International PPS reform
The reform of PPS laws has been of significant interest internationally. The United Nations Commission on International Trade Law (UNCITRAL) is developing a legislative guide for a legal regime for security rights in goods. This guide will draw on the models used in the United States, Canada and New Zealand.
The Hague Conference on Private International Law (the Hague Conference) and the International Institute for the Unification of Private Law (UNIDROIT) have also undertaken work in relation to securities interests.
All Canadian common law provinces have Personal Property Security Acts (“PPSAs”). Ontario was the first to bring in a PPSA, enacting one in 1967, but then taking nine years before bringing it into force. A Canadian uniform act was published in 1969, followed by Manitoba legislation in 1973, Saskatchewan enacted legislation in 1979-80 with the other provinces following in the 1990s. These PPSAs have been subject to review and significant change by the Provincial Governments as the law has developed in this area. The Uniform Law Conference of Canada (“ULCC”) has kept all the provincial PPSAs under review and has been responsible for several reform initiatives, as well as having various other proposals under consideration. The Law Commission of Canada currently has a reference to examine security interests arising under federal laws and there has been substantive interaction between federal law and the provincial PPSAs generating a number of recommendations which impact on the PPSAs.
New Zealand is currently experiencing the benefits of their reform. The Personal Properties Securities Act 1999 (NZ) came into effect in 2002 and established a single procedure for the registration of security interests in personal property, as well as a centralised electronic register. New Zealand has reported that its reforms have resulted in increased certainty and confidence to the parties in commercial transactions where personal property is used as a security interest and clarity where competing security interest is an issue.
In August 2011, the Government of Papua New Guinea announced it is pursuing reforms to regulation of loans and other obligations that are secured by personal property. The Government has tabled a draft Personal Property Security Bill for comment.
International legislation
Prominent Personal Property Securities legislation from New Zealand, Canada and the United States:
- Uniform Commercial Code: Article 9
- The Personal Property Security Act 1993 (Saskatchewan)
- Personal Property Security Act 1990 (Ontario)
- Personal Property Securities Act 1999 (NZ)