In recent years, there has been a significant increase in the volume of cross-border securitization transactions between Canada and the U.S., with market participants now regularly pursuing cross-border securitization transactions in a wide range of contexts.

McCarthy Tétrault has prepared Cross-Border Securitization Transactions between Canada and the U.S. – Key Legal Considerations to provide an overview of some of the legal considerations of Canadian law that are common throughout cross-border securitization transactions. The article highlights some of the main principles of Canadian law that U.S. legal practitioners should bear in mind when working on cross-border securitization transactions between Canada and the U.S., including:

• Licensing

• Tax (including Income Taxes, Withholding Taxes and Sales Taxes)

• Personal Property Security (including provincial Personal Property Security Acts and the Civil Code of Québec)

• Interest Rates

• Currency

•  Assignability

•  “True Sale”

• Securities Law (including Disclosure and Filing Requirements, the Canadian Wrapper Exemption and the International Dealer Exemption)