Saskatchewan amends PPSA to clarify location of debtors

We wrote earlier this year that British Columbia and Ontario had amended the Personal Property Security Act (“PPSA”) in each of those provinces to provide that, for the purpose of determining the location of a debtor in regards to a pledge of intangibles, the debtor is deemed to be located in the jurisdiction of incorporation of the debtor.

On June 22, 2020, the Saskatchewan Personal Property Security Amendment Act came into force. This amendment brings Saskatchewan legislation in line with the Ontario and British Columbia PPSAs regarding the location of such debtors.  Provinces that have not changed their PPSAs include Alberta and Manitoba, in which case the debtor will continue to be deemed to be located in the location of the debtor’s chief executive office.

As we discussed at that time, there is the potential for uncertainty arising out of the gradual amendment of the PPSAs across the country - for example, where a debtor is incorporated in British Columbia and has its chief executive office in Alberta, it is not clear which PPSA will apply.  With Saskatchewan amending its Act, the potential for a conflict between Saskatchewan and either Ontario or British Columbia is removed, however, a potential for conflict between Saskatchewan and either Alberta or Manitoba now exists. 

As before, until the provincial PPSAs are again uniform on this point, serious consideration should be given to conducting searches and registering security in each of the provinces which might be applicable. As well, solicitors opinions regarding the validity, registration, perfection or priority of security should be appropriately qualified with respect to the present state of uncertainty in the law.  

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