kysubscribe
Jun 10, 2012, 04:20 PM
I understand that in Ontario, the SOL is 2 years except under certain circumstances such as when a home or realty is used as collateral. What about situations when an asset with a limited lifespan is used (e.g. a car or a piece of business equipment) as initial security for a loan, and a default only takes place after the asset has been written off.
For example, a car was used as initial security for a personal loan in 1998, it was subsequently scrapped 2006 (say), well passed its useful life, a default on payment of the loan occurs in 2007 and the creditor only takes legal action passed the 2 year period, say in 2011. Can SOL be used as defense against the claimant?
Thank you for your answer.
For example, a car was used as initial security for a personal loan in 1998, it was subsequently scrapped 2006 (say), well passed its useful life, a default on payment of the loan occurs in 2007 and the creditor only takes legal action passed the 2 year period, say in 2011. Can SOL be used as defense against the claimant?
Thank you for your answer.