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Bankruptcy and Insolvency Act

Version of section 137 from 2009-09-18 to 2024-10-30:


Marginal note:Postponement of claims — creditor not at arm’s length

  •  (1) A creditor who, at any time before the bankruptcy of a debtor, entered into a transaction with the debtor and who was not at arm’s length with the debtor at that time is not entitled to claim a dividend in respect of a claim arising out of that transaction until all claims of the other creditors have been satisfied, unless the transaction was in the opinion of the trustee or of the court a proper transaction.

  • (2) [Repealed, 2007, c. 36, s. 47]

  • R.S., 1985, c. B-3, s. 137
  • 2000, c. 12, s. 15
  • 2005, c. 47, s. 89
  • 2007, c. 36, s. 47

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