First

Session, 49th General Assembly

Elizabeth II, 2020

BILL 27

AN ACT TO AMEND THE

PERSONAL PROPERTY SECURITY ACT

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE SHERRY

GAMBIN-WALSH

Minister of Service

Newfoundland and Labrador

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Personal Property Security Act to

make the language in subsection

11(1) of the Act consistent with the Personal Property Security Acts in the

other Atlantic Provinces; and

correct an error in

cross-referencing in subsections 11(2) and (3) of the Act.

A BILL

AN ACT TO AMEND THE PERSONAL PROPERTY

SECURITY ACT

Analysis

S.11 Amdt.

Enforceability of security

interest

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL1998 cP-7.1

as amended

1. Subsections 11(1) to (3) of the Personal Property Security Act are

repealed and the following substituted:

Enforceability of

security interest

(1) Subject

section 13.1, a security interest is enforceable against a third party only

where

(

a) the collateral is

(

i) not a certificated security and is in the

possession of the secured party or another person on the secured party's

behalf,

(ii) a certificated security in registered form and

the security certificate has been delivered to the secured party under

section

69 of the Securities Transfer Act

under the debtor's security agreement, or

(iii) investment property and the secured party has

control under subsection 2(2) in accordance with the debtor's security

agreement; or

(

b) the debtor has signed a security agreement

that contains

(

i) a description of the collateral by item or

kind or by reference to one or more of the following:

(A) "goods",

(B) "document of title",

(C) "chattel paper",

(D) "investment property",

(E) "instrument",

(F) "money", or

(G) "intangible",

(ii) a description of collateral that is a security

entitlement, securities account, or futures account if it describes the

collateral by those terms or as an "investment property" or if it

describes the underlying financial asset or futures contract,

(iii) a statement that a security interest is taken

in all of the debtor's present and after-acquired personal property, or

(iv) a statement that a security interest is taken

in all of the debtor's present and after-acquired personal property except

specified items or kinds of personal property or except one or more of the

following:

(A) "goods",

(B) "document of title",

(C) "chattel paper",

(D) "investment property",

(E) "instrument",

(F) "money", or

(G) "intangible".

(2) A secured party does not have possession of

collateral for the purpose of subparagraph (1)(a)(i), where the collateral is

in the apparent possession or control of the debtor or the debtor's agent.

(3) A description is inadequate for the purpose of

subparagraph (1)(b)(

i) if it describes the collateral as consumer goods or

equipment without further describing the item or kind of collateral, but where

the personal property to be excluded from a description of collateral under

subparagraph (1)(b)(iv) is the consumer goods of the debtor, the excluded

property may be described simply as consumer goods.

Queen's Printer