With the The Homeowner Protection Act (“HPA”) coming into force on June 6, 2024, the practice of registering Notice of Security Interests (“NOSIs”) against consumer goods in the Ontario Land Registry has been restricted in respect of consumer goods for personal use. As a result, lenders must resort to other means of securitization for these asset classes.
In the absence of a grandfathering period for this legislative change taking effect, lenders must adapt to ensure their underlying contracts remain validly secured and to provide adequate notice to parties of subsequent interest to avoid intercreditor priority disputes. Registering a financing statement (i.e., lien) under the Ontario Personal Property Security Registration System provides an option to lenders who want to protect their rights and can help effectively manage risk.
ESC’s PPSA Registration Solution
For many years, ESC has offered PPSA solutions across Canada to assist lenders in filing registrations against collateral.ESC can not only assist in your registration needs, but also go beyond and provide meaningful insights about debtors to provide a picture through Know-Your-Customer (KYC) for the lifetime of the lending relationship. ESC offers multiple ways to access its systems, including API connectivity, batch processing, or by direct web-enabled input.
Contact ESC at [email protected] to learn more and set up an account to get started.
