Where To Register Under The PPSA's New Debtor Location Rules

Changes to Ontario's Personal Property Security Act (the PPSA) may have an effect on M&A transactions that involve certain security interests. This two-part post will explore how the PPSA's changes affect security agreements entered into both before and after December 31, 2015.

Background

On December 31, 2015 new rules came into force (the New Rules) that determine a debtor's location for the purposes of choosing the jurisdiction in which to register a security agreement. As these amendments to the PPSA were first proposed in 2006, they come as no surprise to practitioners but secured parties should be aware of the New Rules' implications. The good news is that the New Rules make very clear what used to be a sometimes challenging determination.