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In This Volume

  • 49 (1) In this section:
  • “fee” means the fee payable under the Land Title Act for the filing of notices in the land title office;
  • “register” has the same meaning as in the Land Title Act;
  • “registrar” means the registrar of titles for the land title district in which land affected by a security interest is located;
  • “secured party” includes an assignee referred to in subsection (6);
  • “security interest” means a security interest in a fixture under section 36 or growing crops under section 37.
  • (2) A secured party may, on application and on payment of the fee, file in the proper land title office a notice of a security interest signed by the secured party or the secured party’s agent setting out
  • (a) a description of the land affected by the notice that is sufficient for the registrar to identify it in his or her records,
  • (b) the name and address of the debtor and the secured party,
  • (c) the expiry date of the notice, if any,
  • (d) a description of the collateral by which it may be readily identified, and
  • (e) other prescribed information,
  • and the registrar must file the notice and make an entry of it in the register.
  • (3) The filing of a notice under subsection (2) is notice, from the date and time the application was received by the registrar, of the security interest, to every person dealing with the land.
  • (4) After its expiry date, if any, a notice of a security interest is of no effect and the registrar
  • (a) on the application of any person interested in the land and on payment of the fee, or
  • (b) on his or her own initiative,
  • may cancel the entry of the notice on the register.
  • (5) If a secured party wishes to extend an expiry date specified in a notice filed under subsection (2), the secured party may, on application and on payment of the fee, file a notice of extension signed by the secured party setting out
  • (a) a description of the land affected by the notice that is sufficient for the registrar to identify it in his or her records,
  • (b) the extended expiry date,
  • (c) the filing number of the notice under subsection (2), and
  • (d) other prescribed information,
  • and the registrar must file the notice and make an entry of it in the register.
  • (6) If a secured party has assigned a security interest in respect of which a notice has been filed under this section, the assignee may, on application and on payment of the fee, file a notice of the assignment signed by the assignee setting out
  • (a) the name and address of the assignee,
  • (b) a description of the land affected by the notice that is sufficient for the registrar to identify it in his or her records,
  • (c) the filing number of the notice under subsection (2), and
  • (d) other prescribed information,
  • and the registrar must file the notice and make an entry of it in the register.
  • (7) The registrar,
  • (a) on receipt of a notice of cancellation signed by the secured party or the secured party’s agent setting out
    • (i) a description of the land affected by the notice that is sufficient for the registrar to identify it in his or her records, and
    • (ii) the filing number of the notice under subsection (2), and
  • (b) on application and payment of the fee
  • must, subject to subsection (8), cancel the entry of the notice filed under subsection (2) in the register.
  • (8) If a notice of cancellation under subsection (7)
  • (a) is expressed to be a partial cancellation, and
  • (b) contains a description of the collateral that has been released from the security interest,
  • the registrar must file the notice and make an entry of it in the register.
  • (9) The registrar is not under any duty to inquire into or verify whether or not the signature of a person on a notice filed under subsection (7) or (8) is the signature of the secured party.
  • (10) If in respect of a notice registered under this section
  • (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,
  • (d) the security agreement to which the notice relates no longer exists between the secured party and the debtor, or
  • (e) the item or kind of property described in the notice is not affixed to the land to which the notice relates,
  • the debtor named in the notice or any person having a registered interest in the land may give a written demand in accordance with subsection (12) to the secured party.
  • (11) A demand referred to in subsection (10) must require that the secured party, not later than 40 days after the demand is given, deliver to the person making the demand a signed notice of amendment, extension or cancellation, whichever the demand specifies.
  • (12) The demand referred to in subsection (10) may be given
  • (a) in accordance with section 72, or
  • (b) by registered mail to,
    • (i) if a notice of assignment under subsection (6) has not been filed, the address of the secured party set out in a notice filed under subsection (2), or
    • (ii) if a notice of assignment under subsection (6) has been filed, the address of the secured party set out in that notice.
  • (13) The registrar, on receipt of
  • (a) a true copy of the demand,
  • (b) an affidavit of the person who gave the demand verifying that
    • (i) the demand was given in accordance with subsection (12),
    • (ii) the copy referred to in paragraph (a) is a true copy,
    • (iii) the person is not aware of any proceeding of the secured party to enforce the security interest or to oppose or refute the demand, and
    • (iv) 40 days have elapsed since the notice was given under subsection (12),
  • (c) the application of the person who gave the demand, and
  • (d) the fee,
  • must make the appropriate entry in the register to effect the filing or cancellation requested in the demand unless the registrar has received a court order not to make the entry.
  • (14) A secured party must not charge an expense or accept a fee for compliance with a demand made under subsection (10) unless the expense or fee has been agreed to by the parties before the demand was given.

1989-36-49; 1990-11-17; 1992-48-10, effective September 11, 1992 (B.C. Reg. 357/92); 2004-66-161, effective January 20, 2005 (B.C. Reg. 16/2005).

FORMS

Forms of Application

Submissions

On the Form 17 Charge, Notation or Filing, select the applicable type of Personal Property Security Act Nature of Interest and attach an image of the original order or notice. The Natures of Interest on the Form 17 Charge, Notation or Filing are:

  • Personal Property Security Act, Court Order
  • Personal Property Security Act, Notice
  • Personal Property Security Act, Notice Expires
  • Personal Property Security Act, Notice of Extension
  • Personal Property Security Act, Notice of Assignment
  • PPSA-Demand for Notice of Amendment, Extension or Cancellation

PPSA Notice Forms

Sections 37 and 38 of the Personal Property Security Regulation, B.C. Reg. 227/2002, prescribe Form 1, Notice of a Security Interest in Fixtures or Growing Crops, and Form 2, Notice Affecting a Notice of a Security Interest in Fixtures or Growing Crops, for the purposes of s. 49 of the Act. The sections of the regulation provide:

Application

  • 37 This Part applies to the filing of a notice, with respect to fixtures or crops, in a land title office pursuant to section 49 of the [Personal Property Security Act] Act.

Contents of form

  • 38 (1) If a secured party claims a security interest in goods that are or may become fixtures, or in crops that are growing or to be grown, the secured party must file in the appropriate land title office a notice in Form 1, setting out
  • (a) the full name and full mailing address of the secured party,
  • (b) the full name and full mailing address of the debtor,
  • (c) a description of the goods or crops by which they may readily and easily be known and distinguished,
  • (d) the expiry date of the notice being filed at the land title office, or a statement that it is an infinite registration,
  • (e) a description of the land to which the goods are or are to be affixed, or on which the crops are growing or to be grown, sufficient for the purpose of identification in the land title office, including a parcel identifier, if applicable, and
  • (f) [Repealed B.C. Reg. 276/2005.]
  • and any such notice is to be signed by the secured party or the secured party’s agent and witnessed.
  • (2) If a secured party who has filed a notice under subsection (1) renews the notice, assigns, discharges or postpones the security interest or releases part of the collateral from the security interest, the secured party must cause to be filed in the land title office where the notice under subsection (1) was filed a notice in Form 2 setting out
  • (a) the name of the secured party,
  • (b) the description of the land given in accordance with subsection (1)(e),
  • (c) the date the notice was filed under subsection (1) and the instrument number assigned to it,
  • (d) in the case of a notice of renewal, the registration life in multiples of one year or an infinite number of years,
  • (e) in the case of a postponement,
    • (i) the full name and full mailing address of the person to whom the interest of the secured party is being postponed, and
    • (ii) the nature and instrument number of the interest to which the interest of the secured party is being postponed,
  • (f) in the case of a notice of a partial cancellation releasing collateral from the security interest, the particulars of the collateral deleted from the secured party’s interest,
  • (g) in the case of a notice of cancellation, a statement to the effect that the notice mentioned in subsection (1) is wholly cancelled and the security interest is discharged,
  • (h) in the case of a notice of cancellation relating to the release of all collateral on one parcel of land, a description of that parcel of land, and
  • (i) in the case of a notice of assignment,
    • (i) a statement to the effect that the notice has been assigned, and
    • (ii) the full name and full mailing address of the person to whom the interest is being assigned,
  • and any notice filed under this subsection must be signed by the secured party or the secured party’s agent and witnessed.
  • (3) A separate form 2 must be filed for each parcel of land under subsection (2)(h).

am. B.C. Reg. 276/2005.

Completion Instructions

Except for the “expiry date statement”, a PPSA Form 1 notice must be completed in its entirety. The expiry date statement must, if completed, state the date on which the notice will expire. If an expiry date is not included, B.C. Reg. 227/2002, s. 38(1)(d), requires a statement that the notice is non-expiring (that is, “this notice is an infinite registration”).

Completion Instructions

Items (a) and (b) of a Form 2 notice must be completed in full to the end of and including the legal description. As to the balance of the notice form, the preferred practice is to include only those segments that are applicable. Alternatively, the unused segments of the notice form must be struck out in a prominent way which leaves no doubt as to their deletion.

Fees

See the schedule of the Land Title Act fees at chapter 31 (Land Title Act—Fees) of this Manual regarding the fees payable on an application to register a Form 1 or 2 notice.

PRACTICE

Registration of PPSA Notices—General

Overview

A Form 1 filing under s. 49 of the Act constitutes notice of a security interest in growing crops or in goods that are or may become affixed to land. The instrument creating the security will not be filed and, in some cases, may not even exist at the time the notice is filed in the land title office. Because a notice under s. 49 does not constitute an interest in land, it will be entered in the register as a legal notation rather than a charge.

Because a notice under s. 49 does not constitute a charge, filings will be permitted regardless of whether or not a duplicate indefeasible title for the parcel affected by the notice has been issued. Similarly, the notation of a notice under s. 49 on the register does not prevent the issuance of a duplicate indefeasible title.

If Debtor Does Not Hold Registered Interest in Land

The land title office will not refuse to file a Form 1 solely on the ground that the debtor named in the notice is not the holder of a registered interest in the land affected by the notice. For example, the debtor may have installed a fixture on land subject to an unregistered lease.

Signature of Secured Party

The Act and s. 38(1) and (2) of the Personal Property Security Regulation, B.C. Reg. 227/2002, permits the secured party or an agent of the secured party to sign the notices. The registrar does not address signature verification issues or make any inquiries into whether or not the signature on a notice is that of the secured party or an agent of the secured party.

Witnesses

Section 38(1) and (2) of the Personal Property Security Regulation requires that the signature of the secured party on Forms 1 and 2 be witnessed. The registrar takes the position that Part 5 of the Land Title Act does not apply to a notice under s. 49 and therefore the registrar does not require any officer certification or affidavit of witness.

Notice of Security Interest (Form 1): Section 49(2)

An application to file a notice under this section must be received and marked up in the normal manner. Where, for example, a notice covers 25 furnaces that are slated for 25 strata lots, the notice shall receive a single number and will be endorsed against all 25 titles.

A notice of security interest in fixtures or growing crops is endorsed on title as follows:

PERSONAL PROPERTY SECURITY ACT NOTICE, SEE (doc #)

If an expiry date is expressed in the notice, the notation will be amended as follows:

PERSONAL PROPERTY SECURITY ACT NOTICE, SEE (doc. #), EXPIRES YY-MM-DD

Expiry of Form 1 Notice: Section 49(4)

After the expiry date or extended expiry date, if any, of a Form 1 notice, any person interested in the land may apply for a cancellation due to the effluxion of time. An interested person need not be the holder of a registered interest in the land.

Where it comes to the attention of the registrar during the course of registering a new title (for example, on the registration of a transfer or transmission) that a Form 1 notice has expired due to effluxion of time, the registrar will effect a cancellation by deleting the legal notation of the notice on the new title.

Notice of Extension of Expiry Date (Form 2): Section 49(5)

The Form 1 notice allows the secured party to specify the expiry date for the notice. Where an expiry date is expressed, the secured party may extend the date and file a notice of extension in Form 2 under this section. Only the expiry date can be extended. Subsection (5) cannot be used to extend the security interest over additional land or additional collateral. A notice under this subsection must not refer to more than one Form 1 notice.

A notice of an extension of an expiry date is endorsed on title as follows:

EXTENDED TO YY-MM-DD, SEE (doc #)

Note: This is registered as a modification of the original legal notation.

Notice of Assignment (Form 2): Section 49(6)

An application to file a notice of an assignment under this subsection shall be marked up in the normal manner. No more than one Form 1 notice may be referred to in a notice under this subsection.

A notice of an assignment is endorsed on title as follows:

PERSONAL PROPERTY SECURITY ACT NOTICE OF ASSIGNMENT, SEE (doc #)

Note: This is registered as a modification of the original legal notation.

Notice of Cancellation (Form 2): Section 49(7)

To effect a complete cancellation of a Form 1 notice, a notice under this subsection must:

  1. refer to the number of the original Form 1 notice and to the number of any subsequent Form 2 notice affecting it;
  2. set out a description of the land affected by the notice of cancellation; and
  3. state that the Notice of Security Interest is wholly cancelled and that the security interest is discharged (see s. 38(2)(g) of the Personal Property Security Regulation).

If the number of a subsequent Form 2 notice is not set out in the notice itself, it may be set out in the Form 17 application under the Land Title Act.

An application to file a notice under this subsection will be marked up in the usual manner. The registrar will only effect a cancellation of the numbers referred to in either the Form 2 notice or the Form 17 application form.

Notice of Partial Cancellation: Section 49(7) and (8)

General

There are two types of partial cancellation. One type contemplates the deletion of collateral from a security interest (see s. 38(2)(f) of the Personal Property Security Regulation), and the other type contemplates a deletion of collateral situate on a specific parcel (see s. 38(2)(h) of the regulation).

Deletion of Collateral from Security Interest

Assume that a Form 1 notice covers a furnace and an air conditioning unit affixed to a single parcel and that the secured party wishes to discharge the furnace from the security interest. Because the cancellation is only intended to release part of the collateral, a notice effecting this kind of partial release must describe the collateral that is being deleted from the security interest (s. 38(2)(f) of the regulation). Contrary to the case of a partial cancellation under s. 38(2)(h) of the regulation, a failure to describe the collateral being released will constitute grounds for refusal. A partial cancellation releasing collateral from a security interest must be expressed as an amendment in the Form 2 notice, indicating that the security interest is amended by “deleting” the collateral described.

Deletion of Collateral Situate on a Specific Parcel

Assume that a security interest covers 25 furnaces slated for 25 separate strata lots and the secured party wishes to release the furnace on strata lot 25 from the security interest. In this situation, s. 38(2)(h) of the regulation applies and the Form 2 notice must set out a description of the land in respect of which the security interest has been discharged. Technically, the notice should also contain a description of the collateral being released. However, failure to describe the collateral in these circumstances is not grounds for refusal so long as the notice clearly indicates that the security interest is discharged as it pertains to the specific parcel. The cancellation endorsement will be made in the usual manner on the title affected by the cancellation. A partial cancellation that purports to release all the collateral from a specified lot (B.C. Reg. 227/2002, s. 38(2)(h)) will be shown on the Form 2 as a discharge of the security interest as it pertains to the specifically described lot or lots.

A notice of partial cancellation is endorsed on title as follows:

PERSONAL PROPERTY SECURITY ACT NOTICE OF PARTIAL CANCELLATION, SEE (doc #)

Note: This is registered as a modification of the original legal notation.

Notice of Amendment of a Form 1 Notice

Section 38(2) of the regulation permits a secured party who has filed a Form 1 notice and who has renewed, assigned, discharged, or postponed the security interest or released part of the collateral to file a Form 2 notice respecting the renewal, assignment, discharge, postponement, or release.

Form 2 also makes provision for “deleting” collateral. A deletion will be treated as a partial cancellation.

While Form 2 provides space for the “addition” of collateral, the registrar will refuse to file a Form 2 notice that purports to do this. Arguably, the addition of collateral creates a new security interest and requires a filing under s. 38(1) of the regulation using Form 1.

For the same reasons, under no circumstances will the registrar accept a Form 2 that purports to add a legal description to a Form 1 notice or that otherwise purports to add additional land.

Demand for a Notice of Amendment, Extension, or Cancellation: Section 49(10) to (13)

General

Section 49(10) to (13) of the Act permits a debtor to call on a secured party to deliver a Form 2 notice of amendment, partial release of collateral, extension, or cancellation. In making a demand under s. 49(10), the debtor may apply to the registrar under s. 49(13) for the appropriate entry in the register if the secured party has not delivered the notice demanded or proceeded to oppose or refute the demand within 40 days.

Applications for Registration

Submissions:

On the Form 17 Charge, Notation or Filing, select Nature of Interest, PPSA—Demand for Notice of Amendment, Extension or Cancellation, and attach an image of the original demand and affidavit from the debtor who gave the demand. The affidavit under s. 49(13)(b) must be based on the personal knowledge of the debtor.

Amendment or Partial Release

A demand for an amendment or partial release is endorsed on title as follows:

PERSONAL PROPERTY SECURITY ACT DEMAND, SEE (doc #)

Notice of Extension

A demand for a notice of extension is endorsed on title as follows:

EXPIRY DATE EXTENDED TO YY-MM-DD, SEE (doc #)

Note: This is registered as a modification of the original legal notation.

Complete Cancellation

Where the demand relates to a request for a complete cancellation of a Form 1 notice, the demand is registered in the normal manner for a cancellation of a legal notation and the registrar’s practice under s. 49(7) applies.

Submissions

On the Form 17 Cancellation of Charge, Notation or Filing, select Nature of Interest, Personal Property Security Act Notice, and attach an image of the original Form 2 notice.

Court Orders

Section 49(13) directs the registrar to make the appropriate entry in the register unless the registrar has received a court order not to make the entry. No entry in respect of a demand under s. 49(13) can be made in the face of a court order. Any application based on a demand that is received after the receipt of an order will be refused. A notation of the order itself cannot be cancelled except by further order of the court or by an application and appropriate release signed by the secured party.

The order is in the nature of an injunction and should be served on the registrar in accordance with the Supreme Court Civil Rules. In cases where the order is simply presented through the cashier, it should not be received under s. 153 of the Land Title Act as an application. However, if the order is received in this manner, it should be immediately marked up, entered, and referred to the registrar.

Submissions:

On the Form 17 Charge, Notation or Filing, select Nature of Interest, Personal Property Security Act, Court Order, and attach an image of the court certified copy of the court order.

A court order prohibiting entry is endorsed on title as follows:

COURT ORDER, SEE (doc #)

Certificates of Pending Litigation and Caveats

The registrar rejects any application to register a certificate of pending litigation based upon a notice of security interest on the grounds that, should the action be successful, the plaintiff will not be entitled to an interest in land that is registrable under the Land Title Act. A filing under s. 49 merely constitutes notice of a security interest and of the rights of secured parties under it. The same rationale applies to caveats.

CROSS REFERENCES AND OTHER SOURCES OF INFORMATION

Cancellation of Notice Filed under Section 14 of the Sale of Goods on Condition Act

An applicant may apply to cancel a notice filed under s. 14 of the Sale of Goods on Condition Act (now repealed) in Form 2, Notice, prescribed under the Personal Property Security Regulation, B.C. Reg. 279/90.

Submissions

On the Form 17 Cancellation of Charge, Notation or Filing, select Nature of Interest, Personal Property Security Act Notice, and attach an image of the original Form 2 notice.

Secondary Sources

See Di Castri, Registration of Title to Land, vol. 2, para. 424.