A factored account is a sale, not a loan. The factored receivable is not given as security for repayment. While a General Assignment of Book Debts may be a security interest for the purposes of the garnishment provisions of the Income Tax Act [R.S.C. 1985, c. 1 (5th Supp.)] and Excise Tax Act [R.S.C. 1985, c. E-15], a factored account is not.
Van T Holdings Inc. v. KCS Equipment Ltd. |
2012 CarswellAlta 970 (Alta. Master) at para. 32 |