Anytime your commercial transactions involve debt security, there will be issues that must be considered under the province’s Personal Property Security Act (PPSA). You can help smooth the way when taking and enforcing security by consulting Richard McLaren’s The 2023 Annotated Ontario Personal Property Security Act — a complete practitioner’s guide to the Ontario regime, written by an acknowledged expert.

New in this edition

In addition to the legislative and commentary updates, the 2023 edition includes, among others, the following noteworthy new decisions:

• Romspen Investment Corporation v. Courtice Auto Wreckers Limited, 2022 ONSC 6147 (Ont. S.C.J.): The court dismissed a cross-motion by a creditor claiming that a receiver breached its duty of care in the custody of collateral in which the creditor had a purchase money security interest. The court held that the creditor failed to enforce its purchase money security interest against the collateral and that the receiver did not need permission from the creditor to use the collateral to operate the debtor company’s business. The court also dismissed the creditor’s claim for unjust enrichment, holding that the estate in receivership was not enriched and that the creditor did not suffer a corresponding deprivation.
• Friendly v. 1671379 Ontario Inc., 2022 CarswellOnt 7441, 15 P.P.S.A.C. (4th) 141 (Ont. S.C.J.): The court considered the interplay of s. 20(1)(a) of the PPSA and s. 2(1) of the Creditors’ Relief Act. The general rule under the Creditors' Relief Act is that there is no priority among creditors for garnished funds, but the PPSA permits priority claims. The court granted priority to the creditor in spite of s. 2(1) of the Creditors' Relief Act because, in the absence of garnishment proceedings, the perfected security interest would have priority over the unperfected creditors of a debtor.

About Thomson Reuters ProView

ProView is the way to read Thomson Reuters eBooks and eLooseleafs, published primarily for legal, accounting, human resources, and tax professions. The Thomson Reuters ProView web-based application is accessed via your browser. With the new ProView web app, offline capability is now available from your browser. The web application has a responsive design and is compatible with desktop, laptop, and mobile devices.