Filing “UCCs” in Canada
Did you know that you can file a UCC in Canada? Okay, so it’s technically not a UCC since the Uniform Commercial Code system is an American one, but Canada does have a system called the Personal Property Security Registration System which is analogous to and based upon our UCC system.
This system, much like our Uniform Commercial Code, records and reproduces info regarding loans where collateral is used to secure the loan. This system also records and reproduces information regarding repair and storage liens.
If you need to file a financing statement, you will have to complete and submit a document, which has to be done electronically, to the Companies and Personal Property Security Branch of the Ministry of Government Services. Within 30 days of registering the financing statement, the lender must provide the borrower with details of the registration so that the borrower can review and advise of any errors as necessary.
Unlike the US, where financing statements are active for 5 years unless a continuation is filed, the lenders must select the time period for the registration, which can be for as long as 25 years, or for a perpetual period (note: this only pertains to business loans; consumer loans can only register for up to 5 years at one time). Once the consumer loan is repaid, the lender registers a “discharge” within 30 days, similar to our termination filings.
With proper licensing, both PPSA searches and registrations can be accomplished via remote database access. Many public records firms here in the United States have achieved authorization and can complete your Canadian requests efficiently and affordably.
Updated Post: Filing Financing Statements in Canada