Bijural Terminology Records

Common Law

pledge

Civil Law

pledge

Title of the Legislative Text

Bank of Canada Act, R.S.C. (1985), c. B-2

Provision

  18. The Bank may

  • ...
    • (i) make loans or advances for periods not exceeding six months to the Government of Canada or the government of any province on the pledge or hypothecation of readily marketable securities issued or guaranteed by Canada or any province;
Problem

The notion of nantissement no longer exists in civil law. This notion was replaced by "movable hypothec with or without delivery". The movable hypothec with delivery is also referred to as a "pledge"/gage, which also exists in common law.

Solution

In the French version, the term gage is added in order to better reflect the concept of "pledge" used in the English version. This term is appropriate for both legal traditions.

Harmonized Provision

(Amendment to the French version only.)

  18. The Bank may

  • ...
    • (i) make loans or advances for periods not exceeding six months to the Government of Canada or the government of any province on the pledge, hypothecation or movable hypothec without delivery of readily marketable securities issued or guaranteed by Canada or any province;

Federal Law-Civil Law Harmonization Act, No. 1, S.C. 2001, c. 4, s. 58(1)

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