Does a landlord's claim for unpaid rent rank ahead of a secured lender's security interest?

Generally, a landlord's claim for unpaid rent is not automatically ranked ahead of a lender's properly registered security interest under Ontario's Personal Property Security Act — a landlord's remedies against a tenant's goods are different in character from a PPSA security interest, and simply being owed rent doesn't itself give the landlord priority over a lender that has taken and perfected security in the same equipment or inventory.

That said, the interaction between a landlord's remedies and a secured lender's interest can be genuinely fact-specific, depending on the type of claim being asserted, the lease terms, and the circumstances, so it isn't a question with one guaranteed answer in every case. Because of this uncertainty, commercial lenders financing a corporation that leases its premises commonly ask the landlord to sign a landlord waiver or non-disturbance agreement, confirming the landlord won't assert a competing claim over the lender's collateral located on the leased premises. If your corporation is negotiating financing secured against equipment or inventory kept on leased premises, expect the lender to raise this and be prepared to help arrange a landlord waiver as part of the closing.