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

Marginal note:Advance notice

• 244 (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.