section 2

INTRODUCTION AND BRIEF DESCRIPTION

The term "valuable security" appears many times in the Criminal Code and is defined broadly to include forms of shares, interest, stocks, funds, deposits, debentures, deeds, bonds, bills, notes, warrants, title to lands or goods, stamps, and writings. It includes anything that secures or "evidences" title to an interest in chattel.

SECTION WORDING

2. In this Act, "valuable security" includes (a) an order, exchequer acquittance or other security that entitles or evidences the title of any person (i) to a share or interest in a public stock or fund or in any fund of a body corporate, company or society, or (ii) to a deposit in a financial institution, (b) any debenture, deed, bond, bill, note, warrant, order or other security for money or for payment of money, (c) a document of title to lands or goods wherever situated, (d) a stamp or writing that secures or evidences title to or an interest in a chattel personal, or that evidences delivery of a chattel personal, and (e) a release, receipt, discharge or other instrument evidencing payment of money;

EXPLANATION

The definition of "valuable security" is often at play in fraud and theft cases. The broad construction allows flexibility in instances where novel schemes come to fruition that do not meet classical definitions of fraudelent behaviour.

COMMENTARY

Section 2 of the Criminal Code of Canada defines the term "valuable security" in the context of criminal law. It broadly states that valuable securities can include various types of documents, financial instruments, and other tangible items that have monetary value and represent ownership or title to property. Subsection (a) enumerates some examples of what can be considered a valuable security, including orders or securities related to stocks, bonds, and other financial investments. This provision reflects the importance of financial instruments in modern commerce and the potential for fraud or deception in financial transactions. The inclusion of "bodies corporate, company or society" also highlights the fact that valuable securities can be issued by non-governmental entities and still be subject to criminal law. Subsection (b) expands the definition to include any document or instrument that represents a payment or obligation for money. This could include promissory notes, IOUs, cheques, and other financial instruments that are commonly used in transactions. Debentures, bonds, and other securities issued by corporations or governments are also included in this provision, reflecting the importance of these instruments in the financial markets. Subsection (c) takes a slightly different approach by including documents related to the ownership of land or goods. This could include deeds, titles, and other legal documents that establish ownership or title to real or personal property. This provision reflects the fact that property rights are an important component of the legal system and must be protected from fraud or theft. Subsection (d) specifically addresses chattel property, including tangible personal property such as furniture, automobiles, and other physical assets. The inclusion of stamps and other writings highlights the fact that legal ownership or title to property can be established by physical evidence, including markings or inscriptions on the property itself. Finally, subsection (e) covers instruments that relate to the payment of money, including receipts, releases, and discharges. These documents provide proof of payment and can be used to establish legal ownership or title to property or other assets. Overall, section 2 of the Criminal Code of Canada reflects the importance of valuable securities in the modern economy and the need to protect against fraud and deception in financial transactions. By defining the term "valuable security" and enumerating various examples, this provision provides clarity and guidance for prosecutors, judges, and law enforcement officials in cases involving financial crimes.

STRATEGY

Section 2 of the Criminal Code of Canada is a critical aspect of the country's legal framework as it defines and outlines the term "valuable security" and its various forms. As such, there are several strategic considerations that one must keep in mind when dealing with this section of the Criminal Code. Some of these considerations and strategies include the following: 1. Understanding the various forms of valuable security: As outlined in the section, a valuable security can take various forms, which range from order, debenture, deed, bond, etc. As such, it is essential to have a clear understanding of these different forms to avoid any confusion or misinterpretation of the law. 2. Proper documentation and record-keeping: In dealing with valuable securities, it is critical to keep proper documentation and records of all transactions and exchanges. This documentation should include details such as the type of security exchanged, the value of the security, the parties involved, the date of exchange, and any other relevant information. 3. Compliance with relevant regulations and laws: As with any aspect of business or legal transactions, it is always important to comply with all relevant regulations and laws. This includes complying with regulatory bodies such as the securities commission and tax authorities. 4. Hiring legal expertise: Given the complexity of securities laws and regulations, it is advisable to hire legal expertise to provide guidance on transactions involving valuable securities. This expertise will help ensure that all transactions are legally compliant and that any potential risks are minimized. 5. Due diligence: Conducting a thorough due diligence process on the parties involved in any security transaction is essential. This process should include background checks, verifying identification documents, checking credit scores, and reviewing any relevant financial statements or records. 6. Securing securities: As valuable securities can be vulnerable to fraud or theft, it is essential to have proper security measures in place to safeguard them. Some of these measures may include using secure storage facilities, proper authentication procedures, and securing access to these securities. In conclusion, when dealing with Section 2 of the Criminal Code of Canada, it is essential to have a clear understanding of valuable securities' various forms and the relevant laws and regulations governing them. Proper documentation and record-keeping, compliance with regulations, hiring legal expertise, conducting due diligence, and securing securities are some of the critical strategies that can help minimize risks and ensure compliance when dealing with valuable securities.

RELATED CASES

A classic case in which the Supreme Court of Canada considers the term "valuable security" as it relates to a mail-in Ponzi scheme.
The County Court Judge's Criminal Court of Peel considers the question of whether a prescription constitutes valuable security, and determines that it does not, nor does it constitute "property."

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