In DCD Industries, an Alberta court seemed to distance itself from the recent decision by an Ontario court in Engel which was discussed in Issue No. 56 — January 2003, Focus on Financial Services. In Engel, the court said that a creditor’s permitting a lien to purchase a specified asset would also be a subordination of the creditor’s claim against the lien on the purchased asset. Therefore, subordination of a secured party’s priority can occur even where there is no language in an agreement with respect to priority or rank.

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