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

Act current to 2017-09-27 and last amended on 2017-09-21. Previous Versions

Status of Trustee

Marginal note:Declaration

 A trustee is deemed to be a trustee for the purposes of the definition trustee in section 2 of the Criminal Code.

  • 1997, c. 12, s. 16;
  • 2004, c. 25, s. 17(F).

Duties and Powers of Trustees

Marginal note:Security to be given by trustee
  •  (1) Every trustee duly appointed shall, as soon as they are appointed, give security in cash or by bond or suretyship of a guaranty company satisfactory to the official receiver for the due accounting for, the payment and the transfer of all property received by the trustee as trustee and for the due and faithful performance of the trustee’s duties.

  • Marginal note:Security to be given by trustee

    (2) The security required to be given under subsection (1) shall be given to the official receiver in favour of the creditors generally and may be enforced by any succeeding trustee or by any one of the creditors on behalf of all by direction of the court, and may be increased or reduced by the official receiver.

  • Marginal note:Trustee to take possession and make inventory

    (3) The trustee shall, as soon as possible, take possession of the deeds, books, records and documents and all property of the bankrupt and make an inventory, and for the purpose of making an inventory the trustee is entitled to enter, subject to subsection (3.1), on any premises on which the deeds, books, records, documents or property of the bankrupt may be, even if they are in the possession of an executing officer, a secured creditor or other claimant to them.

  • Marginal note:Warrant required to enter

    (3.1) Where the premises referred to in subsection (3) are occupied by a person other than the bankrupt, the trustee may not enter the premises without the consent of that other person except under the authority of a warrant issued under section 189.

  • Marginal note:Trustee to be receiver

    (4) The trustee shall, in relation to and for the purpose of acquiring or retaining possession of the property of the bankrupt, be in the same position as if he were a receiver of the property appointed by the court, and the court may on his application enforce the acquisition or retention accordingly.

  • Marginal note:Right of trustee to books of account, etc.

    (5) No person is, as against the trustee, entitled to withhold possession of the books of account belonging to the bankrupt or any papers or documents, including material in electronic form, relating to the accounts or to any trade dealings of the bankrupt or to set up any lien or right of retention thereon.

  • R.S., 1985, c. B-3, s. 16;
  • R.S., 1985, c. 31 (1st Supp.), s. 3;
  • 1994, c. 26, s. 7;
  • 1997, c. 12, s. 17;
  • 2004, c. 25, s. 18.
Marginal note:Property to be delivered to trustee
  •  (1) Where a person has in his possession or power any property of the bankrupt that he is not by law entitled to retain as against the bankrupt or the trustee, that person shall deliver the property to the trustee.

  • Marginal note:Power to act anywhere

    (2) For the purpose of obtaining possession of and realizing on the property of the bankrupt, a trustee has power to act as such anywhere.

  • R.S., c. B-3, s. 12.
Marginal note:Conservatory measures

 The trustee may when necessary in the interests of the estate of the bankrupt

  • (a) take conservatory measures and summarily dispose of property that is perishable or likely to depreciate rapidly in value; and

  • (b) carry on the business of the bankrupt until the date fixed for the first meeting of creditors.

  • R.S., c. B-3, s. 12.
Marginal note:Legal advice or action before first meeting
  •  (1) The trustee may prior to the first meeting of creditors obtain such legal advice and take such court proceedings as he may consider necessary for the recovery or protection of the property of the bankrupt.

  • Marginal note:In case of emergency

    (2) In the case of an emergency where the necessary authority cannot be obtained from the inspectors in time to take appropriate action, the trustee may obtain such legal advice and institute such legal proceedings and take such action as he may deem necessary in the interests of the estate of the bankrupt.

  • (3) [Repealed, 2005, c. 47, s. 18]

  • R.S., 1985, c. B-3, s. 19;
  • 2004, c. 25, s. 19(F);
  • 2005, c. 47, s. 18.
Marginal note:Divesting property by trustee
  •  (1) The trustee may, with the permission of the inspectors, divest all or any part of the trustee’s right, title or interest in any real property or immovable of the bankrupt by a notice of quit claim or renunciation by the trustee, and the official in charge of the land titles or registry office, as the case may be, where title to the real property or immovable is registered shall accept and register in the land register the notice when tendered for registration.

  • Marginal note:Registration of notice

    (2) Registration of a notice under subsection (1) operates as a discharge or release of any documents previously registered in the land register by or on behalf of the trustee with respect to the property referred to in the notice.

  • R.S., 1985, c. B-3, s. 20;
  • 1997, c. 12, s. 18;
  • 2004, c. 25, s. 20.
Marginal note:Verifying bankrupt’s statement of affairs

 The trustee shall verify the bankrupt’s statement of affairs referred to in paragraph 158(d).

  • R.S., 1985, c. B-3, s. 21;
  • 2005, c. 47, s. 19.
Marginal note:Duties regarding returns

 The trustee is not liable to make any return that the bankrupt was required to make more than one year prior to the commencement of the calendar year, or the fiscal year of the bankrupt where that is different from the calendar year, in which he became a bankrupt.

  • R.S., c. B-3, s. 12.
Marginal note:Trustee to permit inspection of records

 The trustee shall at all reasonable times permit any authorized person to inspect the books and papers of the bankrupt in order to prepare or verify returns that the bankrupt is by statute required to file.

  • R.S., c. B-3, s. 12.
Marginal note:Insuring property
  •  (1) The trustee shall forthwith temporarily insure and keep insured in his official name all the insurable property of the bankrupt, for such amount and against such hazards as he may deem advisable until the inspectors are appointed, whereupon the inspectors shall determine the amount for which and the hazards against which the bankrupt’s property shall be insured by the trustee.

  • Marginal note:Losses payable to trustee

    (2) All insurance covering property of the bankrupt in force at the date of the bankruptcy shall in the event of loss suffered, without any notice to the insurer or other action on the part of the trustee and notwithstanding any statute or rule of law or contract or provision to a contrary effect, become payable immediately to the trustee as if the name of the trustee were written in the policy or contract of insurance as that of the insured or as if no change of title or ownership had come about and the trustee were the insured.

  • R.S., c. B-3, s. 13.
Marginal note:Trust account
  •  (1) When acting under the authority of this Act, a trustee shall, without delay, deposit in a bank all funds received for an estate in a separate trust account for each estate.

  • Marginal note:Other deposit-taking institutions must be insured

    (1.1) The trustee may deposit the funds in a deposit-taking institution, other than a bank as defined in section 2, only if deposits held by that institution are insured or guaranteed under a provincial or federal enactment that provides depositors with protection against the loss of funds on deposit with that institution.

  • Marginal note:Foreign funds

    (1.2) If the funds are situated in a country other than Canada, the trustee may, if authorized by the Superintendent, deposit them in a financial institution in that country that is similar to a bank.

  • Marginal note:Permission needed for certain acts

    (1.3) The trustee shall not withdraw any funds from the trust account of an estate without the permission in writing of the inspectors or, on application, the court, except for the payment of dividends and charges incidental to the administration of the estate.

  • Marginal note:Payment by cheque

    (2) All payments made by a trustee under subsection (1) shall be made by cheque drawn on the estate account or in such manner as is specified in directives of the Superintendent.

  • Marginal note:Not in private account

    (3) The trustee shall not deposit any funds received by the trustee when acting under the authority of this Act in any banking account kept by the trustee for the trustee’s personal use.

  • R.S., 1985, c. B-3, s. 25;
  • 1992, c. 27, s. 10;
  • 1997, c. 12, s. 19;
  • 2005, c. 47, s. 20.
 
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