Thank you, Mr. Chairman. The Standing Committee on Legislation met to review Bill 7, the Personal Property Security Act, on February 26, 1994. The committee thanks the Minister of Justice and his officials from the Department of Justice for presenting this bill and responding to the questions of the Members.

This bill establishes a new scheme of commercial law to regulate all transactions which create a security interest in personal property. Personal property includes all assets other than land. The proposed act regulates all levels of financing transactions of this kind, ranging from loans for the purchase of a snowmobile to large business transactions involving the financing of mining or oil drilling equipment.

The bill establishes a single registry system. People would be able to check the registry to determine whether other creditors have an interest in the property before entering into an agreement. This registry would be computerized, and telephone searches would be available from communities outside of Yellowknife.

The bill also sets out a single set of rules governing situations of default. In general, the rules provide more protection to debtors than is currently provided under existing law.

Personal property security legislation is in place in most Canadian jurisdictions. Legislative uniformity in this area should simplify securing financing for business debtors with assets outside the Northwest Territories and assist businesses in obtaining financing from other jurisdictions.

The standing committee agrees with the principles of this legislation and supports the bill.