Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)

Marginal note:Delivery of customer name securities

• 263. (1) Where a customer is not indebted to a securities firm, the trustee shall deliver to the customer the customer name securities that belong to the customer.

• Marginal note:Where customer indebted to securities firm

  (2) Where a customer to whom customer name securities belong and who is indebted to the securities firm on account of customer name securities not fully paid for, or on another account, discharges their indebtedness in full, the trustee shall deliver to that customer the customer name securities that belong to the customer.

• Marginal note:Customer indebted to securities firm

  (3) If a customer to whom customer name securities belong and who is indebted to the securities firm on account of customer name securities not fully paid for, or on another account, does not discharge their indebtedness in full, the trustee may, on notice to the customer, sell sufficient customer name securities to discharge the indebtedness, and those securities are then free of any right, title or interest of the customer. If the trustee so discharges the customer’s indebtedness, the trustee shall deliver any remaining customer name securities to the customer.

Marginal note:Trustee to consult customer compensation body

264. Where the accounts of customers of a securities firm are protected, in whole or in part, by a customer compensation body, the trustee shall consult the customer compensation body on the administration of the bankruptcy, and the customer compensation body may designate an inspector to act on its behalf.

Marginal note:Late claims

265. A customer may prove a claim after the distribution of cash and securities in the customer pool fund and is entitled to receive cash and securities in the hands of the trustee at the time the claim is proven up to the appropriate portion of the customer’s net equity before further distribution is made to other customers, but no such claim shall affect the previous distribution of the customer pool fund or the general fund.

Marginal note:Statement of trustee required

266. In addition to any other statement or report required to be prepared under this Act, a trustee shall prepare

• (a) a statement indicating

  • (i) the distribution of property in the customer pool fund among customers who have proved their claims, and

  • (ii) the disposal of customer name securities; or

• (b) such other report relating to that distribution or disposal as the court may direct.