CCQ-1991 - Civil Code of Québec

Section 2759 Disposition versions

2016-04-06

2759. A creditor holding a hypothec on securities or security entitlements within the meaning of the Act respecting the transfer of securities and the establishment of security entitlements (chapter T-11.002) may sell the securities or security entitlements or otherwise dispose of them without being required to give a prior notice, obtain their surrender or comply with the time limits prescribed by this Title, if the agreement between the creditor and the grantor so permits and, where the creditor does not have control of the securities or security entitlements, if they are, or are of a type, dealt in or traded on securities exchanges or financial markets.

A creditor who so disposes of securities or security entitlements acts on behalf of the grantor and is not bound to declare the creditor’s quality to the acquirer. The creditor imputes the proceeds of the disposition to payment of the costs incurred to dispose of the securities or security entitlements, to payment of the claims that take precedence over the creditor’s rights and, finally, to payment of the creditor’s claim; the creditor remits any surplus to the grantor. The disposition purges the real rights to the extent provided by the Code of Civil Procedure (chapter C-25.01) in respect of the effect of a sale under judicial authority.

The rules of this Title pertaining to a sale by a creditor are applicable in all other respects to the disposition of securities or security entitlements by a creditor, with the necessary modifications.

1991, c. 64, a. 2759; 2008, c. 20, s. 138; I.N. 2014-05-01; 2014, c. 1, s. 799; I.N. 2016-01-01; I.N. 2016-01-01 (NCCP); 2016, c. 4, s. 319.

2016-01-01

2759. A creditor holding a hypothec on securities or security entitlements within the meaning of the Act respecting the transfer of securities and the establishment of security entitlements (chapter T-11.002) may sell the securities or security entitlements or otherwise dispose of them without being required to give a prior notice, obtain their surrender or comply with the time limits prescribed by this Title, if the agreement between the creditor and the grantor so permits and, where the creditor does not have control of the securities or security entitlements, if they are, or are of a type, dealt in or traded on securities exchanges or financial markets.

A creditor who so disposes of securities or security entitlements acts on behalf of the grantor and is not bound to declare the creditor’s quality to the purchaser. The creditor imputes the proceeds of the disposition to payment of the costs incurred to dispose of the securities or security entitlements, to payment of the hypothecary claims prior to the creditor’s claim and, finally, to payment of the creditor’s claim; the creditor remits any surplus to the grantor. The disposition purges the real rights to the extent provided by the Code of Civil Procedure (chapter C-25.01) in respect of the effect of a sale under judicial authority.

The rules of this Title pertaining to a sale by a creditor are applicable in all other respects to the disposition of securities or security entitlements by a creditor, with the necessary modifications.

1991, c. 64, a. 2759; 2008, c. 20, s. 138; I.N. 2014-05-01; 2014, c. 1, s. 799; I.N. 2016-01-01; I.N. 2016-01-01 (NCCP).

2014-05-01

2759. A creditor holding a hypothec on securities or security entitlements within the meaning of the Act respecting the transfer of securities and the establishment of security entitlements (chapter T-11.002) may sell the securities or security entitlements or otherwise dispose of them without being required to give a prior notice, obtain their surrender or comply with the time limits prescribed by this Title, if the agreement between the creditor and the grantor so permits and, where the creditor does not have control of the securities or security entitlements, if they are, or are of a type, dealt in or traded on securities exchanges or financial markets.

A creditor who so disposes of securities or security entitlements acts on behalf of the grantor and is not bound to declare the creditor’s quality to the purchaser. The creditor imputes the proceeds of the disposition to payment of the costs incurred to dispose of the securities or security entitlements, to payment of the hypothecary claims prior to the creditor’s claim and, finally, to payment of the creditor’s claim; the creditor remits any surplus to the grantor. The disposition purges the real rights to the extent provided by the Code of Civil Procedure (chapter C-25) regarding the effect of adjudication.

The rules of this Title pertaining to a sale by a creditor are applicable in all other respects to the disposition of securities or security entitlements by a creditor, with the necessary modifications.

1991, c. 64, a. 2759; 2008, c. 20, s. 138; I.N. 2014-05-01.

2009-01-01

2759. A creditor holding a hypothec on securities or security entitlements within the meaning of the Act respecting the transfer of securities and the establishment of security entitlements (chapter T-11.002) may sell the securities or security entitlements or otherwise dispose of them without having to give a prior notice, obtain their surrender or observe the time limits prescribed by this Title, if the agreement between the creditor and the grantor so permits and, when the creditor does not have control of the securities or security entitlements, if they are, or are of a type, dealt in or traded on securities exchanges or financial markets.

A creditor who so disposes of securities or security entitlements acts on behalf of the grantor and is not bound to declare the creditor’s position as creditor to the purchaser. The creditor imputes the proceeds of the disposition to payment of the costs incurred to dispose of the securities or security entitlements, to payment of the hypothecary claims prior to the creditor’s claim and, finally, to payment of the creditor’s claim; the creditor remits any surplus to the grantor. The disposition purges the real rights to the extent provided by the Code of Civil Procedure (chapter C-25) in respect of the effect of a sale of property seized.

The rules of this Title pertaining to a sale by a creditor are applicable in all other respects to the disposition of securities or security entitlements by a creditor, with the necessary modifications.

1991, c. 64, a. 2759; 2008, c. 20, s. 138.

1999-04-01

2759. A dealer in securities who, as creditor, has a hypothec on the securities he holds for his debtor may, in the ordinary course of his duties and where allowed by the regulations and usages observed where he trades and by his agreement with his debtor, sell the securities or take them in payment without giving prior notice or observing any time limits prescribed in this Title.

1991, c. 64, a. 2759.