Purchase Money Inventory Security Agreement | Canada

Secure payment for inventory sold on credit to a customer with this Purchase Money Security Agreement for the Province of Alberta.

• The customer (debtor) grants the supplier (secured party) a purchase money security interest in the secured goods and proceeds from the sale of the goods.
• The debtor must keep the collateral free of any other liens or security interests ranking equal to or in priority to the secured party's interest.
• The debtor can only sell the secured goods in the ordinary course of business.
• If the debtor defaults in payment, the secured party has the right (among other remedies) to appoint a receiver-manager over the collateral.
• This legal contract is prepared in accordance with the Personal Property Security Act.
• Available in MS Word format.
• Intended to be used only in the Province of Alberta, 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.

Protect your creditor rights with this Purchase Money Security Agreement for Ontario suppliers.

• The contract is made pursuant to provincial Personal Property Security Act legislation.
• The parties to the Agreement are a customer (debtor) and a supplier (secured party).
• The supplier extends credit to the debtor for the purchase of goods under a specific purchase order.
• In return for the credit, the debtor grants the supplier a first, fixed, specific purchase money security interest in the goods and in the proceeds therefrom.
• This legal contract form is a fully editable Microsoft Word template.
• Intended for use only in the Province of Ontario, Canada.