As outlined in previous e-lerts, the registration of security agreements, leases and other documents relating to railcars in Canada is governed by the Canada Transportation Act1 (the "CTA"). Registration of a document associated with railways or rolling stock under the CTA is intended to provide public notice of the interests contained in the documents deposited.

Until recently, registration of railway documents required in-person registration at the offices of Corporations Canada in Ottawa, Ontario. However, Industry Canada has launched an online deposit function which allows for the electronic deposit of railway documents with the Registrar General of Canada. This article outlines some of the restrictions associated with online deposit and additional considerations to be mindful of when registering security interests over railcars in Canada.

Documents submitted for registration using the online deposit function must be in readable PDF format. Documents submitted for registration must continue to meet the requirements under section 104 or 105 of the CTA, as applicable. Please refer to our previous e-lert here for more information. A document that does not meet these requirements will not be deposited.

In addition to the restrictions noted above, there are a few other considerations to be mindful of when depositing railway documents online:

  • Only individuals with an Industry Canada username and password and who have been authorized access to the Railway Tool may submit documents for deposit.
  • If the document submitted for deposit satisfies all requirements for deposit, Corporations Canada will send a Notice of Acceptance which will indicate the date and time the document was deposited and the document title and number. However, Corporations Canada will no longer include a copy of the deposited document with the Notice of Acceptance. If a copy of the deposited document is required, it must be obtained using the search function of the Railway Tool.
  • Although the online deposit function reduces the time required to register railway documents, deposit is not instantaneous. If confirmation of registration is a condition of closing a transaction, documents should be deposited with enough lead time to allow for confirmation of deposit before closing.

Overall, the new online deposit function improves the efficiency of the system governing security over rolling stock in Canada and brings the registration process for railcar security in line with the registration process under the Personal Property Security Act.

Footnote

1. S.C. 1996, c.10

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.