• Personal Property
– Tangible items of moveable property
(chattels)
– Intangible items
• Intellectual property
• Choses in action (rights, like negotiable instruments)
• Real Property
– Land and anything permanently affixed to the land (buildings, structures, etc.)

• An admininistrative act, created to streamline the process of registering different kinds of interests in personal property
• Created the Personal Property Security
Registry
• Method of registration and collection now common to all forms of security

• Conditional Sales Contract
– Seller is financing, retains title until last payment is made
– Two-step transaction, first possession passes, then title
• Chattel Mortgage
– Third party financed
– Charge registered against title to good
• Assignment of Book Debts
– Right to collect accounts receivable

• Enter into contract
– Chattel mortgage, whatever the agreement is
• Secured interest attaches to collateral
– Parties perform or at least partially perform the contract
– Usually indicated by a transfer of possession, money
• Interest is perfected
– Register contract at PPSR – gives you priority
– May take physical possession of goods, but must establish priority

• First to register, has first priority over other registered creditor
• Each creditor in line gets paid out in full, before next in line
• Registered creditors have priority over unregistered creditors for the items specified in the security agreement

• In case of default, creditor may EITHER seize the goods
OR sue under the contract
• Cannot do both in B.C.
• Creditor can personally seize in any way that does not break the law
• May hire private bailiff, but same restrictions
• If debtor being difficult, may get a court order for seizure
– sheriff executes and may use necessary force
• In B.C., if debt is personal, and debtor has paid off 2/3 or more, MUST get court order before seizing

• Retain goods in full satisfaction OR
– Serve notice to retain on debtor/registered creditors
– If no objection filed within 15 days, creditor keeps goods. If objection, must …
• Sell goods
– 20 days notice of sale unless perishable goods
– Serve debtor and “interested parties with notice
– Debtor can redeem during this period, if pays total debt, costs of collection and interest
– Whatever the creditor does, they MUST follow Act
– If creditor breaches Act, debtor may sue for return of interest, part of principal of debt

• Fraudulent Conveyance or Transfer
– Transferring title to assets to a friend, family member, corporation in an attempt to avoid creditors
• Fraudulent Preference
– Paying off one or more creditors in preference to others

– Determines process by which debtors convey their assets to a trustee in bankruptcy who distributes them to the creditors
– Provides alternative to bankruptcy
• Allows debtor to propose alternative method of satisfying claims
– Discharge removes impossible burden of debt, allowing debtors to restructure lives

Bankruptcy v. Insolvency - define
Voluntary v. Involuntary Assignment
- turn your assets over to a trustee
-creditors assign you into bankruptcy must owe > $1000 and committed act of bankruptcy
Trustee
• Distributes assets according to the priority of their security

• Secured
– Have priority to the asset they hold security on
• Preferred – s. 136 BIA
– Page 633 of text – funeral, bakruptcy costs, wages, maintenance/alimony etc.
• Unsecured
– Share on a pro rata basis

• Individual debtor discharged from most claims
– student loans. maintenance/alimony
• Automatic after 9 mths if first bankruuptcy
• Trustee/creditors may oppose
• May order conditional discharge
– Payment schedule, etc.

• May use Div. I proposal under BIA to avoid bankruptcy
• Large corporations may use Companies’
Creditors Arrangements Act
• May be personal liability for directors
• Receivership triggered by terms of security agreement with creditor