Can a lender assign or sell its registered PPSA security interest to another lender?

Yes. A lender holding a registered security interest under Ontario's Personal Property Security Act can generally assign or sell that interest, together with the underlying loan, to another lender — this is common when loans are sold, refinanced, or transferred between institutions. The assignment transfers the original secured party's rights to the new lender, who generally steps into the same priority position the original lender held, based on the original registration date, rather than needing a brand-new registration with a later, weaker priority date.

That said, the registry generally needs to reflect the change so that anyone searching against the debtor can see who currently holds the security interest — this is typically done by filing a financing change statement identifying the new secured party, rather than by altering the original registration's priority date itself. Failing to update the registration after an assignment can create real confusion for future searchers, for the debtor, and for the new lender trying to enforce its rights later, even though the underlying priority position is generally preserved. Anyone acquiring an assigned security interest should confirm the registry has been properly updated as part of closing the transaction.