(c) amended 15 April 2004 section 26 Personal Property Securities Amendment Act 2004
178: Time for complying with request
A secured party who is required to comply with a request made under section 177(1) section 179 Personal Property Security Act 1993 s 18(6) (Saskatchewan)
179: Exemption from complying with request
The court may, on application by a secured party, make an order exempting the secured party from complying with a request made under section 177 Personal Property Security Act 1996 s 18(13) (Saskatchewan)
180: Secured party may recover costs arising from request
1: A secured party, who is required under section 177
2: A debtor who has requested information under section 177
181: Application to court for compliance with request
The court may, on application by the person who made a request under section 177 Personal Property Security Act 1993 s 18(8) (Saskatchewan)
182: Consequences of not complying with court order
If a person fails to comply with a court order made under section 181 section 177
a: make an order—
i: declaring that the security interest to which the request relates is to be treated as unperfected or extinguished; and
ii: directing the Registrar to remove the registration of the security interest:
b: make such other orders as it thinks proper for the purpose of giving effect to an order under this section. Personal Property Security Act 1993 s 18(12) (Saskatchewan)
183: Obligation to disclose successor in security interest when request made
Where a person makes a request under section 177 Personal Property Security Act 1993 s 18(9) (Saskatchewan) Service of notices, etc
184: Application of sections 185 to 189
Sections 185 to 189
a: notices or other documents served or given in any proceedings in the High Court of New Zealand or in any other court
b: notices or other documents served or given in accordance with another procedure specified in the security agreement for serving or giving notices or other documents. 1989 No 14 s 64 1997 No 85 s 38 Section 184(a) amended 15 December 2005 section 5 Personal Property Securities Amendment Act 2005
185: Method of service of notices, etc
1: Any notice or any other document required or authorised by this Act to be served on or given to any person must be in writing and is sufficiently served or given if—
a: it is delivered to that person or that person's agent; or
b: it is left at that person's or that person's agent's usual or last known place of abode or business or at an address specified for that purpose in the security agreement; or
c: it is posted in a letter addressed to that person or that person's agent by name at that place of abode or business or address; or
d: it is given by facsimile, electronic mail, or other similar means of communication.
2: If the person is deceased, it may be served on or given to that person's personal representatives. 1989 No 14 s 64 1997 No 85 s 38
186: Court may make order concerning service of notice, etc
Despite anything in section 185 1989 No 14 s 64 1997 No 85 s 38
187: How to effect service of notice, etc, by post
If any notice or other document is sent to any person by post, it is deemed to have been delivered to that person at the time when the letter would in the ordinary course of post be delivered and, in proving the delivery, it is sufficient to prove that the letter was properly addressed and posted. 1989 No 14 s 64 1997 No 85 s 38
188: How to effect service of notice, etc, by facsimile
A notice or document served or given by facsimile is, in the absence of proof to the contrary, regarded as having been served or given if the facsimile machine generated a record of the transmission of the notice or document to the facsimile machine of the recipient, and the date of the record is deemed to be the date of receipt of the notice or document.
189: How to effect service of notice, etc, by electronic mail
A notice or document served or given by electronic mail or other similar means of communication is, in the absence of proof to the contrary, regarded as having been served or given if—
a: the computer system used to transmit the notice or document—
i: has received an acknowledgment or receipt to the electronic mail address of the person transmitting the notice or document; or
ii: has not generated a record that the notice has failed to be transmitted; or
b: the person who served the notice or document proves that the notice or document was transmitted by computer system to the electronic mail address provided by the person on whom the notice is served or given. Regulations
190: Regulations
1: The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:
a: prescribing procedures, requirements, and other matters, not inconsistent with this Act, in respect of the register and its operation, including matters relating to—
i: access to the register:
ii: the location of and hours of access to the register:
b: prescribing matters in respect of which fees are payable under this Act and the amounts of those fees:
c: prescribing procedures for the payment of prescribed fees:
d: prescribing procedures, requirements, and other matters, not inconsistent with this Act, in respect of any registrations under this Act, including prescribing—
i: the description of collateral, including proceeds collateral, that is to be included in financing statements and financing change statements:
ii: the kinds of goods that may or must be described in part by serial number:
iii: the requirement of a description by serial number:
iv: the abbreviations, expansions, or symbols that may be used in financing statements, financing change statements, or other data authorised by this Act or the regulations to be entered in the register to effect a registration:
v: the manner of registering financing statements and financing change statements:
e: prescribing the data to be entered in the register to effect, renew, discharge, or otherwise amend a registration authorised by this Act and any other matters relating to registrations under this Act:
f: prescribing procedures, requirements, and other matters, not inconsistent with this Act, in respect of the form, use, and manner of obtaining printed or electronic verification statements to confirm a registration:
g: prescribing procedures, requirements, and other matters, not inconsistent with this Act, in respect of reregistrations under this Act:
h: prescribing procedures, requirements, and other matters, not inconsistent with this Act, in respect of searching the register, including prescribing—
i: criteria on which a search may be conducted:
ii: the method of disclosure:
iii: the form of search results:
iv: the abbreviations, expansions, or symbols that may be used in search results:
i: prescribing forms for the purposes of this Act:
j: prescribing procedures, requirements, and other matters, not inconsistent with this Act, in respect of notices under this Act, including prescribing—
i: the matters in respect of which notices are required under this Act:
ii: the form of notices under this Act:
k: prescribing the kinds of goods the leases of which are not within the scope of this Act:
l: providing for such other matters as are contemplated by or necessary for giving effect to this Act and for its due administration.
2: A regulation made under subsection (1) may be made in respect of different persons, transactions, classes of persons, or classes of transactions.
3: Regulations under this section are secondary legislation ( see Part 3 Personal Property Security Act 1993 s 71 (New Brunswick) The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)﻿(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)﻿(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 190(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Validation of fees Heading inserted 25 May 2022 section 23 Companies Office Registers Funding Validation Act 2022
190A: Validation of fees used to recover costs of other Companies Office registers, etc
1: This section applies to a fee—
a: that—
i: is or was payable or purportedly payable on or before 30 June 2022 under any of the Acts listed in subsection (4) or any regulations made under any of those Acts; and
ii: was (or is or will be) used in whole or in part to recover the costs or a share of the costs of the Registrar in operating 1 or more registers under this Act or in exercising or performing any other powers, functions, and duties of the Registrar under this Act or any regulations made under this Act; or
b: that—
i: is or was payable or purportedly payable on or before 30 June 2022 under this Act or any regulations made under this Act; and
ii: was (or is or will be) used in whole or in part to recover the costs or a share of the costs of 1 or more registers operated under any of the Acts listed in subsection (5) or in exercising or performing the powers, functions, and duties of a Registrar under any of those Acts or any regulations made under any of those Acts.
2: The fee is and always has been validly imposed.
3: Money received by the Registrar of any register maintained by the Companies Office in payment of the fee—
a: is and always has been lawfully collected and applied; and
b: may continue to be applied on and after 1 July 2022 to recover costs referred to in subsection (1)﻿(a)﻿(ii) and (b)﻿(ii).
4: The Acts are—
a: the Auditor Regulation Act 2011
b: the Building Societies Act 1965
c: the Companies Act 1993
d: the Financial Markets Conduct Act 2013
e: the Financial Reporting Act 1993
f: the Financial Service Providers (Registration and Dispute Resolution) Act 2008
g: the Friendly Societies and Credit Unions Act 1982
h: the Incorporated Societies Act 1908
i: the Insolvency Practitioners Regulation Act 2019
j: the Limited Partnerships Act 2008
k: the Retirement Villages Act 2003
l: the Securities Act 1978
5: The Acts are—
a: the Auditor Regulation Act 2011
b: the Building Societies Act 1965
c: the Charitable Trusts Act 1957
d: the Companies Act 1993
e: the Financial Markets Conduct Act 2013
f: the Financial Reporting Act 1993
g: the Financial Reporting Act 2013
h: the Financial Service Providers (Registration and Dispute Resolution) Act 2008
i: the Friendly Societies and Credit Unions Act 1982
j: the Incorporated Societies Act 1908
k: the Incorporated Societies Act 2022
l: the Industrial and Provident Societies Act 1908
m: the Insolvency Practitioners Regulation Act 2019
n: the Limited Partnerships Act 2008
o: the New Zealand Business Number Act 2016
p: the Retirement Villages Act 2003
q: the Securities Act 1978
6: In this section,— Companies Office
a: the former Department of Justice:
b: the former Ministry of Commerce:
c: the former Ministry of Economic Development:
d: the Ministry of Business, Innovation, and Employment fee
a: includes any penalty or overdue fee imposed, or interest charged, in relation to an unpaid or overdue fee; and
b: in relation to the Insolvency Practitioners Regulation Act 2019 section 81 Section 190A inserted 25 May 2022 section 23 Companies Office Registers Funding Validation Act 2022
191: Acts and regulations amended
1: The Acts specified in Schedule 1
2: The regulations specified in Schedule 2
192: Repeals and revocations
1: The enactments specified in Schedule 3
2: The regulations and orders specified in Schedule 4
12: Transitional provisions
193: Interpretation
In this Part, unless the context otherwise requires,— existing secured party prior law prior registration law Chattels Transfer Act 1924 Industrial and Provident Societies Amendment Act 1952 Motor Vehicle Securities Act 1989 Companies (Registration of Charges) Act 1993 prior security interest
a: means a security interest created or provided for by a security agreement or other transaction that was made or entered into before the commencement of this Act and that had not been terminated before that commencement date; but
b: does not include a security interest that is renewed or extended by a security agreement or other transaction made or entered into on or after the commencement of this Act prior third party interest transitional period Enforceability of prior security interest against third parties
194: Prior security interests continue to be enforceable against third parties during transitional period
A prior security interest that was enforceable against third parties under the prior law continues, during the transitional period, to be enforceable against third parties under this Act. Perfection of prior security interests
195: Prior registered security interests deemed to be perfected by registration during transitional period
A prior security interest that, immediately before the commencement of this Act, was registered under prior registration law is, during the transitional period, deemed to be perfected by registration under this Act. Example Instruments by way of security registered under the Chattels Transfer Act 1924, company charges registered in accordance with the Companies (Registration of Charges) Act 1993, security interests registered under the Motor Vehicles Securities Act 1989.
196: Certain other prior security interests deemed to be perfected during transitional period
A prior security interest (other than a prior security interest to which section 195 every other prior security interest (if any) Example A retention of title clause. Section 196 amended 15 April 2004 section 27 Personal Property Securities Amendment Act 2004
197: Prior security interests to be perfected during transitional period
An existing secured party may, before the end of the transitional period, perfect that secured party's prior security interest under this Act.
198: Consequences of not perfecting certain security interests
1: A prior security interest that is deemed to be a perfected security interest under section 195 section 196
2: If a prior security interest that is deemed to be an unperfected security interest under subsection (1) is perfected after the close of the transitional period, that perfection is only effective from the time of that perfection. Section 198(2) added 15 April 2004 section 28 Personal Property Securities Amendment Act 2004
199: Time of registration of certain prior security interests
For the purposes of this Act, the time of registration of a prior security interest that is deemed to be perfected by registration under this Act is—
a: the date section 195
b: the date section 196 Section 199 substituted 1 May 2002 section 12 Personal Property Securities Amendment Act 2001 Section 199(a) amended 15 April 2004 section 29 Personal Property Securities Amendment Act 2004 Section 199(b) amended 15 April 2004 section 29 Personal Property Securities Amendment Act 2004 Priority of prior security interests
200: Priority of prior security interests during transitional period
1: During the transitional period,—
a: priority between prior security interests will be determined by the prior law: Example During the transitional period, priority between 2 company charges that were in existence before the commencement of this Act will be determined in accordance with the law that was in force before that commencement.
b: priority between a prior security interest that is deemed to be perfected by registration under section 195 section 196 Example During the transitional period, priority between a company charge registered in accordance with the Companies (Registration of Charges) Act 1993 and a security interest perfected under this Act will be determined in accordance with this Act.
c: priority between an unperfected prior security interest and another unperfected security interest will be determined by the order in which attachment occurred. Example During the transitional period, priority between a company charge that was not registered in accordance with the Companies (Registration of Charges) Act 1993 before the commencement of this Act and a security interest that has not been perfected under this Act is to be determined according to the order in which attachment occurred.
2: During the transitional period, prior security interests deemed to be perfected under section 195 section 196 Example During the transitional period, a floating charge that was registered in accordance with the Companies (Registration of Charges) Act 1993 has priority over a security interest that has not been perfected in accordance with this Act.
201: Priority of third party interests during transitional period
During the transitional period,—
a: priority between a prior security interest and a prior third party interest will be determined by the prior law:
b: priority between a prior security interest and a third party interest that arose on or after the commencement of this Act will be determined by this Act:
c: priority between a security interest that is not a prior security interest and a prior third party interest will be determined by this Act.