Newfoundland and Labrador
This issue of the PPR News for Newfoundland and Labrador is intended to help you prepare for working with the new Personal Property Registry and ACOL* as we approach legislative proclamation.
As the autumn days pass, the Personal Property Registry Implementation Team continues to work toward implementation of the new Personal Property Security Act (PPSA) legislation and its supporting systems.
When the legislation is proclaimed, paper documents such as Bills of Sale, Chattel Mortgages, Conditional Sales Agreements, and Assignment of Book Debts will no longer be accepted over the counter at the registry office, but will instead need to be registered in the new electronic registry. Since all clients must be prepared for the change, we're working hard to ensure everyone is ready. This edition is extra-long since we aren't quite prepared to give up on paper just yet!
Proclamation and System Live Date
As of press time the official proclamation of the new PPSA legislation and the start of operations under the new system has not yet been confirmed. We are still targeting a date in December 1999 and are striving to ensure that everything is in order before making the official announcement.
The date that the legislation takes effect will be consistent with the live date for the Personal Property Registry System. This date will likely be on a Monday, which means that documents prepared at your business location on the Friday before proclamation takes effect will not be accepted over the counter at the registry office on the Monday when the system is live. More importantly, the "old" documents will not be perfected or hold a position of priority unless they are prepared and registered as per the new Act. Not being ready for the change exposes you to the risk of another secured party registering a notice against the same collateral and establishing priority over your notice.
Look for an announcement in the near future regarding the official proclamation.
Being a user-driven system, it is important that users understand both the PPSA legislation and regulations in addition to the functionality of the PPR system. For a copy of the Personal Property Security Act, Chapter P-7.1, 1998, contact:
Office of the Queen's Printer
Access to the Newfoundland and Labrador PPR
The Personal Property Registry (PPR) of Newfoundland and Labrador will be the fourth PPR database service available in Atlantic Canada through ACOL.
For non-ACOL clients, you must establish a client account with ACOL to access the Newfoundland and Labrador PPR. The first step to gain on-line access includes completion of the ACOL Client Application and Financial Agreement Forms found in the ACOL Information Kit. You can view the materials in the kit or print the necessary forms from the ACOL web site at http://www.acol.ca. To request your kit by mail, call the ACOL Client Support Centre (CSC) at 1-888-624-ACOL. A client support representative will be pleased to take your name and address and forward the requested kit to you. Information kits are expected to be available from the CSC during the week of November 8, but are available on the web site now.
Once you have the information and the pertinent forms in hand, complete all details and return them to ACOL. When the forms are received and verified, your ACOL client account will be created. As indicated in the kit, ACOL Desktop software will be required for each workstation. There is a $200 software license fee (plus applicable taxes) for each original software copy.
While it is expected that most usage of the new PPR will be completed remotely, there will be access terminals located at the registry office in St. John's for your convenience. However, you must have an ACOL client account and user ID. Registry staff will be available for assistance and support, but the legislation prohibits them from entering or searching information in the system on behalf of the client.
Clients who are current users of ACOL and wish access to the PPR in Newfoundland and Labrador should go to the ACOL web site or contact the ACOL CSC at 1-888-624-2265 to obtain the following:
Once the Addendum has been completed and returned, access privileges will be granted.
Preparation should start now. The following information is required to create your user profile. Names for the following positions need to be identified on the form:
This previous discussion refers to use and management of your ACOL account. The PPR system employs another set of access rules that are discussed below.
PPR User Subscription OptionsAccess privileges to the Newfoundland and Labrador Personal Property Registry System are user-defined. During the process of setting up your ACOL account, users can request subscription options that will give them the capability to complete PPR business functions. These options will be clearly outlined within the ACOL information kit. The following examples are provided to assist you in deciding the assignment of responsibilities among your staff regarding PPR activities.
Another important point about this position is that all amendments, discharges, and re-registrations of a registration produce a report called a Notice to Secured Party. This report is sent electronically to the Secured Party Administrator if the secured party number was specified in the registration. The administrator should review these reports and verify that changes to registrations are valid.
Since the choice of a secured party administrator will have an impact on who will receive these electronic notices, we recommend that you review this function and identify your Secured Party Administrator(s) carefully. For example, banks may wish to have either branch staff or head office staff act as an administrator in order for staff to receive Notices to Secured Party directly from the ACOL system. This will require an ACOL user ID with Secured Party Administrator privileges for each staff person who will create secured party numbers and receive electronic notices. However, others could do registration and search activities on their behalf if they so choose.
ACOL Positive Balance AccountThe ACOL system operates under a positive balance account structure for each client. This means that a deposit must be posted to the account when it is created. A minimal initial deposit of $100 is required at the time of registration. Regulatory fees for business functions, such as a registration or a search, will be deducted from the account at the time of the transaction.
In order to process transactions using your ACOL account, funds must be on deposit for an amount equal to or greater than the amount of the transaction fee. Your account will have maximum and minimum balances that you can specify. When the balance reaches the specified minimum level, a message is displayed reminding you that a deposit should be made. Deposits can be made through four methods:
Cross Indexing Your Files
The ACOL/PPR system offers an optional field in the registration screen that can be used to enter your file index number to create a cross-reference to the PPR registration number. Your file number can be anything that you wish to use to help you find the original paper document in your files. To facilitate this cross-reference of documentation, your file number will appear on registration verification statements, notices to secured party reports, and search result reports.
One of the important reasons for a cross reference from registrations to your files is that the legislation states that secured parties must provide access to documents registered in the PPR to legitimate interested parties upon request.
A second optional field is the ACOL reference number. This can be entered when confirming that a transaction will be charged against your ACOL account. The ACOL reference numbers will appear on your account statements. This capability will be particularly helpful to companies who track transactions on behalf of their clients for chargeback purposes, but will be useful to anyone performing transactions via ACOL as a method of monitoring activities.
Your personal computer must support Windows 3.1x or Windows 95/98 with the following minimum configuration:
For performance improvements, ACOL recommends a Pentium processor, a higher speed modem, Windows 95/98, and SVGA.
Access to ACOL and the Newfoundland and Labrador PPR will be through your Internet Service Provider using the ACOL desktop software. If you are not an existing Internet user, then you should investigate the many services available and proceed to enter into an agreement with the provider of your choice. Also, it is our experience that you should contact your telephone company for installation of a communications line, if required, one month in advance.
ACOL/PPR Training Sessions
the Education Building room 1003.]
For more details and to reserve your place at a training session, please call the ACOL Client Support Centre at 1-888-624-2265.
In late November, we plan to have the ACOL/PPR system for Newfoundland and Labrador available for learning purposes. Once you receive your ACOL Client account, user ID and ACOL Desktop software, you will have the ability to dial into ACOL through your Internet provider and log on to ACOL. This will allow you to complete functions in three areas of the system including:
Once this "pre-live" period has been completed, the system availability will be terminated until the legislation becomes effective and the system is available for legal PPR functions.
Visit the ACOL Homepage
For information about the ACOL/PPR project, check out the ACOL Homepage at www.acol.ca.
PPR Draft Regulatory Fees
As mentioned in the Orientation Seminars, the following fees are presented on behalf of the Department of Government Services and Lands.
The fees are prescribed for the Personal Property Security Act for the Province of Newfoundland and Labrador. The regulations have been drafted in preparation for gazetting, and the fees are not effective until the proclamation date. The proposed fees indicated therein are as follows:
Keeping in Touch
* ACOL and Atlantic Canada On-Line are registered official marks of the Provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.