Pmsis Under the Ontario Ppsa-Special Priority for Suppliers
Business Credit › Vol. 106 Nbr. 6, June 2004
Linked as:
Summary
Suppliers of goods take note! Establishing a valid purchase money security interest (PMSI) in goods financed by the supplier is well worth the extra time and effort. PMSI status is one of the protections afforded to suppliers under Ontario law to allow them to rise above the level of secured or unsecured creditor, acquire super-priority secured status in the goods supplied and avoid costly legal proceedings when the customer defaults. Best practices for PMSI holders include: 1. Ensure that the loan proceeds are paid directly to the vendor of the collateral (not the debtor) pursuant to a written direction obtained from the debtor. 2. Retain a copy of the check payable to the vendor of the collateral. 3. Obtain the customer's written acknowledgment as to the date it obtained possession of the goods. 4. When registering, characterize the collateral from the debtor's viewpoint.
See the full content of this document
Extract
Pmsis Under the Ontario Ppsa-Special Priority for Suppliers
Suppliers of goods take note! Establishing a valid purchase money security interest (PMSI) in goods financed by the supplier is well worth the extra time and effort. PMSI status is one of the protections afforded to suppliers under Ontario law to allow them to rise above the level of secured or un...
See the full content of this document
Sponsored links
