Financial Administration Act (R.S.C., 1985, c. F-11)

Act current to 2014-09-01 and last amended on 2014-06-19. Previous Versions

Marginal note:Limitation of application of this Part

 This Part does not apply

  • (a) to any negotiable instrument;

  • (b) to any Crown debt incurred by or in the name of a corporation set out in Schedule III; or

  • (c) to any securities issued under Part IV.

  • R.S., 1985, c. F-11, s. 70;
  • 1998, c. 13, s. 21.
Marginal note:Regulations

 The Governor in Council may make regulations

  • (a) designating persons as paying officers for the purposes of this Part;

  • (b) prescribing additional classes of Crown debts for the purpose of subsection 68(1);

  • (c) prescribing the forms of notices of assignment and acknowledgments thereof;

  • (d) prescribing the documents to be submitted in connection with a notice of assignment, the forms of those documents and the manner in which they are to be completed; and

  • (e) generally, for carrying into effect the purposes and provisions of this Part.

  • R.S., c. F-10, s. 84.

PART VIIIASSIGNMENT OF DEBTS DUE TO THE CROWN UNDER PAYMENT BONDS

Marginal note:Definitions

 In this Part,

“Crown”

« Sa Majesté »

“Crown” means Her Majesty in right of Canada or any agent of Her Majesty in right of Canada and includes a Crown corporation and a departmental corporation;

“payment bond”

« cautionnement »

“payment bond” means a bond held by the Crown as security for the payment of certain classes of persons who perform labour or services or supply material in connection with a contract between the Crown and a contractor.

  • R.S., 1985, c. F-11, s. 72;
  • 1991, c. 24, s. 50(F).
Marginal note:Assignment of Crown right under payment bond
  •  (1) Where an amount is due to the Crown under the provisions of a payment bond, a person who

    • (a) performed labour or services or supplied material in connection with the contract in respect of which the payment bond is held,

    • (b) is within a class of persons for the payment of which the payment bond is held as security, and

    • (c) has not been paid in full for the labour or services performed or material supplied by him in connection with the contract within the time provided in the payment bond for payment to the class of persons of which that person is a member,

    is, without any act by or notice by or to the Crown, an assignee of the right of the Crown to recover an amount under the payment bond determined pursuant to subsection (2).

  • Marginal note:Amount recoverable

    (2) The amount that may be recovered by a person referred to in subsection (1) shall be equal to the lesser of the amount due to that person for the labour or services performed or material supplied by him under the contract and the amount due to the Crown under the provisions of the payment bond.

  • Marginal note:Crown not a party to action

    (3) A person who is an assignee of the right of the Crown to recover an amount under a payment bond may, in his own name, exercise the right that, but for this Act, the Crown would have had to bring action to enforce payment under the payment bond in accordance with its terms and conditions and the Crown shall be neither a party to, nor liable for any costs in connection with, that action.

  • R.S., 1985, c. F-11, s. 73;
  • 1991, c. 24, s. 50(F).