1992 Legislative Session: 1st Session, 35th Parliament
THIRD READING
The following electronic version is for informational purposes only.
The printed version remains the official version.
Certified correct as passed Third Reading on the 19th day of June, 1992
Ian D. Izard, Law Clerk.
MINISTER OF GOVERNMENT SERVICES
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
1 Section 1 of the Personal Property Security Act, S.B.C. 1989, c. 36, is amended in the definition of "financing statement" by repealing paragraph (a) and substituting the following:
(a) a printed financing statement in a prescribed form including, where the context requires, a printed financing change statement and a printed financing statement (transition), .
2 Section 2 (2) is repealed and the following is substituted:
(2) Notwithstanding section 4 (g), this Act applies to conflicting interests in a security and in an instrument, unless the security or instrument is registered, or an application to register the security or instrument has been made, under the Land Title Act, in which case the Land Title Act applies.
3 Section 10 is amended
(a) by repealing subsection (1) (b) (i) and substituting the following:
(i) a description of the collateral by item or kind, or by reference to one or more of the following: goods, securities, instruments, documents of title, chattel paper, intangibles, money, crops or licences, ,
(b) by repealing subsection (1) (b) (iii) and substituting the following:
(iii) a statement that a security interest is taken in all of the debtor's present and after-acquired personal property except
(A) specified items or kinds of personal property, or
(B) one or more of the following: goods, securities, instruments, documents of title, chattel paper, intangibles, money, crops or licences. ,
(c) by repealing subsection (3) and substituting the following:
(3) Subject to subsection (6), a description is inadequate for the purposes of subsection (1) (b) if it describes the collateral as consumer goods or equipment without further reference to the kind of collateral. , and
(d) by adding the following subsection:
(6) Where personal property is excluded from a description of collateral, the excluded property may be described as consumer goods without further reference to the item or kind of property excluded.
4 Section 40 is amended by renumbering the section as section 40 (1) and by adding the following subsections:
(2) An agreement or undertaking to subordinate or postpone
(a) the right of a person to the performance of some or all of an obligation to the right of another person to the performance of some or all of another obligation by the same debtor, or
(b) some or all of the rights of a secured party under a security agreement to some or all of the rights of another secured party under another security agreement with the same debtor
does not, by virtue of the subordination or postponement alone, create a security interest.
(3) Subsection (2) is deemed to have come into force on October 1, 1990 and is retroactive to the extent necessary to give it effect on and after that date.
5 Section 41 (5) is repealed and the following is substituted:
(5) Where a contract has been modified or substituted in the manner referred to in subsection (3), the assignee obtains rights that correspond to those of the assignor under the modified or substituted contract.
6 Section 43 is amended
(a) in subsection (10) by striking out "financing change statement" and substituting "financing statement (transition)",
(b) in subsection (11) by striking out "financing statement" wherever it appears and substituting "financing statement (transition)", and
(c) in subsection (15) by striking out "in a financing statement" and substituting "in a financing statement that is not a financing statement (transition)".
7 Section 44 (3) is amended by adding ", whether the registration is valid or invalid," after "An amendment to a registration".
8 Section 47 is repealed and the following is substituted:
47 Registration of a financing statement in the registry does not by itself constitute express, constructive or implied notice to any person of, or express, constructive or implied knowledge on the part of, any person of
(a) the financing statement or its contents, or
(b) the security interest perfected by the financing statement or the contents of any security agreement.
9 Section 48 (1) (b) is amended by adding at the end "and the issue of a search result".
10 Section 49 (2) and (7) (a) are amended by adding "or the secured party's agent" after "signed by the secured party" wherever it appears.
11 Section 57 is amended
(a) by repealing subsection (2) and substituting the following:
(2) In the event of default under a security agreement, 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,
(b) subject to section 59, to take control of any proceeds to which the secured party is entitled under section 28, and
(c) to apply any money taken as collateral or paid as provided in paragraph (a) to the satisfaction of the obligation secured by the security interest. ,
(b) in subsection (3) (a) (ii) by adding "or security" after "under an instrument", and
(c) by adding the following subsection:
(4) A secured party who enforces a security interest by giving notice as provided in subsection 2 (a) shall, not later than 15 days after giving it, notify the debtor under the security agreement that it was given.
12 Section 59 is amended
(a) in subsection (6) (b) (i) by striking out "who has registered" and substituting "who has registered, before the day that the notice of disposition is given to the debtor," , and
(b) in subsection (17) (b.1) by striking out "a security or instrument" and substituting "of a type".
13 Section 60 (2) (a) (i) is amended by striking out "who registers" and substituting "who has registered, before the distribution,".
14 Section 61 is amended
(a) in subsection (1) (b) (i) by striking out "who has registered" and substituting "who has registered before the date that the notice is given to the debtor", and
(b) in subsection (3) (b) by adding at the end ", if that person's interest is subordinate to that of the secured party,".
15 Section 63 (2) (e) is repealed and the following is substituted:
(e) an order necessary to ensure protection of the interest of any person in the collateral.
16 Section 69 is amended
(a) in subsection (4) (a) by striking out "43 (14)," and substituting "43 (15),", and
(b) in subsection (7) by striking out "right of the defendant" and substituting "ability of the defendant".
17 Section 71 is amended by striking out "43 (14)" and substituting "43 (15)".
18 Section 72 (1) is amended by striking out everything before paragraph (a) and substituting "A copy of a financing statement referred to in section 43 (15), a copy of a verification statement referred to in section 43 (15), a notice under this Act or a demand under this Act, other than a demand under section 18, may be given to".
19 Section 76 is amended
(a) in subsection (1) (i) by striking out ", financing change statements", and
(b) by adding the following subsections:
(3) A power to make a regulation under this section includes the power to make it in respect of an interest that is permitted or required to be registered in the registry by an enactment other than this Act and the provisions of this section shall be read with the necessary changes to achieve this purpose.
(4) A regulation made under this section is not invalid by reason only that it is made in respect of an interest that is permitted or required to be registered in the registry by an enactment other than the Personal Property Security Act.
(5) Subsections (3) and (4) are deemed to have come into force on October 1, 1990 and are retroactive to the extent necessary to give them effect on and after that date.
20 Section 76 (1) (j) is amended by adding ", whether the registration is valid or invalid," after "a registration".
21 This Act comes into force by regulation of the Lieutenant Governor in Council.
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