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 News Releases | Ministry Plans & Reports | Brochures and Pamphlets | Consumer Beat | Consultation Documents |
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Brochures and Pamphlets |
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A Guide to the Personal Property Security Registration SystemWhat is the Personal Property Security Registration (PPSR) System?The PPSR system 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. How does the PPSR system work?Lenders and borrowers 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 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 now approximately five 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 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. If a lender fails to do so, the borrower can send the lender a written notice requiring the lender to pay the borrower $500 and any damages resulting from failure to discharge. 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, a VIN search should be done to determine if any previous owner gave a lender rights to the car.) Where are searches done?Searches can be done in person at 375 University Ave., 2nd Floor, Toronto. Outside Toronto, contact you local land registry office to find the closet office where you can do a search. To find a land registry office near you, look in the Blue Pages of you local telephone book under “Land Registration.” You may also submit a search request by mail, using an enquiry request form available at any of the offices that handle PPSR searches. To access enquiry (and registration) services via the Internet , please visit the Ministry of Government Services web site at www.mgs.gov.on.ca and choose your language preference. Select “Services for Individuals” from the top menu on the home page and the “Online Services” tab on the following page, then click on the Personal Property tab. 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. TTD users dial 1-800-461-8866, or (416) 326-8866 in Toronto >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 PackagePrivate 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 a PPSA search for the vehicle. The UVIP can be obtained by calling the Companies and Personal Property Security Branch of the Ministry of Government Services at 1-800-627-8847 or (416) 325-8847 in Toronto. Visa, MasterCard and American Express are accepted. This package can also be obtained from the Ministry of Transportation. 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. 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. For further information about the PPSR system, you may obtain a copy of the Registration and Enquiry Guide (*pdf), which is available in the Toronto office, on the Ministry's web site or at the 48 other land registry offices (*pdf) that provide PPSA searches. |
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