Harmonization And Simplification Of Quebec’s Security Regime (Amendments To The Civil Code Of Quebec)

On November 26, 2014, the Quebec minister of finance tabled Bill 28, An Act mainly to implement certain provisions of the Budget Speech of 4 June 2014 and return to a balanced budget in 2015-2016 (the Bill). The Bill, which implements certain measures announced in the June 4, 2014, Budget, also amends certain provisions of the Civil Code of Quebec (CCQ) pertaining to hypothecs (i.e. security interests). For readers outside Quebec, a hypothec is the legal concept by which a person may grant a security interest on personal or real property in Quebec. The most significant amendments are divided into three components:

1. clarifying that a partnership within the meaning of the CCQ (such as a limited liability partnership or limited partnership) may grant a hypothec;