THE SCOPE OF ADDITIONAL HYPOTHECS WAS EXAMINED BY THE
SUPERIOR COURT ON SEPTEMBER 6, 2011 IN THE CASE OF BANQUE
NATIONALE DU CANADA V.
LAROUCHE.1
AT ISSUE IN THIS CASE WAS WHETHER THE ADDITIONAL
HYPOTHEC PROVISION CONTAINED IN THE DEED OF HYPOTHEC GRANTED BY MR.
LAROUCHE ("LAROUCHE") IN FAVOUR OF THE NATIONAL BANK OF
CANADA (THE "BANK") ENTITLED THE BANK TO RECEIVE ANY
PROCEEDS FROM THE SALE BY JUDICIAL AUTHORITY OF AN IMMOVABLE OWNED
BY LAROUCHE, OVER AND ABOVE WHAT HAD BEEN ATTRIBUTED PURSUANT TO
THE PRINCIPAL HYPOTHEC ALSO CONTAINED THEREIN.
THE FACTS
The Bank had extended certain loans as well as a line of credit
to 4387228 Canada Inc. ("4387228") in order to finance
the purchase of machinery. In addition to obtaining a movable
hypothec over the purchased machinery, the Bank also obtained from
Larouche, as shareholder of 4387228, both a personal guarantee in
the amount $275,000 and, in order to secure same, a second-ranking
immovable hypothec in the
