A Client Asked Us: What Are Alberta PPSA "Land Charges"?

Q: The Alberta PPSA Search Report you sent me for the proposed cross-country financing of our new borrower showed a number of registrations in favour of other existing secured parties designated as "Land Charges". Our new borrower doesn't own any real property, so what are those "Land Charges" and why do they appear on a search for personal property liens?

A: Depending on the scope of the collateral description in the underlying security agreement, a debtor may grant to a secured party a security interest in real property in Alberta, whether owned by the debtor at the time the security interest is granted or acquired thereafter. The collateral description granting such an interest might include language such as "all present and after-acquired property" or "all present and after-acquired real and personal property" or may embody language granting "a floating charge on land". Such security interests, typically known as "land charges", are often granted when there is