Joint and several creditors
"Joint and several creditors" is not a recognized legal category in BC. It is sometimes used loosely for several creditors owed the same debt. Their rights depend on the contract, such as a syndicated loan or intercreditor agreement, and no creditor can recover more than is actually owed. The familiar concept is joint and several liability of debtors.
How BC law treats it
Neither the Business Corporations Act, SBC 2002 c 57 (BCBCA) nor the Partnership Act creates a doctrine of joint and several creditors. Co-lender rights, such as who can enforce and how recoveries are shared, are set by the loan documents and any intercreditor agreement.
What it means for your business
A BC business lending alongside others should have a written agreement on enforcement and sharing of recoveries.
Risks and common mistakes
Without an intercreditor agreement, co-lenders can end up disputing priority and enforcement decisions just when the borrower defaults.
For the full explanation, see our entry on Joint and several liability.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
