Remotely Terminating Equipment Use As Enforcement Remedy Against Default: Understanding The Legal Requirements

In recent years, manufacturers and lessors of heavy industrial equipment have installed sophisticated systems into their units which require a computer code be entered in order for the equipment to operate. This computer code may need to be updated or changed periodically. If the purchaser or lessee is in arrears in making payment to the manufacturer or lessor, the manufacturer or lessor may refuse to supply the debtor with the new access code. In effect, the manufacturer or lessor has the ability to remotely render the equipment unusable. Does the Personal Property Security Act of Ontario¹ (the "PPSA" or the "Act") accommodate this enforcement remedy by a secured party? Are there steps that a secured party needs to take before it can determine to not provide the debtor with this new code?