Personal property security act definition

Section 1 (1) definition of "financing statement", paragraph (c) BEFORE amended by 2003-75-45, effective December 8, 2003 (BC Reg 441/2003).

(c) a security agreement registered under the Book Accounts Assignment Act, R.S.B.C. 1979, c. 32, Chattel Mortgage Act, R.S.B.C. 1979, c. 48, Company Act, Manufactured Home Act, R.S.B.C. 1979, c. 281, or Sale of Goods on Condition Act, R.S.B.C. 1979, c. 373, before the coming into force of this section together with any statement of particulars that was registered with the security agreement unless there is a conflict between the statement of particulars and the security agreement in which case it means the statement of particulars and not the security agreement;

Section 1 (1) definition of "financing statement", paragraph (a) BEFORE repealed by 2003-96-56, effective December 2, 2003 (Royal Assent).

(a) a printed financing statement in a prescribed form including, if the context requires, a printed financing change statement and a printed financing statement (transition),

Section 1 (1) definition of "chief forester" BEFORE amended by 2006-13-33,Sch A, effective March 30, 2006 (Royal Assent).

"chief forester" means the chief forester referred to in the Ministry of Forests Act;

Section 1 (1) definition of "account" BEFORE amended by 2007-10-113(a), effective July 1, 2007 (BC Reg 128/2007).

"account" means a monetary obligation not evidenced by chattel paper, an instrument or a security, whether or not the obligation has been earned by performance;

Section 1 (1) definitions of "broker", "certificated security", "clearing house", "clearing house option", "entitlement holder", "entitlement order", "financial asset", "futures account", "futures contract", "futures customer", "futures exchange", "futures intermediary", "investment property", "option", "option on futures", "securities account", "securities intermediary", "security certificate", "security entitlement", "standardized future" and "uncertified security" were added by 2007-10-113(b), effective July 1, 2007 (BC Reg 128/2007).

Section 1 (1) definitions of "goods", "instrument", "intangible" and "proceeds" BEFORE amended by 2007-10-113(c), effective July 1, 2007 (BC Reg 128/2007).

"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, a security, money, trees other than crops until the trees are severed, or minerals or hydrocarbons until they are extracted;

"instrument" means

(a) a bill of exchange, note or cheque within the meaning of the Bills of Exchange Act (Canada),

(b) any other writing that evidences a right to payment of money and is of a type that in the ordinary course of business is transferred by delivery with any necessary endorsement or assignment, or

(c) 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 under it,

but does not include

(d) chattel paper, a document of title or a security, or

(e) a bond, debenture or similar document evidencing an obligation secured, in whole or in part, by a mortgage of an interest in land unless the interest being mortgaged is, itself, a mortgage of land;

"intangible" means

(a) personal property, but does not include goods, chattel paper, a document of title, an instrument, money or a security, and

"proceeds" means

(a) identifiable or traceable personal property, fixtures and crops

(i) derived directly or indirectly from any dealing with collateral or the proceeds of collateral, and

(ii) in which the debtor acquires an interest,

(b) 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, and

(c) a payment made in total or partial discharge or redemption of an intangible, an instrument, a security or chattel paper;

Section 1 (1) definition of "proceeds", paragraph (d) was added by 2007-10-113(d), effective July 1, 2007 (BC Reg 128/2007).

Section 1 (1) definition of "purchase money security interest", paragraphs (a) and (b) BEFORE amended by 2007-10-113(e), effective July 1, 2007 (BC Reg 128/2007).

(a) a security interest taken in collateral to the extent that it secures payment of all or part of its purchase price,

(b) a security interest taken in collateral 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 the rights,

Section 1 (1) definition of "security" BEFORE amended by 2007-10-113(f), effective July 1, 2007 (BC Reg 128/2007).

"security" means a share, stock, warrant, bond, debenture or similar record, whether or not in the form of a security certificate, that

(a) is recognized in the jurisdiction in which it is issued or dealt with as evidencing a share, participation or other interest in property or an enterprise, or that evidences an obligation of the issuer, and

(b) in the ordinary course of business is transferred

(i) by delivery with the necessary endorsement, assignment or registration in the records of the issuer or of an agent of the issuer, or by compliance with restrictions on transfer, or

(ii) by an entry in the records of a clearing agency,

but does not include a bond, debenture or similar record evidencing an obligation secured, in whole or in part, by a mortgage of an interest in land unless the interest being mortgaged is, itself, a mortgage of land;

Section 1 (1) definition of "security interest", paragraph (a) BEFORE amended by 2007-10-113(g), effective July 1, 2007 (BC Reg 128/2007).

(a) an interest in goods, chattel paper, a security, a document of title, an instrument, money or an intangible 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

Section 1 (1) definition of "security with a clearing agency" BEFORE repealed by 2007-10-113(h), effective July 1, 2007 (BC Reg 128/2007).

"security with a clearing agency" means a security

(a) in the form of a security certificate

(i) in bearer form,

(ii) endorsed in blank by an appropriate person, or

(iii) registered in the name of the clearing agency or its nominee or custodian,

that is in the custody of the clearing agency, or

(b) not in the form of a security certificate and that is registered or recorded in the records maintained by or on behalf of the issuer in the name of a clearing agency or its nominee or custodian;

Section 1 (1.1) was added by 2007-10-114, effective July 1, 2007 (BC Reg 128/2007).

Section 1 (1) definition of "chief forester" BEFORE repealed by 2011-23-1(a), effective September 1, 2012 (BC Reg 182/2012).

"chief forester" means the chief forester referred to in the Ministry of Forests and Range Act;

Section 1 (1) definitions of "intangible" and "licence" BEFORE amended by 2011-23-1(b), effective September 1, 2012 (BC Reg 182/2012).

"intangible" means

(a) personal property, but does not include goods, chattel paper, a document of title, an instrument, money or investment property, and

"licence" means a right to harvest timber, or to grow and harvest Christmas trees, under an agreement referred to in section 12 of the Forest Act;

Section 1 (1) definition of "forest agreement" was added by 2011-23-1(b), effective September 1, 2012 (BC Reg 182/2012).

Section 1 (1) definition of "foreign registered ship" BEFORE amended by 2017-10-41, effective November 2, 2017 (Royal Assent).

"foreign registered ship" means a self propelled, sea going vessel used in international seaborne trade for the transport of goods, passengers or both, that is 20 or more gross registered tons and is registered, other than as a bareboat charter, in the name of the owner, but does not include a vessel registered under the Canada Shipping Act;

Section 1 (1) definition of "licence" BEFORE amended by 2019-11-18, effective May 16, 2019 (Royal Assent).

"licence" means a right, whether or not exclusive, that may be transferred by the holder with or without restriction or the consent of the grantor and that entitles the holder to do any of the following:

(a) manufacture, produce, sell, transport, grow, harvest or otherwise deal with personal property;

(b) provide services;

(c) acquire personal property;

(d) harvest timber, or grow and harvest Christmas trees, under an agreement referred to in section 12 of the Forest Act;

Section 2 (2) BEFORE amended by 2007-10-115, effective July 1, 2007 (BC Reg 128/2007).

(2) Despite 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.

Section 4 (c) BEFORE amended by 2007-10-116(a), effective July 1, 2007 (BC Reg 128/2007).

(c) the creation or transfer of an interest or claim in or under a contract of annuity or policy of insurance except the transfer of a right to money or other value payable under a policy of insurance as indemnity or compensation for loss of or damage to collateral;

Section 4 (c.1) was added by 2007-10-116(b), effective July 1, 2007 (BC Reg 128/2007).

Section 4 (f) (part) BEFORE amended by 2011-23-2, effective September 1, 2012 (BC Reg 182/2012).

(f) the creation or transfer of an interest in land, other than an interest arising under a licence, including

Section 5 (1) BEFORE amended by 2007-10-117(a), effective July 1, 2007 (BC Reg 128/2007).

(1) Subject to sections 6 to 8, the validity, perfection and effect of perfection or non-perfection of

(a) a security interest in goods, or

(b) a possessory security interest in a security, an instrument, a negotiable document of title, money or chattel paper,

is governed by the law of the jurisdiction where the collateral is located when the security interest attaches.

Section 5 (2) BEFORE repealed by 2007-10-117(b), effective July 1, 2007 (BC Reg 128/2007).

(2) For the purposes of subsection (1) a security with a clearing agency is located where the records of the clearing agency are kept.

Section 5 (3) BEFORE amended by 2007-10-117(c), effective July 1, 2007 (BC Reg 128/2007).

(3) A security interest in goods perfected under the law of the jurisdiction in which the goods are located at the time the security interest attaches, but before the goods are brought into British Columbia, continues perfected in British Columbia if it is perfected in British Columbia

Section 5 (1) (part) BEFORE amended by 2019-11-19, effective May 16, 2019 (Royal Assent).

(1) Subject to sections 6 to 8, the validity, perfection and effect of perfection or non-perfection of

Section 5 (3) sandwich text BEFORE amended by 2023-10-819, effective March 30, 2023 (Royal Assent).

whichever is the earliest, but the security interest is subordinate to the interest of a buyer or lessee of the goods who acquires his or her interest without knowledge of the security interest and before it is perfected in British Columbia under section 24 or 25.

Section 6 (1) BEFORE amended by 2019-11-19, effective May 16, 2019 (Royal Assent).

(1) Subject to section 7,

(a) if the parties to a security agreement that creates a security interest in goods in one jurisdiction understand at the time the security interest attaches that the goods will be kept in another jurisdiction, and

(b) if 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, perfection and effect of perfection or non-perfection of the security interest is governed by the law of the other jurisdiction.

Section 7 (1) BEFORE amended by 2007-10-118(a), effective July 1, 2007 (BC Reg 128/2007).

(1) For the purposes of this section, a debtor is located

Section 7 (2) (b) BEFORE amended by 2007-10-118(b), effective July 1, 2007 (BC Reg 128/2007).

(b) a non-possessory security interest in a security, an instrument, a negotiable document of title, money or chattel paper,

Section 7 (2) (part) BEFORE amended by 2007-10-118(c), effective July 1, 2007 (BC Reg 128/2007).

is governed by the law, including the conflict of laws rules, of the jurisdiction where the debtor is located when the security interest attaches.

Section 7 (3) (part) BEFORE amended by 2007-10-118(d), effective July 1, 2007 (BC Reg 128/2007).

(3) If the 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 British Columbia if it is perfected in the other jurisdiction

Section 7 (4) (b) BEFORE amended by 2007-10-118(e), effective July 1, 2007 (BC Reg 128/2007).

(b) an interest in goods, a security, an instrument, a negotiable document of title, money or chattel paper acquired when the collateral was located in British Columbia,

Section 7 (8) BEFORE amended by 2011-23-2, effective September 1, 2012 (BC Reg 182/2012).

(8) Despite subsection (2), the validity, perfection and effect of perfection and non-perfection of a security interest in a licence is governed by this Act.

Section 7 (2), (6), (7) and (8) BEFORE amended by 2019-11-20, effective May 16, 2019 (Royal Assent).

(2) The validity, perfection and effect of perfection or non-perfection of

(a) a security interest in

(i) an intangible, or

(ii) goods, other than a foreign registered ship, that are of a type that are normally used in more than one jurisdiction, if the goods are equipment or are inventory leased or held for lease by the debtor to others, and

(b) a non-possessory security interest in an instrument, a negotiable document of title, money or chattel paper,

is governed by the law, including the conflict of laws rules, of the jurisdiction in which the debtor is located when the security interest attaches.

(6) The validity, perfection and effect of perfection or non-perfection of a security interest in a foreign registered ship is governed by the law of the jurisdiction where the ship is registered at the time that the security interest attaches.

(7) Despite section 6 and subsection (2) of this section, the validity, perfection and effect of perfection or non-perfection of a security interest in minerals or hydrocarbons or in an account resulting from the sale of the minerals at the minehead or the hydrocarbons at the wellhead

(a) that is provided for in a security agreement executed before the minerals or hydrocarbons are extracted, and

(b) that attaches to the minerals or hydrocarbons upon extraction or attaches to an account upon sale of the minerals or hydrocarbons,

is governed by the law of the jurisdiction in which the minehead or wellhead is located.

(8) Despite subsection (2), the validity, perfection and effect of perfection and non-perfection of a security interest in a forest agreement is governed by this Act.

Section 7 (1) BEFORE amended by 2010-4-43(a), effective June 1, 2019.

(1) For the purposes of this section and section 7.1, a debtor is located

(a) at the place of business, if any, of the debtor,

(b) at the chief executive office of the debtor, if the debtor has more than one place of business, and

(c) at the place of the principal residence of the debtor, if the debtor has no place of business.

Section 7 (1.1) and (1.2) were added by 2010-4-43(a), effective June 1, 2019.

Section 7 (2) BEFORE amended by 2010-4-43(b), effective June 1, 2019.

(2) The validity, the perfection, the effect of perfection or non-perfection and the priority of

(a) a security interest in

(i) an intangible, or

(ii) goods, other than a foreign registered ship, that are of a type that are normally used in more than one jurisdiction, if the goods are equipment or are inventory leased or held for lease by the debtor to others, and

(b) a non-possessory security interest in an instrument, a negotiable document of title, money or chattel paper,

is governed by the law, including the conflict of laws rules, of the jurisdiction in which the debtor is located when the security interest attaches.

Section 7.1 was enacted by 2007-10-119, effective July 1, 2007 (BC Reg 128/2007).

Section 7.1 (2) (part) BEFORE amended by 2019-11-21, effective May 16, 2019 (Royal Assent).

(2) Except as otherwise provided in subsection (5), the perfection, effect of perfection or non-perfection and priority of a security interest in investment property is governed by the law

Section 7.1 (2) (part) BEFORE amended by 2010-4-44(a), effective June 1, 2019.

(2) Except as otherwise provided in subsection (5), the perfection, the effect of perfection or non-perfection and the priority of a security interest in investment property is governed by the law

Section 7.1 (3) (a) BEFORE amended by 2010-4-44(b), effective June 1, 2019.

(a) the location of a debtor is determined under section 7 (1),

Section 7.2 was enacted by 2010-4-45, effective June 1, 2019.

Section 7.3 was enacted by 2010-4-45, effective June 1, 2019.

Section 7.4 was enacted by 2010-4-45, effective June 1, 2019.

[Note: 2010-4-45 was amended by 2019-11-13 and 14, effective May 16, 2019 (Royal Assent).]

Section 7.5 was enacted by 2010-4-45, effective June 1, 2019.

Section 7.6 was enacted by 2010-4-45, effective June 1, 2019.

[Note: 2010-4-45 was amended by 2019-11-15 and 16, effective May 16, 2019 (Royal Assent).]

Section 8 (1) BEFORE amended by 2007-10-120(a), effective July 1, 2007 (BC Reg 128/2007).

(1) Despite sections 5 to 7,

(a) procedural issues involved in the enforcement of the rights of a secured party against collateral, other than an intangible, are governed by the law of the jurisdiction in which the collateral is located when the rights are exercised,

(b) subject to paragraph (c), procedural issues involved in the enforcement of the rights of a secured party against an intangible are governed by the law of the forum,

(c) procedural issues involved in the enforcement of the rights of a secured party against a licence are governed by the law of British Columbia, and

(d) 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.

Section 8 (2) BEFORE amended by 2007-10-120(b), effective July 1, 2007 (BC Reg 128/2007).

(2) For the purposes of sections 5 to 7, a security interest is perfected under the law of a jurisdiction when the secured party has complied with the law of the jurisdiction with respect to the creation and continuance of a security interest, and the security interest has a status in relation to the interests of other secured parties, buyers, judgment creditors or a trustee in bankruptcy of the debtor, similar to that of an equivalent security interest created and perfected under this Act.

Section 8 BEFORE amended by 2010-4-46, effective June 1, 2019.

Law applicable: substance and procedure

8 (1) Despite sections 5 to 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.

(2) For the purposes of sections 5 to 7.1, a security interest is perfected under the law of a jurisdiction when the secured party has complied with the law of the jurisdiction with respect to the creation and continuance of a security interest, and the security interest has a status in relation to the interests of other secured parties, buyers, judgment creditors or a trustee in bankruptcy of the debtor, similar to that of an equivalent security interest created and perfected under this Act.

Section 8.1 was enacted by 2007-10-121, effective July 1, 2007 (BC Reg 128/2007).

Section 8.1 BEFORE amended by 2010-4-47, effective June 1, 2019.

Internal law of the jurisdiction

8.1 For the purposes of section 7.1, a reference to the law of a jurisdiction means the internal law of that jurisdiction excluding its conflict of law rules.

Section 10 (1) BEFORE amended by 2007-10-122, effective July 1, 2007 (BC Reg 128/2007).

(1) Subject to subsection (2), a security interest is only enforceable against a third party if

(a) the collateral is in the possession of the secured party, or

(b) 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: goods, securities, instruments, documents of title, chattel paper, intangibles, money, crops or licences,

(ii) a statement that a security interest is taken in all of the debtor's present and after acquired personal property, or

(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.

Section 10 (3) and (4) BEFORE amended by BC Reg 18/10 under RS1996-440-12, effective January 15, 2010 (BC Reg 18/2010).

(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.

(4) A description of collateral as inventory is adequate for the purposes of subsection (1) (b) only while it is held by the debtor as inventory.

Section 12 (1) (b) BEFORE amended by 2007-10-123(a), effective July 1, 2007 (BC Reg 128/2007).

(b) the debtor has rights in the collateral, and

Section 12 (4) and (5) were added by 2007-10-123(b), effective July 1, 2007 (BC Reg 128/2007).

Section 12.1 was enacted by 2007-10-124, effective July 1, 2007 (BC Reg 128/2007).

Section 16 BEFORE amended by 2023-10-820, effective March 30, 2023 (Royal Assent).

Acceleration clauses

16 If a security agreement provides that a secured party may accelerate payment or performance by the debtor when the secured party is or believes himself insecure or decides that the collateral is in jeopardy, the provision must be construed to mean that the secured party has the right to accelerate payment or performance only if the secured party, in good faith, believes and has commercially reasonable grounds to believe that the prospect of payment or performance is or is about to be impaired or that the collateral is or is about to be placed in jeopardy.

Section 17 (2) BEFORE amended by 2007-10-125, effective July 1, 2007 (BC Reg 128/2007).

(2) A secured party must use reasonable care in the custody and preservation of collateral in the possession of the secured party and, unless the parties otherwise agree, in the case of an instrument, a security or chattel paper, reasonable care includes taking necessary steps to preserve rights against other persons.

Section 17.1 was enacted by 2007-10-126, effective July 1, 2007 (BC Reg 128/2007).

Section 19.1 was enacted by 2007-10-126, effective July 1, 2007 (BC Reg 128/2007).

Section 19.2 was enacted by 2007-10-126, effective July 1, 2007 (BC Reg 128/2007).

Section 20 (b) (ii) BEFORE amended by BC Reg 343/2006 under RS1996-440-12, effective December 4, 2006 (BC Reg 343/2006).

(ii) a liquidator appointed under the Winding-up Act (Canada) if the security interest is unperfected at the date that the winding-up order is made, and

Section 20 (c) BEFORE amended by 2007-10-127, effective July 1, 2007 (BC Reg 128/2007).

(c) in chattel paper, a document of title, a security, an instrument, money, an intangible or goods is subordinate to the interest of a transferee who

(i) acquires an interest under a transaction that is not a security agreement,

(ii) gives value, and

(iii) acquires the interest without knowledge of the security interest and before the security interest is perfected.

Section 24 (1) (d) BEFORE repealed by 2007-10-128(a), effective July 1, 2007 (BC Reg 128/2007).

Section 24 (3) BEFORE amended by 2007-10-128(b), effective July 1, 2007 (BC Reg 128/2007).

(3) If the collateral is a security with a clearing agency, a secured party is deemed to have taken possession of the security when the appropriate entries have been made in the records of the clearing agency.

Section 24 (4) was added by 2007-10-128(b), effective July 1, 2007 (BC Reg 128/2007).

Section 24.1 was enacted by 2007-10-129, effective July 1, 2007 (BC Reg 128/2007).

Section 26 (1) (a) BEFORE amended by 2007-10-130, effective July 1, 2007 (BC Reg 128/2007).

(a) an instrument or a 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 transfer, or

Section 28 (1.1) was added by 2007-10-131, effective July 1, 2007 (BC Reg 128/2007).

Section 30 (9) to (13) were added by 2007-10-132, effective July 1, 2007 (BC Reg 128/2007).

Section 30 (4) (a) and (b) BEFORE amended by 2019-11-22(a) and (b), effective May 16, 2019 (Royal Assent).

(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.

Section 30 (4) (c) was added by 2019-11-22(b), effective May 16, 2019 (Royal Assent).

Section 31 (3) BEFORE amended by 2007-10-133(a), effective July 1, 2007 (BC Reg 128/2007).

(3) A purchaser of an instrument or a security has priority over a security interest in the instrument or security perfected under section 25 or temporarily perfected under section 26 or 28 (3) if

(a) the purchaser gave value for the instrument or security,

(b) the purchaser acquired the instrument or security without knowledge that it was subject to a security interest, and

(c) in the case of a security or instrument that

(i) is not a security with a clearing agency, the purchaser took possession of the instrument or security, or

(ii) is a security with a clearing agency, an entry has been made in the records of the appropriate clearing agency indicating that the security has been transferred to the purchaser.

Section 31 (5) (a) BEFORE amended by 2007-10-133(a), effective July 1, 2007 (BC Reg 128/2007).

(a) a purchaser of an instrument or a security, or

Section 31 (3) (c) BEFORE amended by 2007-10-133(b), effective July 1, 2007 (BC Reg 128/2007).

(c) in the case of a security or instrument that

(i) is not a security with a clearing agency, the purchaser took possession of the instrument or security, or

(ii) is a security with a clearing agency, an entry has been made in the records of the appropriate clearing agency indicating that the security has been transferred to the purchaser.

Section 31 (5) sandwich text BEFORE amended by 2023-10-821, effective March 30, 2023 (Royal Assent).

who acquired his or her interest under a transaction entered into in the ordinary course of the transferor's business has knowledge only if he or she acquired the interest with knowledge that the transaction violates the terms of the security agreement creating or providing for the security interest.

Section 31.1 was enacted by 2007-10-134, effective July 1, 2007 (BC Reg 128/2007).

Section 35 (6) (e) BEFORE amended by 2003-75-46, effective December 8, 2003 (BC Reg 441/2003).

(e) the amount of taxes paid by the secured party under section 35 (1) of the Manufactured Home Act.

Section 35.1 was enacted by 2007-10-136, effective July 1, 2007 (BC Reg 128/2007).

Section 40 (1) BEFORE amended by 2023-10-822, effective March 30, 2023 (Royal Assent).

(1) A secured party may, in a security agreement or otherwise, subordinate his or her 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.

Section 43 (3) BEFORE amended by 2019-11-23, effective May 16, 2019 (Royal Assent).

(3) The registrar must not register a financing statement or issue a search result under this Part until any prescribed fees have been paid or arrangements satisfactory to the registrar for their payment have been made.

Section 45 (6) BEFORE amended by 2023-10-822, effective March 30, 2023 (Royal Assent).

(6) When a secured party has subordinated his or her interest 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.

Section 46 (1) BEFORE changes by 2002-17-18, effective May 10, 2002 (BC Reg 94/2002).

(1) If a document is registered in the registry, the registrar may have the document photographed or otherwise reproduced and the reproduction is for all purposes deemed to be the document photographed or reproduced.

Section 46 (2) (b) and (c) BEFORE amended and paragraph (c) repealed by 2010-4-48, effective March 1, 2013 (BC Reg 81/2013).

(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 a court order maintaining the registration under section 50, or

Section 47 (part) BEFORE amended by BC Reg 389/2007 under RS1996-440-12, effective November 23, 2007 (BC Reg 389/2007).

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

Section 49 (1) definition of "fee" BEFORE amended by 2004-66-161, effective January 20, 2005 (BC Reg 16/2005).

"fee" means the prescribed fee payable under the Land Title Act for the filing of notices in the land title office;

Section 49 (2) and (4) to (7) BEFORE amended by 2023-10-823, effective March 30, 2023 (Royal Assent).

(2) A secured party may, on application and on payment of the fee, file in the proper land title office a notice of a security interest signed by the secured party or the secured party's agent setting out

(a) a description of the land affected by the notice that is sufficient for the registrar to identify it in his or her records,

(b) the name and address of the debtor and the secured party,

(c) the expiry date of the notice, if any,

(d) a description of the collateral by which it may be readily identified, and

(e) other prescribed information,

and the registrar must file the notice and make an entry of it in the register.

(4) After its expiry date, if any, a notice of a security interest is of no effect and the registrar

(a) on the application of any person interested in the land and on payment of the fee, or

(b) on his or her own initiative,

may cancel the entry of the notice on the register.

(5) If a secured party wishes to extend an expiry date specified in a notice filed under subsection (2), the secured party may, on application and on payment of the fee, file a notice of extension signed by the secured party setting out

(a) a description of the land affected by the notice that is sufficient for the registrar to identify it in his or her records,

(b) the extended expiry date,

(c) the filing number of the notice under subsection (2), and

(d) other prescribed information,

and the registrar must file the notice and make an entry of it in the register.

(6) If a secured party has assigned a security interest in respect of which a notice has been filed under this section, the assignee may, on application and on payment of the fee, file a notice of the assignment signed by the assignee setting out

(a) the name and address of the assignee,

(b) a description of the land affected by the notice that is sufficient for the registrar to identify it in his or her records,

(c) the filing number of the notice under subsection (2), and

(d) other prescribed information,

and the registrar must file the notice and make an entry of it in the register.

(7) The registrar,

(a) on receipt of a notice of cancellation signed by the secured party or the secured party's agent setting out

(i) a description of the land affected by the notice that is sufficient for the registrar to identify it in his or her records, and

(ii) the filing number of the notice under subsection (2), and

(b) on application and payment of the fee

must, subject to subsection (8), cancel the entry of the notice filed under subsection (2) in the register.

Section 50 (12) was added by 2007-10-137, effective July 1, 2007 (BC Reg 128/2007).

Section 50 (4) (part) BEFORE amended by 2010-4-49(a), effective March 1, 2013 (BC Reg 81/2013).

and the secured party must amend or discharge the registration not later than 15 days after the demand is given.

Section 50 (5) BEFORE re-enacted by 2010-4-49(b), effective March 1, 2013 (BC Reg 81/2013).

(5) If the secured party fails to amend or discharge the registration as required in subsection (4), the person who has made the demand may require the registrar to give a notice in writing to the secured party stating that the registration will be discharged or amended, by the registrar in accordance with the demand, on the expiry of 40 days after the day the registrar gives the notice to the secured party, unless in the meantime the secured party gives to the registrar an order of a court maintaining the registration.

Section 50 (6) BEFORE amended by 2010-4-49(c), effective March 1, 2013 (BC Reg 81/2013).

(6) The demand referred to in subsection (3) and the notice referred to in subsection (5) may be given in accordance with section 72 or by registered mail addressed to the address of the secured party as it appears on the financing statement.

Section 50 (7) BEFORE repealed by 2010-4-49(d), effective March 1, 2013 (BC Reg 81/2013).

(7) If the secured party who has been given a notice referred to in subsection (5) fails to

(a) register a financing change statement amending or discharging the registration as required in the demand made under subsection (3), or

(b) give to the registrar a court order referred to in subsection (8),

before the expiry of 40 days after the notice has been given to the secured party, the registrar may amend or discharge the registration to which the demand made under subsection (3) relates in accordance with the demand.

Section 50 (9) BEFORE amended by 2010-4-49(e), effective March 1, 2013 (BC Reg 81/2013).

(9) Subsections (5) and (7) do not apply to a registration of a security interest provided for in 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.

Section 50 (9) and (10) BEFORE repealed by 2019-11-24, effective May 16, 2019 (Royal Assent).

(9) Subsection (5) does not apply to a registration of a security interest provided for in 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.

(10) If a registration relates to a security interest created under a trust indenture and the secured party fails to amend or discharge the registration as required by subsection (4), the person making the demand under subsection (3) may apply to a court for an order directing that the registration be amended or discharged.

Section 52 (2) (a) BEFORE amended by 2019-11-25, effective May 16, 2019 (Royal Assent).

(a) the applicant did not pay the fee if it was prescribed under section 43 (3),

Section 54 (5) BEFORE amended by 2007-14-165, effective December 1, 2007 (BC Reg 354/2007).

(5) Despite section 69, agents and employees of the government are not liable in their personal or official capacities for loss or damage suffered by a person because of anything done or omitted to be done in the exercise or purported exercise of a power or duty under this Act or regulations made under this Act unless the plaintiff proves that the agent or employee was not acting in good faith.

Section 55 (9) BEFORE amended by 2023-10-822, effective March 30, 2023 (Royal Assent).

(9) Except as provided in section 67, a security interest does not merge merely because a secured party has reduced his or her claim to judgment.

Section 56 (2) (a) (iii) BEFORE amended by 2007-10-138(a), effective July 1, 2007 (BC Reg 128/2007).

(iii) when the secured party is in possession of the collateral, the rights, remedies and obligations provided in section 17, and

Section 56 (2) (b) BEFORE amended by 2007-10-138(b), effective July 1, 2007 (BC Reg 128/2007).

(b) the debtor has against the secured party the rights and remedies provided in the security agreement, the rights and remedies provided by any other statute or rule of law consistent with this Act, and the rights and remedies provided in this Part and in section 17.

Section 56 (3) BEFORE amended by 2007-10-138(c), effective July 1, 2007 (BC Reg 128/2007).

(3) Except as provided in subsection (4) and sections 17, 59, 60 or 62, no provision of sections 17 or 58 to 69, 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.

Section 56 (4) BEFORE amended by 2011-25-424, effective March 18, 2013 (BC Reg 131/2012).

(4) A spouse as defined in the Family Relations Act may, with respect to a security agreement entered into by the spouse in accordance with an order under section 66 (2) (f) of the Family Relations Act or a written separation agreement, in writing waive or release a right, benefit or protection given by section 67 (1) and (2) of this Act, but the waiver or release is void if the person relying on it is other than the spouse to whom it was given.

Section 58 (2) (e) BEFORE amended by 2011-23-3, effective September 1, 2012 (BC Reg 182/2012).

(e) if the collateral is a licence, the secured party may seize the licence

(i) by giving a notice of seizure to the debtor, and

(ii) by delivering or sending by registered mail to the chief forester a copy of the notice of seizure.

Section 59 (18) was added by 2011-23-4, effective September 1, 2012 (BC Reg 182/2012).

Section 59 (6) (b) (part) BEFORE amended by 2019-11-26, effective May 16, 2019 (Royal Assent).

(b) any creditor or person with a security interest in the collateral whose interest is subordinate to that of the secured party

Section 59 (6) (c) BEFORE amended by 2023-10-824(a), effective March 30, 2023 (Royal Assent).

(c) any other person with an interest in the collateral who has given notice to the secured party of his or her interest in the collateral before the day that notice of disposition is given to the debtor.

Section 59 (14) (part) BEFORE amended by 2023-10-824(b), effective March 30, 2023 (Royal Assent).

(14) When a secured party disposes of collateral to a purchaser who in good faith acquires his or her interest for value and who takes possession of the collateral, the purchaser acquires the collateral free from

Section 60 (2) (b) BEFORE amended by 2023-10-825, effective March 30, 2023 (Royal Assent).

(b) any other person with an interest in the collateral if that person has given a notice of his or her interest to the secured party before the distribution, and

Section 61 (4) BEFORE amended by 2006-13-35,Sch C, effective March 30, 2006 (Royal Assent).

(4) Subsection (3) does not apply if the collateral is a licence unless the Minister of Forests has consented to its application.

Section 61 (4) BEFORE amended by 2011-23-5, effective September 1, 2012 (BC Reg 182/2012).

(4) Subsection (3) does not apply if the collateral is a licence unless the minister responsible for the administration of the Ministry of Forests and Range Act has consented to its application.

Section 61 (8) (part) BEFORE amended by 2023-10-826, effective March 30, 2023 (Royal Assent).

(8) If a secured party disposes of the collateral to a purchaser who acquires his or her interest for value and in good faith and who takes possession of it, the purchaser acquires the collateral free from

Section 64 (2) (e) BEFORE amended by 2003-70-232, effective March 29, 2004 (BC Reg 64/2004).

(e) an insider of a corporation, as defined in the Company Act, of an incorporated debtor or of any of its affiliates, as defined in the Company Act, an auditor of the debtor or a person who has been an insider or auditor of the debtor or an affiliate of an incorporated debtor within the preceding 2 years,

Section 64 (2) (c) BEFORE amended by 2004-48-135, effective December 31, 2004 (BC Reg 597/2004).

(c) a corporation except a trust company authorized to carry on business under the Financial Institutions Act or a corporation licensed as a trustee under the Bankruptcy Act (Canada),

Section 64 (2) (g) BEFORE amended by 2015-18-339, effective May 14, 2015 (Royal Assent).

(g) unless a court orders otherwise, a person convicted in British Columbia or elsewhere of an offence in connection with the promotion, formation or management of a business or involving fraud, unless 5 years have elapsed since the expiration of the period set for suspension of the passing of sentence without sentencing or since a fine was imposed, or the term of imprisonment or probation imposed, if any, was concluded, whichever is the latest, but the disability imposed by this paragraph ceases on a pardon being granted under the Criminal Records Act (Canada), or

Section 64 (2) (b) BEFORE amended by 2023-10-827(a), effective March 30, 2023 (Royal Assent).

(b) found to be incapable of managing his or her own affairs by reason of mental infirmity,

Section 64 (5) BEFORE amended by 2023-10-827(b), effective March 30, 2023 (Royal Assent).

(5) A receiver is not personally liable on a contract if the receiver discloses in the contract that he or she is acting as a receiver.

Section 65 (1) (c) and (f) BEFORE amended by 2023-10-828, effective March 30, 2023 (Royal Assent).

(c) open and maintain in his or her name as receiver one or more accounts at a bank, credit union or other institution licensed to accept deposits in British Columbia, for the deposit of all money coming under his or her control as the receiver,

(f) indicate on every business letter, invoice, contract or similar document used or executed in connection with the receivership that he or she is acting as a receiver.

Section 67 (9) BEFORE amended by 2016-5-47,Sch 9, effective March 10, 2016 (Royal Assent).

(9) If through willful or reckless acts or neglect on the part of the debtor or on the part of anyone in possession of the goods with the consent of the debtor, the goods have been substantially damaged or have been allowed to deteriorate to an extent greater than that which would normally be expected with respect to goods of that kind, a court, on application, may order that subsections (1) to (7) or any one or more of them do not apply so as to limit the rights and remedies of the secured party as otherwise provided in this Part.

Section 67 (1), (4), (6) and (7) BEFORE amended by 2023-10-829, effective March 30, 2023 (Royal Assent).

(1) Subject to section 58 (3), if a debtor is in default under a security agreement that provides for a security interest in consumer goods, the secured party may

(a) exercise his or her rights as provided in section 58,

(b) proceed as provided in section 61,

(c) accept surrender of the goods by the debtor, or

(d) subject to the terms of the agreement, bring action to recover a judgment or take proceedings to obtain a certificate under the Creditor Assistance Act against the debtor.

(4) If the secured party exercises his or her rights under an agreement for sale or mortgage on land that also secures the obligation secured by a security interest in consumer goods but does not exercise his or her rights under subsection (1) (a), (b) or (c), the obligation is not extinguished unless otherwise provided by the law relating to enforcement of security interests in land.

(6) If a secured party proceeds under subsection (1) (d) and, as a result of legal proceedings taken to enforce a judgment against the debtor or proceedings to enforce a lien against the goods referred to in subsection (1), the goods are seized and sold and the secured party receives money or other value as a result of the proceedings, the right of the secured party to recover under his or her judgment against the debtor or against a guarantor of or indemnitor with respect to the debtor's obligations under the security agreement is limited to the gross amount realized from the sale of the goods referred to in subsection (1) under the proceedings.

(7) When the total amount received by the secured party as a result of legal proceedings to enforce a judgment against the debtor or proceedings to enforce a lien against the goods referred to in subsection (1) is equal to the gross amount realized from the sale of the goods under the proceedings,

(a) any remaining liability of the debtor under a judgment obtained by the secured party through an exercise of his or her rights under subsection (1) (d), and

(b) the obligations of a guarantor of or indemnitor with respect to the obligations of the debtor under the security agreement,

Section 69 (8) (a) BEFORE amended by 2023-10-830, effective March 30, 2023 (Royal Assent).

(a) if the collateral is consumer goods, did not affect the debtor's ability to protect his or her interest in the collateral by redemption or reinstatement of the security agreement or otherwise, or

Section 72 (1) (d) BEFORE amended by 2003-52-465, effective January 1, 2004 (BC Reg 465/2003, repealing BC Reg 428/2003).

(d) a municipal corporation, by leaving it with, or sending it by registered mail addressed to, the principal office of the corporation or to the chief administrative officer of the corporation,

Section 72 (1) (part) BEFORE amended by 2011-23-6(a), effective September 1, 2012 (BC Reg 182/2012).

(1) 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

Section 72 (2) (part) BEFORE amended by 2011-23-6(b), effective September 1, 2012 (BC Reg 182/2012).

(2) A notice or demand sent by registered mail is deemed to be given on the earlier of

Section 74 (1) BEFORE amended by 2004-2-231, effective July 4, 2004 (BC Reg 274/2004).

(1) If there is a conflict between a provision of this Act and

(a) the Consumer Protection Act, the Trade Practice Act or a provision for the protection of consumers in any other Act, or

(b) the Land Title Act,

the provision of the Consumer Protection Act, the Trade Practice Act or other Act, or the Land Title Act, prevails.

Section 74 (1) BEFORE amended by 2011-12-9, effective April 1, 2013 (BC Reg 116/2013).

(1) If there is a conflict between a provision of this Act and

(a) the Business Practices and Consumer Protection Act or a provision for the protection of consumers in any other Act, or

(b) the Land Title Act,

the provision of the Business Practices and Consumer Protection Act or other Act, or the Land Title Act, prevails.

Section 76 (1) (u), (v), and (w) were added by 2002-17-19, effective May 10, 2002 (BC Reg 94/2002).

Section 76.1 was renumbered as section 76.1 (1) by 2019-11-27(a), effective May 16, 2019 (Royal Assent).

Section 76.1 (2) was added by 2019-11-27(b), effective May 16, 2019 (Royal Assent).

Section 79 was enacted by 2007-10-139, effective July 1, 2007 (BC Reg 128/2007).

Schedule, items 2 and 5 (c) BEFORE amended by 2003-75-47, effective December 8, 2003 (BC Reg 441/2003).

Note at bottom of the Schedule BEFORE amended by 2010-5-194, effective July 1, 2010.

*In addition to a fee marked by an asterisk, a further operator fee of $1.50, plus any G.S.T. applicable to the operator fee, may be charged for any transaction done by electronic means from a location outside a government office or at a government office by a person who is not a government employee.

Schedule item 6.1 was added by 2010-18-68, effective November 19, 2010 (BC Reg 325/2010).

Schedule, item 3 BEFORE amended by 2011-25-425, effective March 18, 2013 (BC Reg 131/2012).

Schedule, items 1 and 6 BEFORE amended by 2012-14-18, effective April 1, 2013 (BC Reg 141/2013).

Schedule, item 11 BEFORE amended by 2014-14-158, effective May 29, 2014 (Royal Assent).

Supplement BEFORE repealed by 2006-33-2, effective September 1, 2011 (BC Reg 14/2011 and 141/2011).

[Supplement]

Personal Property Security Act

[RSBC 1996] CHAPTER 359

1 Section 1 (1) of the Personal Property Security Act is amended in the definition of "creditor" by striking out ", administrator or committee of a creditor;" and substituting "or administrator of a creditor or a substitute decision maker or guardian appointed under the Adult Guardianship Act with authority to manage the creditor's financial affairs, business or assets;".

Commencement

2 Section 1 comes into force by regulation of the Lieutenant Governor in Council.

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