A joint project with the Uniform Law Conference of Canada on reform of fraudulent conveyances and fraudulent preferences law. This report is in response to suggestions by delegates at the 2010 Uniform Law Conference of Canada to Part 1 of the project addressing transactions at undervalue and fraudulent transactions. It incorporates clarifications and changes regarding recommendations in the original report on exempt properties, limitation periods, risk for bona fide purchasers, and remedies for creditors.
Topics covered in this report include title and structure of the proposed Act, the scope of new preferential payments law, provincial harmonization with the federal Bankruptcy and Insolvency Act, the integration of preferences law with other law on transactions, remedies for creditors, the exemption of arm’s length payments from challenges, and limitation periods.
Under Quebec’s Code Civil, transactions at undervalue and preferential transfers are subject to the same rules, and outcomes have been found to be predictable and consistent. This paper is meant to provide an overview of this part of Quebec law, and no recommendations are made.
This paper is part one of a two-part report on fraudulent conveyances and fraudulent preferences. The entire report outlines draft legislation that, if adopted in each province and territory, would provide uniform laws across Canada.
This report provides an update on The Uniform Law Conference of Canada’s project on reform of fraudulent conveyance and fraudulent preference laws. The aim of the project is to create draft legislation for each province/territory to adopt.
The Uniform Law Conference of Canada (Civil Law section) outlines its work on fraudulent preferences and the effort to create uniform draft legislation for the provinces to adopt. This report includes summaries of existing provincial and federal legislation, and review of the policy considerations and issues still to be determined.
The Uniform Law Conference of Canada (Civil Law section) outlines its work on fraudulent preferences and the effort to create uniform draft legislation for the provinces to adopt. This Report includes summaries of existing provincial and federal legislation, and review of the policy considerations and issues still to be determined.
Guarantees of loans from financial institutions by a family member of the borrower can be problematic, especially if the guarantor is a vulnerable elderly person. The Commission recommends consumer protection measures to protect guarantors, including enhanced mandatory disclosure by financial institutions of the legal effects of guarantees.
This consultation paper investigates loans made by one family member to another, and guarantees of loans obtained from financial institutions by a family member of the borrower. Both are common, and are often ways in which a parent can help an adult child financially. Unfortunately, both can also lead to misunderstanding. Potential problems are greatest if the lender or guarantor is a vulnerable elderly person. In such cases, the financial transaction may amount to elder abuse.
Reverse mortgages allow seniors to use equity in their homes while remaining in the home. The interest is allowed to accumulate, and is paid off when the person dies or leaves the home. There are various benefits and drawbacks to reverse mortgages. The Commission looks to regulation of these loans, including the need for full disclosure and independent advice and counselling.
The Statute of Frauds requires that many sorts of contracts be evidenced in writing and signed by those bound. The Commission suggests that these requirements are necessary only in the case of contracts for sale of land. It recommends that The Statute of Frauds be repealed and that provisions regarding the sale of land be included in The Land Contracts (Actions) Act.
Saskatchewan’s out-dated consumer credit legislation needs to be reformed to better address the needs of consumers. This is a final report based on the Commission’s earlier tentative proposals. The Commission recommends enactment of two statutes: The Consumer Credit Act and The Pawnbrokers Act. These proposals reflect current thinking in the area of consumer protection.
Legislation is proposed that gives more power to the courts to require fair restitution when a contract has been found to be frustrated. The Commission recommends an approach that allows the courts to more fairly allocate the burden of frustration between the parties.
A contract is frustrated when an unforeseen event so distorts the agreement that the law declares it ended and discharges the parties from their duties. The Commission proposes a Frustrated Contracts Act that allows courts a wider ability to adjust the situation post-frustration to ensure a fair result for all parties.
The Commission recommends that the distinction in contract law between joint obligations and joint and several obligations be abolished. All joint obligations should be construed to be joint and several. It recommends further that the release of one person from an obligation owed with others not ordinarily release the others. A Joint Obligations Act is proposed.
These proposals are meant to act as a supplement to The Personal Property Security Act that was enacted in 1980. They are designed to enhance consumer protection in credit transactions.
This Report suggests that consumer credit is on the rise in the province and will continue to grow. As a result, the complex law surrounding consumer credit should be reformed. Creditor education is key to reforming the laws to ensure full disclosure and fair treatment.