Department of Finance issues covered bond consultation paper
The Department of Finance issued a consultation paper on May 11, 2011 outlining the major elements of the proposed legislative covered bonds framework and seeking comments by June 10, 2011. As our readers know, unlike some European jurisdictions, Canada does not have a specific legislative framework to address covered bond technology and principles including such items as guarantor asset segregation, protection in insolvency, priority among creditors and related matters.
