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Ontario Government Consultation on Issues Related to Notices of Security Interest (NOSIs)

Ontario’s Regulatory Registry Consultation

Objective and Scope of this Consultation

The Ministry of Public and Business Service Delivery is commencing this consultation to gather feedback to support the development of new approaches that could be appropriately scoped to address some of the consumer harms associated with the improper use of NOSIs.

The ministry is seeking feedback from stakeholders, including consumers, businesses, law enforcement, and legal experts, on the current challenges and opportunities related to NOSIs, and to identify potential solutions that could enhance consumer protection and promote a fair and competitive economy.

Among other things, the ministry is seeking feedback related to:

1. Clarifying “fixtures” – Clearly outlining what a NOSI can, or cannot, be registered for on the Land Registry, by clarifying the meaning of “fixture” under the Personal Property Security Act.
2. Limiting the duration of a NOSI registration – Reducing the possibility that NOSIs are registered indefinitely by requiring certain NOSIs to include an expiry date which cannot exceed a certain number of years from the date of registration (e.g., an expiry date not longer than five years from the date of registration), subject to renewals.
3. Notice requirements – Reducing surprises for consumers by requiring businesses to provide notice to consumers when a NOSI has been, or will be, registered, and to provide them with certain additional information.
4. Notice of assignment – Ensuring consumers know if a NOSI has been assigned by requiring businesses to provide consumers with notice if a NOSI has been assigned to a third party.
5. Limiting the amount of a NOSI registration or eliminating the value field – Limiting/capping or eliminating the amount shown on the NOSI registration to potentially disincentivize their misuse.
6. Limiting the amount to be paid to a secured party to retain a fixture in certain circumstances – Limiting the amount that a secured party can demand as a condition of releasing a fixture, in certain circumstances, which may make NOSIs easier to deal with.
7. Scoping requirements for NOSIs under the PPSA – Ensuring that any new restrictions or requirements are appropriately scoped to the most problematic NOSIs, without creating any unnecessary burden on businesses.
8. Alternative means of discharging NOSIs – Making it easier for consumers to seek a discharge of NOSIs, in certain circumstances.
9. Limiting who can register a NOSI – Reducing the risk of registrants abusing the registration system by placing restrictions on who can register a NOSI.
10. Adding or enhancing available offences – Punishing bad actors who misuse NOSIs to deter further bad action.
11. Enhanced education about NOSIs – Promoting awareness of NOSIs, including consumer and business rights and obligations.
12. Operational enhancements – Requiring additional information (to be provided by a business) that can be screened to ensure the NOSI meets the requirements under the PPSA.

Further Information:

Legislation:

Personal Property Security Act, 1990
Consumer Protection Act, 2002
Land Titles Act, 1990

Ministry Contact Address: