The Structure of Secured Priorities in Insolvency Law

Banking & Finance Law Review, Vol. 27, p. 25, 2011

26 Pages Posted: 10 Mar 2011 Last revised: 5 May 2017

See all articles by Roderick J. Wood

Roderick J. Wood

University of Alberta - Faculty of Law

Date Written: March 8, 2011

Abstract

Canadian insolvency law originally did not have much to say about the priorities of secured creditors. This has changed dramatically over the past two decades. Bankruptcy law creates several new secured charges or interests, but it destroys other types that otherwise would be effective. It also imposes a registration requirement and regulates the priority ranking of secured charges in favour of the Crown. This system of secured priorities in bankruptcy now occupies a dominant position in Canadian insolvency law and greatly influences priority outcomes in restructuring proceedings and receivership proceedings. The multi-layered hierarchical ranking of secured claims means that choices made by senior claimants have a considerable impact on junior claimants. Therefore the principles governing the marshalling of securities and the recovery of administrative expenses play a pivotal role in the structure of secured priorities in insolvency law.

Keywords: Bankruptcy, Insolvency Law, Receivership, Restructuring, Priorities, Secured Transactions

Suggested Citation

Wood, Roderick J., The Structure of Secured Priorities in Insolvency Law (March 8, 2011). Banking & Finance Law Review, Vol. 27, p. 25, 2011, Available at SSRN: https://ssrn.com/abstract=1781187

Roderick J. Wood (Contact Author)

University of Alberta - Faculty of Law ( email )

Law Centre (111 - 89 Ave)
Edmonton, Alberta T6G 2H5
Canada

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