Ontario Barrister and Solicitor Practice Exam

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Which of the following is a way the Personal Property Security Act (PPSA) priorities can be altered among multiple secured creditors?

Priority agreements
Annual fees agreement
Liquidation preference
Corporate bond issuance

The correct answer is: Priority agreements

When it comes to securing a loan, it is important to understand the priority of your security interest over other creditors who may also have a claim to the debtor's assets. The Personal Property Security Act (PPSA) provides a framework for determining this priority. One way to alter this priority among multiple secured creditors is through a priority agreement, where creditors agree to a specific order of priority for their security interests. This option is different from the other choices listed, as annual fees agreement, liquidation preference, and corporate bond issuance do not directly affect the priority of the secured creditors as outlined by the PPSA.