Personal Property Security Act And Repair Storage Lien Act Priorities

A constant issue that arises with a number of our finance clients is the interaction between priorities created under the Personal Property Security Act (Ontario) (PPSA) and the Repair and Storage Lien Act (RSLA). The simple question is whether a prior registration under the PPSA has priority over a subsequent registration under the RSLA in the same collateral. The answer to this question is straightforward but may seem counterintuitive to a strict reading of the Personal Property Registry (PPR) results.

Subject to specific enumerated exceptions, the general rule under the PPSA is that the first party to register has a security interest ranking in priority to subsequent registrations in the same collateral. The clear exception to the foregoing under the PPSA, is a purchase money security interest. Complicating this rule is that RSLA registrations are also registered under the PPR system and as such, search results show both PPSA and RSLA registrations on the same