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ARTICLE · 23 APRIL 2015

Recent Amendments To Provisions On Hypothecs Under Civil Code Of Québec

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Bill n°28 titled An Act mainly to implement certain provisions of the Budget Speech of 4 June 2014 and return to a balanced budget in 2015-2016 (Act) passed on April 20, 2015 and received assent the next day.

CanadaFinance and Banking
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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INTRODUCTION

Bill n°28 titled An Act mainly to implement certain provisions of the Budget Speech of 4 June 2014 and return to a balanced budget in 2015-2016 (Act) passed on April 20, 2015 and received assent the next day. The Act made changes to hypothecs in the Civil Code of Québec (CCQ), including the amendment of Article 2692 in order to simplify the holding of a hypothec through a hypothecary representative called the fondé de pouvoir and the introduction of a new legal regime regarding pledges on certain monetary claims. Quebec becomes the first Canadian province to enact such legislation in order to facilitate the granting of pledges on monetary claims.

This bulletin provides an overview of these changes, as well as an analysis of the new regime and its most innovative aspects.

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