By: Tamara Buckwold and Roderick Wood
PDF Version: Reforming Personal Property Security Law
Report Commented On: Alberta Law Reform Institute, Personal Property Security Law, Report for Discussion 35 (December 2020)
Every Canadian province and territory, except for Quebec, has enacted a Personal Property Security Act. Although there are minor variations across jurisdictions, these statutes are substantially uniform. Alberta’s Personal Property Security Act, RSA 2000, c P-7 (PPSA) originally came into force in October 1990. Its enactment transformed secured transactions law in Alberta by sweeping away many of the restrictions and limitations that impeded the use of secured credit. It replaced the piecemeal approach that formerly governed with a comprehensive and rational system that fostered certainty, transparency and flexibility. The success of the legislation is confirmed by the transplantation of the Canadian model into other jurisdictions such as New Zealand and Australia.
Although the PPSA produced a significant improvement in the law, experience with the legislation over the course of the last three decades has revealed several instances where improvements or clarifications are desirable. In some cases, the need for reform is driven by technological advances. When the PPSA was first enacted, electronic banking and electronic commerce were in their infancy. In other cases, judicial decisions have revealed ambiguities in the legislation that have produced uncertainty. Further, the statute simply did not anticipate the kinds of controversies that would be litigated in the future, and therefore did not provide rules for the resolution of these types of disputes.