|
|
|
Legislative Assembly of New Brunswick
Status of Legislation - First Reading Bill
An Act to Amend the Personal Property Security Act
 
Legislature :
55
Session :
1
Bill No. :
74
Member :
Hon. Mr. Mockler
First Reading :
2004-6-23
Second Reading :
2004-6-24
Committee of the Whole :
2004-6-25
Amended :
Third Reading :
2004-6-29
Royal Assent :
2004-6-30
Download PDF :
  Bill 74         
.........................................................................................................................................................................................................
Text of Bill :
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:



1                           Paragraph 4(k) of the Personal Property Security Act, chapter P-7.1 of the Acts of New Brunswick, 1993, is amended by adding "or sale" after "mortgage".



2                           Paragraph 30(6)(b) of the Act is repealed and the following is substituted:



(b)               in the registration relating to the security interest, the goods were not described by serial number entered into the field labelled for the receipt of serial numbers.



3                           Subsection 35(4) of the Act is amended by adding "with the serial number entered into the field labelled for the receipt of serial numbers" after "is registered".



4                           Subsection 36(4) of the Act is amended



(a)               in paragraph (a) by striking out "or" at the end of the paragraph;



(b)               in paragraph (b) by adding "or" at the end of the paragraph;



(c)               by adding after paragraph (b) the following:



(c)                serves a notice of sale on the mortgagor under a power of sale provided for in the registered mortgage or under section 45 of the Property Act,



5                           Subsection 37(8) of the Act is amended by striking out "34(10)" and substituting "34(8)".



6                           Subsection 38(3) of the Act is repealed and the following is substituted:



38(3)               A security interest referred to in subsection (2) is subordinate to the interest of a person who acquires for value an interest in the whole after the goods become an accession, including an assignee for value of the interest of a person with an interest in the whole after the goods become an accession, if the interest is acquired without knowledge and before the security interest is perfected.



7                           Section 43 of the Act is amended



(a)               in subsection (7) by striking out "The validity of the registration" and substituting "Except as otherwise provided in this section, the validity of the registration";



(b)               by repealing subsection (8) and substituting the following:



43(8)               A registration is invalid if a search of the records of the Registry using the name, as prescribed, of any of the debtors required to be included in the financing statement other than a debtor who does not own or have rights in the collateral does not disclose the registration.



(c)               by adding after subsection (8) the following:



43(8.1)          Subject to subsections (10) and (10.1), a registration is invalid if a search of the records of the Registry by serial number, as prescribed, for collateral that is consumer goods of a kind that are prescribed as serial numbered goods does not disclose the registration.



43(8.2)          A registration disclosed other than as an exact match as a result of a search of the records of the Registry using the name of a debtor or serial number as prescribed does not mean that the registration is, by that fact alone, valid.



(d)               by adding after subsection (10) the following:



43(10.1)       An error in a description of any item or kind of collateral described by serial number in a financing statement does not affect the validity of the registration with respect to the description of other collateral included in the financing statement.



8                           Subsection 57(3) of the English version of the Act is amended by adding "interest" after "security".



9                           Paragraph 61(4)(b) of the Act is repealed and the following is substituted:



(b)               is entitled to hold or dispose of the collateral free from all rights and interests of the debtor, any person entitled to receive a notice under paragraph (1)(b) or (c) who has been given the notice and any person entitled to receive a notice under paragraph (1)(d) whose interest is subordinate to that of the secured party.



EXPLANATORY NOTES



Section 1



The existing provision is as follows:



4                           Except as otherwise provided in this Act, this Act does not apply to…



(k)                a mortgage registered under the Canada Shipping Act (Canada);



Section 2



The existing provision is as follows:



30(6)               A buyer or lessee of goods takes free of a security interest in the goods perfected by registration under section 25 if…



(b)               the goods were not described by serial number in the registration relating to the security interest.



Section 3



The existing provision is as follows:



35(4)               A security interest in goods that are equipment and are of a kind that are prescribed as serial numbered goods is not registered or perfected by registration for the purposes of subsection (1), (7) or (8) or 34(1) unless a financing statement relating to the security interest that includes a description of the goods by serial number is registered.



Section 4



The existing provision is as follows:



36(4)               A security interest referred to in subsection (2) is subordinate to the interest of a person with a registered mortgage of the land who, after the goods become fixtures,



(a)               makes an advance under the mortgage, but only with respect to that advance, or



(b)               obtains an order for sale or foreclosure,



without fraud and before notice of the security interest in the fixtures is registered in accordance with section 49.



Section 5



The existing provision is as follows:



37(8)               The interest of a creditor of the debtor referred to in subsection (7) does not take priority over a purchase money security interest in the crops or a security interest in the crops referred to in subsection 34(10) if a notice of the security interest in the crops is registered in accordance with section 49 not later than fifteen days after the security interest in the crops attaches.



Section 6



The existing provision is as follows:



38(3)               A security interest referred to in subsection (2) is subordinate to the interest of a person who, after the goods become an accession, acquires for value an interest in the whole, including an assignee of the interest of a person with an interest in the whole if the assignee acquires the interest for value and after the goods become an accession.



Section 7



(a)               The existing provision is as follows:



43(7)               The validity of the registration of a financing statement is not affected by any defect, irregularity, omission or error in the financing statement unless the defect, irregularity, omission or error is seriously misleading.



(b)               The existing provision is as follows:



43(8)               Subject to subsection (10), a registration is invalid if there is a seriously misleading defect, irregularity, omission or error in



(a)               the name of any of the debtors required to be included in the financing statement other than a debtor who does not own or have rights in the collateral, or



(b)               the serial number of the collateral if the collateral is consumer goods of a kind that are prescribed as serial numbered goods.



(c) and (d)            New provisions.



Section 8



The existing provision is as follows:



57(3)               A secured party who enforces a security by giving notice in accordance with paragraph (2)(a) shall notify the debtor within fifteen days after doing so.



Section 9



The existing provision is as follows:



61(4)               If no notice of objection is given under subsection (2), the secured party…



(b)               is entitled to hold or dispose of the collateral free from all rights and interests of the debtor and any person entitled to receive a notice under paragraph (1)(b) or (c) who has been given the notice,



and all obligations secured by such interests shall be deemed to have been performed for the purposes of sections 49 and 50.
.........................................................................................................................................................................................................
Legend
* Private Bill
** Bill referred to Standing Committee on Law Amendments
+ Private Member's Public Bill
++ Motion for second reading defeated
+++ Debate at second reading adjourned
DISCLAIMER