Personal Property Security Act (3 of 5)

(a) determining the person entitled to reimbursement under this Section;

(b) determining the amount and kind of security to be provided by the secured party;

(d) authorizing the removal of the goods without the provision of security for reimbursement under subsection (13).

(15) Where the interest of a person with an interest in the land is subordinate to a security interest in the goods under this Section, the person with an interest in the land may, before the goods have been removed from the land by the secured party, retain the goods on payment to the secured party of the lesser of

(a) the amount secured by the security interest in the goods that has priority over the interest of the person with the interest in the land; and

(b) the market value of the goods were the goods to be removed from the land.

(16) A secured party who has a right to remove goods from land shall give to each person who appears by the records of the registry of deeds for the registration district in which the land is located to have an interest in the land, a notice of the intention of the secured party to remove the goods.

(17) A notice pursuant to subsection (16) shall contain

(a) the name and address of the secured party;

(b) a description of the goods to be removed;

(d) the market value of the goods;

(e) a description of the land to which the goods are affixed; and

(f) a statement of intention to remove the goods unless the amount referred to in subsection (15) is paid on or before a specified date that is not less than fifteen days after the notice is given pursuant to subsection (16).

(18) A notice pursuant to subsection (16) shall be given at least fifteen days before removal of the goods and may be given in accordance with Section 70 or by registered mail addressed to the address last known to the secured party of the person entitled to the notice.

(19) A person entitled to receive a notice pursuant to subsection (16) may apply to the Court for an order postponing removal of the goods from the land. 1995-96, c. 13, s. 37.

Security interest in crops

38 (1) In this Section, "secured party" includes a receiver.

(2) Except as provided in subsections (3), (4), (5) and (7), a security interest in crops has priority with respect to the crops over a claim to the crops made by a person with an interest in the land.

(3) A security interest in crops is subordinate to the interest of a person who acquires for value an interest in the land while the crops are growing crops, including an assignee for value of the interest of a person with an interest in the land while the crops are growing crops, if the interest is acquired without fraud and before notice of the security interest is registered pursuant to Section 50.

(4) A security interest in crops is subordinate to the interest of a person with a registered mortgage of the land who, after the crops become growing crops,

(a) makes an advance under the mortgage, but only with respect to that advance; or

(b) obtains an order for sale, foreclosure or foreclosure and sale,

without fraud and before notice of the security interest in the crops is registered pursuant to Section 50.

(5) Where a notice of a security interest in crops has not been registered pursuant to Section 50 when a search is made of the records of the registry of deeds for the registration district in which the lands are located by or on behalf of a person with a registered mortgage of the land, any advance under the mortgage made on the same day that the search was made is deemed to have been made before registration of a notice pursuant to Section 50, notwithstanding that the notice was registered on the same day that the search was made.

(6) The priority under this Section of a person with an interest in the land referred to in subsection (3) or of a person with a registered mortgage of the land referred to in subsection (4) is not affected by priority rights in the land under the Registry Act.

(7) A security interest in crops is subordinate to the interest of a creditor of the debtor who causes a certificate of judgment affecting the land to be registered pursuant to the Registry Act before notice of the security interest is registered pursuant to Section 50.

(8) The interest of a creditor of the debtor referred to in subsection (7) does not take priority over a purchase money security interest in the crops or a security interest in the crops referred to in subsection 35(10) if a notice of the security interest in the crops is registered pursuant to Section 50 not later than fifteen days after the security interest in the crops attaches.

(9) Subsections 37(11) to (19) apply mutatis mutandis to the seizure and removal of growing crops from land. 1995-96, c. 13, s. 38.

Accessions

39 (1) In this Section,

(a) "other goods" means goods to which an accession is installed or affixed;

(b) "secured party" includes a receiver;

(2) Except as provided in Section 31 and subsections (3), (4) and (7), a security interest in goods that attaches before or when the goods become an accession has priority with respect to the goods over a claim to the goods as an accession made by a person with an interest in the whole.

(3) A security interest referred to in subsection (2) is subordinate to the interest of a person who, after the goods become an accession, acquires for value an interest in the whole, including an assignee of the interest of a person with an interest in the whole if the assignee acquires the interest for value and after the goods become an accession and before a financing statement in relation to the security interest is registered.

(4) A security interest referred to in subsection (2) is subordinate to the interest of a person with a security interest taken and perfected in the whole who

(a) makes an advance under a security agreement after the goods become an accession, but only with respect to that advance; or

(b) acquires the right to retain the whole in satisfaction of the obligation secured,

without knowledge of the security interest in the accession and before it is perfected.

(5) A security interest in goods that attaches after the goods become an accession is subordinate to the interest of a person who has an interest in the other goods when the goods become an accession and who

(a) has not consented to the security interest;

(b) has not disclaimed an interest in the goods or accessions;

(d) is not otherwise precluded from preventing the debtor from removing the accession.

(6) A security interest in goods that attaches after the goods become an accession is subordinate to the interest of a person who acquires an interest in the whole after the goods become an accession, if the interest is acquired without knowledge and before the security interest in the accession is perfected.

(7) Subject to subsection (8), a security interest in goods that attaches before, at the time or after the goods become an accession is subordinate to the interest of a judgment creditor referred to in clause 21(1)(a) if the security interest is not perfected when a notice of judgment referred to in clause 21(1)(a) is registered.

(8) The interest of a judgment creditor referred to in clause 21(1)(a) does not take priority under subsection (7) over a purchase money security interest in goods that is perfected within fifteen days after the goods become an accession.

(9) A secured party who has the right, under this Act, to remove an accession from the whole shall exercise the right of removal in a manner that causes no unnecessary damage or injury to the other goods or that puts the person in possession of the whole to any greater inconvenience than is necessarily incidental to the removal of the accession.

(10) A person, other than the debtor, who has an interest in the whole when the goods subject to the security interest become an accession is entitled to reimbursement for any damages to the interest of that person in the whole caused during the removal of the accession, but is not entitled to reimbursement for diminution in the value of the whole caused by the absence of the accession or by the necessity to replace it.

(11) A person entitled to reimbursement under subsection (10) may refuse permission to remove the accession until the secured party has given adequate security for the reimbursement.

(12) The secured party may apply to the Court for an order

(a) determining the person entitled to reimbursement under this Section;

(b) determining the amount and kind of security to be provided by the secured party;

(d) authorizing the removal of the accession without the provision of security for reimbursement under subsection (11).

(13) Where the interest of a person with an interest in the whole is subordinate to a security interest in the accession under this Section, the person with an interest in the whole may, before the accession has been removed from the whole by the secured party, retain the accession on payment to the secured party of the lesser of

(a) the amount secured by the security interest entitled to priority; and

(b) the market value of the accession were the accession to be removed from the other goods.

(14) The secured party who has a right to remove the accession from the whole shall give a notice of the secured partys intention to remove the accession to each person who

(a) is known by the secured party to have an interest in the other goods or in the whole; and

(b) has registered a financing statement that includes the name of the debtor and a description of the other goods, or that includes the serial number of the other goods if the other goods are of a kind that are prescribed as serial numbered goods.

(15) A notice pursuant to subsection (14) shall contain

(a) the name and address of the secured party;

(b) a description of the goods to be removed;

(d) the market value of the accession;

(e) a description of the other goods; and

(f) a statement of intention to remove the accession unless the amount referred to in subsection (13) is paid on or before a specified date that is not less than fifteen days after the notice is given in accordance with subsection (14).

(16) A notice pursuant to subsection (14) shall be given at least fifteen days before removal of the accession and may be given in accordance with Section 70 or by registered mail addressed to the address of the person to be notified that was registered as part of the financing statement referred to in clause (14)(b).

(17) A person entitled to receive a notice under subsection (14) may apply to the Court for an order postponing removal of the accession. 1995-96, c. 13, s. 39.

Goods becoming part of a product or mass

40 (1) A perfected security interest in goods that subsequently become part of a product or mass continues in the product or mass if the goods are so manufactured, processed, assembled or commingled that their identity is lost in the product.

(2) Subject to subsections (4) and (6), where more than one perfected security interest continues in the same product or mass under subsection (1), and each was a security interest in separate goods, the security interests are entitled to share in the product or mass according to the ratio that the obligation secured by each security interest bears to the sum of the obligations secured by all security interests.

(3) For the purpose of Section 36, perfection of a security interest in goods that subsequently become part of a product or mass is also perfection of the security interest in the product or mass.

(4) For the purpose of subsection (2), the obligation secured by a security interest that continues in the product or mass under subsection (1) is limited to the market value of the goods when the goods become part of the product or mass.

(5) Any priority that a perfected security interest that continues in the product or mass under subsection(1) has over an interest in the product or mass is limited to the market value of the goods when the goods become part of the product or mass.

(6) A perfected purchase money security interest in goods that continues in the product or mass under subsection (1) has priority over a non-purchase money security interest

(a) in the goods that continues in the product or mass under subsection (1); and

(b) in the product or mass, other than as inventory, given by the same debtor.

(7) A perfected purchase money security interest in goods that continues in the product or mass under subsection (1) has priority over any non-purchase money security interest in the product or mass as inventory given by the same debtor if

(a) the secured party with the purchase money security interest gives a notice to any secured party with a non-purchase money security interest in the product or mass who has registered, before the identity of the goods is lost in the product or mass, a financing statement that includes a description of the product or mass;

(b) the notice referred to in clause (a) states that the person giving the notice has acquired or expects to acquire a purchase money security interest in goods supplied to the debtor as inventory; and

(8) A notice pursuant to subsection (7) may be given in accordance with Section 70 or by registered mail addressed to the address of the person to be notified that was registered as part of the financing statement referred to in clause (7)(a).

(9) This Section does not apply to a security interest in an accession to which Section 39 applies. 1995-96, c. 13, s. 40.

Subordination by secured party

41 (1) A secured party may subordinate, in a security agreement or otherwise, the secured partys security interest to any other interest.

(2) A subordination is effective according to its terms between the parties and may be enforced by a third party if the third party is the person or one of the class of persons for whose benefit the subordination was intended. 1995-96, c. 13, s. 41.

Intangibles and chattel paper

42 (1) In this Section,

(a) "account debtor" means a person who is obligated under an intangible or chattel paper;

(b) "assignee" includes a secured party and a receiver.

(2) Unless the account debtor on an intangible or chattel paper has made an enforceable agreement not to assert defenses or claims arising out of a contract, the rights of an assignee of the intangible or chattel paper are subject to

(a) the terms of the contract between the account debtor and the assignor and any defense or claim arising from the contract or a closely connected contract; and

(b) any other defense or claim of the account debtor against the assignor that accrues before the account debtor acquires knowledge of the assignment.

(3) A modification of or substitution for a contract made in good faith and in accordance with reasonable commercial standards and without material adverse effect on the assignees rights under the contract or the assignors ability to perform the contract is effective against the assignee unless the account debtor has otherwise agreed.

(4) Subsection (3) applies

(a) to the extent that an assigned right to payment arising out of the contract has not been earned by performance; and

(b) notwithstanding that notice of the assignment has been given to the account debtor.

(5) Where the contract has been substituted or modified in the manner referred to in subsection (3), the assignee obtains rights corresponding to those of the assignor under the modified or substituted contract.

(6) Nothing in subsections (3) to (5) affects the validity of a term in an assignment agreement that provides that a modification or substitution referred to in those subsections is a breach of contract by the assignor.

(7) Where collateral that is either an intangible or chattel paper is assigned, the account debtor may make payments to the assignor

(a) before the account debtor receives notice of the assignment in accordance with subsection (8); or

(b) after the account debtor receives notice of the assignment if the account debtor requests the assignee to furnish proof of the assignment and the assignee fails to furnish proof within fifteen days after the request.

(8) A notice of an assignment pursuant to subsection (7) shall

(a) state that the amount payable or to become payable under the contract has been assigned and that payment is to be made to the assignee; and

(b) identify the contract under which the amount payable is to become payable.

(9) Payment by an account debtor to an assignee after the account debtor receives notice of the assignment in accordance with subsection (8) discharges the obligation of the account debtor to the extent of the payment.

(10) A term in a contract between a debtor on an account or chattel paper and an assignor that prohibits or restricts assignment of the whole of the account ob chattel paper for money due or to become due is binding on the assignor only to the extent that the assignor may be liable in damages for breach of the term, but is unenforceable against third parties. 1995-96, c. 13, s. 42.

PART IV

REGISTRATION

Personal Property Registry

43 (1) There shall be an electronic registry known as the Personal Property Registry for the purpose of registrations pursuant to this Act and pursuant to any other Act that provides for registration in the Registry.

(2) The Registrar shall be appointed in accordance with the Civil Service Act.

(3) One or more deputy registrars shall be appointed in accordance with the Civil Service Act.

(4) The Registrar shall supervise and administer the operation of the Registry and has such powers and duties as are set out in this Act or the regulations or any other Act that provides for registration in the Registry or the regulations pursuant to that Act.

(5) A deputy registrar has the same powers and duties as the Registrar, subject to the direction and supervision of the Registrar.

(6) The Registrar and deputy registrars may designate one or more persons to act on their behalf.

(7) When it is not practical, in the opinion of the Registrar, to provide access to the Registry or to provide one or more Registry services, the Registrar may refuse access to the Registry or otherwise suspend one or more of its services. 1995-96, c. 13, s. 43

Registration

44 (1) A person may register a financing statement in the Registry at an office of the Registry in accordance with the regulations.

(2) The Registrar may enter into an agreement with any person to provide access to the Registry on terms and conditions that the Registrar considers advisable and may vary the terms and conditions from time to time as the Registrar considers advisable.

(3) A person who has entered into an agreement with the Registrar pursuant to subsection (2) may register a financing statement in the Registry in accordance with the agreement and the regulations.

(4) Registration of a financing statement is effective from the time that a registration number, date and time is assigned to the registration in the Registry.

(5) A financing statement may be registered before or after a security agreement is made or a security interest attaches.

(6) A registration may relate to one or more than one security agreement.

(7) The validity of the registration of a financing statement is not affected by any defect, irregularity, omission or error in the financing statement unless the defect, irregularity, omission or error is seriously misleading.

(8) Subject to subsection (10), a registration is invalid if there is a seriously misleading defect, irregularity, omission or error in

(a) the name of any of the debtors required to be included in the financing statement other than a debtor who does not own or have rights in the collateral; or

(b) the serial number of the collateral if the collateral is consumer goods of a kind that are prescribed as serial numbered goods.

(9) In order to establish that a defect, irregularity, omission or error is seriously misleading, it is not necessary to prove that anyone was actually misled by it.

(10) Failure to include a description of any item or kind of collateral in a financing statement does not affect the validity of the registration with respect to the description of other collateral included in the financing statement.

(11) The secured party or person named as secured party in a financing statement shall give to each person named as debtor in the statement, within thirty days after it is registered, a verification statement in accordance with the regulations, except where that person has waived in writing the right to receive it. 1995-96, c. 13, s. 44.

Life of registration and amendment of statements

45 (1) Except as otherwise prescribed, a registration pursuant to this Act is effective for the period of time specified as part of the financing statement by which the registration is effected.

(2) A registration may be renewed by registering a financing change statement at any time before the registration expires and, except as otherwise prescribed, the period of time for which the registration is effective shall be extended by the renewal period specified as part of the financing change statement.

(3) An amendment to a registration may be effected by registering a financing change statement at any time during the period that the registration is effective and the amendment is effective from the time that the financing change statement is registered to the expiry of the registration being amended.

(4) Notwithstanding that an amendment of a registration is not specifically provided for in this Part, a financing change statement may be registered to amend the registration. 1995-96, c. 13, s. 45.

Registration of transfers

46 (1) Where a secured party with a security interest that is perfected by registration transfers the security interest or a part of it, a financing change statement may be registered to disclose the transfer.

(2) Where a financing change statement is registered pursuant to subsection (1) and an interest in part, but not all, of the collateral is transferred, the financing change statement shall include a description of the collateral in which the interest is transferred.

(3) Where a secured party with a security interest that is not perfected by registration transfers the security interest, a financing statement may be registered in which the transferee is disclosed as the secured party.

(4) After registration of a financing change statement disclosing a transfer of a security interest, the transferee is the secured party for the purpose of this Part.

(5) A registration disclosing a transfer of a security interest may be registered before or after the transfer.

(6) Where a security interest has been subordinated by the secured party to the interest of another person, a financing change statement may be registered to disclose the subordination at any time during the period that the registration of the subordinated security interest is effective. 1995-96, c. 13, s. 46.

Removal of data from registration

47 Data in a registration may be removed from the records of the Registry

(a) when the registration is no longer effective; or

(b) on the registration of a financing change statement discharging or partially discharging the registration. 1995-96, c. 13, s. 47.

Registration not notice

48 Registration of a financing statement in the Registry by itself does not constitute notice or knowledge to any person of the existence or contents of the financing statement or of the existence of the security interest or the contents of any security agreement to which the registration relates. 1995-96, c. 13, s. 48.

Printed search result

49 (1) A person may search the records of the Registry and obtain a printed search result

(a) at an office of the Registry; or

(b) in accordance with an agreement entered into with the Registrar pursuant to subsection 44(2).

(2) A search pursuant to subsection (1) may be conducted according to

(a) the name of the debtor;

(b) the serial number of goods of a kind that are prescribed as serial numbered goods; or

(3) A printed search result that purports to be issued by the Registry is receivable as evidence and is, in the absence of evidence to the contrary, proof of the registration of any financing statement to which the search result relates, including

(a) the date and time of registration of the financing statement; and

(b) the order of registration of the financing statement as indicated by the registration number, date and time set out in the printed search result. 1995-96, c. 13, s. 49.

Registration of security interests in fixtures and crops

50 (1) In this Section,

(a) "debtor" includes any person named as a debtor in a notice registered pursuant to this Section;

(b) "secured party" includes any person named as a secured party in a notice registered pursuant to this Section.

(2) A security interest in a fixture under Section 37 and a security interest in a crop under Section 38 may be registered in a registry of deeds by submitting a notice in accordance with the regulations to that registry.

(3) On the submission of a notice pursuant to subsection (2) and on the payment of any prescribed fee, the registrar of deeds shall register it in that office.

(4) On the registration of a notice pursuant to subsection (3), every person dealing with the land to which the notice relates is deemed to have knowledge of the security interest referred to in the notice.

(5) The secured party or person named as secured party in a notice registered pursuant to subsection (3) shall give to each person named as a debtor in the notice, within thirty days after it is registered, a copy of the notice, except where that person has waived in writing the right to receive it.

(6) Where a notice registered pursuant to subsection (3) has not expired, notice of its renewal, amendment or discharge or notice of the transfer or subordination of the security interest to which it relates may be registered by submitting a notice in accordance with the regulations to the registry of deeds in which the notice is registered.

(7) On the submission of a notice pursuant to subsection (6) and on the payment of any prescribed fee, the registrar of the registry of deeds to which the notice is submitted shall register it in that office.

(8) Subsections 44(6), (7), (8), (10) and (11) and Sections 45 and 46 apply mutatis mutandis to the notices referred to in subsections (2) and (6).

(9) Where a notice registered pursuant to subsection (3) expires or a notice of its discharge is registered pursuant to subsection (7), it is of no effect and the appropriate registrar may cancel registration of the notice and any other notice that relates to the same security interest in the registry of deeds.

(10) The debtor named in a notice registered pursuant to subsection (3) or (7), and any person with a registered interest in the land to which the notice relates, may give a written demand to the secured party if

(a) all of the obligations under the security agreement to which the notice relates have been performed;

(b) the secured party has agreed to release part or all of the collateral described in the notice;

(c) the description of the collateral contained in the notice includes an item or kind of property that is not collateral under a security agreement between the secured party and the debtor; or

(d) no security agreement exists between the secured party and the debtor.

(11) A demand pursuant to subsection (10) may require that the secured party, within thirty days after the demand is given, submit for registration a notice pursuant to subsection (6)

(a) discharging the registration of the notice, in a case within clause (10)(a) or (d);

(b) amending or discharging the registration of the notice to reflect the terms of the agreement, in a case within clause (10)(b); or

(c) amending the collateral description in the notice to exclude items or kinds of property that are not collateral under a security agreement between the secured party and the debtor, in a case within clause (10)(c).

(12) Where a secured party fails to comply with a demand made pursuant to subsection (10) within thirty days after it is given, or fails to give to the person giving the demand an order of the Court confirming that the registration need not be amended or discharged, the person making the demand may submit for registration the notice referred to in subsection (11) and the registrar shall register the notice.

(13) A demand pursuant to subsection (10) may be given in accordance with Section 70 or by registered mail addressed to the address of the secured party as it appears on the most recent notice registered pursuant to subsection (3) or (7).

(14) On application by the secured party, the Court may order that the registration

(a) be maintained on any condition, and subject to Section 45, for any period of time; or

(b) be discharged or amended.

(15) Subsection (12) does not apply to a registration of a notice of a security interest provided for in a trust indenture if the notice states that the security agreement providing for the security interest is a trust indenture.

(16) In a case within subsection (15), where the secured party fails to comply with a demand made pursuant to subsection (10) within fifteen days after it is made, the person making the demand may apply to the Court for an order directing that the registration be amended or discharged.

(17) No fee or expense shall be charged by a secured party for compliance with a demand made pursuant to subsection (10) unless the charge was agreed to by the parties before the demand was given. 1995-96, c. 13, s. 50.

Discharge of registration

51 (1) In this Section,

(a) "debtor" includes any person named as a debtor in a registered financing statement;

(b) "secured party" includes any person named as a secured party in a registered financing statement.

(2) Where a registration relates exclusively to a security interest in consumer goods, the secured party shall discharge the registration within thirty days after all obligations under the security agreement creating the security interest are performed, unless the registration lapses before the expiry of that thirty-day period.

(3) The debtor, or any person with an interest in property that falls within the collateral description included in a registered financing statement, may make a written demand to the secured party if

(a) all of the obligations under the security agreement to which the financing statement relates have been performed;

(b) the secured party has agreed to release part or all of the collateral described in the collateral description included in the financing statement;

(c) the collateral described in the collateral description included in the financing statement includes an item or kind of property that is not collateral under a security agreement between the secured party and the debtor; or

(d) no security agreement exists between the secured party and the debtor.

(4) A demand made pursuant to subsection (3) may require that the secured party, within fifteen days after the demand is made, register a financing change statement

(a) discharging the registration, in a case within clause (3)(a) or (d);

(b) amending or discharging the registration so as to reflect the terms of the agreement, in a case within clause (3)(b); or

(c) amending the collateral description to exclude items or kinds of property that are not collateral under a security agreement between the secured party and the debtor, in a case within clause (3)(c).

(5) Where a secured party fails to comply with a demand made pursuant to subsection (3) within fifteen days after it is made, or fails to give to the person making the demand an order of the Court confirming that the registration need not be amended or discharged, the person making the demand may register the financing change statement referred to in subsection (4).

(6) A demand made pursuant to subsection (3) may be given in accordance with Section 70 or by registered mail addressed to the address of the secured party that was registered as part of the financing statement.

(7) On application by the secured party, the Court may order that the registration

(a) be maintained on any condition, and subject to Section 45, for any period of time; or

(b) be discharged or amended.

(8) Subsection (5) does not apply to the registration of a security interest provided for in a trust indenture if the registration discloses that the security agreement providing for the security interest is a trust indenture.

(9) In a case within subsection (8), where the secured party fails to comply with a demand made pursuant to subsection (3) within fifteen days after it is made, the person making the demand may apply to the Court for an order directing that the registration be amended or discharged.

(10) No fee or expense shall be charged by a secured party for compliance with a demand made pursuant to subsection (3) unless the charge was agreed to by the parties before the demand was given. 1995-96, c. 13, s. 51.

Transfer of collateral

52 (1) Where a security interest is perfected by registration and the debtor transfers all or part of the debtors interest in the collateral with the prior consent of the secured party, the security interest in the transferred collateral is subordinate to

(a) an interest, other than a security interest in the transferred collateral, arising in the period from the expiry of the fifteenth day after the transfer to the time the secured party amends the registration to disclose the name of the transferee of the interest in the collateral as the new debtor or takes possession of the collateral;

(b) a perfected security interest in the transferred collateral that is registered or perfected during the period referred to in clause (a); and

(c) a perfected security interest in the transferred collateral that is registered or perfected after the transfer and before the expiry of the fifteenth day after the transfer if, before the expiry of the fifteen days,

(ii) the secured party does not take possession of the collateral.

(2) Where a security interest is perfected by registration and the secured party has knowledge of

(a) information required to register a financing change statement disclosing the transferee as the new debtor, where all or part of the debtors interest in the collateral is transferred; or

(b) the new name of the debtor, if there has been a change in the debtors name,

the security interest, in the transferred collateral where clause (a) applies, and in the collateral where clause (b) applies, is subordinate to

(c) an interest, other than a security interest, in that collateral, arising in the period from the expiry of the fifteenth day after the secured party has knowledge of the information referred to in clause (a) or the new name of the debtor to the time the secured party amends the registration to disclose the name of the transferee as the debtor or to disclose the new name of the debtor, or takes possession of the collateral;

(d) a perfected security interest in the collateral that is registered or perfected in the period referred to in clause (c); and

(e) a perfected security interest in the collateral that is registered or perfected after the secured party had knowledge of the information referred to in clause (a) or the new name of the debtor and before the expiry of the fifteenth day referred to in clause (c), if, before the expiry of the fifteen days,

(ii) the secured party does not take possession of the collateral.

(3) This Section does not have the effect of subordinating a prior security interest deemed by Section 75 to be registered pursuant to this Act.

(4) Where the debtors interest in part or all of the collateral is transferred by the debtor without the consent of the secured party and there are one or more subsequent transfers of the collateral without the consent of the secured party before the secured party acquires knowledge of the name of the most recent transferee of the collateral, the secured party shall be deemed to have complied with subsection (2) if the secured party registers a financing change statement not later than fifteen days after acquiring knowledge of

(a) the name of the most recent transferee of the collateral; and

(b) the information required to register a financing change statement,

and the secured party need not register financing change statements with respect to any intermediate transferee. 1995-96, c. 13, s. 52.

Actions against Crown

53 (1) A person may bring action against Her Majesty in right of the Province to recover loss or damage suffered by that person because of an error or omission in the operation of the Registry if the loss or damage resulted from reliance on a printed search result issued by the Registry.

(2) Her Majesty in right of the Province is not liable directly or vicariously for loss or damage suffered by a person because of

(a) verbal advice given by the Registrar, a deputy registrar or an officer, employee or agent respecting this Act or the regulations or any other Act that provides for registration in the Registry or the regulations pursuant to that Act or the operation of the Registry unless the person bringing the action proves that the Registrar, deputy registrar, officer, employee or agent was not acting in good faith; or

(b) the failure of the Registry to effect a registration or to effect a registration correctly.

(3) No action for damages under this Section or Section 54 lies against Her Majesty in right of the Province unless it is commenced within