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Enhanced superpriority for farmers – Lenders beware
Lenders beware, Canada is one step closer to establishing a framework that will provide significant enhanced protections for suppliers of perishable food items. Bill C-280, or the Financial Protection for Fresh Fruit and Vegetable Farmers Act (the “Act”), has passed […]
Projet de loi C-47 : Modifier le taux d’intérêt criminel en vigueur au Canada
Le 20 avril 2023, après une consultation menée en 2022, le gouvernement du Canada a déposé le projet de loi C-47, la Loi d’exécution du budget (le « projet de loi »). Le projet de loi modifie, notamment, l’article 347 du Code criminel du Canada qui […]
Le projet de loi C-228 et les régimes de retraite à prestations déterminées
Le gouvernement du Canada a apporté des modifications importantes à la loi fédérale en matière d’insolvabilité, rehaussant la priorité à accorder au financement du déficit d’un régime de retraite à prestations déterminées lors de la distribution des actifs d’un débiteur. […]
Intégrer les pratiques et les facteurs ESG dans les transactions de prêt
Au cours des dernières années, une importance grandissante a été accordée à l’intégration des facteurs environnementaux, sociaux et de gouvernance (les « facteurs ESG ») dans les pratiques de crédit, et les efforts déployés en ce sens se sont multipliés. Mener ses […]
Protection d’assurance pour les prêteurs garantis
Les certificats d’assurance désignent souvent le prêteur garanti du débiteur comme « assuré supplémentaire » ou « bénéficiaire » de la police, sans préciser qu’il est un « créancier hypothécaire » profitant d’une « clause type relative aux garanties hypothécaires ». Ces mots-clés sont pourtant essentiels pour protéger […]
Soupir de soulagement pour les mandataires de financements par un syndicat financier
Les mandataires prenant part à des transactions de prêts syndiqués ont appris avec un grand soulagement une nouvelle concernant les paiements qu’ils peuvent effectuer par erreur aux prêteurs de leur syndicat. Les dispositions relatives aux paiements effectués par erreur sont […]
Tour d’horizon : version à l’étude de la ligne directrice B-15 du BSIF sur la gestion des risques climatiques
Le 26 mai 2022, après avoir mené une consultation avec les principaux intervenants du secteur, le Bureau du surintendant des institutions financières (« BSIF ») a publié la version à l’étude de la Ligne directrice B-15 : Gestion des risques climatiques (la « ligne directrice »)[1]. La ligne […]
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RegTech: How technology can revolutionize compliance
Highly regulated industries, such as the financial services industry, have faced ever increasing regulatory compliance obligations. Technology, such as artificial intelligence (AI), that can be utilized to innovate the manner in which these organizations operate can lead to additional challenges […]
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Expansion of s. 38 of the BIA assignment of claims
Historically, an assignment of claims pursuant to s. 38 of Bankruptcy and Insolvency Act (the “BIA”)[1] has only been used in the context of an assignment in bankruptcy. For instance, the use of s. 38 of the BIA in the […]
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The scope of non-debtor third party releases between the U.S. and Canada: A distinction with a difference
Introduction The chapter 11 proceedings of Purdue Pharma (“Purdue”), the pharmaceutical giant responsible for the manufacturing of the powerful narcotic painkiller OxyContin, have been closely followed by insolvency practitioners around the globe, as well as policy makers and members of […]
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The Highly Affected Sectors Credit Availability Program (HASCAP): A further COVID-19 relief measure for businesses
As the COVID-19 pandemic continues to take a toll on the Canadian economy, many continue to need additional financial relief to help them survive the negative impact of the pandemic on their business and their corresponding cash flow. By now […]
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Lenders take note: Exercising discretion in good faith affirmed by the Supreme Court of Canada
On February 5, 2021, the Supreme Court of Canada released its decision in Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District[1] (“Wastech v. Metro”), where it clarified the duty of contracting parties to exercise discretion in good faith. […]
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Should the conditional sale vendor or lessor include the electric vehicle charging unit in the deal?
Learn about the recent recognitions received by our Financial Services and Restructuring Group lawyers. Vehicles need fuel to operate. Until recently the fuel was usually a petroleum product. Conditional sale vendors and lessors of vehicles do not finance equipment to […]
Projet de loi 96 : nouveauté ou déjà vu ?
Le 13 mai 2021, le projet de loi 96 : Loi sur la langue officielle et commune du Québec, le français (le « Projet de loi ») a été déposé par le gouvernement du Québec. Ce Projet de loi vise à assurer […]
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Lessons for lenders: Personal knowledge and addressing the evidentiary burden remains key
Introduction It is common for a special loans officer of a secured lender to swear an Affidavit on behalf of their financing institution in connection with enforcement proceedings. However, a recent Master’s decision, Meridian OneCap Credit Corp v Nikos Directional […]
Paiement par la caution des honoraires juridiques du prêteur encourus pour poursuivre l’emprunteur
Voici un sommaire d’un jugement portant sur le droit de la Banque de se faire rembourser les honoraires juridiques qu’elle a encourus pour poursuivre la Caution en justice et obtenir un jugement contre elle. Faits Les faits de cette affaire […]
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Decentralized finance: Regulation, growth, and legal enforcement
Decentralized finance (“DeFi”) is a financial alternative offered through various cryptocurrency platforms where liquidity pools are available to investors without the need for third-party lending institutions. In the years to come, the nascent DeFi industry may shape, transform and even […]
Mise en garde aux créanciers : La maîtrise, l’opposabilité et le rang de leur sûretés sur des créances pécuniaires
Le 2 décembre 2020, la Cour d’appel du Québec (la « Cour »), sous la plume du Juge Robert M. Mainville, a rendu le premier jugement (le « Jugement ») à propos de l’application de l’article 2713.3 du Code civil du Québec (le « C.c.Q. ») dans l’affaire […]
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The anti-deprivation rule is alive and well: Chandos Construction v Deloitte Restructuring
In its most recent decision, Chandos Construction Ltd v Deloitte Restructuring Inc.[1], the Supreme Court of Canada (the “SCC”) reaffirmed the existence of the common law anti-deprivation rule in Canada. The anti-deprivation rule provides that a contractual provision is void […]
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Business interruption insurance and COVID-19: A discussion of future implications
In response to ongoing financial distress caused by COVID-19, many businesses have tried to make claims under their business interruption policies. It remains uncertain whether business interruption losses directly or indirectly caused by the pandemic, such as losses stemming from […]
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Asset tracing and corporate intelligence techniques in cryptocurrency investigations
In the first half of 2018, $1.1 billion USD in cryptocurrency was stolen or trafficked online, with the majority of attacks targeting either regular businesses or cryptocurrency exchanges.[1] By 2019, that figure had jumped to $4.4 billion.[2] Despite these staggering […]
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Lifting the stay
On July 27, 2020, the Newfoundland and Labrador Supreme Court (the “Court”) released its decision in Great North Data Ltd., (Re),[1] where Justice Handrigan outlined principles for courts to consider when exercising their power under section 69.4 of the Bankruptcy […]
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Beware: Recommencement of limitations periods and procedural timelines in Ontario on September 14, 2020
Please beware that on August 20, 2020, the Ontario government (the “Government”) issued a news release providing that the order pertaining to the suspensions of limitations period made under the Emergency Management and Civil Protections Act, R.S.O. 1990, c. E.9 […]
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Redemption in a receivership
A recent decision of the Ontario Superior Court of Justice (Commercial List) (the “Court”) in the receivership proceedings of The Clover on Yonge Inc.[1] (the “Clover Project”) has addressed the question of whether a debtor in receivership can avoid a […]
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Protection for tenants/borrowers
The Ontario government enacted the Protecting Small Business Act, 2020 (the “PSBA”), effective June 18, 2020, which amended Ontario’s Commercial Tenancies Act (“CTA”) and created greater incentive for commercial landlords to participate in the Canada Emergency Commercial Rent Assistance (“CECRA”) […]
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Bellatrix Exploration: Why a charge sometimes just isn’t enough
A recent decision in the Companies’ Creditors Arrangement Act (“CCAA”) proceedings of Bellatrix Exploration Ltd.[1] (“Bellatrix”) serves as a useful reminder to professionals that a court-ordered charge may not be enough to ensure their fees will be paid at the […]
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IIROC issues Notice regarding cybersecurity in cloud services and application programming interfaces
On June 24, 2020, the Investment Industry Regulatory Organization of Canada (“IIROC”) released an Education Notice to members (“Cybersecurity – Cloud Services and Application Programming Interfaces”) outlining key elements of cybersecurity strategies pertaining to adoption and implementation of cloud services […]
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Lender ‘know your client’ diligence—compliance with Canadian sanctions laws
In light of the continuing globalization of trade and international cross border financing arrangements, it is critical to determine if a transaction is prohibited by sanctions laws. Under Canadian and international law, there are a variety of sanctions laws that […]
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Ontario Court of Appeal confirms the priority of secured construction lenders’ subsequent advances in face of execution creditors’ notice of writ
Some more good news for secured construction lenders. In a decision rendered April 9, 2020, the Ontario Court of Appeal has confirmed that the priority of subsequent advances by lenders holding a charge of real property will not be defeated […]
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COVID-19 Financial Services Update: Pre-packaged sale transactions
As Canadian businesses continue to grapple with decreased cash flow as a result of COVID-19, many are looking for ways to generate cash and remain viable. One such way is to sell non-core assets or divisions through a pre-packaged sale […]
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Conflicted About Choice of Law? Saskatchewan’s PPSA Amendments on Conflicts of Laws Rules – Part 1
As we summarized in a recent Financial Services & Insolvency Communiqué, Saskatchewan has introduced Bill 151 (the Bill) which amends The Personal Property Security Act, 1993 (Saskatchewan) (the PPSA or the Act). Over the coming weeks and months our Saskatchewan […]
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Taking Security on Personal Property: A Glimpse Into Secured Lending in Canada
In recent years, cross-border transactions have increased in popularity and many of these transactions involve taking security over tangible and intangible personal property. As a result, it is now customary for financial services lawyers to be called upon by clients […]
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Ch-ch-changes: Saskatchewan’s PPSA amendments are here
In late 2018, the Saskatchewan Legislature introduced Bill 151 to amend The Personal Property Security Act, 1993 (Saskatchewan) (the « PPSA »). Our Saskatchewan Financial Services team spent the next many months analyzing the amendments and explaining them in a series of Financial […]
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Protection for suppliers
The BC Supreme Court’s decision in Soccer Express Trading Corp. (Re), 2020 BCSC 749 shows some possible protections for critical suppliers under the CCAA When a company files for protection from its creditors, a supplier to that company who has […]
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COVID-19 Financial Services Update: electronic chattel paper amendments to the PPSA come into force in Ontario
The amendments to the Ontario Personal Property Security Act (“PPSA”) and the Electronic Commerce Act that enable perfection by control of electronic chattel paper (“ECP”) came into force on May 15, 2020. This is an especially important change during the COVID-19 emergency […]
COVID-19 Mise à jour Services Financiers : Utilisation des sommes données en dépôts au Québec
La situation engendrée par la propagation de la COVID-19 affectera de façon significative le flux de trésorerie de nombreuses entreprises en raison d’une baisse des ventes et, par conséquent, des comptes recevables et de l’encaisse. Les mesures gouvernementales adoptées pour […]
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Deemed trust for unremitted GST primes bank’s security interest
On April 29, 2020, the Federal Court of Appeal (the “FCA”) released their decision in The Toronto-Dominion Bank v Canada[1] (“TD v Canada”), in which the FCA concluded that a deemed trust in respect of unremitted goods and sales tax […]
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Are you interested in decreasing the expense side of the balance sheet?: Ontario assessment appeal deadline extended to May 29, 2020
The Ontario deadline to file assessment appeals under the Assessment Act, R.S.O. 1990, c. A.31. has been extended to May 29, 2020. You might be asking: Why should I care? That question is answered below. We all know that property […]
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COVID-19 Financial Services update: perfection by control
Our prior Financial Services Updates have focused on proactive and defensive measures that both lenders and borrowers can take in light of the economic hardships brought on by the COVID-19 pandemic. This week we focus on a practical consideration that […]
Restructuration et insolvabilité : préparatifs et engagement en matière de services au temps du coronavirus
Avec l’impact de la COVID-19, qui continue à se faire sentir dans le monde entier, nous demeurons plus que jamais convaincus de notre obligation de passer en revue chaque facette de nos activités. Cette évaluation vise à nous assurer que […]
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Saskatchewan Court of Queen’s Bench loosens COVID-19 restrictions
The Saskatchewan Court of Queen’s Bench is set to resume many operations that were suspended in March due to the COVID-19 pandemic. On April 23, 2020, the Court released a new directive outlining how it plans to restart some of […]
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COVID-19: Financial Services update, liquidity and anti-hoarding
While the COVID-19 pandemic is an unprecedented global crisis, the resurgence of the mentality that ‘Cash is King’ is all too familiar. In both the 2008 financial crisis and the downturn in the oil and gas industry beginning in 2014, […]
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COVID-19 and release of holdback under Ontario’s Construction Act
UPDATE: The issues raised in this advisory have been addressed by Ontario’s issuance of O.Reg.137/20. Here is a link to our communique on O.Reg. 137/20. On March 17, 2020 the Ontario Government declared a state of emergency. On March […]
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COVID-19 Financial Services update: conflicts – related party loans
In light of the current economic environment surrounding the COVID-19 pandemic, companies are in need of additional liquidity and working capital. Recently, our group has seen an increase in lending transactions where shareholders are providing secured subordinated loans to their […]
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COVID-19: Financial Services update, lenders obligation to act in a commercially reasonable manner and their duty of good faith
As a result of the global economic uncertainty arising from the COVID-19 pandemic, borrowers are now confronted with numerous concerns, including business interruptions impacting their cashflow and their ability to maintain access to liquidity in the face of an uncertain […]
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COVID-19 Financial Services update: terminating or disclaiming contracts
In previous weeks our Financial Services Updates have discussed certain proactive measures that lenders and borrowers can take in light of the COVID-19 pandemic. This week our update focuses on the ability of companies to terminate contracts in accordance with […]
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Government amends Regulation suspending limitation periods to allow for release of holdback under Ontario’s Construction Act
On April 1, 2020 we wrote about O.Reg. 73/20 which suspended limitation periods imposed by any Ontario law retroactive to March 16, 2020. We noted that if the effect of O. Reg. 73/20 applies to suspend the time for liens […]
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COVID-19: Financial Services update, measures to permit remote electronic witnessing of documents
Although the COVID-19 crisis is having an enormous impact on businesses, commercial activity has not ended. As a result, lawyers continue to work on transactions for our clients, but most are doing so remotely. This new approach to legal work […]
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COVID-19 and collections in the Court of Queen’s Bench for Saskatchewan
Courts across the country have taken steps to help curb the spread of COVID-19, and to protect litigants, lawyers, court staff and the judiciary. The Court of Queen’s Bench for Saskatchewan is no exception. The Court issued a new Practice […]
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Advisory Committee on Open Banking provides update on consumer-directed finance in Canada
Overview On January 31, 2020, the Advisory Committee on Open Banking[1] (the « Committee« ) released a report on « Consumer-directed finance: the future of financial services » (the « Report« ). The Report was in connection with the Committee’s consultation process and recommends the development […]
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Preserving Intellectual Property Rights in Licenses: Changes to the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act
As we reported last week, on November 1, 2019, amendments to both the Bankruptcy and Insolvency Act (the “BIA”)[1] and the Companies’ Creditors Arrangement Act (the “CCAA”)[2] came into force that, amongst other things, address the rights of intellectual property […]
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The 2019 Legislative Amendments to the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act
On November 1, 2019, major amendments to the Bankruptcy and Insolvency Act (Canada) (the “BIA”) and the Companies’ Creditors Arrangement Act (Canada) (the “CCAA”) included in Bill C-97[1] and Bill C-86[2] came into force. The Government of Canada has stated […]
Amendments to PMSI Rules in Saskatchewan
As we summarized in a recent Financial Services & Insolvency Communiqué, Saskatchewan has introduced Bill 151 (the Bill) which amends The Personal Property Security Act, 1993 (Saskatchewan) (the PPSA or the Act). Over the coming weeks our Saskatchewan Financial Services team will bring you a […]
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Things You May Not Know About the Farm Debt Mediation Act
Most or all creditors who lend to farmers will be familiar with the Farm Debt Mediation Act, S.C. 1997, c. 21 (the “FDMA”) and the need to serve a notice under the FDMA before taking action against a farmer. However, […]
Les créances pécuniaires
Faits saillants La créance pécuniaire est un concept en vigueur depuis le 1er janvier 2016. La créance pécuniaire est une créance payable en argent uniquement. La créance pécuniaire est due au débiteur par son créancier ou par un tiers. L’hypothèque […]
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Changes to the Guarantees Acknowledgement Act (Alberta)
Until now, Alberta law required that a personal guarantee be executed with the assistance of a notary public. Effective April 30, 2015, a notary public can no longer execute the certificate required by Alberta law. The certificate must be executed […]
