Summary judgment granted for unpaid corporate loan evidenced by debenture.
The plaintiff lender brought a motion for summary judgment to recover monies loaned to a corporate borrower under a debenture.
The borrower acknowledged borrowing funds but disputed the precise amount owed and raised concerns about payment preference because multiple lenders were listed in the debenture.
The court found there were no genuine issues requiring a trial, concluding that default was established through non-payment since 2010 and the borrower’s insolvency.
Documentary evidence, including a series of cheques totaling nearly $3 million, established the indebtedness.
Summary judgment was granted for $2,800,000 with provision that payment be made in a manner that would avoid preferential treatment among lenders.
Lakepoint Mortgage Investment Fund 1 Incorporated v. Lyn et al., 2012 ONSC 5417