In the fall 2008 Chorny decision of the Ontario Superior Court of Justice, it was held that the limitation period on a guarantee was co-extensive with that on the principal debt. In that decision, the Court applied the principle of co-extensiveness to find that the limitation period on the guarantee lapsed at the same time as it did on the principal obligations.

type Financial Services Alert - March 2009 - Limitation Periods: Coextensive For Guarantees; New Period For Demand Obligations