B LAW403 Lecture Notes - Lecture 6: Canadian Imperial Bank Of Commerce

• School: University of Alberta
• Department: Business Law
• Course: B LAW403
• Professor: Jeffrey Bone

Document Summary

The bank had a gsa with obront made in good faith. The crown argues that the proceeds of criminal activity are to be forfeited to the crown. Crown says the bank never attached to these goods (money) because they never the bank never had rights in the collateral due to the fact that they are proceeds of fraud. The bank argues that fraud did not occur because the victims were not victims at the time because they were expecting the gems to arrive, so this is valid transactions and the banks gsa attaches to it. The trial judge said even though valid security agreement occurred, the bank cannot keep the money as the victims should get it back. The bank gets to keep around ,000 after the victims were paid. Criminal code says that the court has discretion to return proceeds of crime to victims in all circumstances.