Bank Act (s.427) Searches

Section 427 of the Bank Act allows Canadian chartered banks to take security interests in certain types of collateral through a federal registration system. A Section 427 search checks the Bank of Canada registry for these security interests.

Bank Act security is a federal regime available only to chartered banks, while PPSA is provincial legislation applicable to all secured parties. Bank Act registrations are separate from PPSA and must be searched independently for comprehensive due diligence.

Section 427 covers specific categories: goods, wares, and merchandise; products of agriculture (including livestock); products of aquaculture; products of the forest; and products of the quarry and mine.

Yes, for comprehensive due diligence on covered collateral types, you should search both the Bank Act registry and the relevant provincial PPSA registry. We can bundle these searches for efficiency.

Bank Act searches typically return results within 24-48 hours. The federal registry system may have different processing times than provincial PPSA registries.

Only Canadian chartered banks (Schedule I, II, and III banks) can take security under Section 427. Credit unions, trust companies, and other lenders must use PPSA for their security interests.