Understanding NOSIs: Addressing Notice Of Security Interest Concerns In Ontario

In the complex landscape of property rights and financial transactions, certain legal instruments can significantly impact the interests of various parties in a transaction. One instrument commonly used is the Notice of Security Interest ("NOSI"). This blog will explore what a NOSI is, how it differs from a lien, its use, impacts, registration process, issues surrounding its use, and the proposed solutions by the Ontario Government to address related concerns.

What is a NOSI and what does it apply to?

ThePersonal Property Security Act("PPSA") is a piece of legislation that sets out rules on security interests associated with personal property. When personal property is affixed to real property, it then forms part of the real property and becomes what is known as a "fixture".