Transitioning To The PPSA's New Rules

In a previous blog post, we discussed the amendments to the rules under the Ontario Personal Property Security Act (the PPSA) which determine the location of the debtor for certain types of collateral and the jurisdiction for registration. In this post we explore the transitional rules which will apply to security agreements made before December 31, 2015.

As described in the previous post, as of December 31, 2015 new Ontario debtor location rules (the New Rules) determine the jurisdiction in which a filing must be made for security interests where the underlying collateral consists of:

• An intangible (e.g., contract rights),
• Mobile goods (e.g., aircraft), or
• A non-possessory security interest in instruments, negotiable documents of title, money and chattel paper (e.g., negotiable bills of lading)