Bijural Terminology Records

Common Law

security, charge

Civil Law

security, charge

Title of the Legislative Text

Bankruptcy and Insolvency Act, R.S., c. B-3

Provision

 14.06 (7) Any claim by Her Majesty in right of Canada or a province against the debtor in a bankruptcy, proposal or receivership for costs of remedying any environmental condition or environmental damage affecting real property of the debtor is secured by a charge on the real property and on any other real property of the debtor that is contiguous thereto and that is related to the activity that caused the environmental condition or environmental damage, and the charge

  • (a) is enforceable in accordance with the law of the jurisdiction in which the real property is located, in the same way as a mortgage, hypothec or other security on real property; and

  • (b) ranks above any other claim, right or charge against the property, notwithstanding any other provision of this Act or anything in any other federal or provincial law.

Problem

The terms "charge/charge" are inappropriate for the civil law audience to refer specifically to the security. The neutral terms "security/sûreté" should be used instead as it is appropriate for both civil law and common law. However, the term "charge/charge" should be retained as, in addition to referring to security mechanisms, it refers to other rights, such as servitudes.

Solution

In the English version, the term "charge" is replaced by "security" in the portion of subsection (7) before paragraph (a) and the term "security" is added in paragraph (b). In the French version, the term "sûreté" is added and the term "charge" is retained.

Harmonized Provision

 14.06 (7) Any claim by Her Majesty in right of Canada or a province against the debtor in a bankruptcy, proposal or receivership for costs of remedying any environmental condition or environmental damage affecting real property or an immovable of the debtor is secured by security on the real property or immovable affected by the environmental condition or environmental damage and on any other real property or immovable of the debtor that is contiguous with that real property or immovable and that is related to the activity that caused the environmental condition or environmental damage, and the security

  • (a) is enforceable in accordance with the law of the jurisdiction in which the real property or immovable is located, in the same way as a mortgage, hypothec or other security on real property or immovables; and

  • (b) ranks above any other claim, right, charge or security against the property, despite any other provision of this Act or anything in any other federal or provincial law.

Federal Law-Civil Law Harmonization Act, No. 2, S.C. 2004, c. 25, s. 16(5).

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