Products

PPSA Insurance Policy for Lenders

This policy is designed to be used in commercial transactions including mixed-collateral loans, asset-based loans and equipment leasing. It insures the attachment, perfection and priority of the lender's security interest in personal property. It covers many of the risks associated with perfection of a security interest, such as the authorized execution of the security agreement, the failure of the security interest to attach, be perfected or have priority because of forgery or fraud, errors in the registry, unauthorized discharges filed under the PPSA, filing in the appropriate jurisdictions and similar matters. FCT may be able to assist counsel in arriving at a faster closing by reducing the number of waivers/acknowledgements required. Additionally, it insures the gap between the search report and the date of registration. FCT can tailor endorsements to meet the needs of the transaction factual or legal. The costs of defending a challenge to the lender's security interest are in addition to the maximum amount of insurance under the policy.

PPSA Insurance Policy for Buyers

This policy is designed to be used in commercial transactions where a buyer is purchasing assets that are or include personal property. It insures the buyer that the assets it is acquiring are free of any security interests registered against the seller. In addition, the policy automatically provides coverage in respect of any security interests perfected against a prior owner of the acquired assets other than the seller to a maximum of $250,000, which amount may be increased by endorsement. The costs of defending a challenge to the buyer's interest are in addition to the maximum amount of insurance under the policy.

Pledged Securities or Owned Securities Endorsement

As there is no registry to track ownership of personal property similar to the land registry systems, PPSA insurance does not typically insure that a debtor or buyer owns or has rights in the collateral. However, as a result of the adoption of the Securities Transfer Act (in those provinces in which it has been adopted), FCT can now provide true title insurance with respect to securities that are subject to the Securities Transfer Act. FCT can insure that a lender or a buyer, as the case may be, is a protected purchaser who will take the securities free of any adverse claims.

Quebec Movable Property Insurance Policy for Lenders

This policy is designed to be used in commercial transactions including mixed-collateral loans, asset-based loans and equipment leasing. It insures the creation, publication and priority of rank of the lender's security interest in movable property. It covers many of the risks associated with publication of a security interest, such as the authorized execution of the hypothec, the failure of the security interest to be created, published or have priority of rank because of forgery or fraud, errors in the registry, unauthorized discharges filed under the RDPRM, filing in the appropriate jurisdictions and similar matters. FCT may be able to assist counsel in speeding up closing by reducing the number of waivers/acknowledgements required. Additionally, it insures the gap between the search report and the date of registration so that closing can take place immediately upon execution of the documents. FCT can tailor endorsements to meet the needs of the transaction factual and legal. The costs of defending a challenge to the lender's security interest are in addition to the maximum amount of insurance under the policy.

Quebec Movable Property Insurance Policy for Buyers

This policy is designed to be used in commercial transactions where a buyer is purchasing assets that are or include movable property. It insures the buyer that the assets it is acquiring are free of any security interests registered against the seller. In addition, the policy automatically provides coverage in respect of any security interests perfected against a prior owner of the acquired assets other than the seller to a maximum of $250,000, which amount may be increased by endorsement. The costs of defending a challenge to the buyer's interest are in addition to the maximum amount of insurance under the policy.

EAGLE 9® UCC Insurance products in the United States

The First American Corporation offers a full range of indemnity insurance products insuring liens in personal property under the Uniform Commercial Code. First American also offers comprehensive, national UCC search and filing services. For more information contact First American at www.eagle9.com.

PPSA/Movable Property Insurance for Consumer Portfolios

This policy is designed for consumer loan portfolios where the collateral used as security consists of consumer goods such as automobiles, motorcycles, boats, tent trailers/campers, trailers and motorized snow vehicles. Typically, FCT takes responsibility for any PPSA/RDPRM registrations, although this is not mandatory. The policy insures that the lender benefits from all the advantages of having an effectively registered security interest for every transaction. Coverage under the policy includes protection against loss arising out of:

• The debtor not having rights in the collateral as of the date of the transaction;
• Errors in the debtor name and/or serial number;
• The existence of any tax liens against any portion of the collateral;
• Any subsequent purchaser taking the collateral free of the lender's security interest;
• Failure of the lender's security interest to attach, be perfected or have priority as a result of forgery, fraud, undue influence, duress, incompetence, incapacity or impersonation of the debtor;

• The costs of defending a challenge to the lender's security interest are in addition to the maximum amount of insurance under the policy.

Coverage is in place immediately upon funding. The policy offers the lender uniform coverage for its consumer portfolio on a national basis.

PPSA/Movable Property Insurance for Commercial Portfolios

This policy is designed for commercial loan portfolios where the collateral used as security consists of personal/movable property. Typically, FCT takes responsibility for any PPSA/RDPRM registrations, although this is not mandatory. The policy insures that the lender benefits from all the advantages of having an effectively registered security interest for every transaction. Coverage includes protection against loss arising out of:

• Failure of the security interest to attach (i.e., insures the security agreement has been duly authorized, executed and delivered by the borrower and is sufficient to create the security interest);
• Inaccurate corporate debtor name;
• Incorrect description of the collateral in the financing statement and security agreement;
• Ministry errors in search/registration results;
• Invalidity or unenforceability of the grant of the security interest for any reason;
• PPSA registrations made in the wrong province;
• Loss of security interest due to filing and recording gaps;
• Failure of the security interest to attach, be perfected or have the priority insured under the policy as a result of forgery, fraud, undue influence, duress, incompetence, incapacity or impersonation of the debtor;

• The costs of defending a challenge to the lender's security interest are in addition to the maximum amount of insurance under the policy.

PPSA/Movable Property Insurance for Manufactured Homes

In addition to the coverage provided under the PPSA/Movable Property Insurance Policies for Lenders, the Manufactured Home Endorsement protects the lender against loss arising as a result of the following:

• The debtor not having rights in the collateral at the date of the transaction
• Any registrations under the applicable land registration system taking priority over the lender's PPSA/RDPRM registration