CCQ-1991 - Civil Code of Québec

Section 2692 Disposition versions

2015-04-21

2692. A hypothec securing the performance of obligations of a legal person, partnership or trustee may be granted in favour of the hypothecary representative for all present and future creditors of those obligations. The representative may be one of the creditors or the only creditor of the obligations, or a third person.

The hypothecary representative is appointed by the debtor or grantor or by one of the creditors. The representative is the holder of the hypothec and has the power to exercise all the rights it grants, including that of releasing the hypothec and consenting to cancellation of its registration in the registers kept at the registry office; in exercising those rights, the representative binds the creditors towards third persons.

The hypothecary representative is replaced, if necessary, under the conditions and subject to the terms specified in the hypothecary or other act that appoints the representative or, in the absence of such an act, as determined by the creditor or creditors. If the representative is replaced, the hypothec and other securities created in the representative’s favour subsist in favour of the representative’s successor. However, the latter may not exercise the rights relating to a hypothec published by registration until a notice of replacement expressly mentioning the name of the replaced representative is entered in the registers in which the hypothec was so published.

Except in the case of a movable hypothec with delivery, a hypothec in favour of a hypothecary representative must, on pain of absolute nullity, be granted by notarial act en minute, regardless of the nature of the obligations whose performance it secures.

1991, c. 64, a. 2692; 2015, c. 8, s. 358.

1994-01-01

2692. A hypothec securing payment of bonds or other titles of indebtedness issued by a trustee, a limited partnership or a legal person authorized to do so by law shall, on pain of absolute nullity, be granted by notarial act en minute in favour of the person holding the power of attorney of the creditors.

1991, c. 64, a. 2692.