Per the Ministry of Government Services’ recent Notice to Clients, Bill 91, Building Ontario Up Act (Budget Measures), 2015 received Royal Assent in June 2015. Part of this legislation includes amendments to the PPSA that repeal the five year registration limit on financing statements where the collateral includes consumer goods. These amendments are scheduled to come into effect on November 16, 2015 and our systems have been updated as of the same date.
The main reason for the change is the fact that it is now common practice across Canada to purchase or lease consumer goods with arranged financing beyond the previous 5 year limit. This change also aligns Ontario’s PPSA with similar laws across the rest of Canada.
The actual changes are noted below:
Subsections 51 (5) and (6) of the Personal Property Security Act are repealed.
2. Subsection 54 (2) of the Act is repealed and the following substituted:
Consumer goods, registration period
(2) Where the collateral is consumer goods, a notice registered under clause (1) (a) or an extension notice registered under subsection (3), as the case may be, shall set out an expiration date, and the notice or extension notice is effective until the end of the expiration date.