Focus On Financial Services - October, 2009

Contents

• Which Security Wins After Acquired Assets - Bank Act Or PPSA?
• Putting Your Greenback Behind Green Energy
• Supreme Court Of Canada Upholds Bank's Ability To Cooperate With Another Bank To Recover From Fraud
• Broad Interpretation Of "Wages" Under WEPPA

Which Security Wins After Acquired Assets - Bank Act Or PPSA?
By: Benjamin Dawkins

The Saskatchewan Court of Appeal (the Court) recently addressed the issue of priority in instances where valid but conflicting Bank Act and the Personal Property Security Act (Saskatchewan)(the PPSA) security interests were being asserted in after-acquired property. In its decision, the Court held that the priority rule to be applied was qui prior est tempore potior est jure (whomever is first in time, is first in right), and that this rule should apply based on the respective dates of execution of the agreements. Further, the Court held that this rule shall apply even if the PPSA interest is unperfected.