Term
| What is the PPR and who has them? |
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Definition
| The Personal Property Registry is a registry that aims to be inclusive like the PPSA, and all provinces have one. The PPSA is the Act, and the PPR is the registry; you register your security interest under the PPSA through the PPR. The PPR is a registry of interests, NOT a title registry. |
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Term
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Definition
| Registration isn't constructive notice, so you can't assume that if you register an interest third parties will be aware of its existence. Registration does not tell us if a security interest actually exists, but tells us that a security interest might exist. Creditors are required to search the registry for pre-existing interests, but consumers in the normal course of business are protected and need not search the registry or be aware of registered interests. |
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Term
| Information Required for Registration |
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Definition
| Not much information is needed for registration; names and addresses of parties, description of the collateral (can be quite vague as long as it is sufficient), and duration of the registration. The name used to register the security interest must be the individuals legal name. If it's a business name, what ever name is legal must be used (business number, etc...). Duration can be 1 to 25 years, or infinity. |
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Term
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Definition
| If registration is done in advance and the interest never secures, the registration can be taken over by a new owner. |
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Term
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Definition
- A registers an interest in B's car
- B sells car to C
- C grants security interest to D
- D searches PPR using C's name and doesn't find a registration.
- D isn't aware of A's interest.
This issue is resolved via searches for identification numbers, such as the VIN number of a car. |
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Term
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Definition
| The registration of a financing statement occurs at the time assigned to it by the registrar, or where two or more are assigned at the same time, the order is decided based on the registration number given by the registrar. Registrations are backwards looking; if you have lots of things registered against you it may be hard to find a lender as you're more risky. |
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Term
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Definition
| Information can be updated. Secured interest holders aren't required to update information, but they usually do as they want to keep information up to date. If interest is re-registered it is only valid against third parties on the date of registration. If registration is expired it is still enforceable. |
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Term
| Errors and Omissions - PPSA, s 43(6) |
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Definition
| The validity of the registration of a financing statement is not affected by a defect, irregularity, omission, or error in the financing statement or in the registration of it unless the error is misleading (material). Errors and omissions are tested for materiality through a reasonable person test. Verification letters are sent after registration and should be reviewed for mistakes so they can be corrected. |
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Term
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Definition
| If mistakes are material the registration could be invalid. Whether it is material or not depends on a reasonable person test; would a reasonable person be able to find the registration by searching the information available to him/her? If name and date of birth are incorrect, but car VIN number is correct, a reasonable person would still look up the VIN number, so the error in the name and date of birth is not considered material. |
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