- Industry Canada Announces Online Deposit Tool to Register Security Interests Over Railcars or Rolling Stock in Canada
- September 23, 2014 | Author: Jennifer Wasylyk
- Law Firm: Cassels Brock & Blackwell LLP - Toronto Office
In previous publications, we provided an overview of the process for registering security interests over railcars or rolling stock in Canada and outlined considerations to be mindful of when taking railcar security in Canada, including considerations relating to the recent introduction of the online railway search tool.
Generally, the registration of security agreements, leases and other documents relating to railcars in Canada is governed by the Canada Transportation Act 1 (the “CTA”). Registration of a document associated with railways or rolling stock under the CTA is intended to provide public notice of the interests contained in the documents deposited. Earlier this year, Industry Canada launched a new railway search tool which allows the database of railway documents to be searched online. For a fulsome discussion of railcar security interests in Canada and the online search tool, please refer to our previous e-lerts here and here.
On September 30, 2014, Industry Canada will launch an additional online tool which will facilitate the electronic deposit of railway documents with the Registrar General of Canada. Concurrently with the introduction of the new online deposit tool, the previous method of registering railcar security in Canada will be obsolete and paper documents will no longer be accepted at the offices of Corporations Canada in Ottawa, Ontario.
Although the details of the online deposit tool are not yet available, the introduction of this new tool marks another considerable improvement in the system governing security over rolling stock in Canada, making the system more efficient and less expensive for clients.
We will publish an additional e-lert once the details of the online deposit system are available.
1 S.C. 1996, c.10