On May 29, 2019, Bill 100, Protecting What Matters
Most, received royal assent. A copy of the bill can be found here. Schedule
49 of Bill 100 amends the Personal Property Security Act
(Ontario) (PPSA) to, among other things, incorporate the concept of
electronic chattel paper and e-leasing. These amendments reflect
the increasing prevalence of the use of electronic documentation in
secured financing practices and follow similar laws that have been
enacted in the United States nearly two decades ago and more
recently in Saskatchewan six months ago.
Pursuant to the current PPSA, chattel paper is a tangible that
is “writing that evidences both a monetary obligation and a
security interest in or a lease of specific goods.” Chattel
paper is personal property in it its own right distinct from the
collateral which is the subject matter of the underlying
agreement/lease. Under the current PPSA, perfection of a security
interest in chattel paper can be obtained by registering
