Western Canada Business Litigation Blog

Category Archives: Banking

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You’re in Trouble. That’s a Guarantee!

Posted in Banking
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Guarantees are a very common form of security.  Lenders often ask for guarantees from the principals behind a business to whom they are going to extend credit.  Landlords will seek them from the principals of a corporate tenant.  Suppliers often make them part of a credit application.  Typically, guarantees are one of several documents signed… Continue Reading

Materially Altered Cheques: Who Bears the Loss?

Posted in Banking, Fraud
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You just met a nice foreign gentleman.  He asks you to assist him in facilitating a transfer of funds overseas.  You agree because he offers a 5% commission.  He produces a cheque payable to you, for a large sum, and asks you to deposit it into your bank account.  After retaining your commission, you wire… Continue Reading

A Cautionary Tale for Front Line Bank Employees?

Posted in Banking, Fraud
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A common fraud perpetrated on financial institutions is the deposit of counterfeit cheques.  The account holder distances themselves from the fraud by portraying the payment as one they thought was part of a legitimate transaction.  The funds are often withdrawn or transferred before the cheque is returned as counterfeit, usually within a matter of days. … Continue Reading

But I spent the money already!

Posted in Banking, Fraud
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There is a card in Monopoly that reads “Bank error in your favour” and which entitles you to keep the $200 wrongly credited to your account.   Banks can make errors.  Banks are also frequently the victims of fraud.  The result of this is often that a lucky customer’s account suddenly has a much larger balance. … Continue Reading

Proposed Amendments to B.C.’s Civil Forfeiture Act

Posted in Banking, Civil Forfeiture, Civil Procedure, Fraud
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In April 2006, B.C.’s Civil Forfeiture Act (“CFA”) came into force.  Seven Canadian provinces now have similar legislation.  The CFA provides a mechanism for the government, through the Director of the Civil Forfeiture Office, to seek the forfeiture of the “proceeds of unlawful activity”.  Forfeiture is ordered by the Court when it is proven that… Continue Reading

I have a right to a bank account!

Posted in Banking, Commercial
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At my in-laws recently, a rather overbearing friend of theirs was expounding to the gathered on the evils of banks and their obligations to provide anyone who wants one with a bank account.  Among other erroneous information, he opined that the right to have a bank account was inalienable and could not be denied by… Continue Reading

Saskatchewan Submarines Bank Act Security

Posted in Banking
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In a pair of companion cases, the Supreme Court of Canada unanimously turned down an opportunity to patch over a priority lacuna in the federal Bank Act, S.C. 1991, c. 46 and, instead, held such security could rank after unregistered security granted under Saskatchewan’s Personal Property Security Act, S.S. 1993, c. P-6.2.  In doing so,… Continue Reading