According to the Canadian Finance and Leasing Association (CFLA), the Government of Alberta tabled amendments that allow e-chattel paper under Bill 9 – Red Tape Reduction Statutes Amendment Act, 2023. Bill 9 passed its third reading in the Legislative Assembly of Alberta without amendments and will become law after receiving Royal Ascent.
Chattel paper is a record that outlines a monetary obligation and a secured interest in a tangible asset. Alberta’s Personal Property Security Act (PPSA) has required businesses to use physical chattel paper, which brings unnecessary overhead costs like printing, secure shipping and storage for wet-ink documents.
“One of the CFLA’s top priorities is to find solutions that help members operate more efficiently,” Michael Rothe, president and CEO of the CLFA, said. “E-chattel paper is one of many digitization strategies we’ve advocated for across Canada. I’m thankful that Minister Nally and Alberta are helping trailblaze by adopting innovative solutions that are good for businesses and their customers.”
“The CFLA has long supported financial infrastructure modernization,” Marcel Buerkler, director of policy at the CFLA, said. “In mid-2020, we began our advocacy efforts with a submission to the Minister of Justice and Solicitor General – and the Alberta Law Reform Institute – recommending a Personal Property Security Act amendment to allow e-chattel paper. After productive and receptive meetings spanning over two years, it’s a proud moment for our Albertan members to see the CFLA and government work so quickly to reduce barriers to business.”
Like this story? Begin each business day with news you need to know! Register now for FREE Daily E-News Broadcast and start YOUR day informed!