HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

1 Section 1 (1) of the Personal Property Security Act, R.S.B.C. 1996, c. 359, is amended

(a) by repealing the definition of "chief forester", and

(b) by repealing the definitions of "intangible" and "licence" and substituting the following:

"forest agreement" means the type of licence referred to in paragraph (d) of the definition of licence;

"intangible" means personal property, other than goods, chattel paper, a document of title, an instrument, money and investment property, and includes a licence;

"licence" means a right, whether or not exclusive, that may be transferred by the holder with or without restriction or the consent of the grantor and that entitles the holder to do any of the following:

(a) manufacture, produce, sell, transport, grow, harvest or otherwise deal with personal property;

(b) provide services;

(c) acquire personal property;

(d) harvest timber, or grow and harvest Christmas trees, under an agreement referred to in section 12 of the Forest Act; .

2 Sections 4 (f) and 7 (8) are amended by striking out "a licence" and substituting "a forest agreement".

3 Section 58 (2) (e) is repealed and the following substituted:

(e) if the collateral is a licence, the secured party may seize the licence by giving a notice of seizure to the debtor and doing whichever of the following applies:

(i) if the licence was granted under an Act, sending a copy of the notice of seizure by registered mail addressed to the minister responsible for the administration of the Act at that minister's office in Victoria;

(ii) in any other case, giving a copy of the notice of seizure to the grantor of the licence, or if there is a successor to the grantor, to the successor.

4 Section 59 is amended by adding the following subsection:

(18) Despite any other provision of this Part, if the collateral is a licence, the licence may be disposed of under this section only in accordance with

(a) the terms and conditions of the licence, and

(b) the terms and conditions that, by law or contract, apply to the licence.

5 Section 61 (4) is repealed and the following substituted:

(4) Despite any other provision of this Part,

(a) if the collateral is a licence, the licence may be retained, held or disposed of under subsection (3) only in accordance with

(i) the terms and conditions of the licence, and

(ii) the terms and conditions that, by law or contract, apply to the licence, and

(b) if the licence is a forest agreement, the licence may be retained, held or disposed of under subsection (3) only if the minister responsible for the administration of the Forest Act has consented to the application of subsection (3) to the licence.

6 Section 72 is amended

(a) in subsection (1) by striking out "a notice under this Act or" and substituting "a notice under this Act, a copy of a notice of seizure referred to in section 58 (2) (e) (ii) or" , and

(b) in subsection (2) by striking out "A notice or demand sent by registered mail" and substituting "A document sent by registered mail under this Act".

Commencement

7 This Act comes into force by regulation of the Lieutenant Governor in Council.