What is the test for an application to obtain an interim loan from a family member without an obligation to repay?
Ontario, Canada
The following excerpt is from Burgess v. Reid, 2007 CanLII 11310 (ON SC):
This is not a situation of money being transferred within a family without clear and cogent evidence of an obligation to repay, of the kind referred to in the decision of Reilly J., relied upon by the applicant. (Close v. Close, [1977] O.J. No. 3288 (O.C.J.)). I have concluded, as did Reilly J. upon the facts before him, that the indebtedness has been established to the usual standard required between parties dealing at arm’s length, and, as well, that any presumption of advancement has been rebutted.
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