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Subordination Agreements, Bruce Macdougall
Subordination Agreements, Bruce Macdougall
Osgoode Hall Law Journal
Subordination agreements are not novel concepts in Canadian law, but the PPSAs ensure their more widespread use. Subordination agreements usefully provide flexibility to creditors and consequently permit enhanced access to credit for debtors. The adaptability of the subordination agreement presents difficult legal problems, the most important of which relates to characterization of their legal nature. Other problems include the resolution of multiple subordinations and the question of the enforceability of subordination agreements in bankruptcy. This paper explores those issues and cautions against undue restrictions being placed on either the availability or the characterization of subordination agreements.
Bad Policy As A Recipe For Bad Federalism In The Regulation Of Canadian Financial Institutions: The Case Of Loan And Trust Companies, Ronald J. Daniels
Bad Policy As A Recipe For Bad Federalism In The Regulation Of Canadian Financial Institutions: The Case Of Loan And Trust Companies, Ronald J. Daniels
Osgoode Hall Law Journal
This article addresses the impact of substantive policy on federal arrangements in the regulation of Canadian loan and trust companies. It is argued that reliance on market-suppressing policies (flat-rate based deposit insurance and selective bail-outs of depositors in the event of institutional failure) has undermined the value of competitive federalism in this area, and has spawned highly contentious policy initiatives such as Ontario's Equals Approach. To redress the federalism problems in the regulation of loan and trusts, a useful starting point would be the enhancement of market forces in substantive policy. Here, it is argued that the commitment to secrecy …