The Tools Available To Debtors And Secured Parties To Manage Improper PPSA Registrations In B.C.

The Personal Property Registry system established by the Personal Property Security Act in each common law province in Canada is an "open" system, meaning that almost anyone can file a financing statement against a debtor describing the collateral subject to a purported security interest, whether or not that security interest in fact exists. And even if a security interest does exist, the collateral might be described by a secured party too broadly in the financing statement. Since there is no gatekeeper vetting the genuineness and accuracy of financing statements, each Personal Property Security Act establishes procedures for debtors to ensure the accuracy of financing statements registered against them, and to amend or discharge any inaccurate registrations. The provisions dealing with these issues in the British Columbia Personal Property Security Act ("BCPPSA") are typical of the provisions in the other common law provinces.