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Cross Border Leasing - Avoiding the Costs of a Receivership (LJN's Equipment Leasing Newsletter)

Published: 10/05/2016

By Matthew Nied

Matthew Nied's article "Cross Border Leasing - Avoiding the Costs of a Receivership" has been published in the October 2016 edition of LJN's Equipment Leasing Newsletter.

This article looks at the recent decision in Integris Credit Union v. Mercedes-Benz Financial Services Canada Corporation, 2016 BCCA 231 and its implications for equipment financiers. Writes Matthew:

"Court-appointed receivers typically assume control over all of a debtor’s property, including the debtor’s leased equipment. The receivership order will also typically grant the receiver a priority charge over the debtor’s assets in order to secure the receivers’ fees and other costs. This is sometimes a point of contention with equipment financiers who would rather have their equipment excluded from the receivership.

In the recent case of [Integris], the British Columbia Court of Appeal rendered a decision that supports the ability of certain equipment financiers to avoid being subjected to the costs of certain receiverships."

Matthew also contributed to an eLERT on this topic, read more here.