The Court of Appeal has confirmed that a landlord will be entitled to call on the letter of credit to satisfy its claim for losses arising from the disclaimer or termination of a tenant’s lease in an insolvency proceeding.
letter of credit
Employers that sponsor defined benefit (“DB”) pension plans know that contribution requirements can be volatile and onerous, especially given current low interest rates. The Ontario Government has taken note. In its recent consultation paper, the Government proposes several approaches to change the current DB funding rules, including the complete elimination of solvency funding. Comments on the Consultation Paper are due by September 30, 2016. The Ontario Government then intends to hold a second public consultation on any proposed funding reforms in the Fall 2016.