Creditors' Remedies against Debtors (10:III): Difference between revisions
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Creditors' Remedies against Debtors (10:III) (view source)
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{{LSLAP Manual TOC|expanded = creditors}} | {{LSLAP Manual TOC|expanded = creditors}} | ||
Before taking action against a debtor, a creditor must provide a reasonable time for payment on a demand loan or term loan. That time begins to run from the date of the demand for payment and not the date of the loan. What constitutes a reasonable demand period depends upon the facts of each case. For a list of factors to be considered see ''[https://www.canlii.org/en/ca/scc/doc/1999/1999canlii714/1999canlii714.html Royal Bank of Canada v W Got Associates Electric Ltd]'', 1999 CanLII 714 (SCC) at para 18 | Before taking action against a debtor, a creditor must provide a reasonable time for payment on a demand loan or term loan. That time begins to run from the date of the demand for payment and not the date of the loan. What constitutes a reasonable demand period depends upon the facts of each case. For a list of factors to be considered see ''[https://www.canlii.org/en/ca/scc/doc/1999/1999canlii714/1999canlii714.html Royal Bank of Canada v W Got Associates Electric Ltd]'', 1999 CanLII 714 (SCC) at para 18. | ||
Under section 8 of the ''Limitation Act'', in British Columbia, the period for when a proceeding for the collection of a debt must be commenced is 2 years from the “date of discovery” of the claim. The date of discovery is defined as the day on which the claimant knew or ought reasonably to have known all of the following: | Under section 8 of the ''Limitation Act'', in British Columbia, the period for when a proceeding for the collection of a debt must be commenced is 2 years from the “date of discovery” of the claim. The date of discovery is defined as the day on which the claimant knew or ought reasonably to have known all of the following: | ||
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:'''NOTE:''' The limitation period does not apply to court proceedings and claims exempted under sections 2 or 3. | :'''NOTE:''' The limitation period does not apply to court proceedings and claims exempted under sections 2 or 3. | ||
== A. Secured Creditors == | == A. Secured Creditors == | ||
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=== 2. General Introduction to the PPSA === | === 2. General Introduction to the PPSA === | ||
The | The "Personal Property Security Act" "[PPSA]" establishes a system for the registration, priority, and enforcement of secured loan and credit transactions involving personal property in B.C. Secured creditors holding agreements that create or provide for security interests (i.e. chattel mortgages and conditional sales agreements) must register these security agreements in order to “perfect” its interest and establish its priority in regards to third parties. See “Perfection” on page 3. | ||
For agreements that are subject to the PPSA, Part 5 of the PPSA outlines the creditor’s remedies (ss 56 - Rights and remedies, 57 - Collection of payments under intangibles or chattel paper, 58 – Right of seizure or repossession, and 67 - Rights and remedies: consumer goods). For agreements that involve fixtures, crops or accessions, ss 36 – 38 apply. In addition, Part 6 contains some sections (i.e. ss 68(2) - Good faith and commercially reasonable, and 72 - Notice) that are of procedural importance. | For agreements that are subject to the PPSA, Part 5 of the PPSA outlines the creditor’s remedies (ss 56 - Rights and remedies, 57 - Collection of payments under intangibles or chattel paper, 58 – Right of seizure or repossession, and 67 - Rights and remedies: consumer goods). For agreements that involve fixtures, crops or accessions, ss 36 – 38 apply. In addition, Part 6 contains some sections (i.e. ss 68(2) - Good faith and commercially reasonable, and 72 - Notice) that are of procedural importance. | ||