Amendments To Ontario PPSA Debtor Location Rules Take Effect December 31, 2015

The announcement was recently made that amendments to the Personal Property Security Act (Ontario) (the "Ontario PPSA") legislated back in 2006 will become effective on December 31, 2015. These amendments change the debtor's location which will, in turn, require creditors to consider new criteria when determining where to perfect their security in certain types of collateral, including accounts.

Introduction

Under the Ontario PPSA, the law of the jurisdiction where the debtor is located governs the validity, perfection and effect of perfection or non-perfection of a security interest granted by that debtor in intangibles (including accounts, for instance) and mobile goods (i.e. goods of a type normally used in more than one jurisdiction that are equipment or inventory leased or held for lease) as well as of a non-possessory security interest granted by the debtor in instruments, negotiable documents of title, money and chattel paper. The law of the jurisdiction