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

Act current to 2016-01-25 and last amended on 2015-02-26. Previous Versions

Marginal note:Advance notice
  •  (1) A secured creditor who intends to enforce a security on all or substantially all of

    • (a) the inventory,

    • (b) the accounts receivable, or

    • (c) the other property

    of an insolvent person that was acquired for, or is used in relation to, a business carried on by the insolvent person shall send to that insolvent person, in the prescribed form and manner, a notice of that intention.

  • Marginal note:Period of notice

    (2) Where a notice is required to be sent under subsection (1), the secured creditor shall not enforce the security in respect of which the notice is required until the expiry of ten days after sending that notice, unless the insolvent person consents to an earlier enforcement of the security.

  • Marginal note:No advance consent

    (2.1) For the purposes of subsection (2), consent to earlier enforcement of a security may not be obtained by a secured creditor prior to the sending of the notice referred to in subsection (1).

  • Marginal note:Exception

    (3) This section does not apply, or ceases to apply, in respect of a secured creditor

    • (a) whose right to realize or otherwise deal with his security is protected by subsection 69.1(5) or (6); or

    • (b) in respect of whom a stay under sections 69 to 69.2 has been lifted pursuant to section 69.4.

  • Marginal note:Idem

    (4) This section does not apply where there is a receiver in respect of the insolvent person.

  • 1992, c. 27, s. 89;
  • 1994, c. 26, s. 9(E).
Marginal note:Receiver to give notice
  •  (1) A receiver shall, as soon as possible and not later than ten days after becoming a receiver, by appointment or otherwise, in respect of property of an insolvent person or a bankrupt, send a notice of that fact, in the prescribed form and manner, to the Superintendent, accompanied by the prescribed fee, and

    • (a) in the case of a bankrupt, to the trustee; or

    • (b) in the case of an insolvent person, to the insolvent person and to all creditors of the insolvent person that the receiver, after making reasonable efforts, has ascertained.

  • Marginal note:Idem

    (2) A receiver in respect of property of an insolvent person shall forthwith send notice of his becoming a receiver to any creditor whose name and address he ascertains after sending the notice referred to in subsection (1).

  • Marginal note:Names and addresses of creditors

    (3) An insolvent person shall, forthwith after being notified that there is a receiver in respect of any of his property, provide the receiver with the names and addresses of all creditors.

  • 1992, c. 27, s. 89.
Marginal note:Receiver’s statement
  •  (1) A receiver shall, forthwith after taking possession or control, whichever occurs first, of property of an insolvent person or a bankrupt, prepare a statement containing the prescribed information relating to the receivership, and shall forthwith provide a copy thereof to the Superintendent and

    • (a) to the insolvent person or the trustee (in the case of a bankrupt); and

    • (b) to any creditor of the insolvent person or the bankrupt who requests a copy at any time up to six months after the end of the receivership.

  • Marginal note:Receiver’s interim reports

    (2) A receiver shall, in accordance with the General Rules, prepare further interim reports relating to the receivership, and shall provide copies thereof to the Superintendent and

    • (a) to the insolvent person or the trustee (in the case of a bankrupt); and

    • (b) to any creditor of the insolvent person or the bankrupt who requests a copy at any time up to six months after the end of the receivership.

  • Marginal note:Receiver’s final report and statement of accounts

    (3) A receiver shall, forthwith after completion of duties as receiver, prepare a final report and a statement of accounts, in the prescribed form and containing the prescribed information relating to the receivership, and shall forthwith provide a copy thereof to the Superintendent and

    • (a) to the insolvent person or the trustee (in the case of a bankrupt); and

    • (b) to any creditor of the insolvent person or the bankrupt who requests a copy at any time up to six months after the end of the receivership.

  • 1992, c. 27, s. 89.
Marginal note:Good faith, etc.

 A receiver shall

  • (a) act honestly and in good faith; and

  • (b) deal with the property of the insolvent person or the bankrupt in a commercially reasonable manner.

  • 1992, c. 27, s. 89.
Marginal note:Powers of court
  •  (1) Where the court, on the application of the Superintendent, the insolvent person, the trustee (in the case of a bankrupt), a receiver or a creditor, is satisfied that the secured creditor, the receiver or the insolvent person is failing or has failed to carry out any duty imposed by sections 244 to 247, the court may make an order, on such terms as it considers proper,

    • (a) directing the secured creditor, receiver or insolvent person, as the case may be, to carry out that duty, or

    • (b) restraining the secured creditor or receiver, as the case may be, from realizing or otherwise dealing with the property of the insolvent person or bankrupt until that duty has been carried out,

    or both.

  • Marginal note:Idem

    (2) On the application of the Superintendent, the insolvent person, the trustee (in the case of a bankrupt) or a creditor, made within six months after the statement of accounts was provided to the Superintendent pursuant to subsection 246(3), the court may order the receiver to submit the statement of accounts to the court for review, and the court may adjust, in such manner and to such extent as it considers proper, the fees and charges of the receiver as set out in the statement of accounts.

  • 1992, c. 27, s. 89.
 
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