Recent Articles

Canada's Wage Earner Protection Program Act Amended

March 13, 2012 20:40

The Wage Earner Protection Program (the “Program”) is a government-sponsored program in Canada that provides the higher of $3000 or an amount equal to four times an eligible employee’s maximum weekly insurable earnings under the Employment Insurance Act (Canada) to compensate such...

Financial Institutions and Cloud Computing: An Update from OSFI on Guideline B-10 - Reading Their Message Between the Lines

March 02, 2012 19:20

It would not be an exaggeration to say that a number of technology companies (and their customers) see Cloud Computing as an important development on the question of how to store ever increasing amounts of data at a reasonable price and at the same time permit the accessing of that data in an...

Foreign Banks Lending to Canadian Borrowers

February 29, 2012 18:31

From time to time, we receive inquiries from foreign banks that do not have a presence in Canada on whether there are any Canadian banking regulatory restrictions on lending to Canadian borrowers. Under the Bank Act (Canada), a foreign bank can lend to Canadian borrowers by: establishing a...

Mortgage Prepayment under the Interest Act - More Exempt Entities

February 27, 2012 17:57

On January 1, 2012, the Prescribed Entities and Classes of Mortgages and Hypothecs Regulations (the “Regulations”) under the Interest Act (Canada) (the “Act”) came into force. The Regulations expand the class of “prescribed entities” that are exempted from the...

Anti-Money Laundering Legislation - Canadian Department of Finance Review

February 23, 2012 21:20

In December 2011, the federal government launched a consultation aimed at updating Canada’s regime for combating money laundering and terrorist financing. The Department of Finance released a consultation paper setting out proposals to strengthen Canada’s anti-money laundering and...

BIA and CCAA "Lookback Periods" for Preferential Transactions

February 10, 2012 19:45

Lenders should be cognizant that the granting of security by a debtor may be subject to challenge as a fraudulent preference in the event the debtor subsequently files for liquidation or proposal proceedings under the Bankruptcy and Insolvency Act (Canada) (the “BIA”) or restructuring...

Securitization Available for Canadian Uninsured Conventional Residential Mortgages?

February 06, 2012 16:02

At the American Securitization Forum annual conference last month, a panel discussed the future of U.S. mortgage finance. Following the 2007 financial crisis and the collapse in U.S. housing values, there has been a transfer of U.S. mortgage funding from private sources of capital to government...

Perfection by Control of Deposit Accounts and Cash Collateral - Proposal to Amend The Ontario PPSA

February 01, 2012 19:20

A working group of the Personal Property Security Law Sub-Committee of the Ontario Bar Association’s Business Law Section has developed a proposal for amendments to the Ontario Personal Property Security Act to provide for perfection by control of deposit accounts and other forms of cash...

Perfection and Priority: Dealing with Serial Numbered Goods

January 30, 2012 16:03

Lenders should be aware that when taking security in certain goods with serial numbers in Canada, the rules regarding registration of financing statements vary across provincial jurisdictions; a detail that, if overlooked, could impact the priority of the lender’s security interest. In...

Limits on Interest Rates in Loan Agreements

January 19, 2012 19:07

Loan agreements governed by Ontario law commonly include a provision that is intended to address the maximum effective annual rate of interest that is chargeable thereunder without contravening the usury provisions of the Criminal Code (Canada). For purposes of the Criminal Code (Canada),...