In an earlier edition of Fully Secured (July 14, 2010 - Volume 1, No. 1), we reported on the Ontario Government’s deferral of the August 1, 2007 amendment to the Ontario PPSA which was designed to repeal the “Check the Box” system used on financing statements to identify the collateral charged. A new system requiring full collateral description narratives similar to that used in most other provinces and in the United States had been proposed. However, the implementation of that replacement system has been deferred to provide the Ministry with time to modify its PPSA computer search and registration system to accommodate the narratives.
The initially contemplated two year implementation period has now stretched into five years and counting. Based upon our discussions with Ministry officials, no implementation date has been set, and so far as we are aware, no regulations, Minister’s orders or Registrar’s orders have been drafted to effect the change. Therefore, it seems we will be using with the “Check the Box” system for a while longer. We will continue to monitor this matter and report on future developments.
Nate Appleton, an articling student in the Toronto Office, also contributed to this post