Bankruptcy and Insolvency Act

Marginal note:Credit for recovery in other jurisdictions

274 If any bankruptcy order, proposal or assignment is made in respect of a debtor under this Act,

• (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 it were subject to this Act, would be set aside or reviewed under sections 91 to 101.2,

shall be taken into account in the distribution of dividends to creditors of the debtor in Canada as if they were a part of that distribution, and 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, the amount of which is the same percentage of that other creditor’s claim as the aggregate of the amount referred to in paragraph (a) and the value referred to in paragraph (b) is of that creditor’s claim.