18 RECOMMENDATION 4 The choice of law rules that determine the validity, perfection and priority of a security interest when the debtor or the collateral moves from one jurisdiction to another should implement the following: (1) Perfection and priority should be governed by the law of the jurisdiction in which the collateral or the debtor, respectively, are presently located; (2) The rule that gov. [...] 49 RECOMMENDATION 13 A deposit-taking institution that is a creditor of its depositor should defeat a security interest in the funds or the source of funds in the depositor’s account only when allocation of funds in the account to payment of a debt owed to the institution is expressly authorized by the depositor in the manner specified. [...] The priority of SP’s security interest in the accounts relative to competing claims will depend on whether it is perfected and the consequent operation of the applicable priority rules, which depend primarily on the perfected or unperfected status of the interest and the time of the perfecting step. [...] If the choice of law rules of all provinces are the same, the outcome of litigation will be the same regardless of where the dispute is litigated: the courts of any province will apply the same law. [...] In the above scenario, the Ontario PPSA now identifies the law of Ontario (the place of incorporation) as the governing law while the Alberta PPSA applies the law of Alberta (the location of the chief executive office).
- Pages
- 150
- Published in
- Canada
