A Guide to Personal Property Security Registration and Searching

The PPSR system is a notice filing system that records and reproduces information concerning consumer and business loans where goods and other personal property are used as collateral to secure loans. For example, a person buys a car and borrows money from a bank to pay for it. The borrower and the bank enter into an agreement giving the bank rights to the car if the borrower does not repay the loan. The system also records and reproduces information concerning repair and storage liens. For further information about these liens, please obtain A Guide to the Repair and Storage Liens Act.

Who should register in the PPSR System?

Persons involved in one of two basic types of transactions should make a registration in the System to protect their interests.  Creditors who secure payment of a debt by taking a security interest in the personal property of the debtor should register a financing statement under the Personal Property Security Act (PPSA).  Persons who repair or store an article and who, prior to receiving full payment give up possession of that article, should register a claim for lien under the Repair and Storage Liens Act (RSLA).  Registering in the System pursuant to these Acts helps to establish priorities between individuals with competing interests in the same personal property, and in the case of a claim for lien will also ensure that the non-possessory lien is enforceable against third parties.  Information is kept current through the registration of a financing change statement (PPSA) or change statement (RSLA).

What is the registration process?

Lenders and borrowers must enter into what are called “security agreements.” The lender registers a “notice” of the agreement in the PPSR system. This is done by completing and submitting a document, electronically, called a “financing statement” to the Companies and Personal Property Security Branch of the Ministry of Government Services. The information is then recorded by the branch in a computer file and is available for searching by potential lenders and buyers. Within 30 days of registering the financing statement, the lender must provide the borrower with details of the registration. If there is an error in the registration, the borrower should advise the lender so that a correction can be made.

What information is included in a financing statement?

Since the financing statement is a notice, only essential information relating to the loan is required. In the case of a consumer car loan this would include: the borrower's name, address and date of birth, the lender's name and business address, the registration period, classification of the collateral as consumer goods, initial amount of the loan, maturity date and description of the car including motor vehicle identification number (VIN).

How important is the name and date of birth on the registration?

There are more than four million registrations in the PPSR system. The key identifiers for individual borrowers are the name and date of birth. The name must include the first given name, the initial of the second given name (if any) and the surname. There are many people in Ontario with identical or similar names and the date of birth is the best way to precisely identify a person.

How long is the information retained in the PPSR system?

 

Lenders must select the time period for the registration. Business loans may be registered for as long as 25 years, or for a perpetual period. In the case of consumer loans, lenders can register only for up to five years at a time. When a consumer loan is repaid, the lender is required to register a “discharge” within 30 days. Please refer to section 56(4) of the Personal Property Security Act (PPSA) for information about what a borrower can do if the lender fails to discharge a security interest.  The branch will remove a discharged registration 60 days later. If no discharge is registered, the registration will remain in the PPSR system until the end of the registration period.

Why should you do a search?

Before buying a used car or other used goods, consumers should do a Personal Property Security Act (PPSA) search to protect themselves financially. For example, a search may indicate that the seller or a previous owner has obtained a loan and that the lender may have rights in a used car that a consumer intends to buy. If so, the search results will enable the consumer to contact the lender to confirm whether or not the loan is still in effect, and to obtain further details. If the loan has been repaid, the buyer should insist that the seller require the lender to promptly register a discharge before the sale is completed. However, if there is an outstanding loan, the consumer may either decide against completing the sale or require the seller to arrange for payment of the loan as well as registration of a discharge.

If a lender has rights in the used car and a search is not done, the car could later be seized if the borrower fails to repay the loan. (Note: a search is not required when buying a new car or other new goods from the dealer. Consumers also do not need to search when buying a used car from a registered motor vehicle dealer in Ontario unless the car is worth more than $15,000. In that case,  the consumer should conduct a VIN search to determine if any previous owner gave a lender rights to the car.)

Where are searches done?

Search (and registration) services are available via the Internet. Payment may be made by major credit card or through a deposit account set up by the Companies and Personal Property Security Branch.

If you have an approved credit card or a deposit account with the Branch, you may also conduct a search over the telephone by calling (416) 325-8847 or toll-free in Ontario at 1-800-267-8847. TTY users dial 1-800-268-7095, or (416) 325-3408 in Toronto.

Private sector companies also provide PPSR services.  Please consult your yellow pages under the heading “Searchers of Records” or click on the link below to:

 

If you are buying a used car, what searches should you do?

A search should be done against both the vehicle identification number (VIN) and the name of the business or individual selling the car. As well, you may wish to search the names of any previous owners.

How do you do a VIN search?

The VIN is the identification number affixed to the vehicle by the manufacturer and is usually located on the dashboard of the vehicle. The VIN should be obtained directly from the vehicle as the VIN set out on the vehicle permit may be incorrect. If there is any difference between the two numbers, a search should be done against both. A searcher may select an identical VIN search or a similar VIN search. The identical VIN search will disclose only those registrations that set out the exact VIN searched. The similar VIN search will disclose registrations with a VIN that the PPSR system determines is similar in addition to registrations with the exact VIN.


Used Vehicle Information Package

Private sellers of used motor vehicles are required to purchase a Used Vehicle Information Package (UVIP) and make it available to potential buyers. Once sold, to transfer the vehicle registration, the UVIP must be presented at the Driver and Vehicle Licence Issuing Office. The UVIP contains lien information for the vehicle.
Order a Used Vehicle Information Package online.

What information is required to do a search against a business name?

The appropriate legal name of the business must first be determined. For example, if the business is a corporation, the incorporated name should be searched. In the case of a partnership, a search should be done against the registered partnership name. If a company or individual carries on business under a trade name, it is wise to also search against the trade name. A search may disclose some registrations that set out business names that the PPSR system determines are similar to the name searched in addition to registrations with the exact name.
Further information information about Searching the Public Record.

Searching the Public Record - Updated: Nov. 30, 2007

   

 

What information is needed to search against an individual's name?

There are two types of individual name searches. You may request that either an individual specific or an individual non-specific search be done. You must supply the first given name, initial of second given name (if any), surname and date of birth of an individual to do an Individual Specific Search. This information should be verified against an official document such as a birth certificate, change of name certificate or certificate of Canadian citizenship. A Non-Specific Search requires only the first given name and surname. This search should be done when a consumer does not know the individual's date of birth or the initial of the second given name or wants to lessen the risk of missing a registration due to error. The results for both types of searches will disclose only registrations that set out the exact name (and birth date for a specific search), which is searched.