Ontario Barrister and Solicitor Practice Exam 2025 - Free Barrister and Solicitor Practice Questions and Study Guide

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What is the best method to perfect a security interest in investment property?

Registration

Control in the direct holding system

The best method to perfect a security interest in investment property is through control in the direct holding system. While registration may seem like a strong option, it may not be as effective as control because it only puts a notice of the security interest on public record. Possession, while it may appear to be a strong method, may not always be feasible or practical for certain types of investments. Notification may also not be the most secure option as it only involves informing the debtor of the security interest, without actually having a direct control over the asset. Control in the direct holding system involves actually holding the asset in question, making it the strongest and most direct method of perfecting a security interest in investment property.

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Possession

Notification

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