Statutes of Newfoundland and Labrador 2020 Chapter 15

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL1998 cP-7.1
as amended

1. Subsections 11(1) to (3) of the Personal Property Security Act are repealed and the following substituted:

Enforceability of security interest

11. (1) Subject to section 13.1, a security interest is enforceable against a third party only where

(a) the collateral is

(i) not a certificated security and is in the possession of the secured party or another person on the secured party's behalf,

(ii) a certificated security in registered form and the security certificate has been delivered to the secured party under section 69 of the Securities Transfer Act under the debtor's security agreement, or

(iii) investment property and the secured party has control under subsection 2(2) in accordance with the debtor's security agreement; or

(b) the debtor has signed a security agreement that contains

(i) a description of the collateral by item or kind or by reference to one or more of the following:

(A) "goods",

(B) "document of title",

(D) "investment property",

(E) "instrument",

(F) "money", or

(G) "intangible",

(ii) a description of collateral that is a security entitlement, securities account, or futures account if it describes the collateral by those terms or as an "investment property" or if it describes the underlying financial asset or futures contract,

(iii) a statement that a security interest is taken in all of the debtor's present and after-acquired personal property, or

(iv) a statement that a security interest is taken in all of the debtor's present and after-acquired personal property except specified items or kinds of personal property or except one or more of the following:

(A) "goods",

(B) "document of title",

(D) "investment property",

(E) "instrument",

(F) "money", or

(G) "intangible".

(2) A secured party does not have possession of collateral for the purpose of subparagraph (1)(a)(i), where the collateral is in the apparent possession or control of the debtor or the debtor's agent.

(3) A description is inadequate for the purpose of subparagraph (1)(b)(i) if it describes the collateral as consumer goods or equipment without further describing the item or kind of collateral, but where the personal property to be excluded from a description of collateral under subparagraph (1)(b)(iv) is the consumer goods of the debtor, the excluded property may be described simply as consumer goods.