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What is meant by a registration under the Personal Property Security Act?

In order for a creditor or lessor to have a security interest in the borrower’s personal property or leased equipment, as it applies, a financing statement is registered under the applicable Personal Property Security Act (Ontario). The registration of a financing statement gives notice to third parties such as landlords or other potential creditors of the of the lender’s or lessor’s security interest in such personal property. A registration under the personal property security act helps in establishing priorities and will strengthen the lessor’s or lender’s ability to recover possession of the personal property that is subject to security interest if required. Personal property that may be subject to the security interest can include inventory, accounts, equipment, or consumer goods.

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43 Queen Street West, Brampton, ON, Canada L6Y 1L9
Telephone: 905.451.3040 Fax: 905.451.5058 Email: lls@lawrences.com

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