BILL NO. 3

(as introduced)

3rd Session, 58th General Assembly
Nova Scotia
52 Elizabeth II, 2003

Government Bill

Personal Property Security Act
(amended)

The Honourable Peter G. Christie
Minister of Service Nova Scotia and Municipal Relations

First Reading: March 28, 2003

(Explanatory Notes)

Second Reading: April 15, 2003

Third Reading: May 22, 2003 (WITH COMMITTEE AMENDMENTS) (LINK TO BILL AS PASSED)

Clause 1 adds a definition of "seriously misleading defect, irregularity, omission or error" to the Personal Property Security Act.

Clause 2 amends the Personal Property Security Act to clarify that it is applicable to security interests on personal property located in Nova Scotia lands in the offshore.

Clause 3 amends the Personal Property Security Act to provide that registering serial-numbered equipment in the Personal Property Registry using a serial number in which there is a seriously misleading defect, irregularity, omission or error has the same effect as registering the equipment without a serial number.

Clause 4 amends the Personal Property Security Act to provide that registering serial-numbered equipment in the Personal Property Registry using a serial number in which there is a seriously misleading defect, irregularity, omission or error has the same effect as registering the equipment without a serial number.

Clause 5 adds two subsections to the Personal Property Security Act clarifying that registrations of security interests are invalid where there is a seriously misleading defect, irregularity, omission or error in the name of any of the debtors or in the serial number of collateral that is consumer goods of a kind prescribed as serial numbered goods.

Clause 6 amends the Liens Act to provide that if a lien on serial numbered goods is to be perfected by registration of a financing statement in the Personal Property Registry, the serial number cannot contain a seriously misleading defect, irregularity, omission or error as defined in the Personal Property Security Act.

Clause 7 removes provisions relating to the taking of security on real and personal property located in Nova Scotia lands in the offshore, which are no longer necessary after the amendment in Clause 2.

Clause 8 removes a regulation-making power relating to matters removed by Clause 7.

Clause 9 provides that this Act comes into force on proclamation.

Be it enacted by the Governor and Assembly as follows:

1 Section 2 of Chapter 13 of the Acts of 1995-96, the Personal Property Security Act, is amended by adding immediately after clause (as) the following clause:

2 Subsection 4(1) of Chapter 13 is amended by

(a) striking out the period at the end of clause (b) and substituting a comma; and

(b) adding immediately after clause (b) the following:

3 Clause 31(6)(b) of Chapter 13 is amended by adding ", or were described in that registration by a serial number in which there is a seriously misleading defect, irregularity, omission or error" immediately after "interest" in the third line.

4 Subsection 36(4) of Chapter 13 is amended by adding "and the serial number does not contain a seriously misleading defect, irregularity, omission or error" immediately after "registered" in the seventh line.

5 Section 44 of Chapter 13 is amended by adding immediately after subsection (8) the following subsections:

6 Subclause 9(3)(a)(i) of Chapter 33 of the Acts of 2001, the Liens Act, is amended by adding "and the serial number does not contain a seriously misleading defect, irregularity, omission or error as defined in the Personal Property Security Act" immediately after "number" in the third line.

7 Section 18 of Chapter 7 of the Acts of 1999, the Petroleum Resources Removal Permit Act, is repealed.

8 Clause 22(1)(p) of Chapter 7 is repealed.

9 This Act comes into force on such day as the Governor in Council orders and declares by proclamation.