Secured Transactions – Winter 2013 Professor: Yael Emerich Summary
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- Creation of Conventional Hypothecs
- Object and Scope of Hypothecs
- Opposability and Priority
- Hypothecary Remedies
HypothecsThese are the major security interest of the civil law. They represent the addition of a “droit réel accessoire” that is added onto the property right of the debtor. Because the hypothec is a real right, it will follow the principal property right to which it is attached. This makes it opposable to third parties. This also sets the hypothec apart from the mortgage, since there is no change of ownership or dispossession when using a hypothec. The major division of hypothecs is between legal hypothecs (created by operation of law, and generally without the consent of the debtor) and contractual hypothecs (which as their name indicates, must be created with the debtor’s consent. Hypothecs are either moveable or immoveable, which means that the same hypothec cannot cover both moveable and immoveable property. Juridical NatureCCBC: 2016 “L’hypotheque est un droit réel sur les immeubles affectés à l’acquittement d’une obligation en vertu duquel le créancier peut les faire vendre en quelque mains qu’ils soient, et être préféré sur la produit de la vente suivant l’ordre du temps , tel que fixé dans ce code” - This definition confirms that the hypothec is a real right, accessory to another obligation, that it has a droit de suite, and that it confers a power to sell. It also sets out a basic priority scheme (first in time). Note that under the CCBC, hypothecs were available only on immoveables. CCQ Provisions 2260 A hypothec is a real right on a movable or immovable property made liable for the performance of an obligation. It confers on the creditor the right to follow the property into whosever hands it may be, to take possession of it or to take it in payment, or to sell it or cause it to be sold and, in that case, to have a preference upon the proceeds of the sale ranking as determined in this Code. - Very similar to the CCBC, except the remedies listed are different, it can apply to moveable or immoveable property, and the priority ranking refers you to elsewhere in the code. [Pratte, 74] - Gives a droit de suite and a droit de préférece quite explicitly. - Minister’s Commentary [67]: “Cet article reprend substantiellement la définition que donnait l’hypothèque à l’article 2016 CCBC, mais il ajoute à l’hypothèque du droit antérieure la possibilité qu’elle puisse désormais grever des meubles, ce que ne permettait pas l’article 2022 CCBC. L’article expose les diffrents droits que confère l’hypothèque : [lists them]. Le droit de suite, implicite antérieurement, eest énoncé exoressément de mêe que sont énoncés les droits de prendre en possession, de prendre en paiement ou de vendre.” 2661 A hypothec is merely an accessory right, and subsists only as long as the obligation whose performance it secures continues to exist. [see citations at 78] 2662 A hypothec is indivisible and subsists in its entirety over all the charged properties, over each of them and over every part of them, even where the property or obligation is divisible. (only exception is for condos 1051 CCQ) 2663 The hypothecary rights conferred by a hypothec may be set up against third persons only when the hypothec is published in accordance with this Book or the Book on Publication of Rights. Other Definitions [69]: Droit réel; droit personnel; droit réel principal; droit réel accessoire; droit de suite. droit de préférence. DC – Banque laurentienne du Canada c Bélanger,1999 QCCQ [76] Facts: Bélanger is owed $17,000 by the Bank for work he performed on an immoveable. This work qualifies for a legal hypothec for the construction industry, and Bélanger followed all the procedural steps required. Bélanger’s personal action against the bank is extinct via prescription. Issue: When the debt is extinguished by prescription, is the legal hypothec extinguished as well? Holding: Yes. Reasoning: Article 3063 allows the expungement of hypothecs where “le droit inscrit est annulé, résolu, résilié, ou éteint par prescription.” As an accessory right, the hypothec cannot exist when the obligation to which it was an accessory is extinguished. Additionally, given that the obligation was a personal debt, the 3 year limit for personal actions is the applicable prescription period, not the ten year limit for actions based on real rights. The hypothec, being accessory, cannot give the primary obligation an immoveable character. The debt is prescribed, so the hypothec should be expunged. Ratio: If the obligation secured by the hypothec is prescribed or ceases to exist for any reason, the hypothec may be expunged. ClassificationArticle 2665 implies that you can’t have a hypothec that covers a mix of both moveable and immoveable property. You’d need two separate hypothecs. CCQ Provisions 2664 … A hypothec may be conventional or legal. 2665 A hypothec is movable or immovable depending on whether the object charged is movable or immovable property or a universality of movable or immovable property. // A movable hypothec may be created with or without delivery of the movable hypothecated. Where it is created with delivery, it may also be called a pledge. 2695 Hypothecs on present and future rents are considered immoveable hypothecs and must be registered as such. 2672 Movables charged with a hypothec which are permanently physically attached or joined to an immovable without losing their individuality and without being incorporated with the immovable are deemed, for the enforcement of the hypothec, to retain their movable character for as long as the hypothec subsists. 2698 A movable hypothec charging the fruits and products of the soil, and the materials and other things forming an integral part of an immovable, takes effect when they become movables with a separate existence … 2796 Where a movable property is incorporated in an immovable, the movable hypothec may subsist as an immovable hypothec, notwithstanding the change of nature of the property, provided it is registered in the land register; it is ranked according to the rules set out in the Book on Publication of Rights [see 2951 for the priority rules - Mike]. Creation of Conventional HypothecsNote: the “clause de datation en paiement”, a clause which allowed the creditor to become owner of the property if there was a default, is invalid under the CCQ (1801; Marcos v Freedman, 2000 QCCS). You have to create a hypothec and abide by the rules of hypothecary recourses. General 2664 Hypothecation may take place only on the conditions and according to the formalities authorized by law. … 1525 … The carrying on by one or more persons of an organized economic activity, whether or not it is commercial in nature, consisting of producing, administering or alienating property, or providing a service, constitutes the carrying on of an enterprise. Capacity The general rule is that anyone can create a hypothec over anything, as part of the principle that everyone has free exercise of civil rights (1, 302 CCQ). The basic requirement is that the grantor must have the capacity to alienate property (2681 CCQ). This can be the debtor or a third party/guarantor (2681 CCQ). However, there are some important exceptions: - Hypothecs over movable property without dispossession can be granted only by a person or a trust that operates an enterprise, and the open hypothec can only to the property used for the purposes of that enterprise (2683 CCQ), or over automobiles, regardless of whether they are used for an enterprise (2683 CCQ). Regulations create a few other circumstances in which individuals are allowed to create hypothecs without dispossession (see below). - A hypothec on a universality of property can be granted only by a person or a trust that operates an enterprise, and the open hypothec can only to the property used for the purposes of that enterprise (2684 CCQ). There is an exception to this rule for securities (stock in companies), which may be hypothecated as part of universality (2684.1 CCQ). - An open hypothec can only be created by a person or a trust that operates an enterprise, and the open hypothec can only to the property used for the purposes of that enterprise (2686 CCQ). An open hypothec must be stated explicitly to be “open”, otherwise it will be considered ordinary (2715 CCQ). - Despite the use of the word “person” in 2681, the general opinion is that partnerships can grant conventional hypothecs [188]. Hypothecs should be granted by the partnership itself, not by the partners acting as a group [187]. - Limited partnerships can be tricky, but the general consensus is that the operating partner can grant the hypothec on behalf of the partnership as whole, while the limited partners do not have the power to grant hypothecs [187-188].
(a) any car/boat/motorcycle/snowmobile or aicraft mentioned in regulation 15.01 (see section 2.2 below). (b) “precious property” any print, etching, drawing, painting, sculpture or other similar work of art, jewellery, rare folio, rare manuscript or rare book, stamp, or coin. (c) incorporeal personal property, including stocks and derivatives. Formalities - Hypothecs on immoveables must be created by notarial act en minute (2693). - Hypothecs which secure the payment of bonds must be created by notarial act en minute (2692). - Moveable hypothecs without dispossession must be created by a written document of some kind (2696). - Moveable hypothecs with dispossession do not require a writing of any kind, and are granted by transfer of possession (2702). - Open hypothecs without dispossession must be in writing (2696). Open hypothecs over immoveables must be created by notarial act en minute (2693). Open hypothecs that are granted by a corporation, limited partnership, or trust and which guarantee the performance of bonds or other “titles of indebtendness” must also be created by notarial act en minute, regardless of whether they affect movaeable or immoveable property, and the notarial act must be in favour of the person holding power of attorney for the creditors (“en faveur du fondé de pouvoir des créanciers”) (2692). - Hypothecs on universalities of claims must be signified to the debtor of the claim using the provisions for notifying debtors of assignments (CCQ 2710). - For bills of lading see 2041, 2685. Future Property and Property Belonging to Other People 2670 A hypothec on the property of another or on future property begins to affect it only when the grantor acquires title to the hypothecated right. Dispossession The CCQ uses the CCBC term “gage” or “pledge” to mean moveable hypothec with dispossession, but did not take up the CCBC term of “nantissement” for immoveable securities with dispossession. Thus under the CCQ, only moveable hypothecs, and not immoveable ones, may be formed by dispossession [107]. Immoveable hypothecs can only be formed by following the various registration and formality requirements. 2702 A movable hypothec with delivery is granted by physical delivery of the property or title to the creditor or, if the property is already in his hands, by his continuing to physically hold it, with the grantor's consent, to secure his claim. 2710 A movable hypothec on a claim held by the grantor against a third person or on a universality of claims may be granted with or without delivery. // However, in either case the creditor may not set up his hypothec against the debtors of hypothecated claims as long as it may not be set up against them in the same way as an assignment of claim. Requirement of Sufficient Description 2694 An immovable hypothec is valid only so far as the constituting act specifically designates the hypothecated property. 2697 A sufficient description of the hypothecated property shall be contained in the act constituting a movable hypothec or, in the case of a universality of movables, an indication of the nature of that universality. 2689 An act validly constituting a hypothec indicates the specific sum for which it is granted. // The same rule applies even where the hypothec is constituted to secure the performance of an obligation of which the value cannot be determined or is uncertain. Ciotola, “Le Lendemain de la Mise en Vigeur du Nouveau Droit des sûretés” 1997 [135]: Notes that 2689’s requirement about the specific value of the hypothecary claim is strictly enforced. So a hypothec guaranteeing a future debt of uncertain size is invalid [137]. But hypothecs related to lines of credit may be valid [137; he cites 2797… not clear why this proves his point]. There also seem to be exceptions to the strict application of the need for a determinate amount of the hypothec, in that interest and costs can be added to the value of the debt a hypothec secures. The other requirements relating to the scope of the property secured by the hypothec have been treated less strictly. DC – Caisse populaire de Thetford Mines c Ed-Vic inc, 1996 QCCS [156] Facts: EV was a struggling business that obtained an increase in its line of credit from the Caisse just prior to bankruptcy. This increase was guaranteed originally by a CCBC security with a very vague definition of the debts it covered. The CCBC security was later transformed into a moveable hypothec for $45,000. The increase in the permitted overdraft was to be an extra $30,000 of which $27,000 was used when EV went bankrupt. The debt is admitted, but EV’s trustee in bankruptcy claims that the $27,000 debt is unsecured because there was no valid hypothec. Issue: Was the hypothec valid? Holding: Yes. Reasoning: The hypothec here was successor to a general transport of claims under the CCBC. The CCBC security would be invalid under current law, since a hypothec for “current and future debts” would violate 2689. Here though, the moveable hypothec registered after the CCQ came into force was for the sum of $45,000. Thus the moveable hypothec satisfies 2689. Ratio: The requirement for a specific sum under 2689 will be strictly enforced. DC – Re 3540618 Canada inc, 2000 QCCS [190] Facts: Before going bankrupt, 3540618 acquired certain goods from Camping Gatineau inc. To guarantee the sale price, Camping Gatineau received a moveable hypothec over several items of property. Most were specifically described, but one of these items was “l’inventaire des pièces neuves et usagées”. The trustee in bankruptcy objects to this security, claiming it is too vague to be valid hypothec. The registrar of bankruptcy also found the clause ambiguous, stating that it wasn’t clear if future inventory was included. Issue: Does the hypothec provide a sufficient description? Holding: Yes. Reasoning: The Minister’s Comments indicate that 2697 was intended to soften the requirement for a precise description of the hypothecated goods, in order to make challenges to hypothecs on such a technical basis less common. Doctrine confirms this interpretation. Here there was more than enough information. Finally, the CCQ states that hypothecs on universalities automatically extend to replacement property. So there was no need to specify that future inventory was included in the hypothec - it would be by operation of law. Ratio: The sufficient description requirement of 2697 is simple to fulfill. Object and Scope of HypothecsAccession and real subrogation are defined at [134]. Real subrogation is specifically authorized in several articles of the book on hypothecs, generally those relating to universalities (2674-2676). Another example is 2497, which gives hypothecary creditors the right to collect the insurance proceeds arising from the loss/damage of the hyothecated property. It is unclear to what extent real subrogation can be invoked beyond those parts of the code that explicitly authorize it [134]. Note that there is no general “proceeds” protection in the CCQ as there is under the PPSA. Universalities have a rule that looks like the PPSA proceeds rule at 2674, but there is no general rule. Additionally, the CCQ only allows you to proceed against one good at a time - either the original good or the proceeds, while the PPSA allows you to proceed against both. Because hypothecs are accessory rights, they can’t be put on another accessory right, like a servitude or another hypothec. Although in theory you could hypothecate the underlying contractual debt which gave rise to the other hypothec, which would allow you to acquire that other hypothec at the same time you got rights over the contract. General CCQ Provisions 2666 A hypothec may be made over corporeal or incorporeal property, moveable or immoveable (but not both), and over one, many, or a universality of property. 2662 A hypothec is indivisible and subsists in its entirety over all the charged properties, over each of them and over every part of them, even where the property or obligation is divisible. 2668 Property exempt from seizure may not be hypothecated. // The same rule applies to movable property belonging to a debtor which furnishes his main residence and which is used by and is necessary for the life of the household. 913 Objets hors commerce can’t be hypothecated, because they can’t be alienated. An unalienable property is unseizable too. 2669 A hypothec granted on the bare ownership does not extend to the full ownership upon extinction of the dismemberment of the right of ownership. 2670 A hypothec on the property of another or on future property begins to affect it only when the grantor acquires title to the hypothecated right. 1212 Stipulations of unalienability are generally invalid in Québec, unless there is a valid reason and they are created by gift or will. Even then they have to be temporary. 2649 Like 1212, but for stipulations of unseizability. And these ones must be registered to be opposable to third parties. 2678 Where what is owed to the creditor is the object of a tender or deposit in accordance with this Code, the court may, following an application by the debtor making the tender or deposit, authorize the extension of the hypothec on the property tendered or deposited, and it may allow the amount initially registered to be reduced. // Once the reduction of the initial amount is entered in the appropriate register, the debtor is no longer entitled to withdraw his tender or the property deposited. 1051 Notwithstanding articles 2650 and 2662, a hypothec, any additional security accessory thereto or any preferences existing at the time of registration of the declaration of co-ownership on the whole of an immovable held in co-ownership are divided among the fractions according to the relative value of each or according to any other established proportion. Financial Scope of Hypothec 2667 A hypothec secures the capital, the interest accrued thereon and the legitimate costs, other than extra-judicial professional fees, incurred for their recovery or for conserving the charged property 2762 Basically repeats 2667 in the remedies chapter, underlines that extrajudicial fees (lawyer costs) may never be recovered. 2668 Property exempt from seizure may not be hypothecated. //The same rule applies to movable property belonging to a debtor which furnishes his main residence and which is used by and is necessary for the life of the household. 2959-2960 Registration and priority rules for interest. Undivided Co-ownership 2679 A hypothec on an undivided share of a property subsists if the grantor or his successor preserves rights over some part of the property by partition or other act declaratory or act of attribution of ownership, subject to the Book on Successions. // If the grantor does not preserve any rights over the property, the hypothec nevertheless subsists and extends, according to its rank, to the price of transfer payable to the grantor, to the payment resulting from the exercise of a right of redemption or a first refusal agreement, or to the balance payable to the grantor. Substitution of Hypothecated Property 2700 A movable hypothec on property that is not alienated in the ordinary course of business of an enterprise and that is not registered in a file opened under the description of the property is preserved by filing a notice of preservation of hypothec in the register of personal and movable real rights.// The notice shall be registered within 15 days after the creditor is informed in writing of the transfer of the property and the name of the purchaser, or after he consents in writing to the transfer. The creditor transmits a copy of the notice to the purchaser within the same time. //The name of the debtor or grantor and of the purchaser and a description of the property shall be indicated in the notice. 2674 A hypothec on a universality of property subsists but extends to any property of the same nature which replaces property that has been alienated in the ordinary course of business of an enterprise. // A hypothec on an individual property alienated in the same way extends to property that replaces it, by the registration of a notice identifying the new property. // If no property replaces the alienated property, the hypothec subsists but extends only to the proceeds of the alienation, provided they may be identified. [Two things (1) the final paragraph of 2674 applies to both universalities and individual hypothecs. (2) Hypothecs on universalities extend automatically, but individual hypothecs require registration each time. Which is silly - why should a hypothec of two motorcycles be automatic, when a hypothec over one is not? - Mike] Future Property 2670 A hypothec on the property of another or on future property begins to affect it only when the grantor acquires title to the hypothecated right. Accession and Transformations Moveable/Immoveable 2671 A hypothec extends to everything united to the property by accession. 2672 Movables charged with a hypothec which are permanently physically attached or joined to an immovable without losing their individuality and without being incorporated with the immovable are deemed, for the enforcement of the hypothec, to retain their movable character for as long as the hypothec subsists. Note: jurisprudence allows the moveable hypothec to prime over the immoveable hypothec in the cases outlined in 2672, since otherwise 2672 would be useless. Recall that 2672 is referring to 903 CCQ. 2673 A hypothec subsists on the new movable resulting from the transformation of property charged with a hypothec and extends to property resulting from the mixture or combination of several movables of which some are so charged. A person acquiring ownership of the new property, particularly through application of the rules on movable accession, is bound by such hypothecs. 2677 A hypothec on certain and determinate shares of the capital stock of a legal person subsists on the shares or other securities received or issued on the purchase, redemption, conversion or cancellation or any other transformation of the hypothecated shares. Publication of the hypothec by registration subsists only if the registration is renewed against the shares or other securities received or issued. // The creditor may not object to the transformation on the ground of his hypothec. 2796 Where a movable property is incorporated in an immovable, the movable hypothec may subsist as an immovable hypothec, notwithstanding the change of nature of the property, provided it is registered in the land register; it is ranked according to the rules set out in the Book on Publication of Rights. 2953 But you have to republish your hypothec when there is accession/transformation. Universalities 2674 A hypothec on a universality of property subsists but extends to any property of the same nature which replaces property that has been alienated in the ordinary course of business of an enterprise. // A hypothec on an individual property alienated in the same way extends to property that replaces it, by the registration of a notice identifying the new property. // If no property replaces the alienated property, the hypothec subsists but extends only to the proceeds of the alienation, provided they may be identified. 2675 A hypothec on a universality of property subsists notwithstanding the loss of the hypothecated property where the debtor or the grantor replaces it in a reasonable time, having regard to the quantity and nature of the property. 2676 A hypothec on a universality of claims does not extend to the subsequent claims of the person granting the hypothec when such claims result from the sale of his other property by a third person exercising his rights.// Nor does it extend to a claim under an insurance contract on the other property of the grantor. DC – Caisse populaire Laurier c Lunetterie des Galeries inc, 2000 QCCA [153] Facts: The Caisse is attempting to seize and sell various pieces of property belonging to the gallery. The Caisse had a commercial nantissement on all of the gallery’s property. One such item was a Harley Davison motorcycle that was transferred to the gallery by it’s own in order to increase its asset base and obtain the loan. Prior to the Caisse bringing proceedings, the gallery sold the bike to Motos Julien, and it then sold the bike to Kimpex Action. The gallery informed the Caisse of the sale nearly a year after it happened, and even then only told the Caisse about Motos Julien, not Kimpex Action. Issue: Can the Caisse assert a claim over the bike? Holding: No. Reasoning: The sale here from the gallery to MOtos Julien out of the ordinary course of business for a glasses store, so article 2700 CCQ comes into play. The notification to the Caisse was defective, in that it only told the Caisse about the original recipient of the bike (the notice was delivered a year late). To be valid, the notice must provide the current owner of the property on the date the notice was delivered. By the time the notice was delivered, Kimpex Action was the owner, but this fact was not disclosed in the notice to the Caisse. Thus the Caisse can still exercise its rights. Additionally, the sale by Moto Julien to Kimpex was in the ordinary course of Moto Julien’s business, so Kimpex acquires the bike free of any hypothec. The Caisse can claim the funds received by Moto Julien, but that is all. Ratio: (1) The notice under 2700 must give the name of the current owner of the hypothecated property; (2) Illustration of scope of hypothec over time and across owners. Comment: There’s a complicated droit transitoire issue I’m glossing over. I don’t think that’s important though. DC – Alta Mura Construction c Société des parcs de sciences naturelles du Québec, 2003 QCCA [158] Facts: The SPSNQ holds certain lands as an emphyteutic lessee of the State. Alta Mura attempts to register a legal hypothec against the property. Judicial History: The trial judge ruled that the legal hypothec was invalid, because the ultimate owner of the immoveable was the state, and the SPSNQ was merely the emphyteutic lessee. Since the state’s property cannot be seized, the judge believed the legal hypothec was invalid. The judge also concluded that a no-assignment clause under the emphyteutic lease constituted a valid stipulation of inalienability. Issue: (1) Can a legal hypothec be inscribed against an emphyteutic lessee? (2) Did the no-assignment clause constitute a stipulation of inalienability? Holding: (1) Yes; (2) No. Reasoning: (1) Article 2726 speaks of “the immoveable” which the trial judge took to mean “the physical building” and thus a reference to the ultimate ownership of the property. Here though, a right which was inscribed with a legal hypothec was the right of the emphyteutic lessee, not the state’s bare property. And the CCQ explicitly allows the seizure of emphyteutic rights separately from the bare property right (1199 CCQ). It was an error for the trial judge to consider the state, and not SPSNQ’s property rights. (2) The mere absence of price does not make a contract gratuitous. Indeed, an emphyteutic lease can never be gratuitous, since the lessee always has an obligation to improve the property. Thus the contract between the State and SPSNQ was not gratuitous, thus any stipulation of inalienability would be invalid and of no effect. Ratio: The word “immoveable” in 2726 refers to the real right, not a physical object. Comment: The analysis here would also apply to seizure of superficiary/subsoil rights. Effects of HypothecsPratte suggests that [211] the general provisions on the effects of hypothecs only applies to moveable hypothecs with dispossession. Pratte also points out that 2737’s rule that the creditor collects the fruits and revenues is not a hypothecary recourse in the sense of 2748. General Effects GENERAL PROVISIONS 2733 A hypothec does not divest the grantor or the person in possession, who continue to enjoy their rights over the charged property and may dispose of it, subject to the rights of the hypothecary creditor. 2734 Neither the grantor nor his successor may destroy or deteriorate the hypothecated property or materially reduce its value except by normal use or in case of necessity. // Where he suffers a loss, the creditor may, in addition to his other remedies, and even though his claim is neither liquid nor exigible, recover damages and interest in compensation up to the amount of his claim and with the same right of hypothec; the amount so collected is imputed upon his claim. 2735 Hypothecary creditors may institute legal proceedings to have their hypothec recognized and interrupt prescription, even though their claims are neither liquid nor exigible. RIGHTS AND OBLIGATIONS OF CREDITORS IN POSSESSION OF HYPOTHECATED PROPERTY 2736 Where the creditor of a movable hypothec with delivery holds the property charged, he shall do whatever is necessary to preserve it; he may not use it without the permission of the grantor. 2737 The fruits and revenues of the hypothecated property are collected by the creditor.// Unless otherwise stipulated, the creditor hands over the fruits collected to the grantor, and applies the revenues collected, first, to expenses, then to any interest owing to him, and lastly to the capital of the debt. [Fruits and revenues defined at 910 CCQ - Mike] 2738 Where shares of the capital stock of a legal person are redeemed for cash by the issuer, the creditor collecting the price applies it as if it were revenue. 2739 The creditor is not liable for loss of the hypothecated property by superior force or as a result of its ageing, perishability, or normal and authorized use. 2740 The grantor is bound to repay to the creditor his expenses incurred for the preservation of the property. 2741 The grantor may not recover possession of the hypothecated property until performance of his obligation, unless the creditor abuses the property. // The creditor loses his hypothec upon a judgment compelling him to return the property. 2742 An heir of the debtor who has paid his share of the debt may not demand his share of the hypothecated property until the whole debt is paid. //An heir of the creditor may not, on receiving his share of the debt, return the hypothecated property to the prejudice of any unpaid coheir. Universalities: Self-extending 2674 A hypothec on a universality of property subsists but extends to any property of the same nature which replaces property that has been alienated in the ordinary course of business of an enterprise. // A hypothec on an individual property alienated in the same way extends to property that replaces it, by the registration of a notice identifying the new property. // If no property replaces the alienated property, the hypothec subsists but extends only to the proceeds of the alienation, provided they may be identified. Hypothecs over Claims: See 1.5.4 Opposability and Priorityi) Opposability and PublicationGeneral Rules 2663 Hypothecary rights may be set up against third persons only when the hypothec is published in accordance with this Book or the Book on Publication of Rights. 2941 Publication of rights allows them to be set up against third persons, establishes their rank and, where the law so provides, gives them effect. //Rights produce effects between the parties even before publication, unless the law expressly provides otherwise. 2699 Rules for moveable hypothecs on bills of landing and negotiable instruments. 2943 A right that is registered in a register in respect of property is presumed known to any person acquiring or publishing a right in the same property. //A person who does not consult the appropriate register … may not invoke good faith to rebut the presumption. Protection for Buyers (From Claire Gowdy’s summary) There is no general rule in the CCQ stating that a buyer of hypothecated property sold in the ordinary course of business takes free from any hypothec. However, numerous articles in the CCQ assume this to be the case (most obviously 2700, but also 2732). Title-based security (like leases and conditional/installment sales) explicitly state that buyers take free from existing security interests CCQ 1713-1715). Universalities and Sales in the Ordinary Course of Business 2674 A hypothec on a universality of property subsists but extends to any property of the same nature which replaces property that has been alienated in the ordinary course of business of an enterprise. // A hypothec on an individual property alienated in the same way extends to property that replaces it, by the registration of a notice identifying the new property. // If no property replaces the alienated property, the hypothec subsists but extends only to the proceeds of the alienation, provided they may be identified. 2700 A movable hypothec on property that is not alienated in the ordinary course of business of an enterprise and that is not registered in a file opened under the description of the property is preserved by filing a notice of preservation of hypothec in the register of personal and movable real rights.// The notice shall be registered within 15 days after the creditor is informed in writing of the transfer of the property and the name of the purchaser, or after he consents in writing to the transfer. The creditor transmits a copy of the notice to the purchaser within the same time. //The name of the debtor or grantor and of the purchaser and a description of the property shall be indicated in the notice. Moveable Hypothecs with Dispossession 2703 A movable hypothec with delivery is published by the creditor's holding the property or title, and remains so only as long as he continues to hold it. (special rules for holding, interruption of holding at 2704) 2705 Delivery of the property to a third party can constitute holding by the creditor, but does not constitute publication except from the moment the third party receives the written proof of the hypothec. 2707 A movable hypothec granted with delivery may be published by registration at a later date, provided publication is not interrupted. 2945 Publication by delivery ranks at the time delivery is accomplised. Moveable Hypothecs without Dispossession 2663 plus 2938 para 2 Must be published to be opposable. Immoveable Hypothecs 2663 plus 2938 para 1 Must be published to be opposable. 2982 What counts as sufficient documentation for registry. Legal Hypothecs 2725 Legal hypothecs of the state must be published to have effect. 2726 Construction hypothecs do not need to be published. Although they can expire quickly if not published (2727). 2729 Legal hypothecs of co-owners must be published 2730 Judgment hypothecs must be published. DC – Re Kleer Vu Banner Corp, [244] Facts: Kleer is a federal CBCA company. It was originally called 3353184 Canada inc. It did not register under the Quebec business registry using that name, although it was supposed to do so once it began operating in Quebec. On January 20, it changed its name to Kleer Vu Banner Corp. On January 21, it granted a hypothec over all of its property to the Caisse. The Caisse registered this under the debtor’s old name (3353184 Canada inc). Three years later, Kleer gave a hypothec to CTI, which CTI registered under the name Kleer Vu Banner Corp. Kleer later went backrupt. CTI claims the Ciasse’s hypothec is not valid, because it was not registered under the name of the debtor at the relevant time. Issue: Did the Caisse’s failure to use the name “Kleer” render its hypothec invalid? Holding: Yes. Reasoning: The Court of Appeal has confirmed that the publication must occur under the correct name of the debtor, and that an error in this respect will result in the nullity of the publication [246]. The name changed on the 20th of January. Thus on the 21st, date of the signature of the loan agreement, and on the 28th, date of publication, the name used by the Caisse was incorrect, since the debtor’s name was Kleer Vu. The Caisse’s various arguments based on corporate law and the failure to register under the Quebec registry must be rejected. What is important here is the integrity of the register [251]. Ratio: Comment: The judge makes numerous comments that imply he’s nullifying the hypothec on the basis of fault. He states that the Caisse was negligent, and keeps underlining that they could have figured out the true name of the company. I’m not sure this was necessary. The wrong name is the wrong name, no matter why it happened! ii) Ranking and PriorityGeneral 2945 Unless otherwise provided by law, rights rank according to the date, hour and minute entered on the memorial of presentation or, in the case of an application for registration in the land register, in the book of presentation, provided that the entries have been made in the proper registers.// Where publication by delivery is authorized by law, rights rank according to the time at which the property or title is delivered to the creditor. 2956 Cession of rank between creditors must be published. The cession inverts the rank of their respective claims, but cannot prejudice intervening creditors. 2947 Where several registrations concerning the same property and rights of the same nature are requested at the same time, the rights rank concurrently. 2957 Publication does not interrupt prescription. 2963 Notice given or knowledge acquired of a right that has not been published never compensates for absence of publication. 2959-2960 Registration and the effect this has on the ranking of claims for interest on debts.7 Exceptions to the General Rule of First-to-register (all below) 2952 (Legal hypothecs for construction industry - most important exception); 2949-2950 (universalities); 2951, 2953 (accession/transformation issues); 2956 (cession of rank) Example for 2956: A has a first-ranking hypothec for $100, B a second-ranking hypothec for $500 and C a third-ranking hypothec for $500. If A cedes his rank to C, C’s entire claim can’t move into the first rank. Only $100 can. So the final result looks like this: C $100 first-ranking, B $500 second-ranking, and then A $100/C $400 both tied for third-ranking. Moveable Hypothecs 2945 General rule Ranks according to date, hour, and minute of publication. 2954 Special rule: A movable hypothec acquired on the movable of another or on a future movable ranks from the time of its registration but after the vendor's hypothec, if any, created in the grantor's act of acquisition, provided it is published within 15 days after the sale. 2951 Rank of hypothecs on moveable property that is incorporated into an immoveable. 2953 Hypothecs on moveables that are mixed or combined with other moveables to make new property or a mass. Need to republish your hypothec after the transformation. Immoveable Hypothecs 2945 General rule: ranks according to date, hour, and minute of publication. 2948 Special rule: An immovable hypothec ranks only from registration of the grantor's title, but after the vendor's hypothec created in the grantor's act of acquisition.// If several hypothecs have been registered before the grantor's title, they rank in the order of their respective registrations. Hypothecs on Universalities 2949 A hypothec affecting a universality of immovables ranks, in respect of each immovable, only from the time of registration of the hypothec against each.// Registration of a hypothec against immovables acquired subsequently is obtained by presenting a notice containing the description of the immovable acquired and a reference to the act creating the hypothec, and setting forth the specific amount for which the hypothec was granted.// However, if the hypothec was not published in the land book for the registration division in which the immovable acquired subsequently is located, its registration is obtained by means of a summary of the act creating the hypothec, containing a description of the acquired immovable. 2950 A hypothec affecting a universality of movables ranks, in respect of each movable included in the universality, only from registration thereof in the register, under the description of the grantor and under the indication of the nature of the universality. Hypothecs on Claims 2710 A movable hypothec on a claim held by the grantor against a third person or on a universality of claims may be granted with or without delivery. // However, in either case the creditor may not set up his hypothec against the debtors of hypothecated claims as long as it may not be set up against them in the same way as an assignment of claim. Floating Hypothecs 2955 Registration of the notice of crystallization determines the rank of a floating hypothec.//If several floating hypothecs are the subject of notices of crystallization, they rank among themselves from their respective registrations, regardless of the registration of the notices of crystallization. Legal Hypothecs 2952 Legal hypothecs in favour of persons having taken part in the construction or renovation of an immovable are ranked before any other published hypothec, for the increase in value added to the immovable; such hypothecs rank concurrently among themselves, in proportion to the value of each claim. Boodman, Quelques Problèmes de publicité (1995) [239]: Points out that errors in the name of the debtor will cause huge problems for the integrity of the registry, and that erroneous registrations do not fulfill the requirements of 2981 as to accuracy of information submitted. So this should normally be enough to invalidate the registration in question. For a person, an error in their birth-date will render it impossible to find them using their real name and real birth-date, so this should invalidate a registration [241]. Errors in names of physical and legal persons will sometimes find the correct debtor given that the search engine returns phonetically-similar names. So it is difficult to transform this into a rule of law about the validity of publicity under a misspelled name. The result may depend on how erroneous the name is (John and Jon aren’t as bad as John and Jean, and both are better than Jean and Javier) DC – Massé c Cousineau, 1999 QCCA [255] Facts: Lucien Poitras granted a series of hypothecs on his property. The first in time was to Blanche Poitras for $40,000 and the contract specifically stated that his hypothec would rank second to a hypothec which would be granted to Rémi Cousineau. The second in time was the hypothec to Rémi Cousineau for $75,000. Cousineau’s hypothec stated that it was first on the house and second on the land. No official cession of rank was published by Poitras and Cousineau until much later. The third in time was to Massé for $33,000. Blanche Poitras (the first in time) later ceded her rank to Massé (the last in time), and this cession was published prior to the cession between Poitras and Cousineau. Issue: Given that the cession between Poitras and Cousineau was not published, but the cession between Poitras and Massé was, do Massé’s rights outrank those of Cousineau? Holding: Massé’s hypothec is inferior to Cousineau’s hypothec. Reasoning: Cessions of rank can be implicit. Here Poitras made an offer to cede her rank in her hypothec, and Cousineau accepted that offer in his hypothec. At this point the reasoning become murky: it is not at all clear whether the QCCA thinks that Cousineau wins because there the implicit cession was published, and is therefore opposable to everyone, or because even though the transfer was not published, it still binds Massé. Under this section approach, it binds Massé because she can inherit only the rights that Poitras had, and Poitras’ cession to Cousineau was valid between the two of them. So when Massé steps into Cousineau’s shoes, she is bound by the cession to Cousineau Ratio: (1) Cession of rank can be implicit; (2) A creditor who steps into the shoes of another credit via cession of rank is bound by any other cessions made by that creditor, even if these cessions are not opposable to third parties [Assuming that’s the basis of the decision - Mike] ii) Priority and RankingThe general rule is that all hypothecs rank from the date, hour, and minute of their publication in the appropriate register. Possession counts as publication for the pledge. There are special rules for some legal hypothecs and for some kinds of conventional hypothecs. Hypothecs on universalities 2950 A hypothec affecting a universality of movables ranks, in respect of each movable included in the universality, only from registration thereof in the register, under the description of the grantor and under the indication of the nature of the universality. Hypothecs of Indeterminate or Unliquidated Claims 2680 In the case of distribution or collocation among several hypothecary creditors, the creditor of an indeterminate, unliquidated or conditional claim is collocated according to his rank, but subject to the conditions prescribed in the Code of Civil Procedure (chapter C-25). Hypothecary RemediesGeneral CCQ Provisions 1375 All contractual obligations must be performed and extinguished in good faith. 1743 Sellers of immoveables wishing to invoke a resolutory clause must put their buyer en demeure, giving them a 60 day notice and registering the notice against the property. The rules relating to the hypothecary remedy of taking in payment apply. 1594 Procedure for mise en demeure. 1626 The creditor can take all necessary or useful measures to protect his rights. 1627 Oblique action: allows creditor to act in the debtor’s name to assert patrimonial rights of the debtor that will have the effect of protecting the creditor’s own rights. 1631 Paulian Action: Creditors can set aside transactions taken by debtors if those transactions were fraudulent and intended to defeat the rights of creditors, such as by rendering the debtor insolvent or selling off valuable property to friends and family for a pittance. CCQ Provisions on Hypothecary Rights 2748 In addition to their personal right of action and the provisional measures provided in the Code of Civil Procedure (chapter C-25), creditors have only the hypothecary rights provided in this chapter for the enforcement and realization of their security.// Thus, where their debtor is in default and their claim is liquid and exigible, they may exercise the following hypothecary rights: [i] they may take possession of the charged property to administer it, [ii] take it in payment of their claim, [iii] have it sold by judicial authority or [iv] sell it themselves. 2749 Creditors may not exercise hypothecary rights before the period in article 2758 for surrender of the property has expired. 2750 Earlier ranking creditors take priority over later creditors when exercising their hypothecary rights. // … 2754 Where later ranking creditors are secured by a hypothec on only one of the properties charged in favour of one and the same creditor, his hypothec is spread among them, where two or more of the properties are sold under judicial authority and the proceeds still to be distributed are sufficient to pay his claim, proportionately over what remains to be distributed of their respective prices. [I have no idea what this means… the French version is not much clearer! - Mike] 2757 Creditor intending to exercise a hypothecary right must file notice with the registry, plus evidence the notice was served on the debtor. 2758 The notice must include: a description of the hypothecated property; any failure by the debtor to fulfil his obligations; a reminder that the debtor can remedy the default; the amount of the claim in capital and interest; and the nature of the hypothecary right which the creditor intends to exercise. The notice must include call on the person against whom the right is to be exercised to surrender the property before the expiry of the period specified in the notice. // This period is of 20 days after registration for movable property; 60 days for immovable property, or 10 days if the creditor intends to take possession of the property. It for consumer moveable property the period is always 30 days. 2760 The voluntary alienation of property charged with a hypothec, effected after the creditor has registered a prior notice of the exercise of a hypothecary right, may not be set up against the creditor unless the acquirer, with the consent of the creditor, personally assumes the debt, or unless a sum sufficient to cover the amount of the debt, interest and costs due to the creditor is deposited. 2761 Anyone can defeat the rights of the hypothecary creditor by paying the money that remains to be paid, curing any default, etc. This right can be exercised at any time prior to the taking in payment/sale, or if the creditor has chosen administration, at any time. Summary of Requirements to Invoke Hypothecary Rights From 2748 we see that the debtor must be in default (see 1594 CCQ) and the claim must be both liquid and exigible. The hypothecary creditor must also give the required notice under 2757 and register the notice. The creditor must also allow the time period under 2758 to cure the default. These are all preconditions for the right to invoke hypothecary recourses. Many of the recourses below will also be preceded by the surrender (voluntary or forced) of the property. Surrender of Property (Délaissement) 2763 Surrender is voluntary or forced. 2764 Surrender is voluntary where, before the period indicated in the prior notice expires, the person against whom the hypothecary right is exercised abandons the property to the creditor in order that the creditor may take possession of it or consents in writing to turn it over to the creditor at the agreed time.// If the hypothecary right exercised is taking in payment, voluntary surrender shall be attested in a deed made by the person surrendering the property and accepted by the creditor. 2765 Surrender is forced where the court orders it after ascertaining the existence of the claim, the debtor's default, the refusal to surrender voluntarily and the absence of a valid cause for objection … 2767 Surrender is also forced where the court … orders surrender of the property before the period indicated in the prior notice expires, where there is reason to fear that otherwise recovery of his claim may be endangered, or where the property may perish or deteriorate rapidly. In the latter cases, the creditor is authorized to exercise his hypothecary rights immediately. // … 2768 A creditor who has obtained surrender of the property has simple administration thereof until the hypothecary right he intends to exercise has in fact been exercised. 2769 The person against whom the hypothecary right is exercised and who is not responsible for the debt becomes personally liable therefor if he fails to surrender the property within the time allotted by the judgment. Payette (quoted in Fiducie Desjardins c Société immobilière Goyer) [345]: Surrender means “le fait pour le détenteur du bien qu’il soit le débiteur, le constituant, ou un tiers, d’abandonner le bien entre les mains du créancier hypothécaire pour que celui-ci puisse exercer ses recours.” Fiducie Desjardins c Société immobilière Goyer) [345]: “Le tribunal est d’avis que pour qu’un délaissement soit effectif, un geste positif doit être posé par le détenteur de l’immeuble. Le geste positif doit indiquer l’intention du détenteur de ne pas faire échec au droit du créancier au délaissement. Le simple fait de quitter l’immeuble [ne suffit pas].” NOTE: If the debtor is an insolvent company, and the creditor plans to exercise a hypothecary remedy against all or substantially all of the company’s property, accounts receivables, or inventory , the provisions of section 244 of the Bankruptcy and Insolvency Act come into play (these are three separate categories - if you are going to seize all or almost all of any of them, 244 applies). In particular a ten-day notice is required. Presumably this is on top of the CCQ notice periods. i) AdministrationThis is a remedy that only applies to the property of an enterprise (2773). The whole business needs to be seized and administered, at which point the creditor has full administration. ii) Taking in Possession (Foreclosure)2782 Taking in payment extinguishes the obligation.// A creditor who has taken property in payment may not claim what he pays to a prior or previous hypothecary creditor. In such a case, he is not entitled to subrogation against his former debtor. 2781 Taking in payment formalized by a judgment (if surrender is involuntary) or by a deed of surrender (if surrender voluntary). 2783 Taking in payment makes the creditor the owner. Taking in payment also extinguishes all hypothecs inferior in rank to that of the creditor who takes the property, and any real rights created after he registered his notice are not opposable to him. 2779 Subsequent creditors may require the creditor attempting to take in possession to sell the property instead. 2780 If forced to sell the property, the seizing creditor can instead pay off the hypothecs of those who ask that the property be sold. 2778 If at least half of the obligation is discharged, taking in payment requires court approval, unless the person against whom the right is exercised has voluntarily surrendered the property. iii) Judicial Sale2791 A sale takes place by judicial authority where the court designates the person who will proceed with it, fixes the conditions and charges of the sale, indicates whether it may be made by agreement, a call for tenders or public auction and, if it considers it expedient, after enquiring as to the value of the property, fixes the upset price. 2792 No creditor may require that the sale be subject to his hypothec. 2793 CCP rules on sale of property to another apply. Interested parties must be notified. 2794 Sale by judicial authority purges the real rights to the extent provided by the Code of Civil Procedure (chapter C-25) in respect of the effect of the order to sell. iv) Sale by Creditor2784 A creditor who holds a hypothec on the property of an enterprise and who has filed a prior notice at the registry office indicating his intention to sell the charged property himself may, after obtaining surrender of the property, proceed with the sale by agreement, by a call for tenders or by public auction. 2785 The creditor shall sell the property without unnecessary delay, at a commercially reasonable price, and in the best interest of the person against whom the hypothecary right is exercised.// If there is more than one property, he may sell them together or separately. v) Debtor’s Rights2761 A debtor or a person against whom a hypothecary right is exercised, or any other interested person, may defeat exercise of the right by paying the creditor the amount due to him or, where that is the case, by remedying the omission or breach set forth in the prior notice and any subsequent omission or breach, and, in either case, by paying the costs incurred.// This right may be exercised before the property is taken in payment or sold, or, if the right exercised is taking in possession, at any time. vi) Doctrine and Case LawPratte, Les sûretés dans le Code civil du Québec, 2006 [307]: Jurists from Continental civilian countries would be astonished at the wide range of hypothecary recourses available in Québec. CCBC remedies differed depending on whether they applied to moveable or immoveable property, but the CCQ has a unified remedies regime. A hypothecary creditor’s rights are always in addition to any personal rights. It is important to keep in mind that conservatory measures (1626) can often be very important “remedies” even if they aren’t subject to the hypothecary recourse regime. The creditor can also ask for declaratory judgments to avoid prescription without going through the whole préavis process. And if someone else seizes the building and sells it, the hypothecary creditor can demand his share of the proceeds. Jacques, Droit comparé : mode d’exécution d’une sûreté mobilière en Ontario et Quebec” 2005 [310]: His thesis is that it is too difficult to seize property quickly in the event of a default in Québec. Often a creditor’s only option is 2767 - délaissement forcé - if the creditor wishes to obtain the property quickly. Belleau, Précis de procédure civile du Québec, 2003 [315]: Describes the CCP provisions for forced execution against an immovable. Notes that you can’t use contempt of court as a means of forced execution. DC – Boyer c Société en commandite Acquiville, 1996 QCCS [317] Facts: Several shareholders of Acquiville guaranteed the real estate purchase their partnership signed with Boyer. When the partnership stopped making its payments, Boyer asked for, and received, forced surrender of the building. However, Boyer never proceeded with his hypothecary recourse, and instead sued the partners personally. Another hypothecary creditor subsequently took the building in payment. The partners plead that having obtained forced surrender, Boyer cannot sue them personally. Issue: Is a creditor who obtains forced surrender of the hypothecated property restricted to his hypothecary rights? Holding: No. Reasoning: Article 2748 is clear that the hypothecary rights of the parties are in addition to their personal rights. Jurisprudence has always affirmed this point of view. “Un créancier hypothecaire ayant déjà donné un préavis peut changer d’idée et exercer un autre recours hypothécaire…. C’est sa créance, et non son hypothèque, qui lui attribue le droit à un recours personnel.” Ratio: A hypothecary creditor does not forgo a personal recourse by seeking forced surrender of the hypothecated property. DC – Fiducie Desjardins c Société immobilière Goyer, 1994 QCCS [339] Facts: Desjardins asks for a forced surrender order after Goyer defaulted on several payments under an immoveable hypothec. Goyer admits the defaults but opposes the order, stating that it has already voluntarily left the premises, so there was voluntary surrender. Issue: Was there a volutnary surrender? Holding: No. Reasoning: Goyer’s position is ridiculous. If Goyer is not occupying the immoveable, how can it oppose this order? Moreover, there has not been voluntary surrender here. “La délaissement voluntaire dans le cadre d’une action hypothecaire se faisait par la production au greffe d’une déclaration de celui appelé à délaisser à l’effet qu’il entendait délaisser voluntairement.” Thus a positive act is needed. The debtor must not just abandon the property, but rather put it into the creditor’s control. Ratio: (1) Voluntary surrender is a positive act of putting the creditor in charge of the property, not merely leaving it. Comment: The French translation of “Surrender” in this part of the CCQ is “Délaissement”… of the two terms I think the English one captures the idea of a positive act on the debtor’s part more clearly, since you always “surrender to” someone or something. DC – Quebec (Sous Ministre de revenue) c Industrielle Alliance, 2002 QCCA [323] Facts: Alliance began taking in payment procedures against a building owned by a tax-debtor and over which it had a hypothec. The building was rented by a government agency. On 29 May, Alliance began proceedings. On the 6 July, it obtained voluntary surrender. On 13 August it published a summary of the voluntary surrender agreement. The government had ordered the agency renting the building to pay its rent straight to the State, which it is allowed to do if the building was still owned by the tax debtor. Alliance asks to recover the rent money all the way back to 29 May. Issue: At what point did Alliance become owner of the building? Holding: The 13th of August. Reasoning: Even once surrender is accepted, the creditor cannot become owner of the building until the delays imposed by the CCQ are finished, since otherwise the other hypothecary creditors would be unable to exercise their rights within the time period provided. Thus while voluntary surrender constitutes the title of the hypothecary creditor, this title cannot exist until after the delays have run. Article 2783 seems to have retroactive effect, but only as regards real rights. The rental payments here are personal rights and the payment by the lessee can be set up against Alliance. Alliance’s argument that it is entitled to the rent as a possessor in good faith (931 CCQ) must be rejected, since 2783 is public order. Moreover, it is only the publication of the surrender/judgment that renders the taking in payment opposable, so here it was only on August 13th that Alliance became owner of the building. Ratio: (1) Taking in payment does not make the hypothecary creditor owner until publication of the judgment/; (2) Personal rights accruing prior to publication of the judgment/surrender agreement (and after publication of the notice) are opposable to the creditor. Extinction2795 Hypothecs are extinguished by the loss, change of nature, exclusion from being an object of commerce or expropriation of the charged property, where such events affect the property as a whole. 2796 Where a movable property is incorporated in an immovable, the movable hypothec may subsist as an immovable hypothec, notwithstanding the change of nature of the property, provided it is registered in the land register; it is ranked according to the rules set out in the Book on Publication of Rights. 2797 A hypothec is extinguished by the extinction of the obligation whose performance it secures. In the case of a line of credit or in any other case where the debtor obligates himself again under a provision of the deed of hypothec, the hypothec, unless cancelled, subsists notwithstanding the extinction of the obligation. 2798 A movable hypothec is extinguished not later than 10 years after the date of its registration or registration of a notice giving it effect or renewing it. // Pledge is extinguished upon termination of detention. 2799 An immovable hypothec is extinguished not later than 30 years after the date of its registration or registration of a notice giving it effect or renewing it. // This rule does not apply in the case of hypothecs securing the price of emphyteusis, a rent constituted for the price of an immovable, a life annuity or a usufruct for life, hypothecs given in favour of La Financière agricole du Québec or the Société d'habitation du Québec, or hypothecs in favour of a person holding a power of attorney from the creditors to secure payment of bonds or other evidences of indebtedness. 2800 The legal hypothec of a syndicate of co-owners on the fraction of a co-owner is extinguished three years after it is registered, unless the syndicate publishes an action in default against the owner to preserve it or registers a prior notice of the exercise of a hypothecary right. 2802 Other causes of extinction of hypothecs are provided by law. [i.e. the list is not closed - Mike] Directory: pubdocs -> files files -> International maritime conventions files -> Chapter 1: Property as rights, not thing files -> Insurance Law – May 4 files -> Contractual Obligations – Prof. Helge Dedek Introduction 1 files -> Constitutional Limits on Criminal Law 1 files -> Antonio Iacovelli Winter 2005 Advanced Criminal Law files -> Private International Law – Prof. Walsh Summer 2005 files -> Part I: conceptualizing and justifying ip space 3 files -> Part I – general 5 The Sources of Int’l Air Law 5 Q? How does customary law relate to int’l law? Download 0.72 Mb. Share with your friends:
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