Bulk Sales Act Repealed

If you go back and look at my blog post for August 22, 2016, you will see that I mentioned Bill 218 and the intended repeal of the Bulk Sales Act.  Well, Bill 218, which was the Burden Reduction Act, 2016, somehow died on the order paper and never went any further.  So, Bill 27 replaced it and we now have the Burden Reduction Act, 2017 which is basically the exact same thing with one big exception:  this one hasn’t died on the order paper and it’s now law as of March 22, 2017.

So, if you are a creditor, you should now start to give significant consideration to asking for security.  And if your debtor is not willing to give you security, then you should give significant consideration to ensuring that you keep those debtors on a tight leash and not advance too much money because you may find that you are walking a tightrope without a safety net.

Something to think about.

CALC

 

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