Frank Spizzirri


Secured lenders to Canadian corporations have long taken the risk that their security interests in the borrower’s inventory and accounts will be subordinated to deemed trust claimants under section 57(4) of the Pension Benefit Act (Ontario) (“PBA”). But the recent decision by the Supreme Court of Canada in Re Indalex increases this risk substantially by expanding the scope of the deemed trust to include not only current- service plan contributions that are due and payable but also any funding deficiencies that crystallise on the wind-up of the plan. [1]