Mr. MacDougall will answer.
Debates of March 2nd, 1994
Topics
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Go ahead, Mr. MacDougall.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Macdougall
Thank you. It's probably easiest to understand this provision by drawing an analogy to builders' liens. People are familiar with the fact that the construction industry, when building a home, has a lien on the property for the work and the materials that they put into that particular building, in priority to other lenders and to perhaps the home owner. This is really the same sort of thing where it's giving a priority to those things which contributed to, effectively the growth or the improvement of the particular collateral. That's really the essence of this. So if somebody has lent money to someone to provide food for animals which contributes to their growth, then it gives them a higher priority than one who otherwise has a security interest in those animals.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Thank you. Clause 34. Mr. Koe.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Fred Koe Inuvik
Is there a definition of "perfected security"? I don't see it in the definitions. I'm just wondering what "perfected security" means.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Clause 34. Mr. Minister.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Stephen Kakfwi Sahtu
Mr. Chairman, I think we will have to go back to clause 19 to deal with "perfected security interests." Mr. MacDougall will talk about the three types.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Thank you. Do we have the concurrence of the committee to go back to clause 19? Agreed?
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Some Hon. Members
Agreed.
---Agreed
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Mr. MacDougall.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Macdougall
The concept of perfection is tied into quite a number of sections, beginning with 19, which begins by saying that it's perfected when it attaches, which is essentially when the agreement between the parties is in existence. Then, any of the other steps taken by the following sections are taken.
Simplistically, I can say that in the following sections there are three methods identified for perfecting when there is an agreement that exists. One of them is possession of the collateral. The other is registration. The third method is there are a number of instances in which there is temporary perfection provided which is essentially a grace period, typically 15 days, during which time it would be necessary to perfect by either possession or registration of the collateral. The concept is one that's interwoven through all of the priority sections, so it's difficult to summarize much more simply than that.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Thank you. Mr. Koe, are you satisfied with the response?
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Fred Koe Inuvik
(Microphone turned off)
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Thank you. Now to go back to clause 34. Agreed?
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Some Hon. Members
Agreed.
---Agreed
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
March 1st, 1994
Page 482
The Chair John Ningark
Thank you. Clause 35 of the act.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Some Hon. Members
Agreed.
---Agreed
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Thank you. Clause 36 of the act.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Some Hon. Members
Agreed.
---Agreed
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Thank you. Clause 37.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Some Hon. Members
Agreed.
---Agreed
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Qujannamiik. Clause 37.1.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Some Hon. Members
Agreed.
---Agreed
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
The Chair John Ningark
Thank you. Clause 38.
Bill 7: Personal Property Security Act
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 482
Some Hon. Members
Agreed.
---Agreed