Over the years many clients have been perplexed with the question regarding any liens registered against their company assets. They often answer yes to a business loan or lease but don’t connect the security document they signed to the lien taken against certain property. They may have a small bank line that they insist is unsecured but usually there is a lien placed against the company upon further examination.
Where does one register this security? It’s registered under the PPSA OR Personal Property Security Act a Provincial Legislation which records and governs the priority interest of creditors.
Generally, the PPSA allows lenders and sellers to register their interest in the personal property of commercial and consumer debtors to secure payment of the debt. The date of registration determines the rank and order of priority interest.
PPSA is helpful to lenders to make sure the personal property (commercial and consumer)being offered as security for loan, sale or lease is free and clear of any liens, charges or encumbrances. Personal Property Lien Searches are available online and with just a credit card you can pull your own company PPSA.