1

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

The
Personal Property
Security Act, 1993

being

Chapter P-6.2* of the Statutes of Saskatchewan, 1993 (effective

April 1, 1995) as amended by the Statutes of Saskatchewan,
1996, c.9 and 18; 1997, c.16; 2000, c.L-5.1 and 21; 2001, c.20;
2004, c.L-16.1; 2007, c.S-42.3; 2010, c.E-9.22 and c.26; 2012,
c.F-13.5, 2013, c.O-4.2; 2018, c.42; and 2019, c.18.

NOTE:
This consolidation is not official and is subject to House amendments and Law
Clerk and Parliamentary Counsel changes to Separate Chapters that may be
incorporated up until the publication of the annual bound volume. Amendments
have been incorporated for convenience of reference and the official Statutes
and Regulations should be consulted for all purposes of interpretation and
application of the law. In order to preserve the integrity of the official Statutes and
Regulations, errors that may have appeared are reproduced in this consolidation.
 2
Table of Contents
PART I PART IV
c. P-6.2
Short Title, Interpretation, Application
PERSONAL PROPERTY SECURITY, 1993 Registration
and Conflict of Laws 42 Registry
  1 Short title 42.1 Status of registry
 2 Interpretation 42.2 Appointment of Registrar of Personal
  2.1 Fees and charges of registrar   Property Security
 3 Application 42.3 Transitional – activities
 4 Exceptions 42.4 Suspension of registry functions
  5 General rules 43 Registration of financing statements
  6 Goods removed from jurisdiction 43.1 General power to permit registrations
  7 Intangibles, mobile goods, etc. 44 Duration of and amendments to registrations
  7.1 Applicable law – investment property 45 Registration of transfers and subordinations
  8 Enforcement of rights of secured party 46 Registry records
  8.1 Law of a jurisdiction 47 Constructive notice
48 Registry searches
PART II 49 Registration in land titles office
Validity of Security Agreements 50 Compulsory discharge or amendment of registrations
and Rights of Parties 51 Transfers of debtors’ interests in collateral
  9 Effectiveness of security agreement 52 Action against Crown
10 Enforceability against third parties 53 Action where trust indentures involved
11 Copy of security agreement 54 Payment of claim for loss
12 Attachment of security interests 54.1 Repealed
12.1 Securities intermediary 54.2 Repealed
13 After-acquired property
14 Future advances PART V
15 Seller’s obligations Rights and Remedies on Default
16 Acceleration of payment or performance 55 Application of Part
17 Preservation of collateral 56 Rights and remedies
17.1 Other matters – control of investment 57 Collection rights of secured party
  property as collateral 58 Rights of secured party on default
18 Demand for information from secured party 59 Disposal of collateral
60 Surplus or deficiency
PART III 61 Retention of collateral
Perfection and Priorities 62 Redemption and reinstatement
19 Perfection of security interest 63 Applications to court
19.1 Perfection and priorities 64 Receivers
19.2 When certain security interests are perfected
PART VI
20 Priority re unperfected and certain perfected security General
 interests 65 Exercise of rights, discharge of duties
21 Measure of damages 66 Application to court
22 Repealed. 67 Extension of time
23 Continuity of perfection 68 Service of documents
24 Perfection by possession 69 Conflict between Act and other legislation
24.1 Perfection of security interest in investment property 70 References
25 Perfection by registration 71 Regulations
26 Temporary perfection
27 Perfection re goods held by bailee PART VII
28 Perfection re proceeds Repeal, Transitional, Consequencial and Related
29 Goods returned or repossessed Amendments and Coming into Force
30 Buyer or lessee takes free of security interest 72 S.S. 1979-80, c.P-6.1 repealed
31 Protection of transferees of negotiable collateral 73 Transitional application of Act
31.1 Rights pursuant to The Securities Transfer Act 74 Transitional – prior registrations
32 Priority re liens 74.1 Transitional provisions
33 Alienation of rights of debtor 75 Consequential amendments
34 Priority re purchase-money security interests 76 R.S.S. 1978, c.A-10, section 43.1 amended
35 Residual priority rules 77 R.S.S. 1978, c.B-10 amended
35.1 Priority among conflicting security interests 78 R.S.S. 1978, c.E-12 amended
36 Priority re fixtures 79 R.S.S. 1978, c.G-2, section 18.2 amended
37 Priority re crops 80 R.S.S. 1978, c.L-1, section 56 amended
38 Priority re accessions 81 R.S.S. 1978, c.L-5 amended
39 Priority re processed or commingled goods 82 S.S. 1979, c.N-4.1 amended
40 Voluntary subordination 83 R.S.S. 1978, c.Q-1 amended
41 Rights of assignees 84 S.S. 1984-85-86, c.R-22.01, section 48 amended
85 Coming into force

Schedule
Editorial Appendix
 3

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

CHAPTER P-6.2
An Act respecting Security Interests in Personal Property and making
Consequential and Related Amendments to Certain Other Acts

PART I
Short Title, Interpretation,
Application and Conflict of Laws

Short title
1  This Act may be cited as The Personal Property Security Act, 1993.
Interpretation
2(1)  In this Act:
(a)  “accessions” means goods that are installed in or affixed to other goods;
(b)  “account” means a monetary obligation that is not evidenced by chattel
paper or an instrument, whether or not it has been earned by performance,
but does not include an investment property;
(c)  “advance” means the payment of money, the provision of credit or the
giving of value, and includes any liability of the debtor to pay interest, credit
costs and other charges or costs payable by the debtor in connection with an
advance or the enforcement of a security interest securing the advance;
(c.1)  “broker” means a broker as defined in The Securities Transfer Act;
(d)  “building” means a structure, erection, mine or work that is built or
constructed on or opened in land;
(e)  “building materials” means materials that are incorporated into a
building, and includes goods attached to a building so that their removal:
(i)  would necessarily involve the dislocation or destruction of some other
part of the building and cause substantial damage to the building, apart
from the loss of value of the building resulting from the removal; or
(ii)  would result in weakening the structure of the building or exposing
the building to weather damage or deterioration;
but does not include:
(iii)  heating, air conditioning or conveyancing devices; or
(iv)  machinery installed in a building or on land for use in carrying on
an activity in the building or on the land;
(e.1)  “certificated security” means a certificated security as defined in The
Securities Transfer Act;
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(f)  “chattel paper” means one or more writings that evidence both a
monetary obligation and:
(i)  a security interest in, or lease of, specific goods; or
(ii)  a security interest in, or lease of, specific goods and accessions;
(f.1)  “clearing house” means an organization through which trades in
options or standardized futures are cleared;
(f.2)  ”clearing house option” means an option, other than an option on
futures, issued by a clearing house to its participants;
(g)  “collateral” means personal property that is subject to a security interest;
(h)  “commercial consignment” means a consignment, pursuant to which
goods are delivered for sale, lease, or other disposition to a consignee who, in the
ordinary course of the consignee’s business, deals in goods of that description,
by a consignor who:
(i)  in the ordinary course of the consignor’s business deals in goods of
that description; and
(ii)  reserves an interest in the goods after they have been delivered;
but does not include an agreement pursuant to which goods are delivered:
(iii)  to an auctioneer for sale; or
(iv)  to a consignee for sale, lease or other disposition if the consignee is
generally known to the creditors of the consignee to be selling or leasing
goods of others;
(i)  “consumer goods” means goods that are used or acquired for use
primarily for personal, family or household purposes;
(j)  “court” means the Court of Queen’s Bench;
(k)  “creditor” includes an assignee for the benefit of creditors, an executor,
an administrator, a committee or a property guardian of a creditor;
(l)  “crops” means crops, whether matured or otherwise, and whether
naturally grown or planted, attached to land by roots or forming part of trees
or plants attached to land, and includes trees only if they:
(i)  are being grown as nursery stock;
(ii)  are being grown for uses other than the production of lumber and
wood products; or
(iii)  are intended to be replanted in another location for the purpose of
reforestation;
(l.1)  Repealed. 2013, c.O-4.2, s.144.
(m)  “debtor” means:
(i)  a person who owes payment or performance of an obligation secured,
whether or not that person owns or has rights in the collateral;
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(ii)  a person who receives goods from another person pursuant to a

commercial consignment;
(iii)  a lessee pursuant to a lease for a term of more than one year;
(iv)  a transferor of an account or chattel paper;
(v)  in sections 17, 24, 26 and 58, subsections 57(3), 59(14), 61(7)
and 64(3) and section 65, the transferee of a debtor’s interest in the
collateral; or
(vi)  if the person mentioned in subclause (i) and the person who has
rights in the collateral are not the same person:
(A)  where the term is used in a provision dealing with the collateral,
the person who has an interest in the collateral;
(B)  where the term is used in a provision dealing with the
obligation, the obligor; and
(C)  where the context permits, the persons mentioned in both
paragraphs (A) and (B);
(n)  “default” means:
(i)  the failure to pay or otherwise perform the obligation secured when
due; or
(ii)  the occurrence of any event or set of circumstances on which,
pursuant to the terms of the security agreement, the security becomes
enforceable;
(o)  “document of title” means a writing issued by or addressed to a bailee:
(i)  that covers goods in the bailee’s possession that are identified or are
fungible portions of an identified mass; and
(ii)  in which it is stated that the goods identified in it will be delivered
to a named person, or to the transferee of that person, or to bearer or to
the order of a named person;
(o.1)  “entitlement holder” means an entitlement holder as defined in The
Securities Transfer Act;
(o.2)  “entitlement order” means an entitlement order as defined in The
Securities Transfer Act;
(p)  “equipment” means goods that are held by a debtor other than as
inventory or consumer goods;
(p.1)  “financial asset” means a financial asset as defined in
The Securities Transfer Act;
(q)  “financing change statement” means:
(i)  a printed financing change statement in the prescribed form; or
(ii)  data that is authorized by the regulations to be transmitted to the
registry to amend or discharge a registration;
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(r)  “financing statement” means:

(i)  a printed financing statement in the prescribed form that is required
or permitted to be registered pursuant to this Act;
(ii)  data that is authorized by the regulations to be transmitted to the
registry to effect a registration;
(ii.1)  where the context permits:
(A)  a financing change statement; or
(B)  a security agreement registered prior to the day on which The
Personal Property Security Act came into force; or
(iii)  a financing statement that was registered pursuant to The Personal
Property Security Act where the registration relating to that financing
statement has not expired;
(s)  “fixture” does not include building materials;
(t)  “future advance” means an advance, whether or not made pursuant to an
obligation, and includes advances, reasonable costs incurred and expenditures
made for the protection, maintenance, preservation or repair of the collateral;
(t.1)  “futures account” means an account maintained by a futures
intermediary in which a futures contract is carried for a futures customer;
(t.2)  “futures contract” means a standardized future or an option on futures,
other than a clearing house option, that is:
(i)  traded on or subject to the rules of a futures exchange recognized or
otherwise regulated by the Financial and Consumer Affairs Authority of
Saskatchewan or by a securities regulatory authority of another province
or territory of Canada; or
(ii)  traded on a foreign futures exchange and is carried on the books of
a futures intermediary for a futures customer;
(t.3)  “futures customer” means a person for which a futures intermediary
carries a futures contract on its books;
(t.4)  “futures exchange” means an association or organization operated
to provide the facilities necessary for the trading of standardized futures or
options on futures;
(t.5)  “futures intermediary” means a person that:
(i)  is registered as a dealer permitted to trade in futures contracts,
whether as principal or agent, under the securities laws or commodity
futures laws of a province or territory of Canada; or
(ii)  is a clearing house recognized or otherwise regulated by the Financial
and Consumer Affairs Authority of Saskatchewan or by a securities
regulatory authority of another province or territory of Canada;
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(u)  “goods” means tangible personal property, fixtures, crops and the unborn
young of animals, but does not include chattel paper, a document of title, an
instrument, an investment property, money or trees, other than trees that are
crops, until they are severed or minerals until they are extracted;
(v)  “instrument” means:
(i)  a bill of exchange, note or cheque within the meaning of the Bills of
Exchange Act (Canada);
(ii)  any other writing that evidences a right to payment of money and
that is of a type that, in the ordinary course of business, is transferred by
delivery with any necessary endorsement or assignment; or
(iii)  a letter of credit or an advice of credit, if the letter of credit or advice
of credit states on it that it must be surrendered on claiming payment;
but does not include:
(iv)  chattel paper, a document of title or an investment property; or
(v)  a writing that provides for or creates a mortgage or charge with
respect to an interest in land that is specifically identified in the writing;
(w)  “intangible” means personal property that is not goods, chattel paper,
a document of title, an instrument, money or an investment property, and
includes a licence;
(x)  “inventory” means goods that are:
(i)  held by a person for sale or lease, or that have been leased by that
person as lessor;
(ii)  to be furnished by or on behalf of a person, or that have been furnished
by or on behalf of that person, under a contract of service;
(iii)  raw materials or work in progress; or
(iv)  materials used or consumed in a business;
(x.1)  “investment property” means a security, whether certificated or
uncertificated, security entitlement, securities account, futures contract, or
futures account;
(y)  “lease for a term of more than one year” includes:
(i)  a lease for an indefinite term, including a lease for an indefinite term
that is determinable by one or both of the parties not later than one year
after the day of its execution;
(ii)  a lease initially for a term of one year or less than one year, where
the lessee, with the consent of the lessor, retains uninterrupted or
substantially uninterrupted possession of the leased goods for a period of
more than one year after the day on which the lessee, with the consent of
the lessor, first acquired possession of them, but the lease does not become
a lease for a term of more than one year until the lessee’s possession
extends for more than one year; and
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(iii)  a lease for a term of one year or less where:

(A)  the lease provides that it is automatically renewable or that
it is renewable at the option of one of the parties or by agreement
of the parties for one or more terms; and
(B)  the total of the terms, including the original term, may exceed
one year;
but does not include:
(iv)  a lease involving a lessor who is not regularly engaged in the business
of leasing goods;
(v)  a lease of household furnishings or appliances as part of a lease
of land where the goods are incidental to the use and enjoyment of the
land; or
(vi)  a lease of prescribed goods, regardless of the length of the lease term;
(z)  “licence”  means a right, whether or not exclusive:
(i)  to manufacture, produce, sell, transport, or otherwise deal with
personal property; or
(ii)  to provide services;
that is transferrable by the grantee with or without restriction or the consent
of the grantor;
(aa)  “minister” means the member of the Executive Council to whom for
the time being the administration of this Act is assigned;
(bb)  “money” means a medium of exchange that is:
(i)  authorized by the Parliament of Canada as part of the currency of
Canada; or
(ii)  authorized or adopted by a foreign government as part of its currency;
(cc)  “new value” means value other than antecedent debt or liability;
(dd)  “obligation secured” means, when determining the amount payable
pursuant to a lease that secures payment or performance of an obligation:
(i)  the amount originally contracted to be paid pursuant to the lease;
(ii)  any other amount payable pursuant to the terms of the lease; and
(iii)  any other amount required to be paid by the lessee to obtain
ownership of the collateral;
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(dd.1)  “option” means an agreement that provides the holder with the right,
but not the obligation, to do one or more of the following on terms or at a price
established by or determinable by reference to the agreement at or by a time
established by the agreement:
(i)  receive an amount of cash determinable by reference to a specified
quantity of the underlying interest of the option;
(ii)  purchase a specified quantity of the underlying interest of the option;
(iii)  sell a specified quantity of the underlying interest of the option;
(dd.2)  “option on futures” means an option the underlying interest of which
is a standardized future;
less any amount paid before the determination;
(ee)  “pawnbroker” means a person who engages in the business of
granting credit to individuals for personal, family or household purposes
and who:
(i)  takes and perfects security interests in consumer goods by taking
possession of those consumer goods; or
(ii)  purchases consumer goods pursuant to agreements or undertakings,
express or implied, that the goods may be repurchased by the sellers;
(ff)  “personal property” means goods, chattel paper, investment property,
a document of title, an instrument, money or an intangible;
(gg)  “prescribed” means prescribed in the regulations;
(hh)  “proceeds” means:
(i)  identifiable or traceable personal property, fixtures or crops:
(A)  that are derived directly or indirectly from any dealing with
collateral or the proceeds of collateral; and
(B)  in which the debtor acquires an interest;
(ii)  a right to an insurance payment or any other payment as indemnity
or compensation for loss of or damage to the collateral or proceeds of the
collateral;
(iii)  a payment made in total or partial discharge or redemption of an
intangible, chattel paper, an instrument or investment property; or
(iv)  rights arising out of, or property collected on, or distributed on
account of, collateral that is investment property;
but does not include animals merely because they are the offspring of animals
that are collateral;
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(ii)  “purchase” means taking by sale, lease, discount, assignment,

negotiation, mortgage, pledge, lien, issue, reissue, gift or any other consensual
transaction that creates an interest in personal property;
(jj)  “purchase-money security interest” means:
(i)  a security interest taken in collateral, other than investment property,
to the extent that it secures all or part of its purchase price;
(ii)  a security interest taken in collateral, other than investment
property, by a person who gives value for the purpose of enabling the
debtor to acquire rights in the collateral, to the extent that the value is
applied to acquire those rights;
(iii)  the interest of a lessor of goods pursuant to a lease for a term of
more than one year; or
(iv)  the interest of a consignor who delivers goods to a consignee pursuant
to a commercial consignment;
but does not include a transaction of sale and the lease back to the seller and,
for the purposes of this clause, “purchase price” and “value” include credit
charges and interest payable for the purchase or loan credit;
(kk)  “receiver” includes a receiver-manager;
(ll)  “registrar” means the Registrar of Personal Property Security appointed
pursuant to section 42.2;
(mm)  “registry” means the Personal Property Registry continued pursuant
to section 42;
(nn)  “secured party” means:
(i)  a person who has a security interest;
(ii)  a person who holds a security interest for the benefit of another
person; or
(iii)  a trustee, where a security interest is embodied in a trust indenture;
(nn.1)  “securities account” means a securities account as defined in The
Securities Transfer Act;
(nn.2)  “securities intermediary” means a securities intermediary as
defined in The Securities Transfer Act;
(oo)  “security” means a security as defined in The Securities Transfer Act;
(pp)  “security agreement” means an agreement that creates or provides
for a security interest and, where the context permits, includes:
(i)  an agreement that creates or provides for a prior security interest as
defined in clause 73(1)(c); and
(ii)  a document that evidences a security agreement;
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(pp.1)  “security certificate” means a security certificate as defined in The

Securities Transfer Act;
(pp.2)  “security entitlement” means a security entitlement as defined in
The Securities Transfer Act;
(qq)  “security interest” means:
(i)  an interest in personal property that secures payment or performance
of an obligation, but does not include the interest of a seller who has
shipped goods to a buyer under a negotiable bill of lading or its equivalent
to the order of the seller or to the order of an agent of the seller, unless
the parties have otherwise evidenced an intention to create or provide
for a security interest in the goods; and
(ii)  the interest of:
(A)  a transferee pursuant to a transfer of an account or a transfer
of chattel paper;
(B)  a consignor who delivers goods to a consignee pursuant to a
commercial consignment; or
(C)  a lessor pursuant to a lease for a term of more than one year;
that does not secure payment or performance of an obligation;
(rr)  “specific goods” means goods identified and agreed on at the time when
a security agreement with respect to those goods is made;
(rr.1)  “standardized future” means an agreement traded on a futures
exchange pursuant to standardized conditions contained in the bylaws, rules or
regulations of the futures exchange, and cleared and settled by a clearing house,
to do one or more of the following at a price established by or determinable by
reference to the agreement:
(i)  make or take delivery of the underlying interest of the agreement;
(ii)  settle the obligation in cash instead of delivery of the underlying
interest;
(ss)  “trust indenture” means a deed, indenture or document, however
designated, by the terms of which a person issues or guarantees, or provides
for the issue or guarantee of, debt obligations secured by a security interest and
in which a person is appointed as trustee for the holders of the debt obligations
issued, guaranteed or provided for pursuant to the deed, indenture or document;
(ss.1)  “uncertificated security” means an uncertificated security as defined
in The Securities Transfer Act;
(tt)  “value” means any consideration that is sufficient to support a simple
contract and includes an antecedent debt or liability.
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(1.1)  For the purposes of this Act:

(a)  a secured party has control of a certificated security if the secured party
has control in the manner provided for pursuant to section 23 of The Securities
Transfer Act;
(b)  a secured party has control of an uncertificated security if the secured
party has control in the manner provided for pursuant to section 24 of The
Securities Transfer Act;
(c)  a secured party has control of a security entitlement if the secured party
has control in the manner provided for pursuant to section 25 or 26 of The
Securities Transfer Act;
(d)  a secured party has control of a futures contract if:
(i)  the secured party is the futures intermediary with which the futures
contract is carried; or
(ii)  the futures customer, secured party, and futures intermediary have
agreed that the futures intermediary will apply any value distributed on
account of the futures contract as directed by the secured party without
further consent by the futures customer;
(e)  a secured party having control of all security entitlements or futures
contracts carried in a securities account or futures account has control over
the securities account or futures account.
(2)  For the purposes of this Act:
(a)  an individual knows or has knowledge when information is acquired by
the individual under circumstances in which a reasonable person would take
cognizance of it;
(b)  a partnership knows or has knowledge when information comes to
the attention of one of the general partners or a person having control or
management of the partnership business under circumstances in which a
reasonable person would take cognizance of it;
(c)  a corporation knows or has knowledge:
(i)  when information comes to the attention of:
(A)  a managing director or officer of the corporation; or
(B)  a senior employee of the corporation with responsibility for
matters to which the information relates;
under circumstances in which a reasonable person would take cognizance
of it; or
(ii)  when information in writing is delivered to the corporation’s
registered office or attorney for service;
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(d)  the members of an association know or have knowledge when information

comes to the attention of:
(i)  a managing director or officer of the association;
(ii)  a senior employee of the association with responsibility for matters
to which the information relates; or
(iii)  all members;
under circumstances in which a reasonable person would take cognizance of
it; and
(e)  a government knows or has knowledge when information comes to the
attention of a senior employee of the government with responsibility for matters
to which the information relates, under circumstances in which a reasonable
person would take cognizance of it.
(3)  Unless otherwise provided in this Act, the determination of whether goods
are consumer goods, inventory or equipment is to be made as of the time when the
security interest in the goods attaches.
(4)  Proceeds are traceable whether or not there is a fiduciary relationship between
the person who has a security interest in the proceeds, as provided in section 28,
and the person who has rights in or has dealt with the proceeds.
(5)  Where collateral is a security the transfer of which may be effected by an entry
in the records of a clearing agency as provided in The Business Corporations Act
or other law relating to the transfer of an interest in a security, the transferee or
secured party, as the case may be, is deemed to have taken possession of the security
when the appropriate entries have been made in the records of the clearing agency.
1993, c.P-6.2, s.2; 1996, c.18, s.3; 2000, c.21, s.3;
2007, c.S-42.3, s.108; 2010, c.26, s.3; 2012,
c.F-13.5, s.55; 2013, c.O-4.2, s.144; 2018, c 42,
s.65.

Fees and charges of registrar

2.1(1)  The minister may, by order, establish:
(a)  the fees, charges and taxes payable with respect to all services provided
pursuant to this Act; and
(b)  the method of payment of those fees, charges and taxes.
(2)  The minister shall cause notice of the fees, charges and taxes established
pursuant to subsection (1) to be published in the Gazette.
(3)  Notwithstanding subsection (1), the registrar may enter into an agreement
with a person to provide a special service to that person if, in the opinion of the
registrar, a fee, charge or tax mentioned in subsection (1) is not adequate to allow
the registrar to provide that service to the person.
(4)  If the registrar considers it appropriate or necessary, the registrar may:
(a)  waive any fees, charges or taxes, in whole or in part; or
(b)  refund any fees, charges or taxes, in whole or in part.
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(5)  The registrar is not required to perform any function pursuant to this Act or
the regulations until the appropriate fee, charge or tax is paid or arrangements for
its payment are made.
(6)  All revenues derived from fees, charges or taxes imposed or collected pursuant
to this Act are to be paid to and are the property of the Crown, unless the Lieutenant
Governor in Council directs otherwise.
2013, c.O-4.2, s.145.

Application
3(1)  Subject to section 4, this Act applies:
(a)  to every transaction that in substance creates a security interest, without
regard to its form and without regard to the person who has title to the
collateral; and
(b)  without limiting the generality of clause (a), to a chattel mortgage,
conditional sale, floating charge, pledge, trust indenture, trust receipt, or to an
assignment, consignment, lease, trust or transfer of chattel paper that secures
payment or performance of an obligation.
(2)  Subject to section 4 and section 55, this Act applies to a transfer of an account
or chattel paper, to a lease for a term of more than one year and to a commercial
consignment, that does not secure payment or performance of an obligation.
(3)  The Crown is bound by this Act.
1993, c.P-6.2, s.3.

Exceptions
4  Except as otherwise provided in this Act or the regulations, this Act does not
apply to:
(a)  a lien, charge or other interest given by statute or rule of law;
(b)  the creation or transfer of an interest or claim in or pursuant to a policy of
insurance except the transfer of a right to money or other value that is payable
pursuant to a policy of insurance as indemnity or compensation for loss of or
damage to collateral;
(b.1)  a transfer of an interest in or claim in or under a contract of annuity,
other than a contract of annuity held by a securities intermediary for another
person in a securities account;
(c)  the creation or transfer of an interest in present or future wages, salary,
pay, commission or any other compensation for labour or personal services,
other than fees for professional services;
(d)  a transfer of an unearned right to payment pursuant to a contract to
a transferee who is to perform the transferor’s obligations pursuant to the
contract;
(e)  the creation or transfer of an interest in land, including a lease;
 15

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(f)  the creation or transfer of a right to payment that arises in connection

with an interest in or a lease of land, other than a right to payment that is
evidenced by an investment property or instrument;
(g)  a sale of accounts or chattel paper as part of a sale of a business out of
which they arose, unless the vendor remains in apparent control of the business
after the sale;
(h)  a transfer of accounts that is made solely to facilitate the collection of
accounts for the transferor;
(i)  the creation or transfer of a right to damages in tort;
(j)  an assignment for the general benefit of creditors made pursuant to an
Act of the Parliament of Canada relating to insolvency;
(k)  a security agreement governed by an Act of the Parliament of Canada
that deals with the rights of parties to the agreement or the rights of third
parties affected by a security interest created by the agreement, including an
agreement governed by sections 425 to 436 of the Bank Act (Canada).
1993, c.P-6.2, s.4; 2007, c.S-42.3, s.108.

General rules
5(1)  Subject to sections 6 and 7, the validity of:
(a)  a security interest in goods; or
(b)  a possessory security interest in an instrument, a negotiable document
of title, money or chattel paper;
is governed by the law of the jurisdiction where the collateral is situated when the
security interest attaches.
(1.1)  Except as otherwise provided in sections 6 and 7, while the collateral is
situated in a jurisdiction, perfection, the effect of perfection or non‑perfection, and
the priority of a security interest described in subsection (1) shall be governed by
the law of that jurisdiction.
(2)  For the purposes of subsection (1), an uncertificated security is situated where
the records of the clearing agency are kept.
(3)  A security interest in goods that is perfected pursuant to the law of the
jurisdiction in which the goods are situated when the security interest attaches and
before the goods are brought into Saskatchewan continues perfected in Saskatchewan
if it is perfected in Saskatchewan:
(a)  not later than 60 days after the day on which the goods are brought into
Saskatchewan;
(b)  not later than 15 days after the day on which the secured party has
knowledge that the goods have been brought into Saskatchewan; or
16

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(c)  before perfection ceases pursuant to the law of the jurisdiction in which
the goods were situated when the security interest attached;
whichever is earliest, but the security interest is subordinate to the interest of a buyer
or lessee of the goods who acquires the interest without knowledge of the security
interest and before it is perfected in Saskatchewan pursuant to section 24 or 25.
(4)  A security interest that is not perfected as provided in subsection (3) may be
otherwise perfected in Saskatchewan pursuant to this Act.
(5)  Where a security interest mentioned in subsection (1) is not perfected pursuant
to the law of the jurisdiction in which the collateral was situated when the security
interest attached and before the collateral was brought into Saskatchewan, it may
be perfected pursuant to this Act.
1993, c.P-6.2, s.5; 2007, c.S-42.3, s.108.

Goods removed from jurisdiction

6(1)  Subject to section 7, where:
(a)  the parties to a security agreement that creates a security interest in
goods in one jurisdiction understand at the time when the security interest
attaches that the goods will be kept in another jurisdiction; and
(b)  the goods are removed to the other jurisdiction, for purposes other than
transportation through the other jurisdiction, not later than 30 days after the
security interest attaches;
the validity, the perfection and the effect of perfection or non-perfection and priority
of the security interest are determined by the law of the other jurisdiction.
(2)  Where the jurisdiction to which the goods are removed is not Saskatchewan
and the goods are later brought into Saskatchewan, the security interest in the
goods is deemed to be a security interest to which subsection 5(3) applies if it was
perfected pursuant to the law of the jurisdiction to which the goods were removed.
1993, c.P-6.2, s.6; 2007, c.S-42.3, s.108.

Intangibles, mobile goods, etc.

7(1)  For the purposes of this section, a debtor is located at:
(a)  the place of business, if any, of the debtor;
(b)  the chief executive office of the debtor, if the debtor has more than one
place of business; and
(c)  the principal residence of the debtor, if the debtor has no place of business.
(2)  The validity, the perfection and the effect of perfection or non-perfection of:
(a)  a security interest in:
(i)  an intangible; or
(ii)  goods that are of a type that are normally used in more than one
jurisdiction, if the goods are equipment or inventory leased or held for
lease by a debtor to others; and
 17

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(b)  a non-possessory security interest in an instrument, a negotiable document

of title, money and chattel paper;
are governed by the law, including the conflict of law rules, of the jurisdiction where
the debtor is located when the security interest attaches.
(3)  Where a debtor relocates to another jurisdiction or transfers an interest in the
collateral to a person located in another jurisdiction, a security interest perfected in
accordance with the law applicable as provided in subsection (2) continues perfected
in Saskatchewan if it is perfected in the other jurisdiction:
(a)  not later than 60 days after the day on which the debtor relocates
or transfers an interest in the collateral to a person located in the other
jurisdiction;
(b)  not later than 15 days after the day on which the secured party has
knowledge that the debtor has relocated or transferred an interest in the
collateral to a person located in the other jurisdiction; or
(c)  prior to the day on which perfection ceases pursuant to the law of the
first jurisdiction;
whichever is the earliest.
(4)  If the law governing the perfection of a security interest mentioned in subsection (2)
or (3) does not provide for public registration or recording of the security interest
or a notice relating to it, and the collateral is not in the possession of the secured
party, the security interest is subordinate to:
(a)  an interest in an account payable in Saskatchewan; or
(b)  an interest in goods, a security, an instrument, a negotiable document
of title, money or chattel paper acquired when the collateral was situated in
Saskatchewan;
unless it is perfected pursuant to this Act before the interest mentioned in
clause (a) or (b) arises.
(5)  A security interest mentioned in subsection (4) may be perfected pursuant to
this Act.
(6)  Notwithstanding subsection (2) and section 6, the validity, the perfection and
the effect of perfection or non-perfection of a security interest in minerals or in an
account resulting from the sale of the minerals at the minehead that:
(a)  is provided for in a security agreement executed before the minerals are
extracted; and
(b)  attaches to the minerals on extraction or attaches to an account on the
sale of the minerals;
is governed by the law of the jurisdiction in which the minehead is located.
(7)  For the purposes of subsection (6), “minerals” includes petroleum and gas
and “minehead” includes wellhead.
1993, c.P-6.2, s.7; 2007, c.S-42.3, s.108.
18

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

Applicable law ‑ investment property

7.1(1)  The validity of a security interest in investment property is governed by the
law, at the time the security interest attaches:
(a)  of the jurisdiction where the certificate is located if the collateral is a
certificated security;
(b)  of the issuer’s jurisdiction if the collateral is an uncertificated security;
(c)  of the securities intermediary’s jurisdiction if the collateral is a security
entitlement or a securities account; or
(d)  of the futures intermediary’s jurisdiction if the collateral is a futures
contract or a futures account.
(2)  Except as otherwise provided in subsection (5), perfection, the effect of perfection
or non‑perfection and the priority of a security interest in investment property is
governed by the law:
(a)  of the jurisdiction in which the certificate is located if the collateral is a
certificated security;
(b)  of the issuer’s jurisdiction if the collateral is an uncertificated security;
(c)  of the securities intermediary’s jurisdiction if the collateral is a security
entitlement or a securities account; or
(d)  of the futures intermediary’s jurisdiction if the collateral is a futures
contract or a futures account.
(3)  For the purposes of this section:
(a)  the location of a debtor is determined by subsection 7(1);
(b)  the issuer’s jurisdiction is determined by subsection 44(5) of
The Securities Transfer Act;
(c)  the securities intermediary’s jurisdiction is determined by subsection 45(2)
of The Securities Transfer Act.
(4)  For the purposes of this section, the following rules determine a futures
intermediary’s jurisdiction:
(a)  if an agreement between the futures intermediary and futures customer
governing the futures account expressly provides that a particular jurisdiction
is the futures intermediary’s jurisdiction for purposes of the law of that
jurisdiction, this Act or any provision of this Act, the jurisdiction expressly
provided for is the futures intermediary’s jurisdiction;
(b)  if clause (a) does not apply and an agreement between the futures
intermediary and futures customer governing the futures account expressly
provides that the agreement is governed by the law of a particular jurisdiction,
that jurisdiction is the futures intermediary’s jurisdiction;
(c)  if neither clause (a) nor (b) applies and an agreement between the futures
intermediary and futures customer governing the futures account expressly
provides that the futures account is maintained at an office in a particular
jurisdiction, that jurisdiction is the futures intermediary’s jurisdiction;
 19

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(d)  if none of the preceding clauses applies, the futures intermediary’s

jurisdiction is the jurisdiction in which the office identified in an account
statement as the office serving the futures customer’s account is located;
(e)  if none of the preceding clauses applies, the futures intermediary’s
jurisdiction is the jurisdiction in which the chief executive office of the futures
intermediary is located.
(5)  The law of the jurisdiction in which the debtor is located governs:
(a)  perfection of a security interest in investment property by registration;
(b)  perfection of a security interest in investment property granted by a broker
or securities intermediary where the secured party relies on attachment of the
security interest as perfection; and
(c)  perfection of a security interest in a futures contract or futures account
granted by a futures intermediary where the secured party relies on attachment
of the security interest as perfection.
(6)  A security interest perfected pursuant to the law of the jurisdiction designated
in subsection (5) remains perfected until the earliest of:
(a)  60 days after the day the debtor relocates to another jurisdiction;
(b)  15 days after the day the secured party knows the debtor has relocated
to another jurisdiction; and
(c)  the day that perfection ceases pursuant to the previously applicable law.
(7)  A security interest in investment property which is perfected pursuant to the law
of the issuer’s jurisdiction, the securities intermediary’s jurisdiction or the futures
intermediary’s jurisdiction, as applicable, remains perfected until the earliest of:
(a)  60 days after a change of the applicable jurisdiction to another jurisdiction;
(b)  15 days after the day the secured party knows of the change of the
applicable jurisdiction to another jurisdiction; and
(c)  the day that perfection ceases pursuant to the previously applicable law.
2007, c.S-42.3, s.108.

Enforcement of rights of secured party

8(1)  Notwithstanding sections 5, 6, 7 and 7.1:
(a)  procedural issues involved in the enforcement of the rights of a secured
party against collateral are governed by the law of the jurisdiction in which
the enforcement rights are exercised; and
(b)  substantive issues involved in the enforcement of the rights of a secured
party against collateral are governed by the proper law of the contract between
the secured party and the debtor.
20

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(2)  For the purposes of sections 5, 6, 7 and 7.1, a security interest is perfected
pursuant to the law of a jurisdiction if the secured party has complied with the law
of the jurisdiction with respect to the creation and continuance of a security interest
with the result that the security interest has a status in relation to other secured
parties, buyers and judgment creditors and a trustee in bankruptcy of the debtor
similar to that of an equivalent security interest created and perfected pursuant
to this Act.
1993, c.P-6.2, s.8; 2007, c.S-42.3, s.108.

Law of a jurisdiction
8.1  For the purposes of sections 5 to 8, a reference to the law of a jurisdiction means
the internal law of that jurisdiction excluding its conflict of law rules.
2007, c.S-42.3, s.108.

PART II
Validity of Security Agreements
and Rights of Parties

Effectiveness of security agreement

9(1)  Except as otherwise provided in this or any other Act, a security agreement
is effective according to its terms.
(2)  A security interest in collateral ceases to be valid with respect to that collateral
to the extent that and for so long as the security interest secures payment or
performance of an obligation that is also secured by a security in favour of that
secured party on that collateral created pursuant to sections 425 to 436 of the Bank
Act (Canada).
(3)  Nothing in subsection (2) affects:
(a)  a security interest that secures payment or performance of an obligation
owing by a person who is not a party to an agreement between the debtor and
the secured party to which any of sections 425 to 436 of the Bank Act (Canada)
applies; or
(b)  a security interest that is created or provided for in a security agreement
executed before this section comes into force.
(4)  An account debtor as defined in clause 41(1)(a) may take a security interest in
the account or chattel paper under which the account debtor is obligated.
1993, c.P-6.2, s.9; 2000, c.21, s.5.
 21

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

Enforceability against third parties

10(1)  Subject to subsection (2) and section 12.1, a security interest is enforceable
against a third party only where:
(a)  the collateral is not a certificated security and is in the possession of the
secured party;
(b)  the collateral is a certificated security in registered form and the security
certificate has been delivered to the secured party pursuant to section 68 of
The Securities Transfer Act pursuant to the debtor’s security agreement;
(c)  the collateral is investment property and the secured party has control
pursuant to subsection 2(1.1) pursuant to the debtor’s security agreement; or
(d)  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) “crops”;
(B) “goods”;
(C)  “chattel paper”;
(D)  “investment property”;
(E)  “documents of title”;
(F) “instruments”;
(G) “money”;
(H) “intangibles”;
(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 ‘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 personal property described by
reference to one or more of the following:
(A) “crops”;
(B) “goods”;
(C)  “chattel paper”;
(D)  “investment property”;
(E)  “documents of title”;
(F) “instruments”;
(G) “money”;
(H) “intangibles”.
22

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(2)  For the purposes of clause (1)(a), a secured party is deemed not to have taken
possession of collateral that is in the apparent possession or control of the debtor
or the debtor’s agent.
(3)  A description is inadequate for the purposes of clause (1)(d) if it describes the
collateral as consumer goods or equipment without further reference to the item
or kind of collateral.
(4)  A description of collateral as inventory is adequate for the purposes of
clause (1)(d) only while it is held by the debtor as inventory.
(5)  A security interest in proceeds is enforceable against a third party whether or
not the security agreement contains a description of the proceeds.
1993, c.P-6.2, s.10; 2007, c.S-42.3, s.108; 2010,
c.26, s.9.

Copy of security agreement

11  Where a security agreement is in writing, the secured party shall deliver a copy
of the security agreement to the debtor not later than 10 days after the execution of
the security agreement and, if the secured party fails to do so after a request by the
debtor, the court may, on application by the debtor, make an order for the delivery
of a copy to the debtor.
1993, c.P-6.2, s.11.

Attachment of security interests

12(1)  A security interest attaches when:
(a)  value is given;
(b)  the debtor has rights in the collateral or power to transfer rights in the
collateral to a secured party; and
(c)  except for the purpose of enforcing rights between the parties to the
security agreement, the security interest becomes enforceable within the
meaning of section 10;
unless the parties have specifically agreed to postpone the time of attachment, in
which case it attaches at the time specified in the agreement.
(2)  For the purposes of clause (1)(b) and without limiting other rights, if any, that
the debtor may have in the collateral, a lessee pursuant to a lease for a term of more
than one year or a consignee pursuant to a commercial consignment has rights in
the goods when the lessee or consignee obtains possession of them pursuant to the
lease or consignment.
(3)  For the purposes of subsection (1), a debtor has no rights in:
(a)  crops until they become growing crops;
(b)  the young of animals until they are conceived;
(c)  petroleum, gas or other minerals until they are extracted; or
(d)  trees, other than crops, until they are severed.
 23

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(4)  The attachment of a security interest in a securities account is also attachment

of a security interest in the security entitlements carried in the securities account.
(5)  The attachment of a security interest in a futures account is also attachment
of a security interest in the futures contracts carried in the futures account.
1993, c.P-6.2, s.12; 1996, c.18, s.4; 2007,
c.S-42.3, s.108.

Securities intermediary
12.1(1)  A security interest in favour of a securities intermediary attaches to a
person’s security entitlement if:
(a)  the person buys a financial asset through the securities intermediary in
a transaction in which the person is obligated to pay the purchase price to the
securities intermediary at the time of the purchase; and
(b)  the securities intermediary credits the financial asset to the buyer’s
securities account before the buyer pays the securities intermediary.
(2)  The security interest described in subsection (1) secures the person’s obligation
to pay for the financial asset.
(3)  A security interest in favour of a person that delivers a certificated security
or other financial asset represented by a writing attaches to the security or other
financial asset if:
(a)  the security or other financial asset is:
(i)  in the ordinary course of business transferred by delivery with any
necessary endorsement or assignment; and
(ii)  delivered under an agreement between persons in the business of
dealing with such securities or financial assets; and
(b)  the agreement calls for delivery against payment.
(4)  The security interest described in subsection (3) secures the obligation to make
payment for the delivery.
2007, c.S-42.3, s.108.

After-acquired property
13(1)  Subject to section 12 and subsection (2), where a security agreement provides
for a security interest in after-acquired property, the security interest attaches in
accordance with section 12 without specific appropriation by the debtor.
(2)  Subject to subsection (3), a security interest in after-acquired property that is
the crop of a grower, or grains, fruits, vegetables or other produce resulting from
or that may result from harvesting the crop of a grower, does not attach if the crop
is planted more than one year after the security agreement has been entered into.
24

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(3)  Notwithstanding subsection (2), a security interest in a crop, or grains, fruits,

vegetables or other produce resulting from or that may result from harvesting the
crop, given in conjunction with a lease, agreement for sale or mortgage of land on
which the crop is to be grown may, if the parties so agree, attach to the crop to be
grown on that land and grains, fruits, vegetables or other produce resulting from or
that may result from harvesting the crop during the term of the lease, agreement
for sale or mortgage.
(4)  Subsection (2) does not apply to a crop that consists of trees.
1993, c.P-6.2, s.13; 1996, c.18, s.5.

Future advances
14(1)  A security agreement or a related agreement may provide for future advances.
(2)  Unless the parties otherwise agree, a secured party is released from an
obligation to make future advances when the collateral becomes subject to an
enforcement charge that has priority over the security interest.
1993, c.P-6.2, s.14; 2010, c.E-9.22, s.216.

Seller’s obligations
15  Where a seller retains a purchase-money security interest in goods, the law
relating to contracts of sale, including a disclaimer, limitation or modification of the
seller’s performance obligations with respect to the goods, governs the sale.
1993, c.P-6.2, s.15.

Acceleration of payment or performance

16  Where a security agreement provides that the secured party may accelerate
payment or performance by the debtor when:
(a)  the secured party considers that the collateral is in jeopardy; or
(b)  the secured party is insecure or believes himself or herself to be insecure;
the provision is to be construed to mean that the secured party has the right to do
so only if the secured party believes, and has commercially reasonable grounds to
believe, that the collateral is or is about to be placed in jeopardy or that the prospect
of payment or performance is or is about to be impaired.
1993, c.P-6.2, s.16.

Preservation of collateral
17(1)  In this section, “secured party” includes a receiver.
(2)  A secured party shall use reasonable care in the custody and preservation
of collateral in the possession of the secured party and, unless the parties agree
otherwise, in the case of an instrument or chattel paper, reasonable care includes
taking necessary steps to preserve rights against other persons.
 25

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(3)  Unless the parties agree otherwise, where collateral is in the secured party’s
possession:
(a)  reasonable expenses, including the cost of insurance and payment of
taxes or other charges incurred in obtaining and maintaining possession of
the collateral, are chargeable to the debtor and are secured by the collateral;
(b)  the risk of loss or damage, except where caused by the negligence of the
secured party, is on the debtor to the extent of any deficiency in any insurance
coverage;
(c)  the secured party may hold as additional security any increase or profits,
except money, received from the collateral, and shall apply any money so
received, unless remitted to the debtor, immediately on its receipt in reduction
of the obligation secured; and
(d)  the secured party shall keep the collateral identifiable, but fungible
collateral may be commingled.
(4)  Subject to subsection (2), a secured party may use the collateral:
(a)  in the manner and to the extent provided in the security agreement;
(b)  for the purpose of preserving the collateral or its value; or
(c)  pursuant to an order of the court.
1993, c.P-6.2, s.17; 2007, c.S-42.3, s.108.

Other matters ‑ control of investment property as collateral

17.1(1)  Unless otherwise agreed by the parties and notwithstanding section 17, a
secured party having control pursuant to subsection 2(1.1) of investment property
as collateral:
(a)  may hold as additional security any proceeds received from the collateral;
(b)  shall either apply money or funds received from the collateral to reduce
the secured obligation or remit such money or funds to the debtor; and
(c)  may create a security interest in the collateral.
(2)  Notwithstanding subsection (1) and section 17, a secured party having control
pursuant to subsection 2(1.1) of investment property as collateral may sell, transfer,
use or otherwise deal with the collateral in the manner and to the extent provided
in the security agreement.
2007, c.S-42.3, s.108.

Demand for information from secured party

18(1)  The debtor, a creditor, a sheriff, a person with an interest in personal property
of the debtor or an authorized representative of any of them may, by a demand in
writing containing an address for reply and delivered to the secured party:
(a)  at the secured party’s most recent address set out in a registered financing
statement containing a description of personal property of the debtor; or
(b)  at the current address of the secured party, if known by the person who
makes the demand;
26

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

require the secured party to send or make available the information specified in
subsection (2) to the person making the demand or, if the demand is made by the
debtor, to any person at an address specified by the debtor.
(2)  The information that may be demanded pursuant to subsection (1) may be one
or more of the following:
(a)  a copy of a security agreement that provides for a security interest held
by the secured party in the personal property of the debtor;
(b)  a statement in writing of the amount of the indebtedness and of the terms
of payment of the indebtedness, as of the day specified in the demand;
(c)  a written approval or correction of an itemized list of personal property
attached to the demand indicating which items are collateral as of the day
specified in the demand;
(d)  a written approval or correction of the amount of indebtedness and of the
terms of payment of the indebtedness as of the day specified in the demand;
(e)  sufficient information as to the location of the security agreement or a
copy of it to enable a person entitled to receive a copy of the security agreement
to inspect it.
(3)  A person with an interest in personal property of the debtor is entitled to make
a demand pursuant to subsection (1) only with respect to a security agreement that
provides for a security interest in the property in which the person has an interest.
(4)  On the demand of a person entitled to receive a copy of the security agreement
pursuant to subsection (1), the secured party shall permit the person to inspect the
security agreement or a copy of it during normal business hours at the location
mentioned in clause (2)(e).
(5)  Where a demand is made in accordance with clause (2)(c) and the secured party
claims a security interest in:
(a)  all of the personal property of the debtor;
(b)  all the property of the debtor other than a specified kind or item of
property; or
(c)  all of a specified kind of property of the debtor;
the secured party may indicate this in lieu of approving or correcting the itemized
list of the property.
(6)  A secured party, other than a trustee pursuant to a trust indenture, shall
reply to a demand pursuant to subsection (1) or (4) not later than 10 days after the
demand is made.
(7)  A secured party who is a trustee pursuant to a trust indenture shall reply to a
demand pursuant to subsection (1) or (4) not later than 25 days after the demand
is made.
 27

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(8)  Where, without reasonable excuse:

(a)  a secured party fails to comply with a demand within the time specified
in subsection (6) or (7); or
(b)  in the case of a demand pursuant to subsection (1), the reply is incomplete
or incorrect;
the person who makes the demand, in addition to any other remedy provided by
this Act, may apply to the court for an order requiring the secured party to comply
with the demand.
(9)  Where a person who receives a demand pursuant to subsection (1) or (4) no
longer has an interest in the obligation or property of the debtor that is the subject
of the demand, the person shall, not later than 10 days after receiving the demand,
disclose the name and address of the immediate successor in interest and, if known
to the person, the current successor in interest.
(10)  Where, without reasonable excuse, the person who receives a demand fails to
comply with subsection (9), the person who makes the demand, in addition to any
other remedy provided in this Act, may apply to the court for an order requiring the
person who receives the demand to comply with subsection (9).
(11)  On application pursuant to subsection (8) or (10), the court may make an
order requiring:
(a)  the secured party mentioned in subsection (8) to comply with the demand
mentioned in that subsection; or
(b)  the person mentioned in subsection (9) to disclose the information
mentioned in that subsection.
(12)  In an application pursuant to subsection (8) or (10) or in a separate application,
the court may:
(a)  make any order that it considers necessary to ensure compliance with
the demand; and
(b)  in the case of an application pursuant to subsection (8), make an order
declaring that, in the event of non-compliance with the order of the court to
respond to the demand:
(i)  the security interest of the secured party with respect to which the
demand was made is unperfected or extinguished; and
(ii)  any related registration is discharged.
(13)  Subject to subsection 65(5), on an application pursuant to subsection (8)
or (10), or on an application of the secured party mentioned in subsection (8) or the
person mentioned in subsection (9), the court may:
(a)  unless the demand is made by the debtor, exempt the secured party or
person who receives the demand in whole or in part from complying with
subsection (1) or (9); or
(b)  extend the time for compliance.
28

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(14)  A secured party who replies to a demand mentioned in subsection (1) is

estopped for the purposes of this Act as against:
(a)  the person who makes the demand; or
(b)  any other person who can reasonably be expected to rely on the reply;
to the extent that the person relies on the reply, from denying:
(c)  the accuracy of the information contained in the reply to the demand
pursuant to clause (2)(b), (c) or (d); or
(d)  that the copy of the security agreement provided in response to a demand
pursuant to clause (2)(a) is a true copy of the security agreement required to
be provided by clause (2)(a).
(15)  A successor in interest mentioned in subsection (9) is estopped for the purposes
of this Act as against:
(a)  the person who makes the demand mentioned in subsection (1); and
(b)  any other person who can reasonably be expected to rely on the reply to
the demand;
to the extent that the person relies on the reply, from denying:
(c)  the accuracy of the information contained in the reply to the demand
pursuant to clauses (2)(b), (c) and (d); or
(d)  that the copy of the security agreement that was provided in response to
a demand pursuant to clause (2)(a) is a true copy of the security agreement
required to be provided by clause (2)(a).
(16)  A successor in interest mentioned in subsection (9) is not estopped pursuant
to subsection (15) where:
(a)  the person who makes the demand knows the identity and address of the
successor in interest; or
(b)  prior to the demand, a financing change statement is registered as provided
in section 45 disclosing the successor in interest as the secured party.
(17)  The person to whom a demand is made pursuant to this section may require
payment in advance of a fee in the amount prescribed for each demand, but the
debtor is entitled to a reply without charge once every six months.
(18)  A secured party who receives a demand that purports to be made by a person
entitled to make it pursuant to subsection (1) may act as if the person is, in fact,
entitled to make the demand unless the secured party knows that the person is not
entitled to make it.
1993, c.P-6.2, s.18.
 29

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

PART III
Perfection and Priorities

Perfection of security interest

19  A security interest is perfected when it has attached and all steps required
for perfection pursuant to this Act have been completed, regardless of the order of
occurrence.
1993, c.P-6.2, s.19.

Perfection and priorities

19.1(1)  Perfection of a security interest in a securities account also perfects a
security interest in the security entitlements carried in the securities account.
(2)  Perfection of a security interest in a futures account also perfects a security
interest in the futures contracts carried in the futures account.
2007, c.S-42.3, s.108.

When certain security interests are perfected

19.2(1)  A security interest arising in the delivery of a financial asset pursuant to
subsection 12.1(3) is perfected when it attaches.
(2)  A security interest in investment property created by a broker or securities
intermediary is perfected when it attaches.
(3)  A security interest in a futures contract or a futures account created by a futures
intermediary is perfected when it attaches.
2007, c.S-42.3, s.108.

Priority re unperfected and certain perfected security interests

20(1)  Repealed. 2010, c.E-9.22, s.217.
(2)  A security interest in collateral is not effective against:
(a)  a trustee in bankruptcy if the security interest is unperfected at the date
of bankruptcy; or
(b)  a liquidator appointed pursuant to the Winding-up Act (Canada) if the
security interest is unperfected on the day that the winding-up order is made.
(3)  A security interest in goods, a document of title, an instrument, an intangible
or money is subordinate to the interest of a transferee who:
(a)  acquires the interest pursuant to a transaction that is not a security
agreement or that is a security agreement under which the transferor acquires
a purchase money security interest to secure all or part of the purchase price
of goods;
(b)  gives value; and
(c)  acquires the interest without knowledge of the security interest before
the security interest is perfected.
30

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(4)  For the purposes of subsection (3), a purchaser of an instrument or a security,

or the holder of negotiable document of title, who acquired the instrument, security
or negotiable document of title in a transaction that was in the ordinary course of
the transferor’s business has knowledge of the security interest only if the purchaser
or holder acquired his or her interest with knowledge of the existence of a prior
security interest and with knowledge that the transaction violates the terms of the
security agreement creating or providing for that interest.
1993, c.P-6.2, s.20; 1996, c.18, s.6; 2007,
c.S-42.3, s.108; 2010, c.26, s.10; 2010, c.E-9.22,
s.217.

Measure of damages
21  Where the interest of a lessor pursuant to a lease for a term of more than one
year or of a consignor pursuant to a commercial consignment is subordinate to an
enforcement charge or is not effective against a trustee or liquidator pursuant to
subsection 20(2), the lessor or consignor is deemed, as against the lessee or consignee,
as the case may be, to have suffered, immediately before the seizure of the leased
or consigned goods or the date of the bankruptcy or winding-up order, damages in
an amount equal to:
(a)  the value of the leased or consigned goods at the date of the seizure,
bankruptcy or winding-up order; and
(b)  the amount of loss, other than that mentioned in clause (a), resulting from
the termination of the lease or consignment.
1993, c.P-6.2, s.21; 2010, c.E-9.22, s.218.

22  Repealed. 2010, c.E-9.22, s.219.

Continuity of perfection
23(1)  If a security interest is originally perfected pursuant to this Act and is
again perfected in some other way pursuant to this Act without an intermediate
period when it is unperfected, the security interest is continuously perfected for the
purposes of this Act.
(2)  A transferee of a security interest has the same priority with respect to perfection
of the security interest as the transferor had at the time of the transfer.
1993, c.P-6.2, s.23.

Perfection by possession
24(1)  Subject to section 19, possession of the collateral by the secured party, or by
another person on the secured party’s behalf, perfects a security interest in:
(a)  chattel paper;
(b) goods;
(c)  an instrument;
(d)  Repealed. 2007, c.S-42.3, s.108.
 31

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(e)  a negotiable document of title; or

(f) money;
except where possession is a result of seizure or repossession.
(2)  For the purposes of subsection (1), a secured party does not have possession
of collateral that is in the actual or apparent possession or control of the debtor or
the debtor’s agent.
(3)  Subject to section 19, a secured party may perfect a security interest in a
certificated security by taking delivery of the certificated security pursuant to
section 68 of The Securities Transfer Act.
(4)  Subject to section 19, a security interest in a certificated security in registered
form is perfected by delivery when delivery of the certificated security occurs
pursuant to section 68 of The Securities Transfer Act and remains perfected by
delivery until the debtor obtains possession of the security certificate.
1993, c.P-6.2, s.24; 2007, c.S-42.3, s.108.

Perfection of security interest in investment property

24.1(1)  Subject to section 19, a security interest in investment property may be
perfected by control of the collateral pursuant to subsection 2(1.1).
(2)  Subject to section 19, a security interest in investment property is perfected
by control pursuant to subsection 2(1.1) from the time the secured party obtains
control and remains perfected by control until:
(a)  the secured party does not have control; and
(b)  one of the following occurs:
(i)  if the collateral is a certificated security, the debtor has or acquires
possession of the security certificate;
(ii)  if the collateral is an uncertificated security, the issuer has registered
or registers the debtor as the registered owner; or
(iii)  if the collateral is a security entitlement, the debtor is or becomes
the entitlement holder.
2007, c.S-42.3, s.108.

Perfection by registration
25  Subject to section 19, registration of a financing statement perfects a security
interest in collateral.
1993, c.P-6.2, s.25.
32

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

Temporary perfection
26(1)  A security interest perfected pursuant to section 24 in:
(a)  an instrument or a certificated security that a secured party delivers to
the debtor for the purpose of:
(i)  ultimate sale or exchange;
(ii)  presentation, collection or renewal; or
(iii)  registration of a transfer; or
(b)  a negotiable document of title or goods held by a bailee that are not covered
by a negotiable document of title, which document of title or goods the secured
party makes available to the debtor for the purpose of:
(i)  ultimate sale or exchange;
(ii)  loading, unloading, storing, shipping or transshipping; or
(iii)  manufacturing, processing, packaging or otherwise dealing with
goods in a manner preliminary to their sale or exchange;
remains perfected, notwithstanding section 10, for the first 15 days after the
collateral comes under the control of the debtor.
(2)  After the expiration of the period of time mentioned in subsection (1), a security
interest mentioned in this section is subject to the provisions of this Act relating to
the perfection of a security interest.
1993, c.P-6.2, s.26; 2007, c.S-42.3, s.108.

Perfection re goods held by bailee

27(1)  Subject to section 19, a security interest in goods in the possession of a bailee
is perfected by:
(a)  the issuance of a document of title by the bailee in the name of the secured
party;
(b)  the perfection of a security interest in a negotiable document of title to
the goods where the bailee has issued one;
(c)  a holding on behalf of the secured party pursuant to section 24; or
(d)  the registration of a financing statement relating to the goods.
(2)  The issuance of a negotiable document of title covering goods does not preclude
any other security interest in the goods from arising during the period that the
negotiable document of title is outstanding.
(3)  A perfected security interest in a negotiable document of title covering goods
takes priority over a security interest in the goods otherwise perfected after the
goods become covered by the negotiable document of title.
1993, c.P-6.2, s.27.
 33

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

Perfection re proceeds
28(1)  Subject to this Act, where collateral is dealt with or otherwise gives rise to
proceeds, the security interest:
(a)  continues in the collateral unless the secured party expressly or impliedly
authorizes the dealing; and
(b)  extends to the proceeds;
but where the secured party enforces a security interest against both the collateral
and the proceeds, the amount secured by the security interest in the collateral and
the proceeds is limited to the market value of the collateral at the date of the dealing.
(1.1)  The limitation of the amount secured by a security interest as provided in
subsection (1) does not apply if the collateral is investment property.
(2)  A security interest in proceeds is a continuously perfected security interest
if the interest in the original collateral is perfected by registration of a financing
statement that:
(a)  contains a description of the proceeds that would be sufficient to perfect
a security interest in original collateral of the same kind;
(b)  covers the original collateral, if the proceeds are of a kind that are within
the description of the original collateral; or
(c)  covers the original collateral, if the proceeds consist of money, cheques or
deposit accounts in banks or similar institutions.
(3)  Where the security interest in the original collateral is perfected in a manner
other than a manner described in subsection (2), the security interest in the proceeds
is a continuously perfected security interest, but becomes unperfected on the
expiration of 15 days after the security interest in the original collateral attaches
to the proceeds unless the security interest in the proceeds is otherwise perfected
by any of the methods and under the circumstances specified in this Act for original
collateral of the same kind.
1993, c.P-6.2, s.28; 2007, c.S-42.3, s.108.

Goods returned or repossessed

29(1)  Where a debtor sells or leases goods that are subject to a security interest
under circumstances in which the buyer or lessee takes free of the security interest
pursuant to clause 28(1)(a) or section 30, the security interest reattaches to the
goods if:
(a)  the goods are returned to, seized or repossessed by the debtor or by a
transferee of chattel paper created by the sale or lease; and
(b)  the obligation secured remains unpaid or unperformed.
34

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(2)  Where a security interest reattaches pursuant to subsection (1), the perfection
of the security interest and the time of registration or perfection are determined as
if the goods had not been sold or leased, if:
(a)  the security interest was perfected by registration at the time of the sale
or lease; and
(b)  the registration is effective at the time of the return, seizure or repossession.
(3)  Where a sale or lease of goods creates an account or chattel paper, and:
(a)  the account or chattel paper is transferred to a secured party; and
(b)  the goods are returned to, seized or repossessed by the debtor or by the
transferee of the chattel paper;
the transferee of the account or chattel paper has a security interest in the goods
that attaches when the goods are returned, seized or repossessed.
(4)  Notwithstanding subsection 24(1), a security interest in goods that arises
pursuant to subsection (3) is perfected if the security interest in the account or
chattel paper was perfected at the time of the return, seizure or repossession, but
becomes unperfected on the expiry of 15 days after the return, seizure or repossession
unless the transferee registers a financing statement relating to the security interest
or takes possession of the goods by seizure, repossession or otherwise before the
expiration of that period.
(5)  A security interest in goods that a transferee of an account has pursuant to
subsection (3) is subordinate to a perfected security interest arising pursuant to
subsection (1) and to a security interest of a transferee of chattel paper arising
pursuant to subsection (3).
(6)  A security interest in goods that a transferee of chattel paper has pursuant to
subsection (3) has priority over:
(a)  a security interest in goods that reattaches pursuant to subsection (1); and
(b)  a security interest in goods as after-acquired property that attaches on
the return, seizure or repossession of the goods;
if the transferee of the chattel paper would have priority pursuant to sub-
section 31(7) as to the chattel paper over an interest in the chattel paper claimed
by the holder of the security interest in the goods.
(7)  A security interest in goods given by a buyer or lessee of the goods mentioned in
subsection (1) that attaches while the goods are in the possession of the buyer, lessee
or debtor and that is perfected when the goods are returned, seized or repossessed
has priority over a security interest in the goods arising pursuant to this section.
1993, c.P-6.2, s.29; 1996, c.18, s.7.
 35

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

Buyer or lessee takes free of security interest

30(1)  For the purposes of this section:
(a)  “buyer of goods” includes a person who obtains vested rights in goods
pursuant to a contract to which the person is a party, as a consequence of the
goods becoming a fixture or an accession to property in which the person has
an interest;
(b)  “ordinary course of business of the seller” includes the supply of
goods in the ordinary course of business as part of a contract for services and
materials;
(c)  “seller” includes a person who supplies goods that become a fixture or an
accession pursuant to a contract with a buyer of goods or with a person who
is party to a contract with a buyer of goods.
(2)  A buyer or lessee of goods sold or leased in the ordinary course of business of
the seller or lessor takes free of any perfected or unperfected security interest that
is given by the seller or lessor or that arises pursuant to section 28 or 29, whether
or not the buyer or lessee knows of it, unless the buyer or lessee also knows that
the sale or lease constitutes a breach of the security agreement pursuant to which
the security interest was created.
(3)  A buyer or lessee of goods that are acquired as consumer goods or goods bought
for farming uses takes free of a perfected or unperfected security interest in the
goods if the buyer or lessee:
(a)  gave value for the interest acquired; and
(b)  bought or leased the goods without knowledge of the security interest.
(4)  Subsection (3) does not apply to a security interest in:
(a)  a fixture; or
(b)  goods the purchase price of which exceeds $1,000 or, in the case of a lease,
the market value of which exceeds $1,000.
(5)  A buyer or lessee of goods takes free of a security interest that is temporarily
perfected pursuant to subsection 26(1), 28(3) or 29(4) or a security interest the
perfection of which is continued pursuant to section 51 during any of the 15-day
periods mentioned in those subsections, if the buyer or lessee:
(a)  gave value for the interest acquired; and
(b)  bought or leased the goods without knowledge of the security interest.
(6)  Where goods are sold or leased, the buyer or lessee takes free from any security
interest in the goods that is perfected pursuant to section 25 if:
(a)  the buyer or lessee bought or leased the goods without knowledge of the
security interest; and
(b)  the goods were not described by serial number in the registration relating
to the security interest.
36

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(7)  Subsection (6) applies only to goods that are equipment and are of a kind
prescribed as serial numbered goods.
(8)  A sale or lease mentioned in subsection (2), (3), (5) or (6) may be:
(a)  for cash;
(b)  by exchange for other property; or
(c)  on credit;
and includes delivering goods or a document of title pursuant to a pre-existing
contract for sale but does not include a transfer as security for, or in total or partial
satisfaction of, a money debt or past liability.
(9)  A purchaser of a security, other than a secured party, who:
(a)  gives value;
(b)  does not know that the transaction constitutes a breach of a security
agreement granting a security interest in the security to a secured party that
does not have control of the security; and
(c)  obtains control of the security;
acquires the security free from the security interest.
(10)  A purchaser mentioned in subsection (9) is not required to determine whether
a security interest has been granted in the security or whether the transaction
constitutes a breach of a security agreement.
(11)  An action based on a security agreement creating a security interest in a
financial asset, however framed, may not be asserted against a person who acquires
a security entitlement pursuant to section 95 of The Securities Transfer Act for value
and who did not know that there has been a breach of the security agreement.
(12)  A person who acquires a security entitlement pursuant to section 95 of The
Securities Transfer Act is not required to determine whether a security interest has
been granted in a financial asset or whether there has been a breach of the security
agreement.
(13)  If an action based on a security agreement creating a security interest in a
financial asset could not be asserted against an entitlement holder pursuant to
subsection (11), it may not be asserted against a person who purchases a security
entitlement, or an interest in it, from the entitlement holder.
1993, c.P-6.2, s.30; 1996, c.9, s.19; 2007,
c.S-42.3, s.108.

Protection of transferees of negotiable collateral

31(1)  A holder of money has priority over a security interest in it perfected pursuant
to section 25 or temporarily perfected pursuant to subsection 28(3) if the holder:
(a)  acquires the money without knowledge that it is subject to a security
interest; or
(b)  is a holder for value, whether or not the holder acquires the money without
knowledge that it is subject to a security interest.
 37

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(2)  A creditor who receives payment of a debt owing by a debtor through a

debtor‑initiated payment has priority over a security interest in:
(a)  the funds paid;
(b)  the intangible that was the source of the payment; and
(c)  any instrument used to effect the payment;
whether or not the creditor has knowledge of the security interest at the time of
the payment.
(3)  In subsection (2), “debtor-initiated payment” means a payment made by
the debtor through the use of:
(a)  an instrument or an electronic funds transfer; or
(b)  a debit, a transfer order, an authorization or a similar written payment
mechanism executed by the debtor when the payment is made.
(4)  A purchaser of an instrument has priority over any security interest in the
instrument perfected pursuant to section 25 or temporarily perfected pursuant to
section 26 or subsection 28(3) if the purchaser:
(a)  gave value for the instrument;
(b)  acquired the instrument without knowledge that it is subject to a security
interest; and
(c)  took possession of the instrument.
(5)  A holder to whom a negotiable document of title is negotiated has priority over
a security interest in the document of title that is perfected pursuant to section 25
or temporarily perfected pursuant to section 26 or subsection 28(3) if the holder:
(a)  gave value for the document of title; and
(b)  acquired the document of title without knowledge that it is subject to a
security interest.
(6)  For the purposes of subsections (4) and (5), a purchaser of an instrument or a
security or a holder of a negotiable document of title who acquired it pursuant to
a transaction entered into in the ordinary course of the transferor’s business has
knowledge only if the purchaser acquired the interest with knowledge that the
transaction violates the terms of the security agreement that creates or provides
for the security interest.
(7)  A purchaser of chattel paper who takes possession of it in the ordinary course
of the purchaser’s business and for new value has priority over any security interest
in the chattel paper that:
(a)  was perfected pursuant to section 25, if the purchaser does not have
knowledge at the time of taking possession that the chattel paper is subject
to a security interest; or
(b)  has attached to proceeds of inventory pursuant to section 28, whatever
the extent of the purchaser’s knowledge.
1993, c.P-6.2, s.31; 2007, c.S-42.3, s.108.
38

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

Rights pursuant to The Securities Transfer Act

31.1(1)  This Act does not limit the rights of a protected purchaser of a security
pursuant to The Securities Transfer Act.
(2)  The interest of a protected purchaser of a security pursuant to
The Securities Transfer Act takes priority over an earlier security interest, even if
perfected, to the extent provided in that Act.
(3)  This Act does not limit the rights of or impose liability on a person to the
extent that the person is protected against the assertion of a claim pursuant to The
Securities Transfer Act.
2007, c.S-42.3, s.108.

Priority re liens
32  Where a person in the ordinary course of business furnishes materials or
services with respect to goods that are subject to a security interest, a lien that the
person has with respect to those materials or services has priority over a perfected
security interest unless the lien is given by an Act that provides that the lien does
not have the priority.
1993, c.P-6.2, s.32.

Alienation of rights of debtor

33(1)  In this section, “transfer” includes a sale, the creation of a security interest
and a transfer pursuant to judgment enforcement proceedings.
(2)  The rights of a debtor in collateral may be transferred consensually or by
operation of law notwithstanding a provision in the security agreement that prohibits
transfer or declares a transfer to be a default, but a transfer by the debtor does
not prejudice the rights of the secured party pursuant to the security agreement
or otherwise, including the right to treat a prohibited transfer as an act of default.
1993, c.P-6.2, s.33.

Priority re purchase-money security interests

34(1)  In this section, a “non-proceeds security interest” or “non-proceeds
purchase-money security interest” means a security interest or purchase-money
security interest, as the case may be, in original collateral.
(2)  Subject to subsection (6) and section 28, a purchase-money security
interest in:
(a)  collateral or its proceeds, other than intangibles or inventory, that is
perfected not later than 15 days after the day on which the debtor, or another
person at the request of the debtor, obtains possession of the collateral,
whichever is earlier; or
(b)  an intangible or its proceeds that is perfected not later than 15 days after
the day on which the security interest in the intangible attaches;
has priority over any other security interest in the same collateral given by the
same debtor.
 39

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(3)  Subject to subsection (6) and section 28, a purchase-money security interest in
inventory or its proceeds has priority over any other security interest in the same
collateral given by the same debtor if:
(a)  the purchase-money security interest in the inventory is perfected at the
time when the debtor, or another person at the request of the debtor, obtains
possession of the collateral, whichever is earlier;
(b)  the secured party gives a notice to any other secured party who has, before
the time of registration of the purchase-money security interest, registered a
financing statement containing a description that includes the same item or
kind of collateral; and
(c)  the notice mentioned in clause (b):
(i)  states that the person giving the notice expects to acquire a purchase-
money security interest in inventory of the debtor and describes the
inventory by item or kind; and
(ii)  is given before the debtor, or another person at the request of the
debtor, obtains possession of the collateral, whichever is earlier.
(4)  A notice mentioned in subsection (3) may be given in accordance with
section 68 or by registered mail addressed to the address of the person to be notified
as it appears in the financing statement mentioned in clause (3)(b).
(5)  Subject to section 28, a purchase-money security interest in goods and their
proceeds, taken by a seller, lessor or consignor of the collateral, that is perfected:
(a)  in the case of inventory, at the day on which a debtor, or another person
at the request of the debtor, obtains possession of the collateral, whichever is
earlier; and
(b)  in the case of collateral other than inventory, not later than 15 days after
a debtor, or another person at the request of a debtor, obtains possession of the
collateral, whichever is earlier;
has priority over any other purchase-money security interest in the same collateral
given by the same debtor.
(6)  A non-proceeds security interest in accounts that is given for new value has
priority over a purchase-money security interest in the accounts as proceeds of
inventory if a financing statement relating to the security interest in the accounts
is registered before the purchase-money security interest is perfected or a financing
statement relating to it is registered.
(7)  Subsection (6) does not apply to an account in the form of a deposit with a
deposit-taking institution.
(8)  A non-proceeds purchase-money security interest has priority over a purchase-
money security interest in the same collateral as proceeds, if the non-proceeds
purchase-money security interest is perfected:
(a)  in the case of inventory, at the day on which a debtor, or another person
at the request of a debtor, obtains possession of the collateral, whichever is
earlier; and
40

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(b)  in the case of collateral other than inventory, not later than 15 days after
a debtor, or another person at the request of a debtor, obtains possession of the
collateral, whichever is earlier.
(9)  For the purposes of this section, where goods are shipped by common carrier
to a debtor or to a person designated by a debtor, the debtor is deemed not to have
obtained possession of the goods until the debtor has obtained actual possession of
the goods or a document of title to the goods, whichever is earlier.
(10)  A purchase-money security interest in an item of collateral does not extend
to or continue in the proceeds of the item after the obligation to pay the purchase
price of the item or to repay the value given for the purposes of enabling the debtor
to acquire rights in it has been discharged.
(11)  A perfected security interest in crops or their proceeds that is given for value
to enable a debtor to produce the crops and that is given:
(a)  while the crops are growing; or
(b)  during a period of six months immediately prior to the time when the
crops are planted;
has priority over any other security interest in the same collateral given by the
same debtor.
(12)  A perfected security interest in fowl, cattle or fish or their proceeds that is
given for value to enable the debtor to acquire food, drugs or hormones to be fed
to or placed in the fowl, cattle or fish has priority over any other security interest
in the same collateral given by the same debtor other than a perfected purchase-
money security interest.
1993, c.P-6.2, s.34; 1996, c.18, s.8.

Residual priority rules

35(1)  Where this Act provides no other method for determining priority between
security interests:
(a)  priority between conflicting perfected security interests in the same
collateral is determined by the earliest of the following occurrences:
(i)  the registration of a financing statement without regard to the date
of attachment of security interest;
(ii)  possession of the collateral pursuant to section 24 without regard to
the date of attachment of the security interest; or
(iii)  perfection pursuant to sections 5, 7, 26, 29 or 74;
(b)  a perfected security interest has priority over an unperfected security
interest; and
(c)  priority between conflicting unperfected security interests is determined
by the order of attachment of the security interests.
 41

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(2)  For the purposes of subsection (1), a continuously perfected security interest
is to be treated at all times as perfected by the method by which it was originally
perfected.
(3)  Subject to section 28, for the purposes of subsection (1), the time of registration,
possession or perfection of a security interest in original collateral is also the time
of registration, possession or perfection of its proceeds.
(4)  A security interest in goods that are equipment and are of a kind prescribed as
serial numbered goods is not registered or perfected by registration for the purposes
of subsection (1), (7) or (8) or subsection 34(2) unless a financing statement relating
to the security interest and containing a description of the goods by serial number
is registered.
(5)  The priority that a security interest has pursuant to subsection (1) applies to
all advances, including future advances.
(6)  Repealed. 2010, c.E-9.22, s.220.
(7) Where:
(a)  registration of a security interest:
(i)  lapses as a result of a failure to renew the registration; or
(ii)  is discharged without authorization or in error; and
(b)  the secured party registers the security interest not later than 30 days
after the lapse or discharge;
the lapse or discharge does not affect the priority status of the security interest in
relation to a competing perfected security interest that, immediately prior to the
lapse or discharge, had a subordinate priority position, except to the extent that
the competing security interest secures advances made or contracted for after the
lapse or discharge and prior to the re-registration.
(8)  Where a debtor transfers an interest in collateral that, at the time of the transfer,
is subject to a perfected security interest, that security interest has priority over
any other security interest granted by the transferee before the transfer except to
the extent that the security interest granted by the transferee secures advances
made or contracted for:
(a)  after the expiry of 15 days from the day on which the secured party who
holds the security interest in the transferred collateral has knowledge of the
information required to register a financing change statement showing the
transferee as the new debtor; and
(b)  before the secured party mentioned in clause (a) amends the registration
to disclose the name of the transferee as the new debtor or takes possession
of the collateral.
(9)  Subsection (8) does not apply where the transferee acquires the debtor’s interest
free from the security interest granted by the debtor.
1993, c.P-6.2, s.35; 1996, c.18, s.9; 2010,
c.E‑9.22, s.220.
42

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

Priority among conflicting security interests

35.1(1)  The rules in this section govern priority among conflicting security interests
in the same investment property.
(2)  A security interest of a secured party having control of investment property
pursuant to subsection 2(1.1) has priority over a security interest of a secured party
that does not have control of the investment property.
(3)  A security interest in a certificated security in registered form that is perfected
by taking delivery pursuant to subsection 24(3) and not by control pursuant to
section 24.1 has priority over a conflicting security interest perfected by a method
other than control.
(4)  Except as otherwise provided in subsections (5) and (6), conflicting security
interests of secured parties each of which has control pursuant to subsection 2(1.1)
rank according to priority in time of:
(a)  if the collateral is a security, obtaining control;
(b)  if the collateral is a security entitlement carried in a securities account:
(i)  the secured party’s becoming the person for which the securities
account is maintained, if the secured party obtained control pursuant to
clause 25(1)(a) of The Securities Transfer Act;
(ii)  the securities intermediary’s agreement to comply with the secured
party’s entitlement orders with respect to security entitlements carried
or to be carried in the securities account, if the secured party obtained
control pursuant to clause 25(1)(b) of The Securities Transfer Act; or
(iii)  if the secured party obtained control through another person
pursuant to clause 25(1)(c) of The Securities Transfer Act, when the other
person obtained control; or
(c)  if the collateral is a futures contract carried with a futures intermediary,
the satisfaction of the requirement for control specified in subclause 2(1.1)(d)
(ii) with respect to futures contracts carried or to be carried with the futures
intermediary.
(5)  A security interest held by a securities intermediary in a security entitlement
or a securities account maintained with the securities intermediary has priority
over a conflicting security interest held by another secured party.
(6)  A security interest held by a futures intermediary in a futures contract or
a futures account maintained with the futures intermediary has priority over a
conflicting security interest held by another secured party.
(7)  Conflicting security interests granted by a broker, securities intermediary, or
futures intermediary that are perfected without control pursuant to subsection 2(1.1)
rank equally.
(8)  In all other cases, priority among conflicting security interests in investment
property is governed by section 35.
2007, c.S-42.3, s.108.
 43

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

Priority re fixtures
36(1)  In this section, “secured party” includes a receiver.
(2)  Subject to the regulations, this section applies only with respect to land for
which a title has been issued pursuant to The Land Titles Act, 2000.
(3)  Except as provided in this section and in section 30, a security interest in goods
that attaches before or at the time when the goods become fixtures has priority with
respect to the goods over a claim to the goods made by a person with an interest
in the land.
(4)  A security interest mentioned in subsection (3) is subordinate to the
interest of:
(a)  a person who, without fraud and before an interest based on the security
interest is registered in accordance with section 49, acquires for value an
interest in the land after the goods become fixtures, including an assignee
for value of a person with an interest in the land at the time when the goods
become fixtures;
(b)  a person with a registered interest based on a mortgage on the land who,
after the goods become fixtures:
(i)  makes an advance pursuant to the mortgage, but only with respect
to the advance; or
(ii)  obtains an order nisi for sale or foreclosure;
without fraud and before an interest based on the security interest is registered
in accordance with section 49; and
(c)  a person who obtains a vesting order with respect to the land after the
goods become fixtures, without fraud and before an interest based on the
security interest is registered in accordance with section 49.
(5) Where:
(a)  a search is made of a title in the Land Titles Registry;
(b)  at the time of the search there is no interest registered pursuant to section 49
against the title;
(c)  on the day on which the search is made, an advance is made pursuant to
a mortgage, where an interest based on that mortgage is registered against
the title;
the advance is deemed to have been made before registration of a notice pursuant
to section 49 that was not disclosed by the search, notwithstanding that the notice
was registered on the day that the search was made.
44

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(6)  A security interest in goods that attaches after the goods become fixtures is
subordinate to the interest of a person who:
(a)  has an interest in the land at the time when the goods become fixtures
and who:
(i)  has not consented to the security interest;
(ii)  has not disclaimed an interest in the goods or fixtures;
(iii)  has not entered into an agreement pursuant to which a person is
entitled to remove the goods; or
(iv)  is not otherwise precluded from preventing the debtor from removing
the goods; or
(b)  acquires an interest in the land after the goods become fixtures, if the
interest is acquired without fraud and before an interest based on the security
interest in the goods is registered in accordance with section 49.
(7)  A security interest mentioned in subsection (3) or (6) is subordinate to an
enforcement charge affecting the land after the goods are affixed to the land and
before an interest based on the security interest is registered in accordance with
section 49.
(8)  The enforcement charge mentioned in subsection (7) does not take priority
over a purchase-money security interest in goods with respect to which an interest
is registered in accordance with section 49 not later than 15 days after the goods
are affixed to the land.
(9)  A secured party who, pursuant to this Act, has the right to remove goods from
land shall exercise this right of removal in a manner that causes no greater damage
or injury to the land and to other property situated on it or that puts the occupier
of the land to greater inconvenience than is necessarily incidental to the removal
of the goods.
(10)  A person, other than the debtor, who has an interest in the land at the time
when the goods subject to the security interest are affixed to the land is entitled
to reimbursement for any damages to the interest of the person in the land caused
during the removal of the goods, but is not entitled to reimbursement for reduction
in the value of the land caused by the absence of the goods removed or by the
necessity or replacement.
(11)  The person entitled to reimbursement pursuant to subsection (10) may refuse
permission to remove the goods until the secured party has given adequate security
for reimbursement.
(12)  The secured party may apply to a court for one or more of the following:
(a)  an order determining the person entitled to reimbursement pursuant to
this section;
(b)  an order determining the amount and kind of security to be provided by
the secured party;
(c)  an order prescribing the depository for the security;
(d)  an order authorizing the removal of the goods without the provision of
security for reimbursement pursuant to subsection (11).
 45

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(13)  A person who has an interest in the land that is subordinate to a security
interest as provided in this section may, before the goods have been removed from
the land by the secured party, retain the goods on payment to the secured party of
the lesser of:
(a)  the amount secured by the security interest that has priority over that
interest; and
(b)  the market value of the goods if the goods were removed from the land.
(14)  A secured party who has a right to remove goods from land shall give to each
person who appears by the records of the Land Titles Registry to have an interest
in the land a notice of the intention of the secured party to remove the goods, unless
the amount mentioned in subsection (13) is paid on or before a specified day that is
not less than 15 days after the notice is given in accordance with subsections (15)
and (16).
(15)  The notice mentioned in subsection (14) is to contain:
(a)  the name and address of the secured party;
(b)  a description of the goods to be removed;
(c)  the amount required to satisfy the obligation secured by the security
interest;
(d)  the market value of the goods;
(e)  a description of the land to which the goods are affixed; and
(f)  a statement of intention to remove the goods.
(16)  A notice mentioned in subsection (14) is to be given at least 15 days before
removal of the goods, and may be given in accordance with section 68 or by registered
mail addressed to the post office address of the person to be notified as it appears
in the records of the Land Titles Registry.
(17)  A person who is entitled to receive a notice pursuant to subsection (14) may
apply to a court for an order postponing the removal of the goods from the land.
(18)  The priority rights of persons mentioned in subsections (4) and (6) are not
affected by priority rights to the land that are provided in The Land Titles Act, 2000.
1993, c.P-6.2, s.36; 1996, c.18, s.10; 2000,
c.L‑5.1, s.369; 2010, c.E-9.22, s.221.

Priority re crops
37(1)  In this section, “secured party” includes a receiver.
(2)  Subject to the regulations, this section applies only with respect to land for
which a title has been issued pursuant to The Land Titles Act, 2000.
(3)  Except as provided in this section, a security interest in crops has priority with
respect to the crops claimed by a person with an interest in the land.
46

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(4)  A security interest mentioned in subsection (3) is subordinate to the

interest of:
(a)  a person who, without fraud and before an interest based on the security
interest is registered in accordance with section 49, acquires for value an
interest in the land on which the crops are growing, including an assignee for
value of a person with an interest in the land;
(b)  a person with a registered interest based on a mortgage on the land on
which the crops are growing who:
(i)  makes an advance pursuant to the mortgage, but only with respect
to the advance; or
(ii)  obtains an order nisi for sale or foreclosure;
without fraud and before an interest based on the security interest is registered
in accordance with section 49; and
(c)  a person who, without fraud and before an interest based on the security
interest is registered in accordance with section 49, obtains a vesting order
respecting the land on which the crops are growing.
(5)  A security interest mentioned in subsection (3) is subordinate to an enforcement
charge affecting the land after the crops become growing crops and before an interest
based on the security interest is registered in accordance with section 49.
(6)  The enforcement charge mentioned in subsection (5) does not take priority over:
(a)  a purchase-money security interest in the crops; or
(b)  a security interest in the crops mentioned in subsection 34(11);
where an interest based on the document mentioned in clause (a) or (b) is registered
in accordance with section 49 not later than 15 days after the time when the security
interest in the crops attaches.
(7)  Subsections 36(9) to (17) apply, with any necessary modification, to seizure and
removal of crops from the land.
1993, c.P-6.2, s.37; 1996, c.18, s.11; 2000,
c.L‑5.1, s.370; 2010, c.E-9.22, s.222.

Priority re accessions
38(1)  In this section:
(a)  “other goods” means goods to which an accession is installed or affixed;
(b)  “the whole” means an accession and the goods to which the accession
is installed or affixed;
(c)  “secured party” includes a receiver.
 47

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(2)  Except as provided in this section and in section 30, a security interest in goods
that attaches before or at the time when the goods become an accession has priority
with respect to the goods over a claim to the goods as an accession made by a person
with an interest in the whole.
(3)  A security interest mentioned in subsection (2) is subordinate to the
interest of:
(a)  a person who acquires for value an interest in the whole after the goods
become an accession, including an assignee for value of a person with an interest
in the whole at the time when the goods become an accession; and
(b)  a person with a security interest taken and perfected in the whole who:
(i)  makes an advance pursuant to a security agreement after the goods
become an accession, but only with respect to that advance; or
(ii)  acquires the right to retain the whole in satisfaction of the obligation
secured;
without knowledge of the security interest in the accession and before it is
perfected.
(4)  A security interest in goods that attaches after the goods becomes an accession
is subordinate to the interest of a person who:
(a)  has an interest in the other goods at the time when the goods become an
accession and who:
(i)  has not consented to the security interest;
(ii)  has not disclaimed an interest in the goods or the accession;
(iii)  has not entered into an agreement pursuant to which a person is
entitled to remove the accession; or
(iv)  is not otherwise precluded from preventing the debtor from removing
the accession; or
(b)  acquires an interest in the whole after the goods become an accession, if
the interest is acquired without knowledge and before the security interest in
the accession is perfected.
(5)  A security interest mentioned in subsection (2) or (4) is subordinate to an
enforcement charge if the security interest is not perfected or a registration relating
to the security interest exists at the time the enforcement charge affects the whole.
(6)  The enforcement charge mentioned in subsection (5) does not take priority over
a purchase-money security interest in goods that is perfected not later than 15 days
after the goods become an accession.
(7)  A secured party who, pursuant to this Act, has the right to remove an accession
from the whole shall exercise this right of removal in a manner that:
(a)  causes no greater damage or injury to the whole or to the other goods; or
(b)  puts the person in possession of the whole to greater inconvenience;
than is necessarily incidental to the removal of the accession.
48

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(8)  A person, other than the debtor, who has an interest in the whole at the time
when the goods subject to the security interest become an accession is entitled to
reimbursement for any damages to the interest of the person in the whole that is
caused during the removal of the accession, but is not entitled to reimbursement for
reduction in the value of the whole that is caused by the absence of the accession or
by the necessity of replacement.
(9)  The person entitled to reimbursement pursuant to subsection (8) may refuse
permission to remove the accession until the secured party has given adequate
security for the reimbursement.
(10)  The secured party may apply to a court for one or more of the following:
(a)  an order determining the person who is entitled to reimbursement
pursuant to this section;
(b)  an order determining the amount and kind of security to be provided by
the secured party;
(c)  an order prescribing the depository for the security;
(d)  an order authorizing the removal of the goods without the provision of
security for reimbursement pursuant to subsection (9).
(11)  A person who has an interest in the whole that is subordinate to a security
interest as provided in this section may, before the accession has been removed
from the whole by the secured party, retain the accession on payment to the secured
party of the lesser of:
(a)  the amount secured by the security interest entitled to priority; and
(b)  the market value of the accession if the accession were removed from the
other goods.
(12)  The secured party who has a right to remove the accession from the whole shall
give a notice of the secured party’s intention to remove the accession to each person:
(a)  who is known by the secured party to have an interest in the other goods
or in the whole; or
(b)  who has registered a financing statement:
(i)  using the name of the debtor and mentioning the other goods; or
(ii)  according to the serial number of the other goods if they are goods
prescribed as serial numbered goods.
(13)  The notice mentioned in subsection (12) is to contain:
(a)  the name and address of the secured party;
(b)  a description of the goods to be removed;
(c)  the amount required to satisfy the obligations secured by the security
interest;
(d)  the market value of the accession;
(e)  a description of the other goods; and
 49

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(f)  a statement of intention to remove the accession unless the amount

mentioned in subsection (11) is paid on or before a specified day that is not
less than 15 days after the notice is given in accordance with subsection (14).
(14)  A notice mentioned in subsection (12) is to be given at least 15 days before
removal of the accession and may be given in accordance with section 68 or by
registered mail addressed to the address of the person to be notified as it appears
on the financing statement.
(15)  A person who is entitled to receive a notice pursuant to subsection (12) may
apply to the court for an order postponing removal of the accession.
1993, c.P-6.2, s.38; 1996, c.18, s.12; 2010,
c.E‑9.22, s.223.

Priority re processed or commingled goods

39(1)  A perfected security interest in goods that subsequently become part of a
product or mass continues in the product or mass if the goods are so manufactured,
processed, assembled or commingled that their identity is lost in the product or mass.
(2)  Subject to subsections (4) and (6), where more than one perfected security
interest continues in the same product or mass pursuant to subsection (1), and each
was a security interest in separate goods, the security interests are entitled to share
in the product or mass according to the ratio that the obligation secured by each
security interest bears to the sum of the obligations secured by all security interests.
(3)  For the purposes of section 35, perfection of a security interest in goods that
subsequently become part of a product or mass shall also be treated as perfection
of the interest in the product or mass.
(4)  For the purposes of subsection (2), the obligation secured by a security interest
does not exceed the market value of the goods at the day on which the goods become
part of the product or mass.
(5)  Any priority that a perfected security interest continuing in the product or mass
pursuant to subsection (1) has over a perfected security interest in the product or
mass is limited to the value of the goods at the day on which they became part of
the product or mass.
(6)  A perfected purchase-money security interest in goods that continues in the
product or mass has priority over:
(a)  a non-purchase-money security interest in the goods that continues in
the product or mass pursuant to subsection (1);
(b)  a non-purchase-money security interest in the product or mass, other
than as inventory, given by the same debtor; and
(c)  a non-purchase-money security interest in the product or mass as inventory
given by the same debtor if:
(i)  the secured party with the purchase-money security interest gives a
notice to the secured party with the non-purchase-money security interest
in the product or mass who registered a financing statement containing
a description of collateral that includes the product or mass before the
identity of the goods is lost in the product or mass;
50

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(ii)  the notice mentioned in subclause (i) contains a statement that the
person giving the notice has acquired or expects to acquire a purchase-
money security interest in goods supplied to the debtor as inventory; and
(iii)  the notice mentioned in subclause (i) is given before the identity of
the goods is lost in the product or mass.
(7)  A notice mentioned in subclause (6)(c)(i) may be given in accordance with section
68 or by registered mail addressed to the person to be notified as it appears in the
financing statement mentioned in subclause (6)(c)(i).
(8)  This section does not apply to a security interest in an accession to which
section 38 applies.
1993, c.P-6.2, s.39.

Voluntary subordination
40(1)  A secured party may, in a security agreement or otherwise, subordinate the
secured party’s security interest to any other interest, and the subordination is
effective according to its terms between the parties and may be enforced by a third
party if the third party is the person or one of a class of persons for whose benefit
the subordination was intended.
(2)  An agreement or undertaking to postpone or subordinate:
(a)  the right of a person to performance of all or any part of an obligation to
the right of another person to the performance of all or any part of another
obligation of the same debtor; or
(b)  all or any part of the rights of a secured party pursuant to a security
agreement to all or any part of the rights of another secured party pursuant
to another security agreement with the same debtor;
does not, by virtue of the postponement or subordination alone, create a security
interest.
1993, c.P-6.2, s.40.

Rights of assignees
41(1)  In this section:
(a)  “account debtor” means a person who is obligated pursuant to an
intangible or chattel paper;
(b)  “assignee” includes a secured party and a receiver.
(2)  Unless the account debtor on an intangible or chattel paper has made an
enforceable agreement not to assert defences to claims arising out of a contract, the
rights of an assignee of the intangible or chattel paper are subject to:
(a)  the terms of the contract between the account debtor and the assignor
and any defence or claim arising from the contract or a closely connected
contract; and
(b)  any other defence or claim of the account debtor against the assignor
that accrues before the account debtor acquires knowledge of the assignment.
 51

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(3)  A modification of or substitution for a contract made in good faith and in

accordance with reasonable commercial standards and without material adverse
effect on the assignee’s rights under the contract or the assignor’s ability to perform
the contract is effective against the assignee unless the account debtor has otherwise
agreed.
(4)  Subsection (3) applies:
(a)  to the extent that an assigned right to payment arising out of the contract
has not been earned by performance; and
(b)  notwithstanding that there has been notice of the assignment to the
account debtor.
(5)  Where a contract has been substituted or modified in the manner described
in subsection (3), the assignee obtains rights that correspond to the rights of the
assignor under the substituted or modified contract.
(6)  Nothing in subsections (3) to (5) affects the validity of a term in an assignment
agreement that provides that a modification or substitution mentioned in sub-section (3)
is a breach of contract by the assignor.
(7)  Where collateral that is an intangible or chattel paper is assigned, the account
debtor may make payments pursuant to the contract to the assignor:
(a)  before the account debtor receives a notice that:
(i)  states that the amount payable or to become payable pursuant to the
contract has been assigned and that payment is to made to the assignee;
and
(ii)  identifies the contract pursuant to which the amount payable is to
become payable; or
(b) after:
(i)  the account debtor requests the assignee to furnish proof of the
assignment; and
(ii)  the assignee fails to furnish proof within 15 days after the day of
the request.
(8)  Payment by an account debtor to an assignee pursuant to a notice mentioned
in clause (7)(a) discharges the obligation of the account debtor to the extent of the
payment.
(9)  A term in a contract between a debtor on an account or on chattel paper and
an assignor that prohibits or restricts assignment of the whole of the account or
chattel paper for money due or to become due:
(a)  is binding on the assignor, but only to the extent of making the assignor
liable in damages for breach of contract; and
(b)  is unenforceable against third parties.
1993, c.P-6.2, s.41; 1996, c.18, s.13.
52

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

PART IV
Registration

Registry
42  The Personal Property Registry is continued for the purposes of registration
pursuant to this Act, The Personal Property Security Act and any other Act that
requires or permits a registration to be made in the registry.
2013, c.O-4.2, s.146.

Status of registry
42.1(1)  The registry is a public registry of the people of Saskatchewan.
(2)  All information in the registry is the property of the Government of
Saskatchewan.
(3)  Access to and disclosure of information in the registry is to be provided only in
accordance with this Act and the regulations.
2000, c.21, s.6.

Appointment of Registrar of Personal Property Security

42.2(1)  The minister may, by order, appoint:
(a)  a Registrar of Personal Property Security; and
(b)  one or more deputy registrars.
(2)  The registrar shall:
(a)  under the direction of the minister, supervise the operation of the registry;
and
(b)  perform any additional functions or responsibilities assigned to the
registrar by this Act, the regulations, any other Act or the minister.
(3)  The registrar is an employee and agent of the Crown and all actions taken by
the registrar pursuant to this Act or the regulations are taken on behalf of the Crown.
(4)  A deputy registrar shall act under the direction of the registrar.
(5)  If the registrar is absent or unable to act or the office of the registrar is vacant,
a deputy registrar may exercise all the powers and shall perform all of the functions
or responsibilities of the registrar, including any statutory duties imposed on the
registrar by this Act or any other Act.
(6)  The registrar may, in writing, authorize any person to perform any of the
functions or responsibilities imposed, including statutory duties, or to exercise any
of the powers conferred on the registrar by this Act or any other Act.
(7)  The performance or exercise by a person authorized pursuant to subsection (6)
of the functions or responsibilities imposed or powers conferred on the registrar by
this Act or any other Act is deemed to be a performance or exercise by the registrar.
 53

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(8)  The registrar may, in writing, set any limit or condition on an authorization
pursuant to this section that the registrar considers reasonable.
(9)  No person shall seek to direct the registrar in the performance of any statutory
duty imposed on the registrar by this Act or any other Act.
(10)  No authorization pursuant to subsection (6) prevents the exercise of any power,
function or responsibility by the registrar.
2013, c.O-4.2, s.147.

Transitional – activities
42.3(1)  In this section, “former registrar” means the person who was the registrar
before the coming into force of this section and includes any person appointed as
a deputy registrar pursuant to this Act before the coming into force of this section.
(2)  Any activity undertaken by the former registrar and not completed before the
coming into force of this section may be continued by the registrar or any deputy
registrar after the coming into force of this section as if it had been undertaken by
the registrar after the coming into force of this section.
(3)  Every number, certificate, order, approval, notice and other document that was
issued by the former registrar, and every registration, decision or other action made
or taken by the former registrar, pursuant to this Act or any other Act that imposes or
confers a duty, power or function on the former registrar before the coming into force
of this section that is valid on the day before the coming into force of this section is
continued and may be dealt with as if it were issued, made or taken by the registrar.
2013, c.O-4.2, s.147.

Suspension of registry functions

42.4(1)  In this section and in subsection 71(1):
(a)  “recommencement of registry functions” means the recommencement
of all or any registry functions pursuant to subsection (4);
(b)  “registry functions” means:
(i)  registering financing statements;
(ii)  accepting requests for search results; and
(iii)  any other functions or services of the registry;
(c)  “suspension of registry functions” means the suspension of all or any
registry functions pursuant to subsection (2).
(2)  Notwithstanding any regulation made pursuant to this Act or any other Act
providing for registration in the registry, if, in the opinion of the registrar or the
minister, the circumstances are such that it is not practical to provide one or more
registry functions, the registrar or the minister may, by order, suspend all or any
registry functions for the period during which, in the opinion of the registrar or the
minister, those circumstances prevail.
(3)  An order of the registrar or the minister made pursuant to subsection (2):
(a)  is to identify the registry functions that are being suspended and the date
and time that the registry functions are suspended;
54

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(b)  is to be published in the Gazette as soon as is reasonably possible after

it is made; and
(c)  notwithstanding any other provision of this Act or any other Act or law,
may suspend registry functions as at a date not more than 30 days before the
day the order is made.
(4)  The registrar or the minister may, by order, recommence all or any suspended
registry functions effective as at any date and time the registrar or minister considers
appropriate.
(5)  An order of the registrar or minister made pursuant to subsection (4):
(a)  is to identify the registry functions that are being recommenced and the
date and time that the registry functions are recommenced; and
(b)  is to be published in the Gazette as soon as is reasonably possible after
it is made.
(6)  Subject to subsection (7), an order made pursuant to this section comes into
force on the day it is made.
(7)  In the case of an order that suspends registry functions as at a date before the
order is made, the order may be made retroactive to a date not more than 30 days
before the day the order is made and, in that case, the order is deemed to have been
in force on and from that date.
(8)  The registrar or the minister shall take any steps the registrar or the minister
considers necessary to bring an order of the registrar or the minister to the attention
of the public.
(9)  If there is any conflict between an order made pursuant to this section and
a provision of this Act, the regulations, other than regulations made pursuant to
clause 71(1)(p.2), or any other Act, regulations or law, the order prevails.
2013, c.O-4.2, s.147.

Registration of financing statements

43(1)  A financing statement may be submitted in a prescribed manner for
registration at an office of the registry.
(2)  Registration of a financing statement is effective from the time assigned to
it at the registry and, where two or more financing statements are assigned the
same time, the order of registration is determined by reference to the registration
numbers assigned to them at the registry.
(3)  The registrar shall not register a financing statement or issue a search result
pursuant to this Part until the fees are paid or arrangements for their payment
are made.
(4)  A financing statement may be registered before or after a security agreement
is made and before or after a security interest attaches.
(5)  A registration may relate to one or more security agreements.
 55

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(6)  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 defect, irregularity, omission or error is seriously misleading.
(7)  Subject to subsection (9), where one or more debtors are required to be disclosed
in a financing statement or where collateral is consumer goods of a kind that are
prescribed as serial numbered goods, and there is a seriously misleading defect,
irregularity, omission or error in:
(a)  the disclosure of the name of any of the debtors, other than a debtor
who does not own or have rights in the collateral described in the financing
statement; or
(b)  the serial number of the collateral;
the registration is invalid.
(8)  Nothing in subsection (6) or (7) requires, as a condition to a finding that a
defect, irregularity, omission or error is seriously misleading, proof that anyone
was actually misled by it.
(9)  Failure to provide a description in a financing statement in relation to any item
or kind of collateral does not affect the validity of the registration with respect to
other collateral described in the financing statement.
(10)  Notwithstanding anything in this Part, the registrar may reject a financing
statement where, in the opinion of the registrar, it does not comply with this Act or
the regulations or any other Act or regulation pursuant to which registration of a
financing statement is authorized.
(11)  The registrar shall give the reason for the rejection of a financing statement
pursuant to subsection (10).
(12)  Unless a person entitled to a copy has waived in writing the right pursuant
to this section to receive the copy, the secured party or person named as secured
party in a financing statement shall give to each person named as debtor in the
financing statement:
(a)  a copy of a verification statement issued by the registry that relates to
the financing statement; or
(b)  a reproduced copy of the verification statement mentioned in clause (a)
issued by the registry;
not later than 30 days after the financing statement is registered or the verification
statement is issued, as the case may be.
1993, c.P-6.2, s.43; 1996, c.18, s.14; 2010, c.26,
s.12; 2013, c.O-4.2, s.148.
56

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

General power to permit registrations

43.1(1)  Notwithstanding the requirements of this Act or the regulations, if it is
consistent with the purposes and intent of this Act, the registrar may permit any
registration.
(2)  Notwithstanding the requirements of this Act or the regulations, the registrar
may refuse or discharge any registration if the registration is inconsistent with the
purpose and intent of this Act.
(3)  The registrar shall give reasons for the refusal or discharge of a registration
pursuant to subsection (2).
2010, c.26, s.13; 2013, c.O-4.2, s.149.

Duration of and amendments to registrations

44(1)  Subject to the regulations, a registration pursuant to this Act is effective for
the period of time indicated on the financing statement by which the registration
was effected.
(2)  A registration may be renewed by registering a financing change statement at
any time before the registration expires and, subject to the regulations, the period
of time for which the registration is effective is extended by the renewal period
indicated on the financing change statement.
(3)  An amendment to a registration, whether that registration is valid or invalid,
may be effected by registering a financing change statement at any time during
the period that the registration is effective, and the amendment is effective from
the time when the financing change statement is registered to the expiry of the
registration that is being amended.
(4)  Where an amendment of a registration is not otherwise provided for in this
Part, a financing change statement may be registered to amend the registration.
1993, c.P-6.2, s.44; 1996, c.18, s.15.

Registration of transfers and subordinations

45(1)  Where a secured party with a registered security interest transfers the
security interest or a part of it, a financing change statement may be registered
disclosing the transfer.
(2)  Where a financing change statement is registered pursuant to subsection (1) and
an interest in part of the collateral is transferred, the financing change statement
is to contain a description of the collateral in which the interest is transferred.
(3)  Where a secured party transfers an interest in collateral and the security
interest of the secured party is not perfected by registration, a financing statement
may be registered in which the transferee is disclosed as the secured party.
(4)  A financing statement disclosing a transfer of a security interest may be
registered before or after the transfer.
(5)  After registration of a financing change statement disclosing a transfer of a
security interest, the transferee is the secured party for the purposes of this Part.
(6)  Where a security interest has been subordinated by the secured party to the
interest of another person, a financing change statement may be registered to
disclose the subordination at any time during the period that the registration of
the subordinated interest is effective.
1993, c.P-6.2, s.45.
 57

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

Registry records
46(1)  Where a financing statement is registered in the registry, the registrar may
have the statement photographed or otherwise reproduced, and the reproduction
is for all purposes deemed to be the statement that is photographed or reproduced.
(2)  Information in a registration may be removed from the records of the registry:
(a)  when the registration is no longer effective;
(b)  on the receipt of a financing change statement discharging or partially
discharging the registration;
(c)  if the secured party fails to submit to the registrar an order of the court
maintaining the registration pursuant to section 50; or
(d)  on receipt of an order of the court compelling the discharge or partial
discharge of a registration.
1993, c.P-6.2, s.46.

Constructive notice
47  Registration of a financing statement in the registry is not constructive notice
or knowledge of its existence or contents to any person.
1993, c.P-6.2, s.47.

Registry searches
48(1)  A person may, in the prescribed manner, request one or more of the following:
(a)  a search according to the name of a debtor and the issue of a search result;
(b)  a search according to the serial number of goods of a kind prescribed as
serial numbered goods and the issue of a search result;
(c)  a search according to a registration number and the issue of a search result;
(d)  a copy or certified copy of any registered document;
(e)  any other prescribed search.
(2)  A printed search result that purports to be issued by the registry is receivable
as evidence as prima facie proof of its contents, including:
(a)  the date of registration of a financing statement to which the search
result refers; and
(b)  the order of registration of the financing statement as indicated by the
registration number.
(3)  A copy of a printed document from the registry that is certified by the registrar
in the prescribed manner is admissible in evidence as a true copy of the document
without proof of the signature or official position of the registrar.
1993, c.P-6.2, s.48; 2010, c.26, s.14.
58

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

Registration in land titles office

49(1)  In this section:
(a)  “debtor” includes any person named in a notice pursuant to this section
as a debtor;
(b)  “secured party” includes any person named in a notice pursuant to this
section as a secured party.
(2)  All or any of the following interests may be registered in the Land Titles Registry,
accompanied by a notice in the prescribed form:
(a)  an interest based on a security interest in a fixture pursuant to section 36;
(b)  an interest based on a security interest in a growing crop pursuant to
section 37.
(3)  Repealed. 2000, c.L-5.1, s.371.
(4)  The registration of an interest registered pursuant to subsection (2) may be
renewed, amended, assigned, postponed or discharged in accordance with Part VIII
of The Land Titles Act, 2000.
(5)  Subsections 43(4), (5), (6), (8) and (9) and subsection 44(1) and section 45 apply,
with any necessary modification, to an interest registered pursuant to this section,
and subsection 43(12) applies, with any necessary modification, to an interest
mentioned in subsection (2).
(6)  Repealed. 2000, c.L-5.1, s.371.
(7)  Where an interest is registered pursuant to this section, and:
(a)  all of the obligations pursuant to the security agreement to which the
interest relates have been performed;
(b)  the secured party has agreed to release part or all of the collateral
described in the notice attached to the interest registration;
(c)  the description of the collateral contained in the notice attached to the
interest registration includes an item of property that is not collateral pursuant
to a security agreement between the secured party and the debtor, or that is
not affixed to the land; or
(d)  no security agreement exists between the secured party and the debtor;
the debtor named in the notice attached to the interest registration and any person
who has a registered interest in the land may give a written demand to the secured
party.
(8)  A demand mentioned in subsection (7) may require:
(a)  in a case described in clause (7)(a) or (d), that the registration of the
interest be discharged;
(b)  in a case described in clause (7)(b), that the registration be amended or
discharged, as the case may be, to reflect the terms of the agreement;
 59

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(c)  in a case described in clause (7)(c), that the collateral description on the
notice attached to the interest registration be amended to exclude items of
property that are not collateral pursuant to a security agreement between the
secured party and the debtor, or that are not affixed to the land;
and the secured party shall amend or discharge the interest registration accordingly
not later than 15 days after the demand is given.
(9)  Where a secured party fails to amend or discharge the interest registration in
accordance with a demand given pursuant to subsection (7), the person who gives
the demand may apply to the registrar to amend or discharge the registered interest.
(9.1)  An application pursuant to subsection (9) must be accompanied by the demand
given pursuant to subsection (7).
(9.2)  On receipt of an application pursuant to subsection (9) and on receiving proof
satisfactory to the registrar that the demand has been given to the secured party,
the registrar shall amend or discharge the interest registration in accordance with
the demand.
(10)  A demand mentioned in subsection (7) may be given in accordance with section 68
or by registered mail addressed to the secured party as it appears on the notice
attached to the interest registered pursuant to this section.
(11)  Subsections 50(7) to (9) apply, with any necessary modification, to a notice
attached to the interest registered pursuant to this section.
(12)  No fee or expense shall be charged and no amount shall be accepted by a
secured party for compliance with a demand made pursuant to subsection (7) unless
the charge has been agreed to by the parties before the making of the demand.
1993, c.P-6.2, s.49; 1996, c.18, s.16; 2000,
c.L‑5.1, s.371; 2001, c.20, s.34.

Compulsory discharge or amendment of registrations

50(1)  In this section:
(a)  “debtor” includes any person named in a registered financing statement
as a debtor;
(b)  “secured party” includes any person named in a registered financing
statement as a secured party.
(2)  Where a registration relates exclusively to a security interest in consumer goods,
the secured party shall discharge the registration not later than 30 days after all
obligations pursuant to the security agreement that creates the security interest
are performed, unless the registration lapses prior to the expiry of that period.
(3)  Where a financing statement is registered and:
(a)  all of the obligations pursuant to the security agreement to which it relates
have been performed;
(b)  the secured party has agreed to release part or all of the collateral
described in the financing statement;
60

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(c)  the description of the collateral contained in the financing statement:

(i)  includes an item or kind of property that is not collateral pursuant
to a security agreement between the secured party and the debtor; or
(ii)  does not distinguish between original collateral and proceeds; or
(d)  no security agreement exists between the secured party and the debtor;
the debtor or any person with an interest in property that falls within the collateral
description on the financing statement may give a written demand to the secured
party.
(4)  A demand mentioned in subsection (3) may require the secured party to register
a financing change statement:
(a)  in a case described in clause (3)(a) or (d), discharging the registration;
(b)  in a case described in clause (3)(b), amending or discharging the
registration, as the case may be, so as to reflect the terms of the agreement; and
(c)  in a case described in clause (3)(c), amending the collateral descrip-
tion to:
(i)  exclude items or kinds of property that are not collateral pursuant
to a security agreement between the secured party and the debtor; or
(ii)  identify items and kinds of property as original collateral or proceeds;
and the secured party shall comply with the demand not later than 15 days after
the demand is given.
(5)  Where a secured party:
(a)  fails to comply with a demand mentioned in subsection (3); or
(b)  does not give to the registrar an order of the court confirming that the
registration need not be amended or discharged;
the person giving the demand may register the financing change statement
mentioned in subsection (4) on providing the registrar with proof satisfactory to the
registrar that the demand has been given to the secured party.
(6)  The demand mentioned in subsection (3) may be given in accordance with
section 68 or by registered mail addressed to the address of the secured party as it
appears on the financing statement.
(7)  On application to the court by a secured party, the court may order that the
registration:
(a)  be maintained on any condition and, subject to section 44, for any period
of time that the court considers appropriate; or
(b)  be discharged or amended.
 61

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(8)  Subsection (5) does not apply to a registration of a security interest provided
for in:
(a)  a security agreement registered pursuant to The Corporation Securities
Registration Act and continued pursuant to The Personal Property Security
Act and this Act; or
(b)  a trust indenture, if the financing statement through which the security
interest was registered indicates that the security agreement providing for the
security interest is a trust indenture.
(9)  Where registration relates to a security interest mentioned in subsection (8)
and the secured party fails to register a financing change statement as required by
subsection (4), the person making the demand may apply to the court for an order
directing that the registration be amended or discharged.
(10)  No fee or expense shall be charged, and no amount shall be accepted, by a
secured party for compliance with a demand made pursuant to subsection (3), unless
the charge has been agreed to by the parties before the making of the demand.
(11)  Where there is no outstanding secured obligation and the secured party is not
committed to make advances, incur obligations, or otherwise give value, a secured
party having control of investment property pursuant to clause 25(1)(b) of The
Securities Transfer Act or subclause 2(1.1)(d)(ii) shall, within 10 days after receipt
of a written demand by the debtor, send to the securities intermediary or futures
intermediary with which the security entitlement or futures contract is maintained
a written record that releases the securities intermediary or futures intermediary
from any further obligation to comply with entitlement orders or directions originated
by the secured party.
1993, c.P-6.2, s.50; 2007, c.S-42.3, s.108.

Transfers of debtors’ interests in collateral

51(1)  Where a security interest has been perfected by registration and all or part
of the debtor’s interest in the collateral is transferred by the debtor with the prior
consent of the secured party, the security interest in the transferred collateral is
subordinate to:
(a)  an interest, other than a security interest in the collateral, that arises
during the period from the expiry of the fifteenth day after the transfer to the
time when the secured party:
(i)  amends the registration to disclose the name of the transferee of the
interest in the collateral as the new debtor; or
(ii)  takes possession of the collateral;
(b)  a perfected security interest in the transferred collateral that is registered
or perfected in the period mentioned in clause (a); and
62

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(c)  a perfected security interest in the transferred collateral that is registered

or perfected after the transfer and before the expiry of 15 days after the transfer
if, before the expiry of the 15 days:
(i)  the registration of the security interest first mentioned in this
subsection is not amended to disclose the transferee of the interest in the
collateral as the new debtor; or
(ii)  the secured party does not take possession of the collateral.
(2)  Where a security interest is perfected by registration and the secured party
has knowledge of:
(a)  information required to register a financing change statement disclosing
the transferee as the new debtor, and all or part of the debtor’s interest in the
collateral is transferred by the debtor; or
(b)  the new name of the debtor, where there is a change in the debtor’s name;
the security interest in the transferred collateral where clause (a) applies, and in
the collateral where clause (b) applies, is subordinate to:
(c)  an interest, other than a security interest in the transferred collateral, that
arises during the period from the expiry of the fifteenth day after the secured
party has knowledge of the information mentioned in clause (a) or the new
name of the debtor, as the case may be, to the time when the secured party:
(i)  amends the registration to disclose the name of the transferee as the
debtor or to indicate the new name of the debtor, as the case may be; or
(ii)  takes possession of the collateral;
(d)  a perfected security interest in the transferred collateral that is registered
or perfected in the period mentioned in clause (c); or
(e)  a perfected security interest in the transferred collateral that is
registered or perfected after the secured party has knowledge of the
information mentioned in clause (a) or the new name of the debtor, as
the case may be, and before the expiry of the fifteenth day mentioned in
clause (c), if, before the expiry of the 15 days:
(i)  the registration of the security interest first mentioned in this
subsection is not amended to disclose the transferee of the collateral as the
new debtor or disclose the new name of the debtor, as the case may be; or
(ii)  the secured party does not take possession of the collateral.
(3)  This section does not have the effect of subordinating a prior security interest
that was registered pursuant to The Corporations Securities Registration Act and
is deemed by subsection 74(2) to be registered pursuant to this Act.
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(4)  Where the debtor’s interest in part or all of the collateral is transferred by the
debtor without the consent of the secured party and there are one or more subsequent
transfers of the collateral without the consent of the secured party before the secured
party acquires knowledge of the name of the most recent transferee, the secured
party is deemed to have complied with subsection (2) if the secured party registers
a financing change statement not later than 15 days after acquiring knowledge of:
(a)  the name of the most recent transferee who has possession of the collateral;
and
(b)  the information that is required to register a financing change statement;
and the secured party need not register a financing change statement with respect
to an intermediate transferee.
(5)  This section does not apply to a registration made in the Land Titles Registry
pursuant to section 49.
1993, c.P-6.2, s.51; 2000, c.L-5.1, s.372.

Action against Crown

52(1)  A person may bring an action against the Crown to recover loss or damage
suffered by that person because of an error or omission in the operation of the
registry if the loss or damage resulted:
(a)  from reliance on a printed search result issued by the registry; or
(b)  except as provided in subsections 42.4(2), 43(3) and 43(10) and section 43.1,
from the failure of the registrar to register a printed financing statement
submitted for registration pursuant to section 43.
(2)  The Crown or any person acting on behalf of the Crown is not liable, directly
or vicariously, for loss or damage suffered by a person because of:
(a)  oral advice given by an agent or employee of the Crown with respect to
this Act, the regulations or the operation of the registry, unless the person
who brings the actions proves that the agent or employee was not acting in
good faith; or
(b)  a failure to register, or to register correctly, a financing statement in the
form of electronic data that is transmitted to the registry for the purpose of
effecting a registration.
(3)  For the purpose of applying The Limitations Act to a claim pursuant to
subsection (1), the day on which the act or omission on which the claim is based
takes place is:
(a)  the day on which the search result was issued, in the case of an action
brought pursuant to clause (1)(a); or
(b)  the day on which the financing statement was submitted for registration,
in the case of an action brought pursuant to clause (1)(b).
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(4)  Except as otherwise provided in this Act, no action or proceeding lies or

shall be commenced against the Crown, the minister, the registrar, any deputy
registrar, any other person authorized to act on behalf of the registrar pursuant to
subsection 42.2(6) or any employee of the Crown if that person is acting pursuant
to the authority of this Act, the regulations or any other Act, for anything in good
faith done, caused or permitted or authorized to be done, attempted to be done or
omitted to be done by that person or by any of those persons pursuant to or in the
exercise or supposed exercise of any power conferred by this Act, the regulations or
any other Act or in the carrying out or supposed carrying out of any responsibility
imposed by this Act, the regulations or any other Act.
2013, c.O4.2, s.150.

Action where trust indentures involved

53(1)  An action for recovery of damages pursuant to section 52 brought by a trustee
pursuant to a trust indenture or by a person with an interest in a trust indenture
shall be brought on behalf of all persons with interests in the same trust indenture,
and the judgment in the action, except to the extent that it provides for a subsequent
determination of the amount of damages suffered by each person, constitutes a
judgment between each person and the Crown with respect to each error or omission.
(2)  In an action brought by a trustee pursuant to a trust indenture or by a person
with an interest in a trust indenture, proof that each person relied on the search
result is not necessary if it is established that the trustee relied on the search result,
but no person is entitled to recover damages pursuant to this section if the person
knows at the time of acquisition of an interest in the collateral that the search result
relied on by the trustee is incorrect.
(3)  In proceedings pursuant to this section, the court may make any order that
it considers appropriate in order to give notice to the persons with interests in the
same trust indenture.
(4)  Subject to subsection 54(1), the court may order payment of all or a portion of
the damages awarded to identified persons with interests in the same trust indenture
at any time after judgment, and the obligation of the Crown to satisfy the judgment
is discharged to the extent that payment is made.
1993, c.P-6.2, s.53; 2000, c.21, s.8; 2013, c.O-4.2,
s.151.

Payment of claim for loss

54(1)  The total amount recoverable in a single action pursuant to section 52, and
the total amount recoverable for all claims in a single action pursuant to section 53,
shall not exceed a prescribed amount.
(2)  Where damages are paid to a claimant pursuant to section 52 or 53, the
Crown is subrogated to the rights of the claimant against any person indebted to
the claimant whose debt to the claimant was the basis of the loss or damage with
respect to which the claim was paid.
 65

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(3)  Where a claimant recovers pursuant to section 52 or 53 an amount that is less

than the value of the interest the claimant would have had if the error or omission
had not occurred, the right of subrogation pursuant to subsection (2) does not
prejudice the right of the claimant to recover in priority to the Crown an amount
equal to the difference between the amount paid to the claimant and the value of
the interest the claimant would have had if the error or omission had not occurred.
(4)  The Crown may, without action being brought, pay the amount of a claim
against the Crown when authorized to do so by the minister on the report of the
registrar setting out the facts and the opinion of the registrar that the claim is just
and reasonable.
(5)  Subject to subsection (1), where an award of damages has been made in favour
of a claimant and the time for appeal has expired, or where an appeal is taken and it
is disposed of in whole or in part in favour of the claimant, the Crown shall pay the
amount specified in the judgment in a manner specified in the judgment, including
the costs of the claimant if the judgment so provides.
1993, c.P-6.2, s.54; 2000, c.21, s.9; 2013, c.O-4.2,
s.152.

54.1  Repealed. 2013, c.O4.2, s.153.

54.2  Repealed. 2013, c.O4.2, s.153.

PART V
Rights and Remedies on Default

Application of Part
55(1)  In this section, “secured party” includes a receiver.
(2)  This Part does not apply to:
(a)  a transaction mentioned in subsection 3(2); or
(b)  a transaction between a pledgor and a pawnbroker.
(3)  The rights and remedies set out in this Part are cumulative.
(4)  Subject to any other Act or rule of law to the contrary, where the same obligation
is secured by an interest in land and a security interest to which this Act applies,
the secured party may:
(a)  without limiting the secured party’s rights, remedies and duties
with respect to the land, proceed pursuant to this Part as to the personal
property; or
(b)  proceed as to both the land and the personal property, in which case:
(i)  the secured party’s rights, remedies and duties with respect to the
land apply to the personal property, with any necessary modification, as
if the personal property were land; and
(ii)  this Part does not apply.
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(5)  Clause (4)(b) does not limit the rights of a secured party who has a security
interest in the personal property that is taken before or after the security interest
mentioned in subsection (4), and the secured party:
(a)  has standing in proceedings taken in accordance with clause (4)(b); and
(b)  may apply to the court for the conduct of a judicially supervised sale
pursuant to clause (4)(b), and the court may grant the application.
(6)  For the purpose of distributing the amount received from the sale of the land
and personal property, where the purchase price is not allocated to the land and the
personal property separately, the amount of the total price that is attributable to
the sale of the personal property is the proportion of the total price that the market
value of the personal property at the time of sale bears to the market value of the
land and the personal property at the time of the sale.
(7)  A security interest does not merge merely because a secured party has reduced
the claim to judgment.
(8)  Notwithstanding anything contained in this or any other Act or any agreement
to the contrary, but subject to subsection (14), a debtor has the right to claim as
exempt from seizure and sale under a security agreement or this Part the items
of personal property that the debtor would be entitled to claim as exempt from
enforcement of a money judgment pursuant to clauses 93(1)(a) to (f), (j) and (l) of
The Enforcement of Money Judgments Act if the debtor were a judgment debtor.
(9)  On seizure of property mentioned in subsection (8), the secured party shall
serve on the debtor a written notice containing:
(a)  a description of the debtor’s right:
(i)  to claim the seized property as exempt from seizure and sale; and
(ii)  to claim payments mentioned in subsection (13); and
(b)  a statement outlining the procedure for claiming an exemption.
(10)  Within five business days after receiving the notice mentioned in subsection (9),
a debtor who intends to exercise a right of exemption shall serve on the secured
party a signed notice of exemption claim.
(11)  Within 10 days after receiving a notice of exemption claim, the secured party
shall:
(a)  accept or reject the claim; and
(b)  notify the debtor of the secured party’s decision.
(12)  If the secured party accepts an exemption claim, the secured party shall
release the property claimed from seizure.
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(13)  If an item of property that the debtor is entitled to claim as exempt as provided
in subsection (8) is damaged, destroyed or expropriated, any insurance proceeds,
indemnity payments or compensation payments may be claimed by the debtor as
exempt property for the purpose of:
(a)  repairing the property damaged; or
(b)  replacing the destroyed or expropriated property.
(14)  Except in the case of food, clothing and bedding, nothing in subsections (8)
to (13) applies to a purchase money security interest in property.
1993, c.P-6.2, s.55; 2010, c.E-9.22, s.224.

Rights and remedies

56(1)  In this section, “secured party” includes a receiver.
(2)  Where the debtor is in default pursuant to a security agreement:
(a)  except as provided in subsection (3), the secured party has against the
debtor only:
(i)  the rights and remedies provided in the security agreement;
(ii)  the rights, remedies and obligations provided in this Part and sections
36, 37 and 38; and
(iii)  where the secured party is in possession or control of the collateral,
the rights, remedies and obligations provided in section 17 or 17.1; and
(b)  the debtor has as against the secured party:
(i)  the rights and remedies provided in the security agreement;
(ii)  the rights and remedies provided by any other Act or rule of law that
are not inconsistent with this Act; and
(iii)  the rights and remedies provided in this Part and in sections 17
and 17.1.
(3)  Except as provided in sections 17, 17.1, 59, 60 and 62, no provision of this
section, section 17, 17.1 or sections 58 to 63, to the extent that it gives rights to
the debtor or imposes obligations on the secured party, can be waived or varied by
agreement or otherwise.
1993, c.P-6.2, s.56; 2007, c.S-42.3, s.108.

Collection rights of secured party

57(1)  In this section, “secured party” includes a receiver.
(2)  In the event of default, a secured party is entitled:
(a)  to notify a debtor on an intangible or chattel paper or an obligor on an
instrument or security to make payment to the secured party whether or not
the assignor was making collections on the collateral before the notification;
68

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(b)  subject to section 59, to take control of any proceeds to which the secured
party is entitled pursuant to section 28; and
(c)  to apply any money, account, instrument or security in the form of a debt
obligation taken as collateral to the satisfaction of the obligation secured by
the security interest.
(3)  Where the collateral is a licence, the secured party may seize the collateral by
giving notice to:
(a)  the debtor; and
(b)  the grantor or successor to the grantor of the licence.
(4)  A secured party may deduct reasonable expenses of collection from:
(a)  amounts collected from a debtor on an intangible or chattel paper or from
an obligor pursuant to an instrument or security; or
(b)  money held as collateral.
(5)  A secured party who enforces a security interest in an intangible, security,
chattel paper or instrument pursuant to clause (2)(a) or (2)(b) shall give notice to
the debtor not later than 15 days after doing so.
1993, c.P-6.2, s.57.

Rights of secured party on default

58(1)  In this section, “secured party” includes a receiver.
(2)  Subject to sections 36 to 38 and any rule of law requiring prior notice, on default
under a security agreement:
(a)  the secured party has, unless otherwise agreed, the right to take possession
of the collateral or otherwise enforce the security agreement by any method
permitted by law;
(b)  where the collateral is goods of a kind that cannot be readily moved from
the debtor’s premises or of a kind for which adequate storage facilities are
not readily available, the secured party may seize or repossess the collateral
without removing it from the debtor’s premises in any manner by which a
sheriff acting pursuant to the enforcement of a judgment may seize without
removal, if the secured party’s interest is perfected by registration;
(c)  where clause (b) applies, the secured party may dispose of collateral on
the debtor’s premises, but shall not cause the person in possession of the
premises any greater inconvenience and cost than is necessarily incidental to
the disposal; and
(d)  if the collateral is a document of title, the secured party may proceed
either as to the document of title or as to the goods covered by it, and a method
of enforcement that is available with respect to the document of title is also
available, with any necessary modification, with respect to the goods covered
by it.
1993, c.P-6.2, s.58; 1996, c.18, s.17; 2010
c.E‑9.22, s.225.
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

Disposal of collateral
59(1)  In subsections (2), (5), (14) and (16), “secured party” includes a receiver.
(2)  After seizing or repossessing the collateral, a secured party may dispose of it
in its existing condition or after repair, processing or preparation for disposition,
and the proceeds of the disposition shall be applied consecutively to:
(a)  the reasonable expenses of seizing, repossessing, holding, repairing,
processing or preparing for disposition and disposing of the collateral and any
other reasonable expenses incurred by the secured party; and
(b)  the satisfaction of the obligations secured by the security interest of the
party making the disposition;
and any surplus shall be dealt with in accordance with section 60.
(3)  Collateral may be disposed of:
(a)  by private sale;
(b)  by public sale, including public auction or closed tender;
(c)  as a whole or in commercial units or parts; or
(d)  if the security agreement so provides, by lease.
(4)  Where the security agreement so provides, the payment for the collateral being
disposed of may be deferred.
(5)  The secured party may delay disposition of the collateral in whole or in part.
(6)  Not less than 20 days prior to disposition of the collateral, the secured party
shall give a notice to:
(a)  the debtor or any other person who is known by the secured party to be
an owner of the collateral;
(b)  a creditor or person with a security interest in the collateral whose interest
is subordinate to that of the secured party where:
(i)  prior to the day on which the notice of disposition is given to the
debtor, the creditor or person with a security interest in the collateral has
registered a financing statement according to the name of the debtor or
according to the serial number of the collateral if the goods are prescribed
as serial numbered goods; or
(ii)  the security interest of the creditor or person with a security interest
in the collateral is perfected by possession at the time when the secured
party seized or repossessed the collateral; and
(c)  any other person with an interest in the collateral who has given a written
notice to the secured party of that person’s interest in the collateral prior to
the day on which the notice of disposition is given to the debtor.
(7)  The notice mentioned in subsection (6) shall contain:
(a)  a description of the collateral;
(b)  the amount required to satisfy the obligations secured by the security
interest;
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(c)  the sums actually in arrears, exclusive of the operation of an acceleration

clause in the security agreement, and a brief description of any default other
than non-payment and of the provision of the security agreement the breach
of which resulted in the default;
(d)  the amount of the applicable expenses mentioned in clause (2)(a) or, where
the amount of the expenses has not been determined, a reasonable estimate;
(e)  a statement that, on payment of the amount due pursuant to clauses (b)
and (d), a person who is entitled to receive the notice may redeem the collateral;
(f)  a statement that, on payment of the sums in arrears, exclusive of the
operation of any acceleration clause in the security agreement, or on the curing
of any other default, as the case may be, together with payment of the amounts
due pursuant to clause (2)(a), the debtor may reinstate the security agreement;
(g)  a statement that, unless the collateral is redeemed or the security
agreement is reinstated, the collateral will be disposed of and the debtor may
be liable for any deficiency; and
(h)  the day, time and place of any sale by public auction, the place to which
closed tenders may be delivered and the day after which closed tenders will
not be accepted, or the day after which any private disposition of the collateral
is to be made.
(8)  Where the notice required by subsection (6) is given to a person other than
the debtor, it need not contain the information required by clauses (7)(c), (f) and (g)
and, where the debtor is not entitled to reinstate the security agreement, the notice
to the debtor need not contain the information required by clauses (7)(c) and (f).
(9)  A statement mentioned in clause (7)(g) must not contain a reference to any
liability on the part of the debtor to pay a deficiency if the secured party does not
have the right to collect the deficiency from the debtor.
(10)  Not less than 20 days prior to the disposition of the collateral, a receiver shall
give a notice to:
(a)  the debtor and, where the debtor is a corporation, to a director of the
corporation;
(b)  any other person who is known by the secured party to be an owner of
the collateral;
(c)  a person mentioned in clause (6)(b); and
(d)  any other person with an interest in the collateral who has given a notice
in writing to the receiver of that interest before the day on which notice of
disposition is given to the debtor.
(11)  A notice mentioned in subsection (10) shall contain:
(a)  a description of the collateral;
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(b)  a statement that, unless the collateral is redeemed, it will be disposed

of; and
(c)  the day, time and place of any sale by public auction, the place to which
closed tenders may be delivered and the day after which closed tenders will
not be accepted, or the day after which any private disposition of the collateral
is to be made.
(12)  A notice required by subsection (6) or (10) may be given in accordance with
section 68 or, where it is to be given to a person who has registered a financing
statement, by registered mail addressed to the person to whom it is to be given as
it appears on the financing statement.
(13)  The secured party may purchase the collateral or any part of it only at a
public sale as mentioned in clause (3)(b), and only for a price that bears a reasonable
relationship to the market value of the collateral.
(14)  Where a secured party disposes of collateral to a purchaser who acquires the
interest for value and in good faith and who takes possession of it, the purchaser
acquires the collateral free from:
(a)  the interest of the debtor;
(b)  an interest subordinate to that of the debtor; and
(c)  an interest subordinate to that of the secured party;
whether or not the requirements of this section have been complied with by the
secured party, and all obligations secured by the subordinate interests are deemed
to be performed for the purposes of sections 49 and 50.
(15)  A person who is liable to a secured party pursuant to a guarantee, endorsement,
covenant, repurchase agreement or the like and who receives a transfer of collateral
from the secured party or who is subrogated to the rights of the secured party has
thereafter the rights and duties of the secured party, and the transfer of collateral
is not a disposition of the collateral.
(16)  The notices mentioned in subsections (6) and (10) are not required where:
(a)  the collateral is perishable;
(b)  the secured party believes on reasonable grounds that the collateral will
decline substantially in value if it is not disposed of immediately after default;
(c)  the cost of care and storage of the collateral is disproportionately large
in relation to its value;
(d)  the collateral is of a type that is to be disposed of by sale on an organized
market that handles large volumes of transactions between many different
sellers and many different buyers;
(e)  the collateral is money authorized or adopted by a foreign government
as part of its currency;
72

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(f)  after default, each person entitled to receive a notice of disposition consents
in writing to the disposition of the collateral without compliance with the notice
requirements of subsection (6) or (10); or
(g)  for any other reason, a court on an application without notice is satisfied
that a notice is not required.
(17)  The notices mentioned in subsections (6) and (10) need not be delivered to
a farmer, where the security agreement is one to which sections 47 to 61 of The
Saskatchewan Farm Security Act apply.
(18)  Notwithstanding any other provision of this Part, where the collateral is a
licence, the collateral may be disposed of only in accordance with the terms and
conditions under which the licence was granted or which otherwise pertain to it.
1993, c.P-6.2, s.59; 2018, c 42, s.38.

Surplus or deficiency
60(1)  In this section, “secured party” includes a receiver.
(2)  Where a security agreement secures an indebtedness and the secured party has
dealt with the collateral pursuant to section 57 or has disposed of it in accordance
with section 59 or otherwise, any surplus shall, unless otherwise provided by law
or by the agreement of all interested parties, be accounted for and paid in the
following order to:
(a)  a person who has a subordinate security interest in the collateral and:
(i)  who, before the distribution of the surplus, registers a financing
statement using the name of the debtor or according to the serial number
of the collateral if the goods are of a kind that is prescribed as serial
numbered goods; or
(ii)  whose interest was perfected by possession at the time when the
collateral was seized;
(b)  any other person with an interest in the surplus, if that person has given a
written notice of the interest to the secured party prior to the distribution; and
(c)  the debtor or any other person who is known by the secured party to be
an owner of the collateral;
but the priority of the claim of any person mentioned in clauses (a), (b) or (c) is not
prejudiced by payment to anyone pursuant to this section.
(3)  The secured party shall give a written accounting of:
(a)  the amount received from the disposition of collateral or the amount
collected pursuant to section 57;
(b)  the manner in which the collateral was disposed of;
(c)  the amount applied to expenses as provided in sections 17, 57 and 59;
(d)  the distribution of the amount received from the disposition or
collection; and
(e)  the amount of any surplus;
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

to a person mentioned in subsection (2) within 30 days after receipt of a written

request for an accounting.
(4)  Where there is a question as to who is entitled to receive payment pursuant to
subsection (2), the secured party may pay the surplus into court, and the surplus
shall not be paid out except on an application pursuant to section 66 by a person
claiming an entitlement to it.
(5)  Except as otherwise agreed or as otherwise provided in this Act or any other
Act, the debtor is liable to pay the amount of the deficiency to the secured party.
1993, c.P-6.2, s.60.

Retention of collateral
61(1)  After default, the secured party may propose to take the collateral in
satisfaction of the obligation secured by it, and shall give notice of the proposal to:
(a)  the debtor or any other person who is known by the secured party to be
an owner of the collateral;
(b)  a creditor or person with a security interest in the collateral whose interest
is subordinate to that of the secured party, and:
(i)  who, prior to the day on which notice is given to the debtor, has
registered a financing statement using the name of the debtor or according
to the serial number of the collateral in the case of goods of a kind that
is prescribed as serial numbered goods; and
(ii)  whose security interest is perfected by possession when the secured
party seized or repossessed the collateral; and
(c)  any other person with an interest in the collateral who has given a written
notice to the secured party of that interest prior to the day on which the notice
is given to the debtor.
(2)  If any person who is entitled to a notice pursuant to subsection (1) and whose
interest in the collateral would be adversely affected by the secured party’s proposal
gives to the secured party a notice of objection within 15 days after giving the notice
pursuant to subsection (1), the secured party shall dispose of the collateral pursuant
to section 59.
(3)  If no notice of objection is given, the secured party is, at the expiration of
the 15-day period or periods mentioned in subsection (2), deemed to have irrevocably
elected to take the collateral in satisfaction of the obligation secured by it, and is
entitled to hold or dispose of the collateral free from all rights and interests of the
debtor and from the rights and interests of any person entitled to receive notice
pursuant to:
(a)  clause (1)(b); or
(b)  clause (1)(c) if the person’s interest is subordinate to that of the secured
party;
who has been given that notice, and all obligations secured by those interests are
deemed to have been performed for the purposes of sections 49 and 50.
74

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(4)  The notice required pursuant to subsection (1) may be given in accordance
with section 68 or, if it is to be given to a person who has registered a financing
statement, by registered mail addressed to the address of the person to whom it is
to be given as it appears on the financing statement.
(5)  The secured party may request that any person mentioned in subsection (1),
other than the debtor, furnish proof of that person’s interest and, unless the person
furnishes proof not later than 10 days after the secured party’s request, the secured
party may proceed as if no objection were received from the person.
(6)  On application by a secured party, the court may determine that an objection
to the proposal of a secured party is ineffective on the ground that:
(a)  the person made the objection for a purpose other than the protection of
an interest in the collateral or proceeds of a disposition of the collateral; or
(b)  the market value of the collateral is less than the total amount owing to
the secured party and the costs of disposition.
(7)  Where a secured party disposes of the collateral to a purchaser for value and
in good faith and who takes possession of it, the purchaser acquires the collateral
free from:
(a)  the interest of the debtor;
(b)  any interest subordinate to that of the debtor; and
(c)  any interest subordinate to that of the secured party;
whether or not the requirements of this section have been complied with by the
secured party, and all obligations secured by the subordinate interest are deemed
to be performed for the purposes of sections 49 and 50.
1993, c.P-6.2, s.61.

Redemption and reinstatement

62(1)  At any time before the secured party or a receiver has disposed of the collateral
or contracted for disposition pursuant to section 58 or 59 or before the secured party
is deemed to have irrevocably elected to retain the collateral pursuant to section 61:
(a)  a person who is entitled to receive a notice of disposition pursuant to
subsection 59(6) or (10) may, unless that person otherwise agrees in writing
after default, redeem the collateral by:
(i)  tendering fulfilment of the obligations secured by the collateral; and
(ii)  paying a sum equal to the reasonable expenses of seizing,
repossessing, holding, repairing, processing and preparing the collateral
for disposition, if those expenses have actually been incurred by the
secured party, and any other reasonable expenses incurred by the secured
party in enforcing the security agreement; and
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(b)  the debtor, other than a guarantor or indemnitor, may, unless the
debtor has otherwise agreed in writing after default, reinstate the security
agreement by:
(i)  paying the sums actually in arrears, exclusive of the operation of an
acceleration clause in the security agreement;
(ii)  curing any other default by reason of which the secured party intends
to dispose of the collateral; and
(iii)  paying a sum equal to the reasonable expenses of seizing,
repossessing, holding, repairing, processing and preparing the collateral
for disposition, if those expenses have actually been incurred by the
secured party, and any other reasonable expenses incurred by the secured
party in enforcing the security agreement.
(2)  Unless otherwise agreed, the debtor is not entitled to reinstate a security
agreement:
(a)  more than twice, if the security agreement provides for payment in full
by the debtor not later than 12 months after the day on which value was given
by the secured party; or
(b)  more than twice in each year, if the security agreement provides for
payment by the debtor during a period greater than one year after the day on
which value was given by the secured party.
1993, c.P-6.2, s.62.

Applications to court
63(1)  In this section, “secured party” includes a receiver.
(2)  On application by a debtor, a creditor of a debtor, a secured party, a sheriff or
a person with an interest in the collateral, the court may make one or more of the
following orders:
(a)  an order, including a binding declaration of a right and an order for
injunctive relief, that is necessary to ensure compliance with this Part or
section 17, 36, 37 or 38;
(b)  an order giving directions to any person regarding the exercise of rights
or the discharge of obligations pursuant to this Part or section 17, 36, 37 or 38;
(c)  an order relieving a person from compliance with the requirements of this
Part or section 17, 36, 37 or 38;
(d)  an order staying enforcement of rights provided in this Part or
section 17, 36, 37 or 38;
(d.1)  an order addressing a dispute arising in connection with rights
mentioned in subsections 55(8) to (14);
(e)  any order that is necessary to ensure protection of the interest of any
person in the collateral.
1993, c.P-6.2, s.63; 2010, c.E-9.22, s.226.
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

Receivers
64(1)  In this section, “Director” means the Director appointed pursuant to The
Business Corporations Act.
(2)  A security agreement may provide for the appointment of a receiver and, except
as provided in this or any other Act, for the rights and duties of a receiver.
(3)  Subject to any other Act or an Act of the Parliament of Canada, a receiver shall:
(a)  take custody and control of the collateral in accordance with the security
agreement or order pursuant to which the receiver is appointed, but unless
appointed as a receiver-manager or unless the court orders otherwise, shall
not carry on the business of the debtor;
(b)  where the debtor is a corporation, immediately notify the Director of the
appointment or discharge;
(c)  open and maintain, in the receiver’s name as receiver, one or more
accounts at a bank, credit union or other institution licensed to accept deposits
in Saskatchewan for the deposit of all money that comes under the receiver’s
control as receiver;
(d)  keep records, in accordance with accepted accounting practices, of all
receipts, expenditures and transactions that involve collateral or other property
of the debtor;
(e)  prepare, at least once in every six-month period after the date of the
appointment, financial statements of the receivership in the prescribed form;
(f)  indicate on every business letter, invoice, contract or similar document
used or executed in connection with the receivership that the receiver is acting
as a receiver; and
(g)  on completion of the receiver’s duties, prepare a final account of the
administration in the prescribed form and, where the debtor is a corporation,
send a copy of the final account to the debtor, to a director of the debtor and
to the Director.
(4)  The debtor and, where the debtor is a corporation, a director of the debtor, or
the authorized representative of any of them, may, by a demand in writing delivered
to the receiver, require the receiver to make available for inspection the records
mentioned in clause (3)(d) during regular business hours at the place of business
of the receiver in Saskatchewan.
(5)  The debtor and, where the debtor is a corporation, a director of the debtor, a
sheriff, a person with an interest in the collateral in the custody or control of the
receiver, or the authorized representative of any of them, may, by a demand in
writing delivered to the receiver, require the receiver to provide copies of the financial
statements mentioned in clause (3)(e) or the final accounts mentioned in clause (3)(g)
or to make them available for inspection during regular business hours at the place
of business of the receiver in Saskatchewan.
(6)  The receiver shall comply with the demand mentioned in subsection (4) or (5)
not later than 10 days after the day of receipt of the demand.
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(7)  The receiver may require the payment in advance of a fee in the prescribed
amount for each demand, but the sheriff and the debtor or, in the case of an
incorporated debtor, a director of the debtor, are entitled to inspect or to receive a
copy of the financial statements and final account without charge.
(8)  On application by an interested person, the court may:
(a)  appoint a receiver;
(b)  remove, replace or discharge a receiver, whether appointed by a court or
pursuant to a security agreement;
(c)  give directions on any matter relating to the duties of a receiver;
(d)  approve the accounts and fix the remuneration of a receiver;
(e)  notwithstanding anything contained in a security agreement or other
document providing for the appointment of a receiver, make an order requiring
a receiver, or a person by or on behalf of whom the receiver is appointed, to
make good a default in connection with the receiver’s custody, management
or disposition of the collateral of the debtor or to relieve the person from any
default or failure to comply with this Part;
(f)  exercise with respect to receivers appointed pursuant to a security
agreement the jurisdiction that it has over receivers appointed by the court.
(9)  The powers mentioned in subsection (8) and in section 63 are in addition to any
other powers the court may exercise in its jurisdiction over receivers.
(10)  Unless the court orders otherwise, a receiver is required to comply with sections 59
and 60 only where the receiver disposes of collateral other than in the course of
operating the business of a debtor.
1993, c.P-6.2, s.64.

PART VI
General

Exercise of rights, discharge of duties

65(1)  In this section, “secured party” includes a receiver.
(2)  The principles of the common law, equity and the law merchant, except to the
extent that they are inconsistent with this Act, supplement this Act and continue
to apply.
(3)  All rights, duties or obligations that arise pursuant to a security agreement,
this Act or any other applicable law are to be exercised or discharged in good faith
and in a commercially reasonable manner.
(4)  A person does not act in bad faith merely because the person acts with knowledge
of the interest of some other person.
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(5)  If a person, without reasonable excuse, fails to discharge any duties or obligations
imposed on the person by this Act, the person to whom the duty or obligation is owed
has a right to recover loss or damage that was reasonably foreseeable as liable to
result from the failure.
(6)  Where a secured party, without reasonable excuse:
(a)  fails to comply with obligations set out in subsection 43(12) or section 49
or 50; or
(b)  fails to comply with obligations set out in section 17 or 18, sub-
section 58(2) or section 59, 60 or 61, and the collateral is consumer goods;
the debtor or, in a case of non-compliance with subsection 43(12) or section 49
or 50, the person named as debtor in a financing statement or registration, is deemed
to have suffered damages that are not less than the prescribed amount.
(7)  Where a debtor or other person with an interest in land or collateral mentioned
in section 49 or 50, without reasonable excuse, causes the Registrar of Titles to act
pursuant to subsection 49(9) or registers a financing change statement pursuant
to subsection 50(5), the secured party mentioned in those subsections is deemed to
have suffered damages not less than the prescribed amount.
(8)  In an action for a deficiency, the debtor may raise as a defence the failure of
the secured party to comply with an obligation set out in section 17, 18, 59 or 60,
but the non-compliance of the secured party limits the secured party’s right to the
deficiency only to the extent that the non-compliance affects the ability of the debtor
to protect the debtor’s interest in the collateral or makes the accurate determination
of the deficiency impracticable.
(9)  Where a secured party fails to comply with an obligation in section 17, 18, 59
or 60, the onus is on the secured party to show that the failure:
(a)  where the collateral is consumer goods, did not affect the debtor’s ability
to protect the debtor’s interest in the collateral by redemption or reinstatement
of the security agreement or otherwise; and
(b)  did not make the accurate determination of the deficiency impracticable.
(10)  Except as otherwise provided in this Act, a provision in a security agreement
or any other agreement that purports to exclude any duty or onus imposed by this
Act, or that purports to limit the liability of or the amount of damages recoverable
from a person who has failed to discharge any duty or obligation imposed by this
Act, is void.
1993, c.P-6.2, s.65; 1996, c.18, s.18; 2000,
c.L‑5.1, s.373.

Application to court
66(1)  On an application of an interested person, the court may:
(a)  make an order determining questions of priority or entitlement to
collateral; or
(b)  direct an action to be brought or an issue to be tried.
(2)  An appeal lies to the Court of Appeal from an order, judgment or direction of
a court made pursuant to this Act.
1993, c.P-6.2, s.66.
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

Extension of time
67  Where, in section 11 and in subsections 36(14), 38(13) and 43(12), a time limit is
prescribed for the doing of an act or thing, the court, on an application made before
or after the time has expired, may extend or abridge, conditionally or otherwise,
the time for compliance.
1993, c.P-6.2, s.67.

Service of documents
68(1)  A notice or demand, other than a demand pursuant to section 18 or a copy
or reproduced copy of a verification statement mentioned in subsection 43(12), may
be given:
(a)  to an individual, by leaving it with the individual or by sending it by
registered mail addressed to:
(i)  the individual at the individual’s residence; or
(ii)  where the individual is the sole proprietor of a business, the name
of the individual at the address of the business;
(b)  to a partnership:
(i)  by leaving it with:
(A)  one or more of the general partners; or
(B)  a person who, at the time of the delivery, has control or
management of the partnership business; or
(ii)  by registered mail addressed to:
(A)  the partnership;
(B)  one or more of the general partners; or
(C)  a person who, at the time of the delivery, has control or
management of the partnership business;
at the address of the partnership business;
(c)  to a corporation, other than a municipality:
(i)  by leaving it with an officer or director of the corporation or with a
person who is in charge of any office or place of business of the corporation;
(ii)  by leaving it with or by sending it by registered mail addressed to
the registered office or head office of the corporation; or
(iii)  where the corporation has its registered office or head office outside
Saskatchewan, by leaving it with or by sending it by registered mail
addressed to the attorney for the corporation appointed pursuant to The
Business Corporations Act or The Non-profit Corporations Act, as the
case may be;
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(d)  to a municipal corporation by:

(i)  leaving it with the mayor, reeve, clerk or secretary of the municipality
or a deputy of any of those persons; or
(ii)  sending it by registered mail addressed to the principal office of the
corporation or to the chief administrative officer of the corporation;
(e)  to an association:
(i)  by leaving it with an officer of the association; or
(ii)  by sending it by registered mail addressed to an officer of the
association at the address of the officer; and
(f)  to the Crown in right of Saskatchewan as provided in The Proceedings
Against the Crown Act, 2019.
(2)  The giving of a document mentioned in subsection (1) by registered mail occurs:
(a)  when the addressee actually receives the document; or
(b)  except in cases where the postal services are not functioning, on the
expiration of 10 days after the day of registration;
whichever is earlier.
1993, c.P-6.2, s.68; 2010, c.26, s.16; 2018, c 42,
s.38; 2019, c 18, s.4.

Conflict between Act and other legislation

69(1)  Where there is a conflict between a provision of this Act and a provision of The
Agricultural Implements Act or The Saskatchewan Farm Security Act or a provision
for the protection of consumers in any other Act, the provision of that Act prevails.
(2)  Except as otherwise provided in this or any other Act, where there is a conflict
between a provision of this Act and a provision of any Act other than those mentioned
in subsection (1), the provision of this Act prevails.
1993, c.P-6.2, s.69.

References
70(1)  A reference in any Act, regulation or writing to The Assignment of Book Debts
Act, The Bills of Sale Act, The Conditional Sales Act or The Corporation Securities
Registration Act, or to a provision of one of those Acts, is deemed to be a reference
to this Act or to the corresponding provision of this Act if the reference relates to a
security interest in personal property.
(2)  A reference in any Act, regulation or writing to a chattel mortgage, lien note,
conditional sales contract, floating charge, pledge, assignment of book debts or the
like, or any derivative of these terms, or to any transaction which under this Act
is a security agreement, is deemed to be a reference to the corresponding type of
security agreement pursuant to this Act.
1993, c.P-6.2, s.70.
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

Regulations
71(1)  For the purpose of carrying out this Act according to its intent, the Lieutenant
Governor in Council may make regulations:
(a)  defining, enlarging or restricting the meaning of any word or expression
used in this Act, including words or expressions defined in this Act;
(b)  for the purposes of subclause 2(1)(y)(vi), prescribing the kinds of goods
the leases of which are not within the scope of the Act;
(c)  prescribing the duties of the registrar;
(d)  Repealed. 2013, c.O-4.2, s.154.
(e)  respecting the registry, including the transition from any prior registry
system to the system established by this Act;
(f)  Repealed. 2000, c.21, s.11.
(g)  prescribing the time, place and all other matters pertaining to the
registration of documents and electronic data that may or are required to be
registered pursuant to this Act or any other Act or regulation and requiring
the use of forms obtained from the registrar or the Queen’s Printer;
(h)  making Part IV or any provision of Part IV applicable to registrations
permitted or required to be registered in the registry;
(i)  permitting the registration in the registry of any interest, right or claim
relating to property;
(j)  respecting the application of all or part of sections 36 and 37 to any land
for which a title has not been issued pursuant to The Land Titles Act, 2000,
and the manner and place of the registration of the interests affected;
(k)  prescribing requirements as to:
(i)  the form, content and manner of use of financing statements and
financing change statements to be used to register security interests
pursuant to this Act;
(ii)  the form, content and manner of use of notices mentioned in this Act,
including notices attached to an interest registered pursuant to section 49
in the Land Titles Registry;
(iii)  the manner in which collateral, including proceeds collateral, is to
be described in financing statements and prescribing the kinds of goods
that may be described in part by serial number and the kinds of goods
that must be described in part by serial number;
(l)  prescribing all matters relating to searches of the registry and the method
of disclosure of registered information, including:
(i)  the types of searches that may be performed;
(ii)  the form of a search result;
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(iii)  the manner of requesting a copy or certified copy of a document; and

(iv)  the manner in which the registrar may certify a printed document;
(m)  requiring or  permitting the use of printed or electronic verification
statements to confirm the registration of information on financing statements
and financing change statements;
(n)  permitting the registrar to amend a registration that contains an error
caused by the act of the registrar or registry employees and prescribing the
limits of the amendments;
(o)  prescribing abbreviations, expansions or symbols that may be used in
a financing statement, financing change statement or other form, notice or
document used in connection with the registration of security interests or the
disclosure of information in the registry;
(p)  setting or extending the time, or prescribing a method of setting or
extending the time, during or at which the following are to be effective:
(i)  a registration or an amendment to or a renewal or discharge of a
registration pursuant to this Act;
(ii)  a registration or an amendment to or a renewal or discharge of a
registration that is created or that is required or permitted to be registered
in the registry pursuant to any other Act or law;
(p.1)  prescribing the manner in which the time mentioned in clause (p) is to
be indicated;
(p.2)  respecting the suspension of registry functions and the recommencement
of registry functions, including:
(i)  prescribing procedures, in addition to those set out in this Act, for
suspending registry functions and recommencing registry functions;
(ii)  prescribing any other matter or thing that the Lieutenant Governor
in Council considers necessary respecting suspension of registry functions
or recommencement of registry functions;
(p.3)  Repealed. 2013, c.O-4.2, s.154.
(p.4)  setting or extending the time, or prescribing a method of setting or
extending the time, for effecting the following:
(i)  a registration or an amendment to or a renewal or discharge of a
registration pursuant to this Act;
(ii)  a registration or an amendment to or a renewal or discharge of a
registration that is created or that is required or permitted to be registered
in the registry pursuant to another Act or law;
(p.5)  prescribing the manner in which the time mentioned in clause (p.4) is
to be indicated;
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PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(p.6)  prescribing the legal effect of a date or time set or extended pursuant
to clauses (p) to (p.5) and of any registration or amendment to or renewal or
discharge of a registration effected on, before or after a date or before, during
or after a time set or extended pursuant to clauses (p) to (p.5);
(p.7)  respecting access to or disclosure of information in the registry, including
disclosure of large volumes of information in the registry, and respecting any
privacy requirements that must be complied with by any person to whom
information in the registry is disclosed;
(q)  prescribing the maximum amounts of compensation payable or recoverable
pursuant to sections 52 to 54;
(r)  Repealed. 2000, c.21, s.11.
(s)  prescribing the amount of any charge to which a secured party or person
named as a secured party in a financing statement is entitled pursuant to
sections 18 and 64;
(t)  prescribing the amount of damages payable pursuant to subsections 65(6)
and 65(7);
(u)  prescribing any matter or thing that is required or authorized by this Act
to be prescribed in the regulations;
(v)  respecting any other matter that the Lieutenant Governor in Council
considers necessary to carry out the intent of this Act.
(2)  Notwithstanding any other Act or law, a regulation made pursuant to subsection (1)
may be made retroactive.
(3)  Subject to subsection subsection 42.4(9) and to section 13 of The Personal
Property Security Amendment Act, 1997, if there is any conflict between a provision
of the regulations made pursuant to clauses (1)(p) to (p.6) and any other provision
of this Act or the regulations or any other Act, regulations or law, the provision of
the regulations made pursuant to clauses (1)(p) to (p.6) prevails.
1993, c.P-6.2, s.71; 1997, c.16, s.4; 2000, c.L‑5.1,
s.374 and c.21, s.11; 2010, c.26, s.16; 2013, c.O-
4.2, s.154.

PART VII
Repeal, Transitional, Consequential
and Related Amendments and Coming into Force

S.S. 1979-80, c.P-6.1 repealed

72  The Personal Property Security Act is repealed.
1993, c.P-6.2, s.72.

Transitional application of Act

73(1)  In this section and section 74:
(a)  “prereform law” means the law in force on April 30, 1981;
84

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(b)  “prior law” means the law in force on the day before the day on which
this Act comes into force;
(c)  “prior security interest” means:
(i)  a security interest as defined in The Personal Property Security Act
and to which that Act applied; or
(ii)  an interest created, reserved or provided for by a valid security
agreement or other transaction made before this Act comes into force that
is a security interest within the meaning of this Act and to which this Act
would have applied if it had been in force at the time when the security
agreement or other transaction was entered into.
(2)  Subject to subsections (9) and (10), nothing in this Act affects the continued
validity and enforceability pursuant to prior law of a prior security interest that is
not a security interest pursuant to this Act.
(3)  Except as otherwise provided in this section, this Act applies:
(a)  to every security agreement made after this Act comes into force, including
an agreement that renews, extends, or consolidates an agreement made before
this Act comes into force;
(b)  to every security agreement made before this Act comes into force that
has not been validly terminated in accordance with prereform law or prior law
before this Act comes into force;
(c)  subject to subsection (5), to every prior security interest that is not enforced
or otherwise validly terminated in accordance with prereform law or prior law
before this Act comes into force; and
(d)  to a receiver appointed before or after this section comes into force.
(4)  Sections 10 and 11 do not apply to a security agreement mentioned in
clause (3)(b).
(5)  Except as provided in subsections (6), (7), (8) and (10), this Act does not apply
to a prior security interest that is not a security interest pursuant to this Act.
(6)  The validity of a prior security interest is governed by the law in force when
the security interest was created.
(7)  The order of priorities:
(a)  between prior security interests is determined by prereform law if all the
competing security interests arose pursuant to security agreements entered
into before prior law came into force;
(b)  between a prior security interest and the interest of a third party is
determined by prereform law, if the third party interest arose before prior law
came into force and the security interest arose pursuant to a security agreement
entered into before prior law came into force.
 85

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(8)  Subject to subsection (7), the order of priorities:

(a)  between prior security interests is determined by prior law; and
(b)  between a prior security interest and the interest of a third party is
determined by prior law, if the third party interest arose before this Act comes
into force.
(8.1)  To the extent that clause 34(3)(b) of The Personal Property Security Act
continues to apply as provided in this section, it is deemed to require only that the
relevant notice is to be given at any time before the debtor receives possession of
the collateral.
(9)  The order of priorities:
(a)  between an interest arising after this Act comes into force and a prior
security interest that is a security interest pursuant to this Act is determined
by this Act; and
(b)  between an interest arising after this Act comes into force and the interest
of a third party arising before this Act comes into force is determined by this Act.
(10)  The order of priorities between an interest arising after this Act comes into
force and a prior security interest that is not a security interest pursuant to this
Act is determined by this Act as if the prior security interest were within the scope
of this Act.
(11)  Subsections (9) and (10) do not apply where the prior security interest is:
(a)  a lease for a term of more than one year of household furnishings or
appliances as part of a lease of land where the goods are incidental to the use
and enjoyment of the land; or
(b)  an assignment of rental payments payable pursuant to a lease of real
property.
(12)  Notwithstanding the repeal of prereform law and prior law, this law
continues in force to the extent necessary to give effect to this section and
section 74 and to govern priority disputes falling within subsection 144(3) of The
Land Titles Act, 2000.
1993, c.P-6.2, s.73; 1996, c.18, s.19; 2000,
c.L‑5.1, s.375.

Transitional – prior registrations

74(1)  In this section, “prior registration law” means:
(a)  The Corporation Securities Registration Act as it existed on April 30, 1981;
or
(b)  The Personal Property Security Act, as it existed on the day before the day
on which this Act comes into force.
86

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(2)  Except as otherwise provided in this section, a prior security interest that,
when this Act comes into force, is covered by an unexpired filing or registration
pursuant to prior registration law is deemed to have been registered and perfected
pursuant to this Act and, subject to this Act, the registered and perfected status of
that interest continues for the unexpired portion of the filing or registration, as the
case may be, and may be further continued by registration pursuant to this Act if:
(a)  the prior security interest could have been perfected by registration if it
had arisen after this Act came into force; or
(b)  the prior security interest is a security interest to which sub-
section 73(10) would apply.
(3)  A prior security interest is covered by an unexpired filing or registration
pursuant to prior law within the meaning of subsection (2) where the requirements
for perfection of the security interest pursuant to prior law have been met, whether
or not the requirements for perfection of the security interest pursuant to this Act
have been met.
(4)  For the purposes of subsection (3), the requirements for perfection of a security
interest are met where the security interest has the status in relation to the interest
of other secured parties, buyers, judgment creditors or the trustee in bankruptcy
of the debtor that is similar to that of an equivalent security interest created and
perfected pursuant to this Act.
(5)  A registration of a prior security interest that, when this Act comes into force,
has not expired pursuant to prior registration law, is deemed to continue for the
purposes of prior registration law for the unexpired portion of the registration period,
and may be further continued by registration pursuant to this Act.
(6)  A prior perfected security interest in crops is deemed to be registered in
accordance with section 49 as of the day on which this Act comes into force, and
the registration continues for six months after this Act comes into force and may
thereafter be continued by registration in accordance with section 49.
(7)  A prior security interest in an instrument in the form of a letter of credit or
advice of credit that is perfected by registration that continues after this Act comes
into force is deemed to be perfected by possession in accordance with section 24 for a
period of six months from the day on which this Act comes into force, and thereafter
the security interest is perfected by possession only when the secured party has
taken actual possession of it in accordance with section 24.
(8)  A prior security interest in accounts arising out of the provision of professional
services or a security interest in a claim for damages or a judgment representing a
right to damages, other than a right to damages in tort:
(a)  is deemed to be perfected for the purposes of clauses 20(1)(a) and (b); and
(b)  is deemed to be perfected for all other purposes as of the day on which the
interest was perfected pursuant to the law applicable at the time of its creation;
and the perfection continues for one year from the day on which this Act comes
into force, and on the expiration of that year, it becomes unperfected unless it is
otherwise perfected pursuant to this Act.
 87

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

(9)  For the purposes of subsection (8), a security interest was perfected pursuant
to the applicable law when:
(a)  the secured party complied with the applicable law with respect to the
creation and continuance of the security interest; and
(b)  the security interest has the status in relation to the interests of other
secured parties and buyers similar to that of an equivalent security interest
created and perfected pursuant to this Act.
(10)  A prior security interest that, when this Act comes into force, could have been,
but was not:
(a)  filed or registered pursuant to prior registration law; or
(b)  perfected pursuant to prior law through possession of the collateral by
the secured party;
may, if it is a security interest that could have been perfected by registration or
possession pursuant to this Act if it had arisen after this Act comes into force, be
perfected by registration or possession in accordance with this Act.
(11)  Subsection 7(3), to the extent that it requires registration in the jurisdiction
where the transferee of the collateral is located, does not apply to a security interest
created before this Act comes into force.
1993, c.P-6.2, s.74; 1996, c.18, s.20.

Transitional provisions
74.1(1)  The provisions of The Securities Transfer Act, including amendments made
to this Act by section 108 of The Securities Transfer Act, do not affect an action or
proceeding commenced before the coming into force of section 108 of The Securities
Transfer Act.
(2)  No further action is required to continue perfection of a security interest in a
security if:
(a)  the security interest in the security was a perfected security
interest immediately before the coming into force of section 108 of
The Securities Transfer Act; and
(b)  the action by which the security interest was perfected would suffice to
perfect the security interest pursuant to this Act.
(3)  A security interest in a security remains perfected for a period of four months
from the coming into force of section 108 of The Securities Transfer Act and continues
to be perfected thereafter where appropriate action to perfect the security interest
pursuant to this Act is taken within that period if:
(a)  the security interest in the security was a perfected security
interest immediately before the coming into force of section 108 of
The Securities Transfer Act; but
(b)  the action by which the security interest was perfected would not suffice
to perfect the security interest pursuant to this Act.
88

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(4)  A financing statement or financing change statement may be registered within

the four‑month period mentioned in subsection (3) to continue that perfection or
thereafter to perfect if:
(a)  the security interest was a perfected security interest immediately before
the coming into force of section 108 of The Securities Transfer Act; and
(b)  the security interest can be perfected by registration pursuant to this Act.
2007, c.S-42.3, s.108.

Consequential amendments
75  The Acts listed in column 1 of the Schedule are amended in the
provisions listed in column 2 by striking out “The Personal Property Security
Act” wherever it occurs and in each case substituting “The Personal Property
Security Act, 1993”.
1993, c.P-6.2, s.75.

R.S.S. 1978, c.A-10, section 43.1 amended

76  Clause 43.1(5)(b) of The Agricultural Implements Act is repealed and
the following substituted:
“(b) section 41 of The Personal Property Security Act, 1993”.
1993, c.P-6.2, s.76.

R.S.S. 1978, c.B-10 amended

77(1)  The Business Corporations Act is amended in the manner set forth in this
section.
(2)  Sections 89 and 90 are repealed.
(3)  Sections 92 to 96 are repealed.
1993, c.P-6.2, s.77.

R.S.S. 1978, c.E-12 amended

78(1)  The Executions Act is amended in the manner set forth in this section.
(2)  Subclause 2.1(b)(ii) is amended by adding “or The Personal Property
Security Act, 1993”
after “The Personal Property Security Act”.
(3)  Section 2.2 is amended by adding “or The Personal Property Security
Act, 1993” after “The Personal Property Security Act”wherever it occurs:
(a)  in the portion that precedes clause (a); and
(b)  in clause (c).
1993, c.P-6.2, s.78.
 89

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

R.S.S. 1978, c.G-2, section 18.2 amended

79  Section 18.2 of The Garage Keepers Act is amended by striking out
“subsections 50(4) to (6) of The Personal Property Security Act” and substituting
“subsections 50(6) to (8) of The Personal Property Security Act, 1993”.
1993, c.P-6.2, s.79.

R.S.S. 1978, c.L-1, section 56 amended

80  Subclause 56(1.3)(a)(ii) of The Labour Standards Act is amended by
striking out “section 21 of The Personal Property Security Act” and substituting
“section 22 of The Personal Property Security Act, 1993”.
1993, c.P-6.2, s.80.

R.S.S. 1978, c.L-5 amended

81(1) The Land Titles Act is amended in the manner set forth in this section.
(2)  Clause 57(i) is amended by striking out “section 54 of The Personal Property
Security Act” and substituting “section 49 of The Personal Property Security
Act, 1993”.
(3)  The following section is added after section 124.2:
Assignment of rents
“124.3(1)  In this section:
‘assignee’ includes a secured party;
‘assignment’ includes a security agreement;
‘easement’ includes an easement pursuant to The Public Utilities
Easements Act, The Pipe Lines Act or the National Energy Board Act
(Canada);
‘lessee’ includes a holder of an easement;
‘rents’ means:
(i)  amounts payable or to be paid pursuant to a lease, including a
lease mentioned in section 134; or
(ii)  amounts payable for or to be paid pursuant to an easement.
(2)  For the purposes of determining priority among successive holders of rights
in rents, an interest that arises pursuant to an assignment of rents is deemed
to be an interest in land.
(3)  A caveat relating to an interest that arises pursuant to an assignment of
rents may be filed.
(4)  A caveat relating to an interest that arises pursuant to an assignment of
rents that was filed before this section comes into force is deemed to have been
filed pursuant to subsection (3).
90

c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

(5)  This section does not apply:

(a)  where all of the competing interests arose prior to the coming into
force of this section; or
(b)  where the conflict is between:
(i)  an interest that arose prior to the coming into force of this
section; and
(ii)  an interest that arose on or after the coming into force of this
section and before the expiry of six months after the coming into
force of this section.
(6)  After an assignment of rents is made, a lessee may pay rents to the grantor
of the lease or the easement:
(a)  before the lessee receives a notice in writing that:
(i)  states that the rents payable or to become payable by the lessee
are to be made to an identified assignee of the rents; and
(ii)  describes the lease or easement with sufficient particularity to
identify the rents; or
(b)  after the lessee requests the assignee to furnish proof of the
assignment and the assignee fails to furnish that proof within 15 days
after the date of the request.
(7)  Payment of rents by a lessee to an assignee in accordance with a notice
described in clause (6)(a) discharges the obligation of the lessee to the extent
of the payment”.
(4) Subsection 145(2) is amended by striking out “By virtue of every such
transfer” and substituting “Subject to section 124.3, by virtue of a transfer
mentioned in subsection (1)”.
1993, c.P-6.2, s.81.

S.S. 1979, c.N-4.1 amended

82(1)  The Non-profit Corporations Act is amended in the manner set forth in this
section.
(2)  Sections 78 and 79 are repealed.
(3)  Sections 81 to 84 are repealed.
1993, c.P-6.2, s.82.
 91

PERSONAL PROPERTY SECURITY, 1993 c. P-6.2

R.S.S. 1978, c.Q-1 section 45 amended

83  Section 45 of The Queen’s Bench Act is amended by adding the following
paragraph after paragraph 26:
Receivership of property
“27 Sections 64 and 66 and subsections 65(2) and 65(3) of The Personal Property
Security Act, 1993 apply, with any necessary modification, to:
(a)  a receiver or receiver-manager appointed pursuant to clause 234(3)
(b) of The Business Corporations Act or clause 215(2)(b) of The Non-profit
Corporations Act; or
(b)  a receivership of property that is collateral under a security
agreement, charge or mortgage to which The Personal Property Security
Act, 1993 does not otherwise apply.
1993, c.P-6.2, s.75.

S.S. 1984-85-86, c.R-22.01, section 48 amended

84  Subclause 48(4)(a)(ii) of The Revenue and Financial Services Act is
amended by striking out “section 21 of The Personal Property Security Act” and
substituting “section 22 of The Personal Property Security Act, 1993”.
1993, c.P-6.2, s.84.

Coming into force

85  This Act or any provision of this Act comes into force on a day or days to be
fixed by proclamation of the Lieutenant Governor.
1993, c.P-6.2, s.85.

Editorial Appendix
Provisions respecting the Personal Property Registry

Interpretation of Part
5  In this Part:
(a)  “Act” means The Personal Property Security Act, 1993;
(b)  “recommencement of registry functions” means the recommencement
of registry functions at the time and on the date mentioned in subsection 7(2);
(c)  “registration” means a registration respecting a security interest, a
Crown interest or an interest pursuant to The Sale of Goods Act or The Factors
Act and includes, where the context permits, a registration amended or renewed
prior to the suspension of registry functions;
(d)  “registry” means the Personal Property Registry continued pursuant to
section 42 of the Act;
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(e)  “registry functions” means:

(i)  registering financing statements;
(ii)  accepting requests for search results; and
(iii)  any other functions or services of the registry;
(f)  “suspension of registry functions” means the suspension of registry
functions at the time and on the date mentioned in subsection 7(1).
1997, c.16, s.5.

Office hours
6  Notwithstanding the Act or the regulations made pursuant to the Act, the registry
office and the electronic registry system are deemed to have been, and are confirmed
for all purposes as having been, open to the public from 8:30 a.m. to 4:30 p.m. on
November 9, 10 and 11, 1996.
1997, c.16, s.6.

Suspension and recommencement of registry functions

7(1)  Registry functions are deemed to have been suspended pursuant to
subsection 42(5) of the Act, as that provision existed on October 31, 1996, immediately
at the beginning of October 31, 1996, and that suspension of registry functions is
confirmed for all purposes.
(2)  Registry functions are deemed to have recommenced pursuant to sub-
section 42(5) of the Act, as that provision existed on November 7, 1996,
at 11:59:59 p.m. on November 7, 1996, and that recommencement of registry
functions is confirmed for all purposes.
1997, c.16, s.7.

Extension of expiry dates

8  Notwithstanding any provision of the Act or the regulations made pursuant to
the Act, where the actual date of expiry selected by the registrant for a registration
occurred during the period commencing on the suspension of registry functions
and ending on November 13, 1996, that registration is deemed to have remained
effective to November 18, 1996.
1997, c.16, s.8.

Extension of time period

9  Where, during the period commencing on the suspension of registry functions and
ending on November 13, 1996, there was an expiration of a time period pursuant to
the Act or the regulations made pursuant to the Act for effecting any registration or
for effecting any amendment to or renewal or discharge of a registration, that time
period is deemed to have been extended to November 18, 1996.
1997, c.16, s.9.
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Effect of registration during extended period

10  A registration or any amendment to or renewal or discharge of a registration
that was effected during the extended time period set out in section 9 is deemed
to have the same effect as if the registration or the amendment to or renewal or
discharge of the registration were effected within the original time period set out
in the Act or the regulations made pursuant to the Act.
1997, c.16, s.10.

Ratification and confirmation of actions

11  All actions done pursuant to or in reliance on the provisions of this Part are
ratified, confirmed and declared to have been lawfully done.
1997, c.16, s.11.

Regulations
12(1)  The Lieutenant Governor in Council may make regulations:
(a)  defining, enlarging or restricting the meaning of any word or expression
used in this Part but not defined in this Part;
(b)  respecting any matter or thing that the Lieutenant Governor in Council
considers necessary to carry out the intent of this Part.
(2)  A regulation made pursuant to subsection (1) may be made retroactive to a
date not earlier than October 31, 1996.
1997, c.16, s.12.

Part to prevail
13  If there is a conflict between any provision of this Part or a regulation made
pursuant to this Part and any other Act, regulations or law, the provisions of this
Part or the regulations made pursuant to this Part prevail.
1997, c.16, s.13.
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c. P-6.2 PERSONAL PROPERTY SECURITY, 1993

PART IV
Repeals and Coming into force

Repeals
14  Saskatchewan Regulations 87/96 and subsection 2(3), section 2.1,
subsection 4(1.1) and sections 4.1 and 4.2 of The Personal Property Security
Regulations are repealed and any orders of the minister responsible for the
administration of The Personal Property Security Act, 1993 pursuant to any of those
provisions are rescinded.
1997, c.16, s.14.

Coming into force

15(1)  Subject to subsections (2) and (3), this Act comes into force on assent.
(2)  Part III comes into force on assent but is retroactive and is deemed to have
been in force on and from October 31, 1996.
(3)  Section 14 comes into force on assent but is retroactive and is deemed to have
been in force on and from November 7, 1996.
1997, c.16, s.15.

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