The Government of Ontario passed the Homeowner Protection Act, 2024 (the “Act”), on June 6, 2024. The Act made two significant changes to the registration and enforcement of Notices of Security Interests (“NOSIs”) in Ontario:

1. A NOSI can no longer be registered where the collateral being secured are consumer goods. Section 1 of Ontario’s Personal Property Security Act defines “consumer goods” as “goods that are used or acquired for use primarily for personal, family or household purposes”. NOSIs may still be registered against commercial goods subject to the process change outlined below.
2. Registered NOSIs pertaining to consumer goods that were registered as of June 5, 2024, are deemed to have expired. Any NOSIs registered as of June 5, 2024, that were registered against consumer goods are no longer of any force or effect and may be deleted by registration of an application form.

These changes are effective as of June 6, 2024, and only apply to Ontario NOSIs. NOSI registrations in all other provinces and territories are not affected by these changes.

What changes have been made to processing Ontario NOSI registrations?
To ensure that NOSIs are only being registered against commercial goods, each Ontario NOSI registration must now include a statement signed by a lawyer for the creditor submitting the NOSI registration confirming that the NOSI registration is not for consumer goods and services and may be registered pursuant to section 54 of Ontario’s Personal Property Security Act.

A document that includes the following statement signed by a lawyer must now be included with your NOSI registration:

All other Ontario NOSI registration requirements remain unchanged.

NOSI registrations submitted prior to June 6, 2024, but not registered, will be returned with a request that the above law statement be included.

Please contact our Land Services Team at [email protected] if you need additional information on how to submit a NOSI registration in Ontario against commercial goods.

What changes have been made to NOSI discharges?
None. NOSIs will continue to be discharged as they were prior to these changes coming into effect.

Is ESC In contact with the Government of Ontario regarding these changes?
Yes. ESC has been and will continue to be in contact with the Government of Ontario.

Where can I find more information?
Please consult the Homeowner Protection Act, 2024, for more information. The Government of Ontario has also released Bulletin 2024-07 outlining the above changes. You may also contact our Land Services Team at [email protected].

ESC’s PPSA Solution
ESC offers an industry leading Personal Property Security Act (PPSA) solution which can be used to register liens against consumer goods. Our technology driven solutions offer superior user experience, quicker turnaround times and cost savings, while managing your compliance and risk management needs.

Please contact our sales team for a personalized demo or further information on our solutions: www.eservicecorp.ca/contact/

DISCLAIMER: This content is provided for general informational purposes only and does not, and is not intended to, constitute legal advice. You should not act based on the information presented here without first seeking legal advice from a lawyer in your province or territory. Only a lawyer can confirm if the information contained within this communication is applicable or appropriate to your particular situation.