Corporate and Commercial Law

• Author: Tina Kamakaris/Jane Kamakaris/Louis Kamakaris
• Pages: 549-562

549

Chapter 29 Corporate and Commercial Law

CHAPTER 29

Buying a cup of coee and borrowing money to pay for it are types of commercial activities.

is chapter covers basic principles of corporate and commercial law, including security agree-

ments under the Personal Property Security Act (PPSA) and liens under the Repair and Storage

Liens Act (RSLA).

CORPORATE AND COMMERCIAL LAW

Corporate and commercial law is business law. It aims to protect businesses and consumers

against losses and unfair business practices. Generally, corporate and commercial law deals

with buying, selling, nancing, and securing movable property known as personal property.

e Companies and Personal Property Security Branch of the Ministry of Government and

Consumer Services administers matters relating to personal property security.

What is personal property Personal property is almost any property that is not real estate:

for example, cars, businesses, and equipment. Personal property is also referred to as chattels.

e key distinction between personal property and real estate, or real property, i.e. land, is that

personal property is movable and real estate is not. e PPSA denes personal property thus:

“personal property” means chattel paper, documents of title, goods, instruments, intangibles,

money and investment property, and includes xtures but does not include building materials

that have axed to real property.

Other PPSA terms include: tangible chattel paper and electronic chattel paper, common

examples of which are leases and conditional sale contracts; collateral is personal property that

is subject to a security interest; security interest is a right that a lender has to take back personal

property which the borrower owns in the event the borrower cannot pay back the loan; perfecting

security interest is when a lender takes legal steps to make sure no other lender has rights to the

same collateral. Lenders may perfect their security interests by taking physical possession of

collateral, or registering a nancing statement, or in the case of an electronic chattel paper, taking

control of its authoritative digital record since an electronic chattel paper is intangible and lend-

ers cannot take physical possession of it like they can with a tangible (paper) chattel paper.

FINANCING PERSONAL PROPERTY

In addition to buying and selling personal property, corporate and commercial law deals exten-

sively with borrowing to pay for the purchase of personal property. is is known as nancing.

CORPORATE AND

COMMERCIAL LAW

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