Difference between revisions of "Creditors' Remedies against Debtors (10:III)"

Prior to taking action against a debtor, the 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 ''Mister Broadloom Corporation (1968) Ltd v Bank of Montreal'' (1979), 25 OR (2d) 198 (Ont HCJ). As a result of the recent passage of a revised Limitation Act in British Columbia the period for commencement of proceedings for the collection of a debt in B.C. 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: