Does s. 25 of the PPSA apply to factoring of a debtor's accounts?
Ontario, Canada
The following excerpt is from New Solutions Financial Corp. v. Credit Union Central of Ontario, 2011 ONSC 45 (CanLII):
In Bank of Nova Scotia v. IPS Invoice Payment, Karakatsanis J. (as she then was) in referring to s. 25 of the PPSA at (2010) 67 C.B.R. (5th) 274 said: Clearly the purpose of s. 25 is to maintain the security over both the collateral and the proceeds where a secured party does not directly or indirectly authorize the factoring of the account receivable.
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