The Statutory Classification Of Personal Property 

The Ontario Personal Property Securities Act defines types of personal property which fall under its jurisdiction. It is important to have a good understanding of these definitions as various provisions of the act are specific to specific types of property. 

“Goods” are the most familiar example of personal property. It is defined, in part, as “tangible personal property other than chattel paper, documents of title, instruments, money and investment property”. Broadly speaking, tangible personal property is property that is capable of being possessed and delivered. Most of what constitutes “goods” is easy enough to understand (“motor vehicles, factory equipment, computers, etc.). However, that is not an exclusive list. Goods are further subdivided in the act between consumer goods, inventory, and equipment. Consumer goods are defined as goods that are used or acquired for use primarily for personal, family or household purposes. “Inventory” means goods are at held by a person for sale or lease or that have been leased or that are to be furnished or have been furnished under a contract or service. Equipment means any goods that are not inventory or consumer goods. 

The next category of personal property is chattel paper. This is defined in the act as “one or more than one record that evidences both a monetary obligation and a security interest in or a lease of a specific good. For example, if a dealer sells a car to a customer on conditional sale terms, the conditional sale document is chattel paper within the meaning of the definition. It is a record that evidences the customer’s obligation to pay the instalments, and a security interest in the car. 

A document of title’s main distinguishing features are that it gives the holder the right to claim from bailee the goods to which the documents relates and it is transferable, with a transfer of the document giving the transferee the right to delivery of the underlying goods. A document of title is analogous to negotiable instrument; a document of title evidences ownership of goods, while a negotiable instrument evidences ownership of money obligation. For the purposes of the PPSA, a document of title is an item of personal property in its own right and so it can be taken as collateral independently of the goods it relates to. 

The next category is that of an instrument. The most familiar example of an instrument is a common cheque. Cheques, along with bills of exchange and promissory notes are types of negotiable instruments governed by the Bills of Exchange Act. A negotiable instrument establishes title to the underlying money obligations. 

The final category of goods is investment property. This is defined as a security, whether certificated or uncertificated, security entitlement, securities account, futures contract or futures account. In Canada there are two types of investment holding systems. The direct holdings system and the indirect holdings system. The most familiar holdings system is shares in a private corporation, however, there are other less frequent types of investment property as well, contemplated in the PPSA. 

This article does not constitute legal advice and was written solely to provide information. If you are seeking legal advice, please call Empel Law Professional Corporation at 416-500-1937.

Scroll to Top

Usługi prawnicze Empel

Kancelaria adwokacka Empel Law P.C. zapewnia swoim klientom najwyższą jakość reprezentacji prawnej pobierając za nią niewygórowane honorarium. Jeżeli Państwo kupują lub sprzedają nieruchomość, potrzebuje sporządzić testament, spisać kontrakt lub wszelkie inne potrzeby prawne, nasza kancelaria jest gotowa zrobićwszystko aby zabezpieczyć i wyegzekwować Państwa prawa.

Nasza kancelaria zapewnia swoim klientom indywidualną obsługę prawną. Jesteśmy łatwo dostępni i zawsze mamy czas dla naszych klientów. Na bieżąco informujemy naszych klientów o stanie ich spraw,ponieważ wierzymy, że powinni oni znać prawa, które im przysługują. Uważamy, że nasi klienci powinni mieć wszystkie informacje potrzebne do podjęcia ważnych decyzji życiowych w sprawach będących przedmiotem naszej reprezentacji.

Arkadiusz J. Empel urodził się w Katowicah. Jako dziecko emigrował do Kanady, razem z rodziną, lecz wrócił jako student aby ukończyć Pracę Magisterską w Krakowie. Przez swoją pracę z polonią w okolicy Toronto utrzymał władność w swojim języku ojczystym. Jeżeli Państwo życzy się skonsultować prosto z adwokatem Polski, proszę przedzwonić na numer 416-500-1937.