Federal Laws Add Civil Law Terms

Summary#

This bill is the Federal Law–Civil Law Harmonization Act, No. 4. It updates 52 federal laws so that both English and French versions work with Canada’s two legal traditions: common law and Quebec’s civil law. It mainly adds civil law terms alongside common law ones (for example, “mortgage or hypothec,” “real property or immovable,” “agent or mandatary”) and aligns how documents and roles are described.

• Adds civil law terms throughout financial laws (Bank Act, Insurance Companies Act, Trust and Loan Companies Act, Cooperative Credit Associations Act) without changing core policy rules (Part 1).
• Keeps the 80% loan-to-value limit for residential lending but clarifies it applies to both mortgages and hypothecs (Bank Act s. 418; ICA s. 469; TLCA s. 418; CCAA s. 382.1).
• Recognizes Quebec notarial practices in federal evidence rules (Canada Evidence Act s. 27).
• Modernizes the Escheats Act to include “property without an owner,” matching Quebec concepts (Escheats Act ss. 1–5).
• Makes consumer banking provisions apply clearly in Quebec (e.g., disclosure and renewal rules refer to “mortgage or hypothec”) (Bank Act ss. 627.28–627.31).

What it means for you#

• Households (especially in Quebec)

  • Your bank, insurance, and loan documents will use both common law and civil law terms. For example, contracts will refer to a “mortgage or hypothec” and “real property or immovable” (Bank Act s. 418; Bank Act ss. 627.28–627.31).
  • If you prepay certain non‑mortgage loans, existing rules requiring a rebate of borrowing costs continue to apply and are clarified for Quebec (ICA s. 479.1; TLCA s. 435.1; CCAA s. 385.15).
  • Notarial copies of documents in Quebec are explicitly admissible in federal proceedings, simplifying proof (Canada Evidence Act s. 27).

• Bank customers and borrowers

  • The long‑standing rule that federally regulated lenders must not lend above 80% of a home’s value without insurance is restated to cover both mortgages and hypothecs, with the same thresholds as before (Bank Act s. 418; ICA s. 469; TLCA s. 418; CCAA s. 382.1).
  • Mortgage renewal disclosures continue, with wording adjusted to include hypothecs so the same protections apply in Quebec (Bank Act s. 627.31).

• People dealing with estates

  • Roles are expressed in both traditions (e.g., “executor or administrator” and “liquidator of a succession”), which should reduce confusion in cross‑border estates within Canada (multiple Acts; e.g., Bank Act s. 460).

• Businesses (including in Quebec)

  • Liability and compliance clauses now explicitly cover “agents or mandataries,” aligning with Quebec practice. This clarifies vicarious liability and officer liability across many statutes (e.g., Cultural Property Export and Import Act s. 46; Pest Control Products Act s. 70).
  • Securities, proxies, and transfer procedures are clarified to recognize civil law terminology, easing corporate governance across provinces (e.g., Bank Act ss. 156.01–156.06).

• Property owners and local bodies

  • The Escheats Act now expressly covers “property without an owner,” harmonizing how unclaimed property is handled, including in Quebec (Escheats Act ss. 1–5).
  • Federal property statutes and heritage laws now refer to “real property or immovables,” clarifying powers to acquire, manage, or dispose of property (Federal Real Property and Federal Immovables Act s. 2; National Battlefields Act amendments).

Expenses#

Estimated net cost: Data unavailable.

• No explicit appropriations or new programs identified in the bill text.
• The bill consists of terminology and definitional amendments across 52 statutes to harmonize common law and civil law (Summary; Table of Provisions).
• Administrative implementation costs (e.g., updating forms, guidance, systems) are not published. Data unavailable.

Proponents' View#

• Improves legal certainty for Quebec residents and businesses by embedding civil law terms in federal laws, reducing disputes over wording and interpretation (e.g., “mortgage or hypothec,” “immovable”) (Bank Act s. 418; Canada Evidence Act s. 27).
• Ensures consumer protections apply consistently in Quebec, by expressly covering hypothecs in loan disclosure and renewal provisions (Bank Act s. 627.28–627.31; ICA s. 482.1; TLCA s. 438.1).
• Reduces administrative and litigation risk for financial institutions operating nationwide by aligning terminology across key frameworks (Part 1 financial Acts).
• Enhances access to justice by recognizing Quebec notarial documents as evidence without extra steps, saving time and cost (Canada Evidence Act s. 27).
• Modernizes older statutes (e.g., Escheats Act; National Battlefields Acts) to reflect current legal language and practices, aiding smoother property administration (Escheats Act ss. 1–5; National Battlefields amendments).

Opponents' View#

• Changing wording across 52 laws may have unintended legal effects; even technical edits can shift meanings and prompt new litigation to test scope (bill‑wide replacements such as “real property or immovable” and “agent or mandatary”).
• Compliance costs for institutions to update contracts, forms, IT systems, and training are likely but not quantified. Data unavailable (Part 1 amendments).
• Transition risks include short‑term confusion among the public and practitioners as documents and guidance are revised, especially for estates and secured transactions (e.g., executor/liquidator terminology; security interests).
• Expanded explicit references to “agents or mandataries” in offence and liability clauses could broaden who is captured by enforcement in practice, requiring careful compliance reviews (e.g., Cultural Property Export and Import Act s. 46; Agriculture and Agri‑Food AMPs Act s. 20(2)).
• No fiscal analysis published; Parliament has limited visibility into total implementation costs across departments and regulated entities. Data unavailable.