Article

Insolvency of Issuer

Note: The Alberta (Canada) Court of Appeal (Berger, J.) allowed the appeal of the decision of Wachowich A.C.J., granting an order in favor of Barclays Bank of Canada. The opinion indicated that an irrevocable letter of credit issued by Canadian Commercial Bank (CCB) in favor of Barclays Bank qualifies as a "priority payment instrument" within the meaning of the Canadian Payments Association Act with respect to Barclay's claims in the winding up of CCB. In the principal action, the judge deemed Barclays was not a priority unsecured creditor in the estate of CCB.

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