HIGHLIGHTS
* A Justice of the Nova Scotia Supreme Court has outlined the factors to be considered in appointing a receiver to supervise the sale of sufficient cattle from a borrower's cattle herd to pay out a secured bank loan, in circumstances where the value of the borrower's cattle substantially exceeded the loan. The only security held by the bank was security over the borrower's cattle herd, which granted the bank the right to a receiver. The Court reviewed and applied a number of the factors set out in the 2013-2014 edition of the Annotated Bankruptcy and Insolvency Act (Houlden, Morawetz and Sarra) with respect to whether a receiver should be appointed. The Court Order required the receiver to consult with the borrower in determining what cattle would be sold in order to satisfy the borrower's concerns that a critical mass and mix of cattle be maintained for future viability of the borrower's farming operations. (Bank of Montreal v. Linden Leas Ltd., CALN/2018-011, [2018] N.S.J. No. 129, Nova Scotia Supreme Court)
NEW CASE LAW
Bank of Montreal v. Linden Leas Ltd.;
Full text: [2018] N.S.J. No. 129;
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