Caisse Drummond Supreme Court Of Canada Decision

In June of 2009, the Supreme Court of Canada dismissed an appeal from the Federal Court of Appeal in the Caisse populaire Desjardins de l'Est de Drummond v. Canada case.

The facts of this case are as follows: On September 18, 2000, Caisse populaire Desjardins de l'Est de Drummond (Caisse Drummond) granted Camvrac Enterprises Inc. (Camvrac) a line of credit up to $277,000 under a credit agreement. A week later, Camvrac deposited $200,000 with Caisse Drummond under a "Term Savings Agreement." This deposit matured in five years, was not negotiable or transferrable, and could not be hypothecated or given as security in favour of any person other than Caisse Drummond. On the same day, Caisse Drummond and Camvrac entered into a "Security Given Through Savings" agreement under which Camvrac, "to secure the repayment of" the line of credit, agreed to maintain and permit Caisse Drummond to keep the $200,000 deposit for as long as Camvrac owed money to Caisse Drummond. Upon a