Secured Transactions Act · 2022 Revised Edition · Part · Enforcement of Security Interests
62. Application of this Part
Official textFrom Attorney General's Chambers, unchanged
This Part applies to all security interests, except those created or provided for by —
an outright transfer of an account receivable or chattel paper;
an operating lease that does not secure payment or performance of an obligation; or
a commercial consignment that does not secure payment or performance of an obligation.
Secured Transactions 38
This Part does not apply to remedies and measures provided in the Insolvency Act (Chapter 247).
The parties to a security agreement may contract out of sections 63, 64, 79, 83 and 84.
security agreement
“security agreement” means an agreement between the debtor and secured party that creates or provides for a security interest;
Terms defined in s 3
account receivable
Defined · s 3“account receivable” means a right to payment of a monetary obligation that is not evidenced by chattel paper, a negotiable instrument or an investment security, whether or not that obligation has been earned by performance;
chattel paper
Defined · s 3“chattel paper” means one or more writings that evidence both a monetary obligation and a security interest in, or lease of, specific goods or specific goods and accessions;
commercial consignment
Defined · s 3“commercial consignment” means a consignment where — (a) a consignor has reserved an interest in goods that the consignor has delivered to the consignee for the purpose of sale, lease or other disposition; and (b) both the consignor and the consignee deal in the ordinary course of business in goods of that description, but does not include an agreement under which goods are delivered to an auctioneer for the purpose of sale;
operating lease
Defined · s 3“operating lease” means a lease, other than a financial lease, for a term of more than one year;
security agreement
Defined · s 3“security agreement” means an agreement between the debtor and secured party that creates or provides for a security interest;
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