Security for Debts Due to Her Majesty Regulations (SOR/87-505)

Short Title

1 These Regulations may be cited as the Security for Debts Due to Her Majesty Regulations.

Interpretation

2 In these Regulations,

charge

charge includes a pledge, assignment, debenture, mortgage, encumbrance, hypothec or lien; (droit)

debtor

debtor means any person who is indebted to Her Majesty; (débiteur)

Her Majesty

Her Majesty means Her Majesty in right of Canada. (Sa Majesté)

Authorization

3 Any appropriate Minister responsible for the recovery or collection of any debt or obligation due or payable to Her Majesty or claim by Her Majesty may accept any security that is deemed to be a security pursuant to section 4 in respect of any such debt, obligation or claim and may execute and deliver

• (a) on payment of any such debt, obligation or claim, any instrument that will effectively release or discharge any security accepted in respect of the debt, obligation or claim; or

• (b) on payment of a portion of any such debt, obligation or claim, any instrument that will effectively release or discharge any security accepted in respect of the portion of the debt, obligation or claim that has been paid.

Security

4 For the purposes of these Regulations, only a charge in favour of Her Majesty on the existing or future personal or real property of a debtor or on the existing personal or real property of a person who is the surety or guarantor of the debtor, shall be deemed to be a security.