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CCQ updated on

  • 2011.08.25

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Table of Contents

Book six - Prior claims and hypothecs

Title three - Hypothecs

Chapter ii - Conventional hypothecs

Division ii - Obligations secured by hypothecs

Section 2688

2688. A hypothec granted to secure payment of a sum of money is valid even if, when it is granted, the debtor has not received the prestation in consideration of which he has undertaken the obligation or has received only part of it.
This rule is applicable in particular to lines of credit and the issue of bonds or other titles of indebtedness.
[1991, c. 64, a. 2688].

Supreme Court of Canada

  1. CIBC Mortgage Corp. v. Vasquez, 2002 SCC 60 (CanLII), 2002-09-12