• Insolvency Insider Canada
  • Posts
  • Indemnity Agreement for Costs of Enforcing on Security Undermined by an Exercise of Judicial Discretion

Indemnity Agreement for Costs of Enforcing on Security Undermined by an Exercise of Judicial Discretion

Jeffrey Levine and Donia Hashem of McMillan examine a recent decision which appears to expand the circumstances in which courts will disregard provisions indemnifying secured lenders for the costs associated with enforcing their loans and will instead fix a lender’s costs at an amount materially lower than costs actually incurred.