A-6.001, r. 10 - Regulation respecting the replacement of certificates evidencing the existence of bonds or other debt securities

Section 6 Disposition versions

2012-09-01

6. The suretyship required under paragraph 3 of section 3 must provide that:

(1)  the owner of the lost, stolen or destroyed security and the surety undertake and bind themselves solidarily, without reservation, to pay the secured parties, according to their respective interest, an amount of money at least equal to the face value of the lost, stolen or destroyed security for which the replacement or redemption is requested;

(2)  the surety acknowledges that it is bound totally and unconditionally to the secured parties regardless of the correctness of representations made by the owner;

(4)  the owner and the surety acknowledge that the secured parties may collectively or individually without any intervention on the part of the others have the suretyship enforced;

(5)  the surety waives the benefits of discussion and division; and

(6)  the suretyship is irrevocable and remains in full force and effect until such time as:

(a)  the owner or the surety, in the event that the security is reported lost, stolen or destroyed should be located or found to be under the control or in the possession of one of them or of any other person, returns the security or causes it to be returned to any of the secured parties;

(b)  the owner or the surety pays the full face value of the security; or

(c)  the owner and the surety assume the defense of the secured parties against any claim, action or proceeding, whether well-founded or not and of whatever nature, and indemnity them for any amount of principal, interest, costs, fees or other expenses which any secured party might be called upon to pay following resulting from the loss, theft or destruction of the security, its replacement or redemption, the claim of any third party to rights over the lost, stolen or destroyed security, or for any other reason whether directly or indirectly, through oversight, accident, forgetfulness or neglect on the part of any of the secured parties or their respective agents, officers or employees.

O.C. 1261-85, s. 6.