British Columbia Bill 5 (Government) — 4th Parliament, 39th Session — Previous Version 1

4-39 Gov Bill 5-1

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2011 Legislative Session: 4th Session, 39th Parliament

FIRST READING

The following electronic version is for informational purposes only.

The printed version remains the official version.

HONOURABLE KEVIN FALCON

MINISTER OF FINANCE AND DEPUTY PREMIER

BILL 5 – 2011

PERSONAL PROPERTY SECURITY

AMENDMENT ACT, 2011

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

SECTION 1: [Personal Property Security Act,

section 1] repeals the definition of "chief

forester", adds a definition of "forest agreement" and amends the

definitions

of "intangible" and "licence".

Section 1 (1) of the Personal Property Security Act, R.S.B.C. 1996, c. 359, is amended

(

a) by repealing the definition of "chief forester" , and

(

b) by repealing the

definitions of "intangible" and "licence" and substituting the following:

"forest agreement" means the type of licence referred to in paragraph (

d) of the definition of licence;

"intangible" means personal property, other than goods, chattel paper, a document of title, an instrument, money and investment property, and includes a licence;

"licence" means a right, whether or not exclusive, that may be transferred by the holder with or without restriction or the consent of the grantor and that entitles the holder to do any of the following:

(

a) manufacture, produce, sell, transport, grow, harvest or otherwise deal with personal property;

(

b) provide services;

(

c) acquire personal property;

(

d) harvest timber, or grow and harvest Christmas trees, under an agreement referred to in

section 12 of the Forest Act ; .

SECTION 2: [Personal Property Security Act, sections 4 and 7] is consequential to the

addition of the definition of "forest agreement" to

section 1 of the Act.

2 Sections 4 (

f) and 7 (8) are amended by striking out " a licence " and substituting " a forest agreement ".

SECTION 3: [Personal Property Security Act,

section 58] provides for a copy of a notice of

seizure respecting collateral that is a licence to be sent, in the case of a licence

granted under

an Act, by registered mail addressed to the minister responsible

for the administration of the Act, or to be given, in any other case, to the

grantor or successor to the grantor.

Section 58 (2) (

e) is repealed and the following substituted:

(

e) if the collateral is a licence, the secured party may seize the licence by giving a notice of seizure to the debtor and doing whichever of the following applies:

(

i) if the licence was granted under

an Act, sending a copy of the notice of seizure by registered mail addressed to the minister responsible for the administration of the Act at that minister's office in Victoria;

(ii) in any other case, giving a copy of the notice of seizure to the grantor of the licence, or if there is a successor to the grantor, to the successor.

SECTION 4: [Personal Property Security Act,

section 59] limits the right of a secured party

to dispose of collateral that is a licence.

Section 59 is amended by adding the following subsection:

(18) Despite any other provision of this Part, if the collateral is a licence, the licence may be disposed of under this

section only in accordance with

SECTION 5: [Personal Property Security Act,

section 61] limits the right of a secured party

to retain, hold or dispose of collateral that is a licence.

Section 61 (4) is repealed and the following substituted:

(4) Despite any other provision of this Part,

(

a) if the collateral is a licence, the licence may be retained, held or disposed of under subsection (3) only in accordance with

(

b) if the licence is a forest agreement, the licence may be retained, held or disposed of under subsection (3) only if the minister responsible for the administration of the Forest Act has consented to the application of subsection (3) to the licence.

SECTION 6: [Personal Property Security Act,

section 72]

provides that a copy of a notice of seizure respecting collateral that is a licence, other than a licence granted under

an Act, may be given in accordance with the section;

applies to all documents sent by registered mail under the Act the rule that provides when a notice or demand sent by registered mail is deemed to be given.

Section 72 is amended

(

a) in subsection (1) by striking out " a notice under this Act or " and substituting " a notice under this Act, a copy of a notice of seizure referred to in

section 58 (2) (e) (ii) or " , and

(

b) in subsection (2) by striking out " A notice or demand sent by registered mail " and substituting " A document sent by registered mail under this Act ".

Commencement

7 This Act comes into force by regulation of the Lieutenant Governor in Council.

Explanatory Notes