Detail

(1) Subject to this section, this Act applies to a security interest, including a former security interest, within its scope, and an Act repealed under section 119 does not apply to a security interest, including a former security interest, within the scope of this Act.

(2) Subject to subsection (3), an Act repealed under section 119 applies to a matter that is the subject of proceedings before a court commenced before the commencement of this Act.

(3) Where enforcement of a former security interest has begun before the commencement of this Act, the secured creditor may continue enforcement under or may proceed under this Act.

(4) Where, under an Act repealed under section 119, the secured creditor of a former security interest, on default, could obtain possession of an encumbered property after default without making an application to the court, even without the grantor having consented in writing to such action, the secured creditor may do so under this Act with respect to the former security interest.

(5) A security interest that is effective against a third party under an Act repealed under section 119 remains effective between the parties notwithstanding that its creation does not comply with the creation requirements of this Act.

(6) A security interest that is effective against a third party under an Act repealed under section 119 continues, on the commencement of this Act, to be effective against a third party under this Act until the earlier of —
1. (a) the time it would have ceased to be effective against a third party under an Act repealed under section 119; or
1. (b) the expiration of 3 years after the commencement of this Act.

(7) If the third-party effectiveness requirements of this Act are satisfied before the third-party effectiveness of a security interest ceases under subsection (5), the security interest continues to be effective against a third party under this Act from the time when it is made effective against a third party under an Act repealed under section 119.

(8) Where third-party effectiveness requirements under this Act are not satisfied before third-party effectiveness of a security interest ceases under subsection (5), the security interest is effective against a third party from the time it is made effective against a third party under this Act.

(9) A written agreement between a grantor and a secured creditor creating a former security interest is sufficient to constitute authorization by the grantor for the registration of a notice covering the movable properties described in that agreement under this Act.

(10) Where a security interest under subsection (5) is effective against a third party by the registration of a notice under an Act repealed under section 119, the time of registration under an Act repealed under section 119 is the time to be used for the purposes of applying the priority rules of this Act that refer to the time of registration of a notice of a security interest.

(11) The priority of a security interest as against the rights of a competing claimant is determined by an Act repealed under section 119 if —
1. (a) the security interest and the rights of a competing claimant arose before the commencement date of this Act; and
1. (b) the priority status of the interest or security interest and the priority of the competing claims has not changed since the commencement date of this Act.

(12) For the purposes of subsection (11)(b), the priority status of a security interest has changed if —
1. (a) it is effective against a third party on the commencement of this Act but ceased to be effective against a third party; or
1. (b) it is not effective against a third party under an Act repealed under section 119 on the commencement of this Act, and subsequently became effective against a third party under this Act.

(13) This Act does not —
1. (a) affect the rights and obligations of the grantor and the secured creditor under the Consumer Protection Act;
1. (b) override another law that limits —
  1. (i) the creation or enforcement of a security interest in a specific type of movable property, or
  1. (ii) the transferability of a specific type of movable property with the exception of a provision that limits the creation or enforcement of a security interest in, or the transferability of, movable property on the sole ground that it is a future movable property or a part or undivided interest in movable property.