By 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,