Update On Amendments To The Personal Property Security Act (Ontario)

The Government of Ontario has proposed three significant amendments to the Personal Property Security Act (Ontario) (the "PPSA") in recent years which have not yet been brought into force. The changes are: (1) to perfection of security interests in cash collateral; (2) to the conflict of laws provisions relating to the location of a business debtor; and (3) to replace the "check-the-box" system for collateral descriptions in financing statements.

1. "CONTROL" OVER CASH COLLATERAL

In the 2012 and 2013 budgets, the Government of Ontario announced its intention to change the regime for perfecting a security interest in deposit accounts or other forms of cash collateral. However, the government has not outlined the specific form that these amendments will take.