SECURITY INTERESTS IN PERSONAL PROPERTY ACT, 2013

Transcription

1 SECURITY INTERESTS IN PERSONAL PROPERTY ACT, 2013 AN OVERVIEW OF THE LAW BY ANTOINETTE MCKAIN ATTORNEY-AT-LAW HOTEL RIU, MONTEGO BAY 30 MAY 2014

2 WHEN DID THIS LAW COME INTO EFFECT? THIS LAW CAME INTO EFFECT 31 st DECEMBER 2013 THERE ARE 365 DAYS FOR REGISTERING OF SECURITY INTERESTS CREATED BEFORE THE LAW CAME INTO EFFECT 06/11/2014 Antoinette McKain 2

3 GENERAL STATEMENT OF THE PURPOSE OF THE ACT ALLOW FOR THE EASE AND EFFICACY OF THE TAKING OF SECURITY IN RELATION TO WIDER CLASS OF PERSONAL PROPERTY TO PROMOTE COMMERCE. PROVIDE A CLEAR FRAMEWORK FOR THE ENFORCEMENT OF SECURITY INTERESTS WHERE THE OBLIGATION WHICH IS SECURED IS NOT FULFILLED ESTABLISH A CENTRAL PUBLIC REGISTRY FOR THE RECORDING OF SECURED INTEREST IN ALL PERSONAL PROPERTY TO ALLOW FOR NOTICE THAT PARTICULAR PROPERTY IS THE SUBJECT OF A SECURITY INTEREST AND CRYSTALLIZE THE PRIORITIES THAT WILL EXIST WHERE THERE IS MORE THAN ONE SECURITY INTEREST REGISTERED IN RESPECT OF SECURED PROPERTY 06/11/2014 Antoinette McKain 3

4 TO WHAT TRANSACTIONS DOES THIS ACT APPLY SECTION 3 THE ACT APPLIES TO EVERY TRANSACTION THAT CREATES A SECURITY INTEREST IN PERSONAL PROPERTY. 06/11/2014 Antoinette McKain 4

5 MEANING OF SECURITY INTEREST SECTION 2 SECURITY INTEREST MEANS AN INTEREST CREATED : BY A CONTRACT INVOLVING ONE OR MORE ITEMS OF PERSONAL PROPERTY AND WHETHER SPECIFICALLY OR GENERICALLY DESCRIBED AND WHETHER THE INTEREST IS A PRESENT ONE OR A FUTURE ONE AND SECURING THE FULFILMENT OF ONE OR MORE PRESENT OR FUTURE OBLIGATIONS 06/11/2014 Antoinette McKain 5

6 MEANING OF PERSONAL PROPERTY SECTION 2 PERSONAL PROPERTY INCLUDES GOODS, DOCUMENTS, FINANCIAL INSTRUMENTS, ACCOUNTS RECEIVABLE, AND INTELLECTUAL PROPERTY AND OTHER KINDS OF INTANGIBLES 06/11/2014 Antoinette McKain 6

7 HOW IS A SECURITY INTEREST CREATED SECTION 4 THE NON-POSSESSORY SECURITY INTEREST MAY ONLY BE CREATED BY A WRITTEN CONTRACT THE CONTRACT MUST : SUFFICIENTLY DESCRIBE THE SECURED PROPERTY IN SUCH A MANNER THAT ENABLES IT TO BE IDENTIFIED AND 06/11/2014 Antoinette McKain 7

8 HOW IS A SECURITY INTEREST CREATED?...cont d MUST STATE THAT THE SECURITY INTEREST IS TAKEN IN ALL OF THE DEBTOR S PRESENT AND AFTER-ACQUIRED PROPERTY OR; CONSISTS OF A STATEMENT THAT A SECURITY INTEREST IS TAKEN IN ALL OF THE DEBTOR S PRESENT AND AFTER ACQUIRED PROPERTY EXCEPT FOR SPECIFIED ITEMS OR KINDS OF PERSONAL PROPERTY 06/11/2014 Antoinette McKain 8

9 NON-POSSESSORY SECURITY INTEREST SECTION 2 POSSESSORY SECURITY INTEREST - A SECURITY INTEREST WHICH UNDER THE TERMS OF THE SECURITY CONTRACT REQUIRES THE DEBTOR TO GIVE POSSESSION OR CONTROL OF THE SECURED PROPERTY TO THE SECURED CREDITOR IN ORDER TO SECURE THE PERFORMANCE OF THE OBLIGATION CONCERNED. 06/11/2014 Antoinette McKain 9

10 NON-POSSESSORY SECURITY INTEREST cont d NON-POSSESSORY SECURITY INTEREST - RELATE TO THE CASE WHERE THE DEBTOR IS NOT OBLIGED TO GIVE POSSESSION OR CONTROL OF THE SECURED PROPERTY TO THE SECURED CREDITOR IN ORDER TO SECURE THE PERFORMANCE OF THE OBLIGATION CONCERNED. 06/11/2014 Antoinette McKain 10

11 WHEN IS A SECURITY INTEREST ATTACHED TO PROPERTY AND WHAT ARE THE IMPLICATIONS OF THE ATTACHMENT OF THIS INTEREST? SECTION 4 THE SECURITY INTEREST ATTACHES TO SECURED PROPERTY AND IS ENFORCEABLE AGAINST THE DEBTOR AND THIRD PARTIES WHEN VALUE IS GIVEN THE DEBTOR HAS RIGHTS IN THE SECURED PROPERTY OR THE POWER TO TRANSFER RIGHTS IN THE SECURED PROPERTY TO A SECURED PROPERTY, AND 06/11/2014 Antoinette McKain 11

12 WHEN IS A SECURITY INTEREST ATTACHED TO PROPERTY AND WHAT ARE THE IMPLICATIONS OF THE ATTACHMENT OF THIS INTEREST? EITHER THE DEBTOR HAS SIGNED A SECURITY CONTRACT THAT DESCRIBES THE SECURED PROPERTY; THE SECURED PROPERTY IS IN THE POSSESSION OF THE SECURED CREDITOR AND IS OF A TYPE THAT MAY BE PERFECTED BY POSSESSION; OR THE SECURED PROPERTY IS IN THE CONTROL OF THE SECURED CREDITOR AND IS OF A TYPE THAT MAY BE PERFECTED BY CONTROL 06/11/2014 Antoinette McKain 12

13 WHAT ARE THE RIGHTS OF THE SECURED CREDITOR UNDER THE SECURITY CONTRACT SECTION 4 UNLESS THE DEBTOR AND THE SECURED CREDITOR AGREE OTHERWISE UNDER THE SECURITY CONTRACT THE ATTACHMENT OF THE SECURITY INTEREST IN THE SECURED PROPERTY GIVES THE SECURED CREDITOR THE RIGHT TO PROCEEDS OF THE SECURED PROPERTY EVEN IF THE SECURITY CONTRACT SAYS NOTHING ABOUT THE PROCEEDS THE SECURED PROPERTY ALSO ATTACHES AS A SECURITY INTEREST IN A SUPPORTING OBLIGATION FOR THE SECURED PROPERTY 06/11/2014 Antoinette McKain 13

14 WHAT ARE THE RIGHTS OF THE SECURED CREDITOR UNDER THE SECURITY CONTRACT cont d A RIGHT TO PAYMENT OR PERFORMANCE SECURED BY A SECURITY INTEREST IN PERSONAL PROPERTY IS ALSO ATTACHMENT OF A SECURITY INTEREST IN THE PERSONAL PROPERTY A RIGHT TO PAYMENT OR PERFORMANCE SECURED BY A SECURITY INTEREST IN A MORTGAGE IN REAL PROPERTY IS ALSO ATTACHMENT OF A SECURITY INTEREST IN THE MORTGAGE A SECURITIES ACCOUNT IS ALSO ATTACHMENT OF A SECURITY INTEREST IN ANY RIGHTS OR BENEFITS DERIVED FROM FINANCIAL ASSETS CREATED TO THE SECURITIES ACCOUNT 06/11/2014 Antoinette McKain 14

15 WHAT ARE THE OBLIGATIONS OF SECURED CREDITOR WHERE IT HAS/RETAINS POSSESSION OF THE SECURED PROPERTY? SECTION 6 A SECURED CREDITOR WHO RETAINS POSSESSION OF THE SECURED PROPERTY MUST EXERCISE REASONABLE CARE IN THE CUSTODY AND PRESERVATION OF THE PROPERTY MUST MAINTAIN THE PROPERTY IN SUCH A WAY THAT IT REMAINS IDENTIFIABLE; UNLESS IT IS PERISHABLE MAY USE THE PROPERTY ONLY AS AGREED BY THE PARTIES TO THE SECURITY CONTRACT 06/11/2014 Antoinette McKain 15

16 WHY AND HOW IS THE SECURITY INTEREST PERFECTED? SECTION 7 A RIGHT GIVEN IN A SECURITY INTEREST IS ENFORCEABLE AGAINST THIRD PARTIES ONLY WHEN THE SECURITY INTEREST IS PERFECTED. THE SECURITY INTEREST IS PERFECTED WHEN: (a) THE SECURITY INTEREST IS ATTACHED AND (i) THE SECURITY INTEREST IS REGISTERED AS THE ACT SETS OUT AND (ii)the SECURED CREDITOR, OR HIS AGENT SPECIFICALLY AUTHORISED FOR THAT PURPOSE, HAS POSSESSION OR CONTROL OF THE SECURED PROPERTY 06/11/2014 Antoinette McKain 16

17 PERFECTION OF SECURITY IN AN ACCOUNT SECTION 8 THE PERFECTION OF SECURITY INTEREST IN A RELEVANT ACCOUNT MAY BE PERFECTED BY CONTROL OF THE RELEVANT ACCOUNT. A SECURED CREDITOR WILL HAVE CONTROL OF THE ACCOUNT WHERE: THE SECURED CREDITOR IS A FINANCIAL INSTITUTION WITH WHICH THE ACCOUNT IS MAINTAINED EVEN IF THE DEBTOR RETAINS THE RIGHT TO DIRECT THE DISPOSITION OF THE FUNDS OR OTHER ASSETS OF THE ACCOUNT 06/11/2014 Antoinette McKain 17

18 PERFECTION OF SECURITY IN AN ACCOUNT.cont d THE DEBTOR, SECURED CREDITOR AND THE FINANCIAL INSTITUTION AGREE IN WRITING THAT THE FINANCIAL INSTITUTION WILL COMPLY WITH THE INSTRUCTIONS OF THE SECURED CREDITOR IF THE SECURED CREDITOR BECOMES A CUSTOMER WITH RESPECT TO THE RELEVANT ACCOUNT 06/11/2014 Antoinette McKain 18

19 SPECIAL PROVISIONS FOR SECURITY INTERESTS IN PARTICULAR KINDS OF PROPERTY (SECTIONS 9 15) SECTION 9 AFTER-ACQUIRED PROPERTY - THE SECURITY CONTRACT MAY CREATE A SECURITY INTEREST IN AFTER ACQUIRED PROPERTY AND IT ATTACHES WITHOUT THE SPECIFIC APPROPRIATION BY THE DEBTOR 06/11/2014 Antoinette McKain 19

20 SPECIAL PROVISIONS FOR SECURITY INTERESTS IN PARTICULAR KINDS OF PROPERTY cont d SECTION 10 DEALINGS IN PROCEEDS A SECURITY INTEREST IN SECURED PROPERTY THAT IS DEALT WITH CONTINUES IN THE PROPERTY UNLESS THE SECURED CREDITOR EXPRESSLY OR IMPLIEDLY AUTHORISES THE DEALING. WHERE THE DEALING GIVES RISE TO PROCEEDS THE SECURITY INTEREST EXTENDS TO THOSE PROCEEDS ALSO. 06/11/2014 Antoinette McKain 20

21 SPECIAL PROVISIONS FOR SECURITY INTERESTS IN PARTICULAR KINDS OF PROPERTY..cont d SECTION 11 FINANCIAL INSTRUMENTS RETURNED TO THE DEBTOR A SECURITY INTEREST IN A FINANCIAL INSTRUMENT IS TEMPORARILY PERFECTED FOR 15 WORKING DAYS AFTER THE SECURED CREDITOR MAKES THE INSTRUMENT AVAILABLE TO THE DEBTOR IF THE SECURITY INTEREST WAS SECURED BY POSSESSION AND THE SECURED CREDITOR GIVES POSSESSION OF THE INSTRUMENT TO THE DEBTOR FOR A SALE, EXCHANGE, PRESENTATION, COLLECTION, RENEWAL OR REGISTRATION OF A TRANSFER 06/11/2014 Antoinette McKain 21

22 SPECIAL PROVISIONS FOR SECURITY INTERESTS IN PARTICULAR KINDS OF PROPERTY CONT D SECTION 12 NEGOTIABLE DOCUMENT OF TITLE TO GOODS RETURNED TO THE DEBTOR SECURITY INTEREST IS PERFECTED FOR 15 WORKING DAYS AFTER THE SECURED CREDITOR MAKES THE TITLE OR GOODS AVAILABLE TO THE DEBTOR IF THE SECURITY INTEREST WAS PERFECTED BY POSSESSION AND THE GOODS ARE DELIVERED BY THE SECURED CREDITOR FOR THE PURPOSE OF SALE OR EXCHANGE, OR LOADING, UNLOADING, STORING, SHIPPING MANUFACTURING, PROCESSING, PACKAGING OR OTHERSWISE DEALING WITH THE GOODS IN PREPARATION FOR THE SALE OF THE GOODS. 06/11/2014 Antoinette McKain 22

23 SPECIAL PROVISIONS FOR SECURITY INTERESTS IN PARTICULAR KINDS OF PROPERTY..cont d SECTION 13 GOODS HELD BY A BAILEE - A SECURITY INTEREST IN GOODS IN THE POSSESSION OF A BAILEE IS PERFECTED WHEN THE SECURITY INTEREST ATTACHES AND A REGISTRATION NOTICE IS REGISTERED THE BAILEE ISSUED A NEGOTIABLE DOCUMENT OF TITLE TO THE GOODS AND THE SECURITY INTEREST IN THE NEGOTIABLE DOCUMENT OF TITLE TO THE GOODS IS PERFECTED; OR THE BAILEE, (NOT BEING THE DEBTOR) ISSUES A DOCUMENT OF TITLE IN THE NAME OF THE SECURED CREDITOR OR HOLDS THE GOODS ON BEHALF OF THE SECURED CREDITOR 06/11/2014 Antoinette McKain 23

24 SPECIAL PROVISIONS FOR SECURITY INTERESTS IN PARTICULAR KINDS OF PROPERTY cont d SECTION 14 CROPS THE SECURITY INTEREST CAN EXIST WHETHER THE CROPS ARE CUT, PICKED, SEPARATED FROM THE SOIL AND WHETHER THEY ARE STORED ON LAND WHERE THE CROPS WERE GROWN OR ON ANY OTHER LAND OR PREMISES THE SALE, LEASE OR MORTGAGE OR OTHER ENCUMBERANCE OF THE LAND ON WHICH THE CROPS ARE GROWN DOES NOT PREJUDICE A PERFECTED SECURITY INTEREST IN THE CROPS. THE PERFECTED SECURITY IN CROPS HAS PRIORITY OVER A CONFLICTING INTEREST OF AN OWNER, MORTGAGEE OR OTHER PERSON WITH AN INTEREST IN THE REAL PROPERTY IF THE DEBTOR HAS A REGISTERED INTEREST IN, OR IS IN POSSESSION OF THE REAL PROPERTY. 06/11/2014 Antoinette McKain 24

25 SPECIAL PROVISIONS FOR SECURITY INTERESTS IN PARTICULAR KINDS OF PROPERTY cont d SECTION 15 FIXTURES THIS RELATES TO PROPERTY WHICH IS AFFIXED TO REAL PROPERTY (BUT NOT BUILDING MATERIALS INCORPORATED INTO AN IMPROVEMENT OF REAL PROPERTY). WHERE THE SECURITY INTEREST WAS CREATED BEFORE THE PROPERTY BECAME A FIXTURE TO THE REAL PROPERTY THE SECURITY INTEREST HAS PRIORITY. WHERE THE SECURITY INTREST IS CREATED AFTER THE FIXTURE WAS ATTACHED TO THE REAL PROPERTY THE SECURED CREDITOR HAS PRIORITY OVER THE CLAIM OF ANY PERSON WHO SUBSEQUENTLY ACQUIRES THE REAL PROPERTY AFTER THE FIXTURE WAS ATTACHED. 06/11/2014 Antoinette McKain 25

26 WHAT ARE THE RIGHTS AND OBLIGATIONS OF A DEBTOR WHO RETAINS POSSESSION OF THE SECURED PROPERTY THIS IS THE NON-POSSESSORY SECURITY INTEREST I.E. WHERE THE DEBTOR RETAINS POSSESSION OF THE SECURED PROPERTY HE HAS THE OBLIGATION TO: USE AND DISPOSE OF THE PROPERTY AND ANY PROCEEDS FROM THE PROPERTY IN THE ORDINARY COURSE OF HIS BUSINESS MUST DISCONTINUE THE EXERCISE OF THOSE RIGHTS IF THE SECURED CREDITOR GIVES NOTICE OF HIS INTENTION TO ENFORCE HIS SECURITY 06/11/2014 Antoinette McKain 26

27 WHAT ARE THE RIGHTS AND OBLIGATIONS OF A DEBTOR WHO RETAINS POSSESSION OF THE SECURED PROPERTY cont d MUST DO WHATEVER IS REASONABLY NECESSARY TO PREVENT DAMAGE TO OR LOSS OF THE PROPERTY MUST ALLOW THE SECURED CREDITOR TO INSPECT THE PROPERTY TO VERIFY ITS QUANTITY, QUALITY OR THE STATE OF ITS CONSERVATION 06/11/2014 Antoinette McKain 27

28 CIRCUMSTANCES WHERE A BUYER OR LESSEE WILL BE DEEMED TO ACQUIRE PROPERTY FREE OF THE SECURITY INTEREST THAT HAS ATTACHED TO THE PROPERTY SECTION 16 UNPERFECTED SECURITY INTERESTS THE BUYER OR LESSEE OF SECURED PROPERTY WHO GIVES VALUE IN THE TRANSACTION FOR SALE OR LEASE IN RESPECT OF SECURED PROPERTY TAKES FREE OF ANY UNPERFECTED SECURITY INTEREST 06/11/2014 Antoinette McKain 28

29 CIRCUMSTANCES WHERE A BUYER OR LESSEE WILL BE DEEMED TO ACQUIRE PROPERTY FREE OF THE SECURITY INTEREST THAT HAS ATTACHED TO THE PROPERTY cont d SECTION 17 BUYER OR LESSEE IN THE ORDINARY COURSE OF BUSINESS BUYER OR LESSEE IN THE ORDINARY COURSE OF BUSINESS WITH A SELLER OR LESSOR TAKES FREE OF THE SECURITY INTEREST IN PROPERTY PURCHASED OR LEASED UNLESS THEY KNOW OF THE SECURITY INTEREST. 06/11/2014 Antoinette McKain 29

30 CIRCUMSTANCES WHERE A BUYER OR LESSEE WILL BE DEEMED TO ACQUIRE PROPERTY FREE OF THE SECURITY INTEREST THAT HAS ATTACHED TO THE PROPERTY cont d SECTION 18 BUYER OR LESSEE OF CONSUMER GOODS OF $10,000 OR LESS IF AT THE TIME OF THE ATTACHMENT OF A SECURITY INTEREST OVER CONSUMER GOODS OF ANY SELLER OR LESSOR THE VALUE OF THE GOODS WAS $10,000 OR LESS, OR IF THERE WAS MORE THAN ONE SECURITY INTEREST IN THE GOODS AT THE TIME THE SECURITY INTEREST HAVING PRIORITY ATTACHES TO THE SECURITY, A BUYER OR LESSEE WILL TAKE FREE OF THAT SECURITY INTEREST. 06/11/2014 Antoinette McKain 30

31 CIRCUMSTANCES WHERE A BUYER OR LESSEE WILL BE DEEMED TO ACQUIRE PROPERTY FREE OF THE SECURITY INTEREST THAT HAS ATTACHED TO THE PROPERTY...cont d SECTION 19 MOTOR VEHICLES A BUYER OR LESSEE OF A MOTOR VEHICLE TAKES THE MOTOR VEHICLE FREE OF ANY SECURITY INTEREST PERFECTED BY REGISTRATION, IF: THE BUYER BOUGHT OR THE LESSEE LEASED, THE MOTOR VEHICLE WITHOUT KNOWLEDGE OF THE SECURITY INTEREST IF THE MOTOR VEHICLE WAS NOT CORRECTLY DESCRIBED BY SERIAL NUMBER IN THE REGISTRATION OR THE REGISTRATION NOTICE 06/11/2014 Antoinette McKain 31

32 PRIORITY OF SECURITY INTERESTS IN THE EVENT OF DEFAULT OF THE DEBTOR SECTION 22 A PERFECTED SECURITY HAS PRIORITY OVER AN UNPERFECTED SECURITY INTEREST IN THE SAME PROPERTY. PRIORITY BETWEEN UNPERFECTED SECURITY INTERESTS IN THE SAME SECURED PROPERTY IS RANKED BY THE ORDER IN TIME AT WHICH THE SECURITY INTEREST ATTACHES, WITH THE EARLIEST IN TIME TAKING FIRST PRIORITY. 06/11/2014 Antoinette McKain 32

33 PRIORITY OF SECURITY INTERESTS IN THE EVENT OF DEFAULT OF THE DEBTOR cont d PRIORITIES OF CONTINUOUSLY PERFECTED SECURITY INTEREST IN THE SAME SECURED PROPERTY WILL BE BASED IN THE ORDER OF FIRST REGISTRATION; POSSESSION AND THAT THE SECURITY IS TEMPORARILY PERFECTED. SECTION 23 PURCHASE MONEY SECURITY INTEREST HAS PRIORITY OVER NON-PURCHASE MONEY SECURITY INTERST IN THE SAME PROPERTY 06/11/2014 Antoinette McKain 33

34 ENFORCEMENT OF SECURITY INTERESTS WHERE THERE IS DEFAULT OF THE DEBTOR SECTION 34 WHERE THE DEBTOR DEFAULTS ON THE SECURITY AGREEMENT THE SECURED CREDITOR CAN EXERCISE ITS RIGHTS UNDER THE SECURITY CONTRACT TO TAKE POSSESSION OF THE SECURED PROPERTY AND ANY RIGHT HE MIGHT HAVE UNDER THIS ACT IN RESPECT OF CROPS; FIXTURES AND ACCESSIONS. WHERE THE SECURED CREDITOR IS IN POSSESSION OF SECURED PROPERTY HE CAN EXERCISE THE RIGHTS HE HAS BEING IN SUCH POSSESSION. 06/11/2014 Antoinette McKain 34

35 ENFORCEMENT OF SECURITY INTERESTS WHERE THERE IS DEFAULT OF THE DEBTOR cont d SECTION 35 WHERE THE SECURED PROPERTY IS AN INTANGIBLE OR A NEGOTIABLE INSTRUMENT HE MUST NOTIFY THE DEBTOR (OR ANY PERSON OBLIGATED TO MAKE PAYMENT UNDER THE FINANCIAL INSTRUMENT) TO MAKE THE PAYMENT OR PERFORM WHATEVER OBLIGATION THE DEBTOR HAD AGREED TO PERFORM UNDER THE SECURITY CONTRACT. THE SECURED CREDITOR MAY ALSO TAKE CONTROL OF ANY PROCEEDS OF ANY SALE OR DISPOSAL OF THE SECURED PROPERTY TO WHICH HE IS ENTITLED. 06/11/2014 Antoinette McKain 35

36 ENFORCEMENT OF SECURITY INTERESTS WHERE THERE IS DEFAULT OF THE DEBTOR cont d THE SECURED CREDITOR CAN APPLY THE MONEY OR ANY ACCOUNTS RECEIVABLE OR SECURITY TO SATISFY THE PAYMENT OR OBLIGATION OWED TO HIM BY THE DEBTOR AND CAN DEDUCT REASONABLE EXPENSES FROM THESE PROCEEDS FOR THE COLLECTION. 06/11/2014 Antoinette McKain 36

37 HOW A SECURED CREDITOR CAN DISPOSE OF SECURED PROPERTY IN SATISFACTION OF THE DEBT OR OBLIGATION OWED. SECTION 36 AFTER REPOSSESSING OR SEIZING THE SECURED PROPERTY THE SECURED CREDITOR MUST GIVE SEVEN DAYS NOTICE TO THE DEBTOR OR ANY OTHER PERSON WHO IS KNOWN TO BE OWNER OF THE PROPERTY THAT THEY INTEND TO DISPOSE OF THE PROPERTY AND TO OTHER PERSONS WHO HAS AN INTEREST IN THE SECURED PROPERTY WHICH IS SUBORDINATE TO THE SECURED CREDITOR. THE DISPOSITION CAN BE BY PRIVATE SALE OR PUBLIC AUCTION. IT CAN BE OF THE WHOLE PROPERTY OR IN COMMERCIAL UNITS OR PARTS. IT CAN ALSO BE BY LEASE, CREDIT SALE, LICENCE OR ANY OTHER REASONABLE COMMERCIAL WAY. 06/11/2014 Antoinette McKain 37

38 DEBTOR MAY REDEEM THE SECURED PROPERTY FROM THE SECURITY INTEREST SECTION 41 AT ANY TIME BEFORE A SECURED CREDITOR HAS DISPOSED OF THE SECURED PROPERTY OR ENTERED INTO A CONTRACT FOR THE DISPOSITION OF THE SECURED PROPERTY OR HAS ELECTED TO RETAIN THE SECURED PROPERTY; THE DEBTOR MAY FULFILL THE OBLIGATIONS SECURED UNDER THE CONTRACT AND PAY THE EXPENSES OF SECURED CREDITOR IN RESPECT OF SEIZING, REPOSSESSING, HOLDING OR REPAIRING ETC THE SECURED PROPERTY. 06/11/2014 Antoinette McKain 38

39 REGISTRATION OF SECURED INTERESTS SECTION THE ESTABLISHMENT OF THE SECURED INTERESTS REGISTRY AND A REGISTRAR OF SECURITY INTERESTS REGISTER TO THE ELECTRONIC FORM AVAILABILITY FOR INSPECTION BY THE PUBLIC SEARCH DATA INCLUDES NAME OF DEBTOR ; REGISTRATION NUMBER (ASSIGNED AT REGISTRATION AND WILL RELATE TO ALL NOTICES THEREAFTER); MOTOR VEHICLE SERIAL NUMBER IDENTIFICATION OF FIXTURES INCLUDING THE VOLUME AND FOLIO OF LAND WHERE AFFIXED. REGISTRATION NOTICE; AMENDMENT NOTICE AND TERMINATION NOTICE BY SECURED CREDITOR LENGTH OF TIME THE REGISTRAR WILL RETAIN NOTICES - PERIOD OF TIME DEBT OR OBLIGATION REMAINS OUTSTANDING 06/11/2014 Antoinette McKain 39

40 REGISTRATION IS NOT CONSTRUCTIVE NOTICE NOTICES REQUIRED UNDER THE ACT MUST BE SERVED AS SET OUT IN THE ACT 06/11/2014 Antoinette McKain 40

41 IMPACT ON EXISTING LEGISLATION REPEALED LEGISLATION AGRICULTURAL LOANS ACT BILLS OF SALE ACT DEBENTURE REGISTRATION ACT AMENDED LEGISLATION AGRICULTURAL CREDIT BOARD ACT COMPANIES ACT FARM LOANS ACT HIRE PURCHASE ACT WORKMEN S COMPENSATION ACT 06/11/2014 Antoinette McKain 41