section 4(2)

INTRODUCTION AND BRIEF DESCRIPTION

This section establishes rules for determining the value of a valuable security in criminal cases.

SECTION WORDING

4. (2) For the purposes of this Act, the following rules apply for the purpose of determining the value of a valuable security where value is material: (a) where the valuable security is one mentioned in paragraph (a) or (b) of the definition "valuable security" in section 2, the value is the value of the share, interest, deposit or unpaid money, as the case may be, that is secured by the valuable security; (b) where the valuable security is one mentioned in paragraph (c) or (d) of the definition "valuable security" in section 2, the value is the value of the lands, goods, chattel personal or interest in the chattel personal, as the case may be; and (c) where the valuable security is one mentioned in paragraph (e) of the definition "valuable security" in section 2, the value is the amount of money that has been paid.

EXPLANATION

Section 4(2) of the Criminal Code of Canada is a provision that establishes how the value of a valuable security is determined for the purposes of the Act. A valuable security is broadly defined in section 2 of the Code as "any document that is used for the purpose of borrowing or raising money, for the purpose of securing money or property, or for the purpose of evidencing the title or interest of the holder in any property or right." Therefore, the determination of the value of a valuable security is relevant in various criminal offences that involve fraud, theft, or other forms of financial misconduct. Paragraphs (a), (b), and (c) of section 4(2) provide different rules for determining the value depending on the type of valuable security at issue. If the valuable security is one that secures a share, interest, deposit, or unpaid money, the value is deemed to correspond to the amount that is secured by that security. For instance, if a person forges a document that purports to secure a $100,000 deposit in a bank account, their criminal liability would be determined based on that amount. Similarly, if a person creates a false document to obtain a loan secured by a property, the value of the valuable security would correspond to the value of that property. If the valuable security is a document that evidences a title or interest in a property or right, such as a deed or a bill of sale, the value is deemed to be the value of the property or right. For example, if someone fraudulently alters a deed to a house to claim ownership of it, their criminal liability would be based on the value of the house, not the value of the deed. Finally, if the valuable security is one that involves a payment of money, such as a cheque or a promissory note, the value is deemed to be the amount of money that has been paid. This rule is straightforward and reflects the fact that the value of such securities is directly linked to the monetary amount involved. Overall, section 4(2) of the Criminal Code helps to ensure consistency and fairness in the determination of the value of valuable securities in criminal law. By establishing clear rules for different types of securities, it helps to streamline criminal proceedings and ensure that offenders are held accountable for the true value of their actions.

COMMENTARY

Section 4(2) of the Criminal Code of Canada outlines the rules that must be applied when determining the value of a valuable security in cases where value is material. These rules are important for various offences such as fraud and theft, as the value of the property involved is often a key consideration in determining the severity of the offence and the corresponding punishment. The first rule under this section applies to valuable security mentioned in paragraph (a) or (b) of the definition of valuable security" in section 2, which includes shares, interests, deposits or unpaid money. In such cases, the value of the valuable security is equivalent to the value of the share, interest, deposit or unpaid money that is secured by the security. For example, if a person defrauds a company and steals shares that are worth $50,000, the value of the offence would be considered as $50,000. The second rule under this section applies to valuable security types mentioned in paragraph (c) or (d) of the definition of valuable security" in section 2. These valuable securities include lands, goods, chattel personal or interest in chattel personal. In such cases, the value of the security is equal to the value of the property involved. For instance, if a person steals a car worth $30,000, the value of the offence would be considered as $30,000. The third and final rule applies to valuable security mentioned in paragraph (e) of the definition of valuable security" in section 2. This valuable security refers to cases where a specific amount of money has been paid, such as a bank cheque or a promissory note. In such cases, the value of the security is equal to the amount of money that has been paid. For example, if a person forges a cheque worth $10,000, the value of the offence would be considered as $10,000. The rules outlined in section 4(2) provide clarity and consistency in the determination of the value of a valuable security for the purpose of the Criminal Code of Canada. By defining the value based on the type of valuable security involved, the rules help to ensure that all cases are treated equally and fairly. Moreover, these rules ensure that the punishment for an offence is proportional to the value of the property involved. This is a critical aspect when it comes to the sentencing of an offender. Sentences for fraud and theft offences tend to vary significantly depending on the value of the items in question. Therefore, it is essential to have a clear understanding of how to determine the value of stolen property. However, there are some aspects of section 4(2) that can be considered problematic. One major issue is the definition of valuable security under paragraph (e). This section only covers cases where a specific amount of money has been paid, and it does not cover cases where property is taken in exchange for other valuable items. This limitation can be problematic in situations where property is exchanged for something else of monetary value, such as electronic goods. Another potential issue is the fact that the value of a valuable security may not reflect its true value. This is particularly true for cases involving art or other unique items that may not have a set market value. In such cases, the value may be subjective and open to interpretation, which can lead to discrepancies and potentially unjust outcomes. In conclusion, section 4(2) of the Criminal Code of Canada provides clear guidelines for determining the value of valuable security in cases where value is material. This is a valuable provision in ensuring fair and consistent treatment of cases involving fraud and theft. However, there are some limitations to the section, which may need to be addressed in the future to ensure that all cases are treated equally and fairly.

STRATEGY

Section 4(2) of the Criminal Code of Canada is significant for determining the value of a valuable security in cases where the value is material. This section is particularly important when prosecuting cases involving theft or fraud. Prosecuting attorneys need to carefully consider several strategic considerations when dealing with this section of the Criminal Code of Canada. One of the essential strategic considerations in dealing with section 4(2) is the need to determine the value of the valuable security accurately. The prosecutor needs to ensure that they are correctly interpreting and applying the section to the facts of the case. This may involve obtaining expert opinions and evidence to establish the value of the security, particularly when dealing with securities that are challenging to value, such as intangible assets. Another key strategic consideration in dealing with this section of the Criminal Code is the need to consider the evidentiary requirements to prove the value of the security. Proving the value of a valuable security can be challenging, particularly when dealing with securities that are difficult to value, such as intellectual property. Attorneys need to ensure that they have enough evidence to support their case and that their evidence is admissible under the relevant rules of evidence. Prosecutors may also need to consider the potential impact of the value of the security on the charges and potential sentences associated with the case. For instance, if the value of the security is significant, it may result in more severe charges, such as fraud over a certain value amount. Similarly, the value of the security may impact the severity of the sentence that an accused person faces if convicted. In light of these strategic considerations, there are several strategies that prosecutors may use when dealing with section 4(2) of the Criminal Code of Canada. For instance, prosecutors may seek out expert evidence to establish the value of securities that are challenging to value. Similarly, prosecutors may use creative means to establish the value of securities, such as using market value or replacement value. It may also be strategic for the prosecutor to negotiate a plea deal with the accused that takes into account the value of the security. In some cases, reducing the value of the security may result in a more favorable plea deal for the accused. Moreover, having a clear understanding of the evidentiary requirements to prove the value of the security may help prosecutors in framing their case and avoid potential pitfalls and challenges. In conclusion, Section 4(2) of the Criminal Code of Canada is a crucial consideration for prosecutors dealing with cases involving valuable securities. Prosecutors need to consider the evidentiary requirements, accuracy of value determination, and potential impact of the value on charges and sentences. Adopting strategic approaches, such as seeking expert evidence and negotiating plea deals, can help prosecutors in navigating the challenges presented by this section.

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