Banks that have perfected security for loans as required by the Bank Act always have priority over any other form of security registered under provincial PPSA legislation.

Question

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Although banks may have a security interest perfected under the Bank Act, this does not automatically grant them priority over all other forms of security registered under provincial Personal Property Security Act (PPSA) legislation. Priority is determined based on various factors, including the type of collateral, the timing of perfection, and specific priority rules set out in both the Bank Act and the PPSA.

Banks That Have Perfected Security for Loans as Required by the Bank