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ARTICLE · 20 FEBRUARY 2015

Proposed Amendments To The Civil Code Of Québec Concerning Hypothecs

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On November 26, 2014, Bill 28 was introduced in the National Assembly of Québec by the Minister of Finance.

CanadaFinance and Banking
Pierre Côté
Pierre Côté
JoëLle Girard
JoëLle Girard
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On November 26, 2014, Bill 28, entitled An Act mainly to implement certain provisionsof the Budget Speech of 4 June 2014 and return to a balanced budget in 2015-2016, was introduced in the National Assembly of Québec by the Minister of Finance.

The Bill proposes in particular to amend the Civil Codeof Québec (the "CCQ") with respect to hypothecs, mainly (i) by amending the legal regime applicable to hypothecs granted in favour of a security agent (called a fondé de pouvoir ), and (ii) by introducing the concept of movable hypothecs with delivery on bank deposits and certain other pecuniary claims.

These proposed amendments, if adopted, will have an impact on the Québec security regime and will change certain bank financing practices.

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