Getting It Perfect in Cross-border Financings: Cash Collateral

Introduction

In addition to its geographical proximity to, and robust trading partnership with, the U.S., a key reason Canada is perceived as a favorable place for secured lending is that Canadian and American laws of secured transactions share many commonalities. In fact, Article 9 ("Article 9") of the Uniform Commercial Code (the "UCC") was the template for the Personal Property Security Act (Ontario) (the "PPSA"). Since then, all of the other common law provinces and federal territories in Canada have enacted their own personal property security legislation that is substantially similar to the Ontario PPSA.¹ As such, most of the legal concepts and rules central to secured lending in Canada are already familiar to U.S. lenders.