Bankruptcy and Insolvency Act

Marginal note:Trustee may act for secured creditor

• 13.4 (1) No trustee may, while acting as the trustee of an estate, act for or assist a secured creditor to assert a claim against the estate or to realize or otherwise deal with a security that the secured creditor holds, unless the trustee has obtained a written opinion from independent legal counsel that the security is valid and enforceable against the estate.

• Marginal note:Notification by trustee

  (1.1) Forthwith on commencing to act for or assist a secured creditor of the estate in the manner set out in subsection (1), a trustee shall notify the Superintendent and the creditors or the inspectors

  • (a) that the trustee is acting for the secured creditor;

  • (b) of the basis of any remuneration from the secured creditor; and

  • (c) of the opinion referred to in subsection (1).

• Marginal note:Trustee to provide opinion

  (2) Within two days after receiving a request therefor, a trustee shall provide the Superintendent with a copy of the opinion referred to in subsection (1) and shall also provide a copy to each creditor who has made a request therefor.