The Ontario Open for Business Act, 2010 (referred to as a “good government bill”) amends a number of statutes. It received Royal Assent on October 25, 2010.
The Act reflects some of the Ontario Bar Association’s recommended changes to the Ontario Personal Property Security Act (the "Ontario PPSA") and the re-instatement of a couple of items that were inadvertently repealed in 2007. These are:
- Harmonizing Ontario with the other PPSA statutes in Canada to provide that the time to perfect a security interest as a PMSI for “equipment” collateral is extended from the present 10 days after the debtor or its agent obtains possession of the goods to 15 days;
- Amending section 56 of the Ontario PPSA to allow a debtor to demand that a secured party who has claimed more collateral in its registration than is granted in the security agreement to amend the registration to reduce the collateral to that granted in the security agreement, or, where the registration has not provided a description of the collateral in words, then to amend to add a limiting word description;
- Reinstating in section 46 of the Ontario PPSA, retroactively to August 1, 2007, that when a class of collateral is claimed in a registration, and words are inserted in the registration to describe the collateral in the optional word description area of the financing statement, that the collateral is limited to what is described in words; and
- Reinstating in the definition of “purchase-money security interest” in section 1, retroactively to January 1, 2007, the exclusion from PMSI status for a sale and lease back.