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

Act current to 2018-09-26 and last amended on 2015-02-26. Previous Versions

Marginal note:Presumption of insolvency

 For the purposes of this Part, if a bankruptcy, an insolvency or a reorganization or a similar order has been made in respect of a debtor in a foreign proceeding, a certified copy of the order is, in the absence of evidence to the contrary, proof that the debtor is insolvent and proof of the appointment of the foreign representative made by the order.

  • 2005, c. 47, s. 122.

Marginal note:Credit for recovery in other jurisdictions

  •  (1) If a bankruptcy order, a proposal or an assignment is made in respect of a debtor under this Act, the following shall be taken into account in the distribution of dividends to the debtor’s creditors in Canada as if they were a part of that distribution:

    • (a) the amount that a creditor receives or is entitled to receive outside Canada by way of a dividend in a foreign proceeding in respect of the debtor; and

    • (b) the value of any property of the debtor that the creditor acquires outside Canada on account of a provable claim of the creditor or that the creditor acquires outside Canada by way of a transfer that, if the transfer were subject to this Act, would be a preference over other creditors or a transfer at undervalue.

  • Marginal note:Restriction

    (2) Despite subsection (1), the creditor is not entitled to receive a dividend from the distribution in Canada until every other creditor who has a claim of equal rank in the order of priority established under this Act has received a dividend whose amount is the same percentage of that other creditor’s claim as the aggregate of the amount referred to in paragraph (1)(a) and the value referred to in paragraph (1)(b) is of that creditor’s claim.

  • 2005, c. 47, s. 122.

Marginal note:Court not prevented from applying certain rules

  •  (1) Nothing in this Part prevents the court, on the application of a foreign representative or any other interested person, from applying any legal or equitable rules governing the recognition of foreign insolvency orders and assistance to foreign representatives that are not inconsistent with the provisions of this Act.

  • Marginal note:Public policy exception

    (2) Nothing in this Part prevents the court from refusing to do something that would be contrary to public policy.

  • 2005, c. 47, s. 122;
  • 2007, c. 36, s. 60.

PART XIVReview of Act

Marginal note:Review of Act

  •  (1) Within five years after the coming into force of this section, the Minister shall cause to be laid before both Houses of Parliament a report on the provisions and operation of this Act, including any recommendations for amendments to those provisions.

  • Marginal note:Reference to parliamentary committee

    (2) The report stands referred to the committee of the Senate, the House of Commons or both Houses of Parliament that is designated or established for that purpose, which shall

    • (a) as soon as possible after the laying of the report, review the report; and

    • (b) report to the Senate, the House of Commons or both Houses of Parliament, as the case may be, within one year after the laying of the Minister’s report, or any further time authorized by the Senate, the House of Commons or both Houses of Parliament.

  • 2005, c. 47, s. 122.
 
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