On April 27, 1998, the Personal Property Security Act ("PPSA") came into force and changed the way that a number of security interests affecting personal property were registered and perfected in Prince Edward Island. The PPSA repealed several Provincial Acts and provided for a transition period during which interests covered by registrations under the repealed Acts would continue for the lesser of three years or until the date the registrations expired or are discharged. The PPSA further provided that the registrations could be continued beyond the transition period by registration under the PPSA.
The following Acts were repealed by the PPSA:
(i) Assignment of Book Debts Act;
(ii) Bills of Sale Act;
(iii) Bulk Sales Act;
(iv) Conditional Sales Act;
(v) Corporations Securities Registration Act; and
(vi) Potato Crop Mortgage Act.
The PPSA also continues certain security interests that had perfected status under prior law without registration and without the secured party taking possession of the collateral. Their perfected status continues until the expiry of the transition period. To maintain perfection, these security interests must be registered under the PPSA during the three-year transition period.
The three-year transition period for security interests registered under the repealed Acts will expire on April 26, 2001 after which any deemed registration or perfection of these interests will end.
The relevant legislation may be found in Part VII of the Personal Property Security Act, S.P.E.I. 1997, Cap. 33 (or in the revised statutes at R.S.P.E.I. 1988, Cap. P-3.1).