Matthew Morris
Associate
Article
3
Coming into force on June 1, 2024, are amendments to the Alberta Personal Property Security Act (PPSA) and regulations pursuant to the proclamation of the Red Tape Reduction Statutes Amendment Act, 2023, c. 5.
The amendments to the PPSA largely remove the principal place of business and chief executive office determination, except in limited circumstances, by providing greater clarity on the determination of the location of the debtor. Furthermore, the amendments more closely align Alberta personal property legislation with that of British Columbia, Ontario and Saskatchewan, for a more consistent approach across Canada.
The amendments to the legislation provide, among other things, the use of a simplified set of factors to determine the location of the debtor such as the nature of the debtor (individual, corporation, business entity) and the jurisdiction in which the debtor is deemed to be located (registered, conducts business, location of its chief executive office). Under the amended legislation, the location of the debtor will be determined as follows:
There continues to be varying debtor location rules across Canadian jurisdictions and therefore secured parties must pay particular attention to the debtor location rules of other jurisdictions applicable to their debtors.
In light of the upcoming amendments to the PPSA and the potential risks associated with incorrectly filing the location of the debtor, it is vital that secured parties confirm where their debtor is located.
NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.