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ARTICLE · 24 FEBRUARY 2016

Maximum Delays & Fair Value: Changes To The Repair And Storage Lien Act To Take Effect July 1, 2016

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On July 1, 2016, changes to the Repair and Storage Lien Act, R.S.O., 1990, c. R.25 will take effect that relate to fees a storer or repairer of motor vehicles can claim under the RSLA.

CanadaTransport
Jonathan Fleisher
Jonathan Fleisher
Carla Potter
Carla Potter
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On July 1, 2016, changes to the Repair and Storage Lien Act, R.S.O., 1990, c. R.25 (the RSLA) will take effect that relate to fees a storer or repairer of motor vehicles can claim under the RSLA.

You may recall that the RSLA creates rights for storage and repair companies to claim priority liens in respect of storage or repair costs in favour of the storer or repairer. The changes to the RSLA help to regulate the amount of the preferential storage or repair cost that can be claimed pursuant to the RSLA and should be welcomed by secured creditors, including motor vehicle financiers.

The most significant changes being made to the RSLA are:

  1. reductions to the storer's maximum delay for notification to a lien holder from 60 to 15 days for a motor vehicle with a permit under the Highway Traffic Act, R.S.O. 1990, c. H.8; and

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