Once default occurs under a valid security agreement, a secured party may have several potential remedies. Depending on the security documents, the nature of the collateral, and the commercial objective, enforcement may include suing for arrears while preserving the relationship, taking possession of collateral, appointing a receiver, retaining collateral in satisfaction of debt, or disposing of collateral through a commercially reasonable sale process. The PPSA also preserves access to broader legal and equitable remedies unless inconsistent with the Act.

That means PPSA enforcement is rarely a one-size-fits-all process. In one case, the right strategy may be immediate repossession and sale. In another, it may be a demand and negotiated surrender. In another, it may be better to commence an action for arrears, preserve the security, and avoid a premature realization that reduces recovery. Where the collateral and surrounding business operations are complex, a receiver or receiver-manager may be the proper route.

We advise and act on matters including:

• Review and drafting of security agreements, guarantees, assignments, and supporting loan documents

• Default analysis and enforcement planning

• PPSA registration review, correction, renewal, amendment, and discharge issues

• Priority analysis against other creditors, landlords, lien claimants, and competing secured parties

• Demands for payment and default notices

• Repossession and recovery strategy

• Notice of sale and notice of intention to retain collateral

• Receivership and private receiver appointments

• Sale of collateral and deficiency claims

• Surplus accounting and distribution disputes

• Redemption, reinstatement, and debtor rights challenges

• Court applications for directions or relief where enforcement is contested

The PPSA provides secured parties with enforcement rights, but these are balanced with debtor protections.

Disposition of Collateral (s. 63): Creditors may seize and sell collateral upon default, provided proper notice is given to debtors and other secured parties.

Right of Redemption (s. 66): Debtors and other entitled parties can redeem collateral by paying secured obligations and associated costs. Redemption rights are prioritized according to the ranking of security interests.

We help creditors enforce security against many forms of personal property, including inventory, equipment, accounts receivable, proceeds, assigned debts, and mixed commercial assets. Security agreements govern general assets, inventory, equipment, consignments, and assignments, and Part V of the PPSA governs rights and remedies after default.

We commonly assist:

• Banks and private lenders,

• Equipment financiers and leasing-related creditors,

• Inventory suppliers and wholesalers,

• Vehicle and asset finance creditors,

• Construction and trade suppliers,

• Manufacturers and distributors,

• Commercial landlords dealing with competing claims to tenant assets,

• Service businesses with secured receivables, and

• Business owners who have advanced funds on secured terms.

In supplier finance matters, timing and priority are often critical. Inventory and equipment suppliers may obtain special priority treatment through purchase-money security interests (“PMSIs”), with different notice requirements depending on the type of collateral. That can materially affect recoveries where a debtor has granted a broad GSA to a bank.

PPSA enforcement is not only about creditor rights. Debtors and other interested parties also have statutory protections. These include the right to a statement of account, the right to defend an action on the merits, the right to notice of sale, the right to an accounting and any surplus, the right in some cases to compel disposition, and the right to redeem or reinstate before disposition. The Act also allows challenges where a secured party abuses its position while in possession or otherwise breaches its duties.

We therefore assist:

• Individual borrowers facing repossession,

• Owner-operators and small business debtors,

• Guarantors facing post-default exposure,

• Co-creditors and subordinate secured parties,

• Purchasers of assets concerned about title, and

• Businesses affected by overreaching enforcement measures.

If your property has been seized, if sale notices have been served, or if you believe collateral is being sold below fair value or without proper notice, legal intervention may be necessary immediately.

Our PPSA enforcement work is particularly relevant in industries where movable assets, financed equipment, or receivables are central to operations. That includes transportation, logistics, automotive, heavy equipment, manufacturing, wholesale supply, retail inventory finance, professional services with assigned receivables, franchise operations, construction trades, agricultural operations involving movable business assets, and other commercial sectors where personal property security is used to support credit. 

We also assist individuals in more targeted situations, especially where personal guarantees, financed personal-use goods, or secured lending arrangements intersect with default and repossession issues. Consumer goods cases can carry special statutory consequences, including rules requiring disposition where certain payment thresholds have been met.

Clients often come to us with questions such as:

• Can I seize the collateral now, or do I need a court order?

• Should I sue for the debt, repossess the collateral, or do both?

• Was my PPSA registration done correctly?

• Do I have priority over the bank, landlord, repairer, or another secured party?

• Can I sell the collateral privately?

• What notice must be given before sale?

• Can I keep the collateral instead of selling it?

• Can I still claim the deficiency afterward?

• What rights does the debtor still have?

• What happens if the collateral has already been moved, sold, or mixed with other property?

We do not simply quote the statute and leave you to figure out the rest. We help clients build a practical enforcement roadmap. That can include document review, registry searches, tracing collateral, preparing and serving notices, coordinating recovery agents where appropriate, advising on commercially reasonable sale procedures, negotiating redemptions or settlements, and bringing or responding to court proceedings where enforcement is disputed.