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The Court of Appeal Settles the Priorities between Lien Claimants and Mortgagees

Bank of Montreal v. Peri Formwork Systems Ltd. 2012 BCCA 4

The latest word from the Court of Appeal on priorities between lien claimants and mortgagees and their receivers.

This Court of Appeal decision relates to an incomplete construction project in Squamish known as “Coastal Village”. The Bank of Montreal was the lead lender on the construction project and, as of June 30, 2009, just over $29 million was owing to the bank. Demand was made and shortly thereafter the owners of the project obtained a stay under the Companies Creditors Arrangement Act (the “CCAA”).