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

Act current to 2016-06-21 and last amended on 2015-02-26. Previous Versions

Marginal note:Trustee to have right to sell patented articles
  •  (1) Where any property of a bankrupt vesting in a trustee consists of patented articles that were sold to the bankrupt subject to any restrictions or limitations, the trustee is not bound by the restrictions or limitations but may sell and dispose of the patented articles free and clear of the restrictions or limitations.

  • Marginal note:Right of manufacturer

    (2) Where the manufacturer or vendor of the patented articles referred to in subsection (1) objects to the disposition of them by the trustee as provided by this section and gives to the trustee notice in writing of the objection before the sale or disposition thereof, that manufacturer or vendor has the right to purchase the patented articles at the invoice prices thereof, subject to any reasonable deduction for depreciation or deterioration.

  • R.S., 1985, c. B-3, s. 82;
  • 1993, c. 34, s. 10(E).
Marginal note:Copyright and manuscript to revert to author
  •  (1) Notwithstanding anything in this Act or in any other statute, the author’s manuscripts and any copyright or any interest in a copyright in whole or in part assigned to a publisher, printer, firm or person becoming bankrupt shall,

    • (a) if the work covered by the copyright has not been published and put on the market at the time of the bankruptcy and no expense has been incurred in connection with that work, revert and be delivered to the author or their heirs, and any contract or agreement between the author or their heirs and the bankrupt shall then terminate and be void or, in the Province of Quebec, null;

    • (b) if the work covered by the copyright has in whole or in part been put into type and expenses have been incurred by the bankrupt, revert and be delivered to the author on payment of the expenses so incurred and the product of those expenses shall also be delivered to the author or their heirs and any contract or agreement between the author or their heirs and the bankrupt shall then terminate and be void or, in the Province of Quebec, null, but if the author does not exercise their rights under this paragraph within six months after the date of the bankruptcy, the trustee may carry out the original contract; or

    • (c) if the trustee at the end of the six-month period from the date of the bankruptcy decides not to carry out the contract, revert without expense to the author and any contract or agreement between the author or their heirs and the bankrupt shall then terminate and be void or, in the Province of Quebec, null.

  • Marginal note:If copies of the work are on the market

    (2) Where, at the time of the bankruptcy referred to in subsection (1), the work was published and put on the market, the trustee is entitled to sell, or authorize the sale or reproduction of, any copies of the published work, or to perform or authorize the performance of the work, but

    • (a) there shall be paid to the author or his heirs such sums by way of royalties or share of the profits as would have been payable by the bankrupt;

    • (b) the trustee is not, without the written consent of the author or his heirs, entitled to assign the copyright or transfer the interest or to grant any interest therein by licence or otherwise, except on terms that will guarantee to the author or his heirs payment by way of royalties or share of the profits at a rate not less than the rate the bankrupt was liable to pay; and

    • (c) any contract or agreement between the author or their heirs and the bankrupt shall then terminate and be void or, in the Province of Quebec, null, except with respect to the disposal, under this subsection, of copies of the work published and put on the market before the bankruptcy.

  • Marginal note:Marketable copies to be first offered for sale to the author

    (3) The trustee shall offer in writing to the author or his heirs the right to purchase the manufactured or marketable copies of the copyright work comprised in the estate of the bankrupt at such price and on such terms and conditions as the trustee may deem fair and proper before disposing of the manufactured and marketable copies in the manner prescribed in this section.

  • R.S., 1985, c. B-3, s. 83;
  • 2004, c. 25, s. 50.
Marginal note:Effect of sales by trustee

 All sales of property made by a trustee vest in the purchaser all the legal and equitable estate of the bankrupt therein.

  • R.S., 1985, c. B-3, s. 84;
  • 2004, c. 25, s. 51(F).
Marginal note:Assignment of agreements
  •  (1) On application by a trustee and on notice to every party to an agreement, a court may make an order assigning the rights and obligations of a bankrupt under the agreement to any person who is specified by the court and agrees to the assignment.

  • Marginal note:Individuals

    (2) In the case of an individual,

    • (a) they may not make an application under subsection (1) unless they are carrying on a business; and

    • (b) only rights and obligations in relation to the business may be assigned.

  • Marginal note:Exceptions

    (3) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under

    • (a) an agreement entered into on or after the date of the bankruptcy;

    • (b) an eligible financial contract; or

    • (c) a collective agreement.

  • Marginal note:Factors to be considered

    (4) In deciding whether to make the order, the court is to consider, among other things,

    • (a) whether the person to whom the rights and obligations are to be assigned is able to perform the obligations; and

    • (b) whether it is appropriate to assign the rights and obligations to that person.

  • Marginal note:Restriction

    (5) The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the person’s bankruptcy, insolvency or failure to perform a non-monetary obligation — will be remedied on or before the day fixed by the court.

  • Marginal note:Copy of order

    (6) The applicant is to send a copy of the order to every party to the agreement.

  • 2005, c. 47, s. 68;
  • 2007, c. 29, s. 97;
  • 2009, c. 31, s. 64.
Marginal note:Certain rights limited
  •  (1) No person may terminate or amend — or claim an accelerated payment or forfeiture of the term under — any agreement, including a security agreement, with a bankrupt individual by reason only of the individual’s bankruptcy or insolvency.

  • Marginal note:Lease

    (2) If the agreement referred to in subsection (1) is a lease, the lessor may not terminate or amend, or claim an accelerated payment or forfeiture of the term under, the lease by reason only of the bankruptcy or insolvency or of the fact that the bankrupt has not paid rent in respect of any period before the time of the bankruptcy.

  • Marginal note:Public utilities

    (3) No public utility may discontinue service to a bankrupt individual by reason only of the individual’s bankruptcy or insolvency or of the fact that the bankrupt individual has not paid for services rendered or material provided before the time of the bankruptcy.

  • Marginal note:Certain acts not prevented

    (4) Nothing in this section is to be construed as

    • (a) prohibiting a person from requiring payments to be made in cash for goods, services, use of leased property or other valuable consideration provided after the time of the bankruptcy; or

    • (b) requiring the further advance of money or credit.

  • Marginal note:Provisions of section override agreement

    (5) Any provision in an agreement that has the effect of providing for, or permitting, anything that, in substance, is contrary to this section is of no force or effect.

  • Marginal note:Powers of court

    (6) On application by a party to an agreement or by a public utility, the court may declare that this section does not apply — or applies only to the extent declared by the court — if the applicant satisfies the court that the operation of this section would likely cause the applicant significant financial hardship.

  • Marginal note:Eligible financial contracts

    (7) Subsection (1) does not apply

    • (a) in respect of an eligible financial contract; or

    • (b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for an insolvent person in accordance with the Canadian Payments Act and the by-laws and rules of that Association.

  • Marginal note:Permitted actions

    (8) Despite section 69.3, the following actions are permitted in respect of an eligible financial contract that is entered into before the time of the bankruptcy, and is terminated on or after that time, but only in accordance with the provisions of that contract:

    • (a) the netting or setting off or compensation of obligations between the individual bankrupt and the other parties to the eligible financial contract; and

    • (b) any dealing with financial collateral including

      • (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

      • (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

  • Marginal note:Net termination values

    (9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the individual bankrupt to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the individual bankrupt with a claim provable in bankruptcy in respect of those net termination values.

  • 2005, c. 47, s. 68;
  • 2007, c. 29, s. 98;
  • 2009, c. 31, s. 64.
 
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