Notice of Purchase Money Security Interest | Canada

Give notice of a purchase money security interest in inventory with this template form for Canadian businesses.

This template form is designed for Canadian suppliers to give notice to all interested parties that it holds a purchase money security interest (PMSI) in the inventory of a debtor.

Its primary function is to inform other creditors about the supplier's secured interest in inventory sold to the debtor on credit, where the inventory itself was used as collateral for the sale transaction.

Who Should Receive the Notice?

The notice should be sent by the supplier to any creditor who also holds a security interest in the debtor’s inventory. This ensures all affected parties are aware of the supplier’s claim over the inventory.

Priority of Security Interest

By issuing this notice, the supplier is notifying other creditors that its security interest in the inventory may take precedence over their own interests. This is particularly relevant in situations involving multiple security interests in the same assets.

Template Format and Jurisdiction

The Notice form is provided in Microsoft Word format for ease of use. It is intended exclusively for Canadian businesses, and complies with the requirements of Personal Property Security Act (PPSA) legislation across Canada.