Customs Act (R.S.C., 1985, c. 1 (2nd Supp.))

Act current to 2016-08-15 and last amended on 2015-08-01. Previous Versions

Trustees, Receivers and Personal Representatives

Marginal note:Bankruptcies
  •  (1) The following rules apply to a person who is a bankrupt:

    • (a) the trustee in bankruptcy is the agent of the bankrupt and any act performed by the trustee in the administration of the estate of the bankrupt or in the carrying on of any business of the bankrupt is deemed to have been made by the trustee as agent of the bankrupt;

    • (b) the estate of the bankrupt is not a trust or an estate;

    • (c) the property and money of the bankrupt immediately before the day of the bankruptcy does not pass to or vest in the trustee in bankruptcy on the bankruptcy order being made or the assignment in bankruptcy being filed but remains vested in the bankrupt;

    • (d) the trustee in bankruptcy, and not the bankrupt, is liable for the payment of all amounts (other than amounts that relate solely to activities in which the bankrupt begins to engage on or after the day of the bankruptcy and to which the bankruptcy does not relate) that become payable by the bankrupt under this Act during the period beginning on the day immediately after the day the trustee became the trustee in bankruptcy of the bankrupt and ending on the day the discharge of the trustee is granted under the Bankruptcy and Insolvency Act, except that

      • (i) the trustee is liable for the payment of amounts that became payable by the bankrupt after the day of the bankruptcy only to the extent of the property and money of the bankrupt in possession of the trustee available to satisfy the liability, and

      • (ii) the trustee is not liable for the payment of any amount for which a receiver is liable under section 97.37,

    • (e) if, on or after the day of bankruptcy, the bankrupt begins to engage in particular activities to which the bankruptcy does not relate, the particular activities are deemed to be separate from the activities of the person to which the bankruptcy relates as though the particular activities were activities of a separate person;

    • (f) subject to paragraph (h), the trustee in bankruptcy shall perform all the obligations under this Act of the bankrupt in respect of the activities of the bankrupt to which the bankruptcy relates for the period beginning on the day immediately after the day of bankruptcy and ending on the day the discharge of the trustee is granted under the Bankruptcy and Insolvency Act;

    • (g) subject to paragraph (h), if the bankrupt has not on or before the day of bankruptcy fulfilled all of their obligations under this Act in respect of any activities of the bankrupt on or before the day of bankruptcy, the trustee in bankruptcy shall fulfil those obligations, unless the Minister waives in writing the requirement for the trustee to do so;

    • (h) if there is a receiver with authority in respect of a business, a property, affairs or assets of the bankrupt, the trustee in bankruptcy is not required to perform the obligations of the bankrupt under this Act to the extent that the receiver is required under section 97.37 to perform those obligations; and

    • (i) the property and money held by the trustee in bankruptcy for the bankrupt on the day an order of absolute discharge of the bankrupt is granted under the Bankruptcy and Insolvency Act does not pass to the bankrupt on the order being granted but is held by and vested in the bankrupt continuously since the day it was acquired by the bankrupt or the trustee, as the case may be.

  • Definition of bankrupt

    (2) In this section, bankrupt has the same meaning as in subsection 2(1) of the Bankruptcy and Insolvency Act.

  • 2001, c. 25, s. 58;
  • 2004, c. 25, s. 196.
Marginal note:Definitions
  •  (1) The definitions in this subsection apply in this section.

    business

    entreprise

    business includes a part of a business. (entreprise)

    relevant assets

    actif pertinent

    relevant assets of a receiver means

    • (a) if the receiver’s authority relates to all the properties, businesses, affairs and assets of a person, all those properties, businesses, affairs and assets; and

    • (b) if the receiver’s authority relates to only part of the properties, businesses, affairs or assets of a person, that part of the properties, businesses, affairs or assets, as the case may be. (actif pertinent)

  • Marginal note:Receivers

    (2) The following rules apply to a receiver who on a particular day is vested with the authority to manage, operate, liquidate or wind up any business or property, or to manage and care for the affairs and assets, of a person:

    • (a) the receiver is an agent of the person and any act performed by the receiver in respect of the relevant assets of the receiver is deemed to have been performed, as the case may be, by the receiver as agent on behalf of the person;

    • (b) the receiver is not a trustee of the estate of the person or any part of the estate of the person;

    • (c) if the relevant assets of the receiver are a part and not all of the person’s businesses, properties, affairs or assets, the relevant assets of the receiver are deemed to be, throughout the period during which the receiver is acting as receiver of the person, separate from the remainder of the businesses, properties, affairs or assets of the person as though the relevant assets were businesses, properties, affairs or assets, as the case may be, of a separate person;

    • (d) the person and the receiver are jointly and severally or solidarily liable for the payment of all amounts that become payable by the person under this Act before or during the period during which the receiver is acting as receiver of the person to the extent that the amounts can reasonably be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person at the time the amounts became payable except that

      • (i) the receiver is liable for the payment of amounts that became payable before that period only to the extent of the property and money of the person in possession or under the control and management of the receiver after

        • (A) satisfying the claims of creditors whose claims ranked, on the particular day, in priority to the claim of the Crown in respect of the amounts, and

        • (B) paying any amounts that the receiver is required to pay to a trustee in bankruptcy of the person, and

      • (ii) the payment by the person or the receiver of an amount in respect of the liability discharges the joint liability to the extent of that amount;

    • (e) the receiver shall perform all the obligations, in respect of the relevant assets of the receiver for the period during which the receiver is acting as receiver, that are required under this Act to be performed by the person, as if the relevant assets were the only properties, businesses, affairs and assets of the person; and

    • (f) if the person has not on or before the particular day fulfilled their obligations under this Act before the period during which the receiver was acting as receiver, the receiver shall fulfil those obligations for that period that relate to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that period, unless the Minister waives in writing the requirement for the receiver to do so.

  • 2001, c. 25, s. 58.
Marginal note:Definitions
  •  (1) The definitions in this subsection apply in this section and in section 97.39.

    trust

    fiducie

    trust includes the estate of a deceased individual. (fiducie)

    trustee

    fiduciaire

    trustee includes the personal representative of a deceased individual, but does not include a receiver. (fiduciaire)

  • Marginal note:Trustee’s liability

    (2) Subject to subsection (3), each trustee of a trust is liable to satisfy every obligation imposed on the trust under this Act, whether the obligation was imposed during or before the period during which the trustee acts as trustee of the trust, but the satisfaction of an obligation of a trust by one of the trustees of the trust discharges the liability of all other trustees of the trust to satisfy that obligation.

  • Marginal note:Joint and several or solidary liability

    (3) A trustee of a trust is jointly and severally or solidarily liable with the trust and each of the other trustees, if any, for the payment of all amounts that become payable by the trust under this Act before or during the period during which the trustee acts as trustee of the trust except that

    • (a) the trustee is liable for the payment of amounts that became payable before that period only to the extent of the property and money of the trust under the control of the trustee; and

    • (b) the payment by the trust or the trustee of an amount in respect of the liability discharges the joint liability to the extent of that amount.

  • Marginal note:Waiver

    (4) The Minister may, in writing, waive the requirement for the personal representative of a deceased individual to fulfil the obligations under this Act in respect of the activities of the deceased individual that occurred on or before the day the individual died.

  • Marginal note:Activities of a trustee

    (5) For the purposes of this Act, if a person acts as trustee of a trust, anything done by the person in the person’s capacity as trustee of the trust is deemed to have been done by the trust and not by the person.

  • 2001, c. 25, s. 58.
 
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