47 Property Encumbered By Security Interest

47 (1) In this section, “purchase money security interest” means a security interest taken in land or in tangible personal property that

• (a) secures credit, including interest charges, provided to the will-maker to acquire, improve or preserve the land or tangible personal property, and
• (b) is registered under the Land Title Act or the Personal Property Security Act.

• (2) The interest of a beneficiary in a gift of property encumbered by a purchase money security interest is, as between the different persons claiming through the will-maker, primarily liable to pay the debt secured by the purchase money security interest to the extent that the debt is attributable to the acquisition, improvement or preservation of the property.
• (3) If a purchase money security interest applies to more than one gift of property in a will, each property is liable for payment of the purchase money security interest proportionally, to the extent that the debt is attributable to the acquisition, improvement or preservation of each property.
• (4) Subsections (2) and (3) are subject to a contrary intention appearing in the will, but a contrary intention is not signified by

• (a) a general direction in the will for the payment of debts, or
• (b) a charge of debts on the will-maker’s estate,

• unless the will-maker further signifies that intention by words expressly or by necessary implication referring to all or some part of the debt secured by the purchase money security interest.
• (5) Nothing in this section affects the right of a secured party to obtain payment or satisfaction either out of other property of the deceased person or otherwise.

2009-13-47, effective March 31, 2014 (B.C. Reg. 148/2013).