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 Subsection 109(6) of the Act, as enacted by subsection 80(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

  • Marginal note:Vote of creditors not dealing at arm’s length

    (6) If the chair is of the opinion that the outcome of a vote was determined by the vote of a creditor who did not deal with the debtor at arm’s length at any time during the period that begins on the day that is one year before the date of the initial bankruptcy event and that ends on the date of the bankruptcy, the chair shall redetermine the outcome by excluding the creditor’s vote. The redetermined outcome is the outcome of the vote unless a court, on application within 10 days after the day on which the chair redetermined the outcome of the vote, considers it appropriate to include the creditor’s vote and determines another outcome.

 The Act is amended by adding the following after section 115:

Marginal note:Court order — interlocutory or permanent

115.1 In an application to revoke or vary a decision that affects or could affect the outcome of a vote, the court may make any order that it considers appropriate, including one that suspends the effect of the vote until the application is determined and one that redetermines the outcome of the vote.

Marginal note:2000, c. 12, s. 15

 Subsection 137(2) of the Act is repealed.

Marginal note:2000, c. 12, s. 16

 Section 138 of the Act is repealed.

 Section 140.1 of the Act, as enacted by section 90 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

Marginal note:Postponement of equity claims

140.1 A creditor is not entitled to a dividend in respect of an equity claim until all claims that are not equity claims have been satisfied.

Marginal note:2004, c. 25, s. 72(E)

 Section 146 of the Act is replaced by the following:

Marginal note:Application of provincial law to lessors’ rights

146. Subject to priority of ranking as provided by section 136 and subject to subsection 73(4) and section 84.1, the rights of lessors are to be determined according to the law of the province in which the leased premises are situated.

Marginal note:1997, c. 12, s. 91
  •  (1) Subsection 149(3) of the Act is repealed.

  • (2) Subsections 149(4) and (5) of the Act, as enacted by subsection 92(2) of chapter 47 of the Statutes of Canada, 2005, are replaced by the following:

    • Marginal note:Certain federal claims

      (3) Despite subsection (2), a claim may be filed for an amount payable under the following Acts or provisions within the time limit referred to in subsection (2) — or within three months after the return of income or other evidence of the facts on which the claim is based is filed or comes to the attention of the Minister of National Revenue or, in the case of an amount payable under legislation referred to in paragraph (c), the minister in that province responsible for the legislation:

    • Marginal note:No dividend allowed

      (4) Unless the trustee retains sufficient funds to provide for payment of any claims that may be filed under legislation referred to in subsection (3), no dividend is to be declared until the expiry of three months after the trustee has filed all returns that the trustee is required to file.

 The portion of subsection 172(2) of the Act before paragraph (a), as enacted by subsection 104(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

  • Marginal note:Powers of court to refuse or suspend discharge or grant conditional discharge

    (2) The court shall, on proof of any of the facts referred to in section 173, which proof may be given orally under oath, by affidavit or otherwise,

  •  (1) The portion of subsection 172.1(1) of the French version of the Act before paragraph (a), as enacted by section 105 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

    Marginal note:Exception — failli ayant une dette fiscale
    • 172.1 (1) Dans le cas d’un failli qui a une dette fiscale impayée d’un montant de deux cent mille dollars ou plus représentant soixante-quinze pour cent ou plus de la totalité des réclamations non garanties prouvées, l’audition de la demande de libération ne peut se tenir avant l’expiration :

  • (2) Subsection 172.1(8) of the Act, as enacted by section 105 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

    • Meaning of “personal income tax debt”

      (8) For the purpose of this section, “personal income tax debt” means the amount payable, within the meaning of subsection 223(1) of the Income Tax Act without reference to paragraphs (b) to (c), by an individual and the amount payable by an individual under any provincial legislation that imposes a tax similar in nature to the income tax imposed on individuals under the Income Tax Act, including, for greater certainty, the amount of any interest, penalties or fines imposed under the Income Tax Act or the provincial legislation. It does not include an amount payable by the individual if the individual is or was a director of a corporation and the amount relates to an obligation of the corporation for which the director is liable in their capacity as director.

 Paragraph 178(1)(e) of the Act, as enacted by subsection 107(1) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

  • (e) any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability that arises from an equity claim;

Marginal note:1997, c. 12, s. 114

 Section 216 of the Act is repealed.

 Subsection 219(1) of the Act is replaced by the following:

Marginal note:Application for consolidation order
  • 219. (1) A debtor who resides in a province in respect of which this Part applies may apply to the clerk of the court having jurisdiction where they reside for a consolidation order.

Marginal note:2002, c. 7, s. 85

 Section 242 of the Act is replaced by the following:

Marginal note:Application of this Part
  • 242. (1) The Governor in Council shall, at the request of the lieutenant governor in council of a province, declare, by order, that this Part applies or ceases to apply, as the case may be, in respect of the province.

  • Marginal note:Automatic application

    (2) Subject to an order being made under subsection (1) declaring that this Part ceases to apply in respect of a province, if this Part is in force in the province immediately before that subsection comes into force, this Part applies in respect of the province.

  •  (1) Subsections 243(1) and (2) of the Act, as enacted by subsection 115(1) of chapter 47 of the Statutes of Canada, 2005, are replaced by the following:

    Marginal note:Court may appoint receiver
    • 243. (1) Subject to subsection (1.1), on application by a secured creditor, a court may appoint a receiver to do any or all of the following if it considers it to be just or convenient to do so:

      • (a) take possession of all or substantially all of the inventory, accounts receivable or other property of an insolvent person or bankrupt that was acquired for or used in relation to a business carried on by the insolvent person or bankrupt;

      • (b) exercise any control that the court considers advisable over that property and over the insolvent person’s or bankrupt’s business; or

      • (c) take any other action that the court considers advisable.

    • Marginal note:Restriction on appointment of receiver

      (1.1) In the case of an insolvent person in respect of whose property a notice is to be sent under subsection 244(1), the court may not appoint a receiver under subsection (1) before the expiry of 10 days after the day on which the secured creditor sends the notice unless

      • (a) the insolvent person consents to an earlier enforcement under subsection 244(2); or

      • (b) the court considers it appropriate to appoint a receiver before then.

    • Definition of “receiver”

      (2) Subject to subsections (3) and (4), in this Part, “receiver” means a person who

      • (a) is appointed under subsection (1); or

      • (b) is appointed to take or takes possession or control — of all or substantially all of the inventory, accounts receivable or other property of an insolvent person or bankrupt that was acquired for or used in relation to a business carried on by the insolvent person or bankrupt — under

        • (i) an agreement under which property becomes subject to a security (in this Part referred to as a “security agreement”), or

        • (ii) a court order made under another Act of Parliament, or an Act of a legislature of a province, that provides for or authorizes the appointment of a receiver or receiver-manager.

  • Marginal note:1992, c. 27, s. 89(1)

    (2) Subsection 243(3) of the Act is replaced by the following:

    • Definition of “receiver” — subsection 248(2)

      (3) For the purposes of subsection 248(2), the definition “receiver” in subsection (2) is to be read without reference to paragraph (a) or subparagraph (b)(ii).

  • (3) Subsection 243(4) of the Act, as enacted by subsection 115(2) of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

    • Marginal note:Trustee to be appointed

      (4) Only a trustee may be appointed under subsection (1) or under an agreement or order referred to in paragraph (2)(b).

    • Marginal note:Place of filing

      (5) The application is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor.

    • Marginal note:Orders respecting fees and disbursements

      (6) If a receiver is appointed under subsection (1), the court may make any order respecting the payment of fees and disbursements of the receiver that it considers proper, including one that gives the receiver a charge, ranking ahead of any or all of the secured creditors, over all or part of the property of the insolvent person or bankrupt in respect of the receiver’s claim for fees or disbursements, but the court may not make the order unless it is satisfied that the secured creditors who would be materially affected by the order were given reasonable notice and an opportunity to make representations.

    • Meaning of “disbursements”

      (7) In subsection (6), “disbursements” does not include payments made in the operation of a business of the insolvent person or bankrupt.

 

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