B-1, r. 3.1 - Code of Professional Conduct of Lawyers

Section 92 Disposition versions

2015-03-26

92. A lawyer must not act as surety or otherwise provide security for a debt in respect of which a client is a borrower or lender.

However, a lawyer may act as surety or otherwise provide security in the following cases:

(1)  the lender is a financial institution or a similar enterprise whose business includes lending money to the public, and the lender is providing funds to the lawyer or the lawyer’s spouse, parent, or child;

(2)  he is doing so for the benefit of a non-profit organization of which he is a supporter or member, provided the following conditions have been met:

(a)  the lawyer complies with sections 90 and 91; and

(b)  the non-profit organization is represented by an independent lawyer;

(3)  the lawyer holds an interest in a commercial enterprise with a client and the lender requires personal guarantees from all the partners or shareholders of the enterprise as a matter of course, provided the following conditions have been met:

(a)  the lawyer complies with sections 90 and 91; and

(b)  the lender and the partners or shareholders of the enterprise who are or were clients of the lawyer have independent legal representation.

O.C. 129-2015, s. 92.