Canadian provinces (like Ontario or Alberta) have their own PPSA versions. While they share the same principles of "attachment" and "perfection," their specific section numbers for seizure and enforcement may differ from the Australian model. Why Perfection Matters for Section 123
The most significant exception to s123 involves Purchase Money Security Interests (PMSIs). A PMSI is a security interest taken in
While s123 allows for seizure, it does not grant unlimited power. Legal experts from Rose Litigation Lawyers and other sources highlight several restrictions: s123 ppsa
In certain cases, if the goods are too large to move (like heavy industrial equipment), a secured party might exercise "apparent possession" under Section 126, effectively marking the goods as seized without physically removing them. Procedural Requirements and Constraints
While S123 gives you the right to seize, you must still comply with subsequent notice requirements—such as a Notice of Disposal under S130 or providing a Statement of Account under S132 The Takeaway: Canadian provinces (like Ontario or Alberta) have their
A financier registered against "JoanneSmith" when the correct grantor name was "Joanne Smith". A court held that this was seriously misleading under s123 ppsa because a search using "Joanne Smith" would not automatically retrieve "JoanneSmith".
According to the full text of Section 123 on , the following rules apply: A PMSI is a security interest taken in
In plain language, s123 ppsa states that a registration is if it does not correctly identify the grantor (the person or company who owes the debt or owns the collateral). Specifically, the section establishes that an incorrect grantor name renders the entire registration "seriously misleading" and therefore invalid .
👉 If you see “S123 PPSA” on a notice, first confirm which statute and section number applies in your province/state. Then, verify that any registration for equipment, vehicles, or serialized inventory includes the correct, complete serial number .
: Seizure must be "permitted by law," meaning creditors cannot use violence or unlawful force to take property.
Since “S123” can vary by jurisdiction (e.g., Canada’s PPSA , New Zealand’s PPSA , or a US state’s equivalent), this post covers the —particularly the concept of serial numbered goods and transitional provisions .