Bankruptcy and Insolvency Act

Marginal note:Definitions

253 In this Part,

customer

client

customer includes

• (a) a person with or for whom a securities firm deals as principal, or agent or mandatary, and who has a claim against the securities firm in respect of a security received, acquired or held by the securities firm in the ordinary course of business as a securities firm from or for a securities account of that person

  • (i) for safekeeping or deposit or in segregation,

  • (ii) with a view to sale,

  • (iii) to cover a completed sale,

  • (iv) pursuant to a purchase,

  • (v) to secure performance of an obligation of that person, or

  • (vi) for the purpose of effecting a transfer,

• (b) a person who has a claim against the securities firm arising out of a sale or wrongful conversion by the securities firm of a security referred to in paragraph (a), and

• (c) a person who has cash or other assets held in a securities account with the securities firm,

but does not include a person who has a claim against the securities firm for cash or securities that, by agreement or operation of law, is part of the capital of the securities firm or a claim that is subordinated to claims of creditors of the securities firm; (client)

customer compensation body

organisme d’indemnisation des clients

customer compensation body means a prescribed body and includes, unless it is prescribed to be excluded from this definition, the Canadian Investor Protection Fund; (organisme d’indemnisation des clients)

customer name securities

valeur mobilière immatriculée

customer name securities means securities that on the date of bankruptcy of a securities firm are held by or on behalf of the securities firm for the account of a customer and are registered in the name of the customer or are in the process of being so registered, but does not include securities registered in the name of the customer that, by endorsement or otherwise, are in negotiable form; (valeur mobilière immatriculée)

deferred customer

client responsable

deferred customer means a customer whose misconduct caused or materially contributed to the insolvency of a securities firm; (client responsable)

eligible financial contract

contrat financier admissible

eligible financial contract has the meaning assigned by subsection 65.1(8); (contrat financier admissible)

net equity

capitaux nets

net equity means, with respect to the securities account or accounts of a customer, maintained in one capacity, the net dollar value of the account or accounts, equal to the amount that would be owed by a securities firm to the customer as a result of the liquidation by sale or purchase at the close of business of the securities firm on the date of bankruptcy of the securities firm, of all security positions of the customer in each securities account, other than customer name securities reclaimed by the customer, including any amount in respect of a securities transaction not settled on the date of bankruptcy but settled thereafter, less any indebtedness of the customer to the securities firm on the date of bankruptcy including any amount owing in respect of a securities transaction not settled on the date of bankruptcy but settled thereafter, plus any payment of indebtedness made with the consent of the trustee after the date of bankruptcy; (capitaux nets)

open contractual commitment

contrat en cours

open contractual commitment means an enforceable contract of a securities firm to purchase or sell a security that was not completed by payment and delivery on the date of bankruptcy; (contrat en cours)

securities firm

courtier en valeurs mobilières

securities firm means a person who carries on the business of buying and selling securities from, to or for a customer, whether or not as a member of an exchange, as principal, or agent or mandatary, and includes any person required to be registered to enter into securities transactions with the public, but does not include a corporate entity that is not a corporation within the meaning of section 2; (courtier en valeurs mobilières)

security

valeur mobilière ou titre

security means any document, instrument or written or electronic record that is commonly known as a security, and includes, without limiting the generality of the foregoing,

• (a) a document, instrument or written or electronic record evidencing a share, participation right or other right or interest in property or in an enterprise, including an equity share or stock, or a mutual fund share or unit,

• (b) a document, instrument or written or electronic record evidencing indebtedness, including a note, bond, debenture, mortgage, hypothec, certificate of deposit, commercial paper or mortgage-backed instrument,

• (c) a document, instrument or written or electronic record evidencing a right or interest in respect of an option, warrant or subscription, or under a commodity future, financial future, or exchange or other forward contract, or other derivative instrument, including an eligible financial contract, and

• (d) such other document, instrument or written or electronic record as is prescribed. (valeur mobilière ou titre)