Is a Subscription Agreement binding on a mortgage syndicate to repay a loan?
Ontario, Canada
The following excerpt is from Khwaja v. Jinnah, 2021 ONSC 4614 (CanLII):
53 Puccini relies on Orwinski v. Hi-Rise Capital, 2019 ONSC 3975 for the proposition that the Subscription Agreement does not impose a positive obligation on a mortgage syndicate to repay a loan. The facts in that case were different in that it deals with a request by an investor for an early redemption on a similar agreement as the Subscription Agreement in this case. In any event, my reasoning in this decision is consistent with that of my colleague, Justice Ferguson. We both found that a mortgage syndication agreement does not establish a lender-borrower relationship or an unqualified right to a return of capital.
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