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

Act current to 2016-11-21 and last amended on 2015-02-26. Previous Versions

General

Marginal note:Application of other provisions
  •  (1) All of the provisions of this Act apply, with such modifications as the circumstances require, in respect of claims by customers for securities and customer name securities as if customers were creditors in respect of such claims.

  • Marginal note:Application of transaction provisions

    (2) Sections 91 to 101 apply, with such modifications as the circumstances require, in respect of transactions of a customer with or through a securities firm relating to securities.

  • Marginal note:Non-application

    (3) This Part does not apply to proceedings under Part III.

  • Marginal note:Termination, netting or setting off or compensation

    (4) Nothing in this Part affects the rights of a party to a contract, including an eligible financial contract, with respect to termination, netting or setting off or compensation.

  • Marginal note:Secured creditors

    (5) The operation of this Part is subject to the rights of secured creditors.

  • 1997, c. 12, s. 118;
  • 2004, c. 25, s. 98(E);
  • 2007, c. 29, s. 102.
Marginal note:Conflicts

 All the provisions of this Act, in so far as they are applicable, apply in respect of bankruptcies under this Part, but if a conflict arises between the application of the provisions of this Part and the other provisions of this Act, the provisions of this Part prevail.

  • 1997, c. 12, s. 118.
Marginal note:Applications re securities firm
  •  (1) In addition to any creditor who may file an application in accordance with sections 43 to 45, an application for a bankruptcy order against a securities firm may be filed by

    • (a) a securities commission established under an enactment of a province, if

      • (i) the securities firm has committed an act of bankruptcy referred to in section 42 or subsection (2) of this section within the six months before the filing of the application and while the securities firm was licensed or registered by the securities commission to carry on business in Canada, and

      • (ii) in the case in which the act of bankruptcy was that referred to in subsection (2), the suspension referred to in that subsection is in effect when the application is filed;

    • (b) a securities exchange recognized by a provincial securities commission, if

      • (i) the securities firm has committed an act of bankruptcy referred to in section 42 or subsection (2) of this section within the six months before the filing of the application and while the securities firm was a member of the securities exchange, and

      • (ii) in the case in which the act of bankruptcy was that referred to in subsection (2), the suspension referred to in that subsection is in effect when the application is filed;

    • (c) a customer compensation body, if

      • (i) the securities firm has committed an act of bankruptcy referred to in section 42 or subsection (2) of this section within the six months before the filing of the application and while the securities firm had customers whose securities accounts were protected, in whole or in part, by the customer compensation body, and

      • (ii) in the case in which the act of bankruptcy was that referred to in subsection (2), the suspension referred to in that subsection is in effect when the application is filed; and

    • (d) a person who, in respect of property of a securities firm, is a receiver within the meaning of subsection 243(2), a receiver-man­ager, a liquidator or any other person with similar functions appointed under a federal or provincial enactment relating to securities that provides for the appointment of that other person, if the securities firm has committed an act of bankruptcy referred to in section 42 within the six months before the filing of the application.

  • Marginal note:Interpretation

    (2) For the purposes of paragraphs (1)(a) to (c),

    • (a) the suspension by a securities commission referred to in paragraph (1)(a) of a securities firm’s registration to trade in securities, or

    • (b) the suspension by a securities exchange referred to in paragraph (1)(b) of a securities firm’s membership in that exchange

    constitutes an act of bankruptcy if the suspension is due to the failure of the firm to meet capital adequacy requirements.

  • Marginal note:Service on securities commission

    (3) If

    • (a) a securities exchange files an application under paragraph (1)(b), or

    • (b) a customer compensation body files an application under paragraph (1)(c),

    a copy of the application must be served on the securities commission, if any, having jurisdiction in the locality of the securities firm where the application was filed, before

    • (c) any prescribed interval preceding the hearing of the application, or

    • (d) any shorter interval that may be fixed by the court and that precedes the hearing of the application.

  • 1997, c. 12, s. 118;
  • 2004, c. 25, s. 99;
  • 2005, c. 47, s. 118.
Marginal note:Statement of customer account

 The trustee of the estate of a securities firm shall send to customers a statement of customer accounts with the firm together with the notice under subsection 102(1).

  • 1997, c. 12, s. 118.
Marginal note:Deferred customers
  •  (1) Where the trustee is of the opinion that a customer should be treated as a deferred customer, the trustee shall apply to the court for a ruling on the matter and shall send the customer a copy of the application, together with a statement of the reasons why the customer should be so treated, and the court may, on such notice as it considers appropriate, make such order as it considers appropriate in the circumstances.

  • Marginal note:Application by customer compensation body

    (2) Where securities accounts of customers are protected by a customer compensation body, the customer compensation body may apply to the court for a ruling as to whether a customer should be treated as a deferred customer and, in the case of such an application,

    • (a) the customer compensation body shall send the customer a copy of the application together with a statement setting out the reasons why the customer should be so treated; and

    • (b) the court may, on such notice as it considers appropriate, make such order as it considers appropriate in the circumstances.

  • 1997, c. 12, s. 118.
 
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