Bankruptcy and Insolvency Act

Marginal note:Assignments

• 84.1 (1) The court may, on application by an insolvent person or a trustee, make an order assigning the rights and obligations of the insolvent person under any agreement to any person, specified by the court, who has agreed to the assignment.

• Marginal note:Notice

  (2) The applicant must give notice of the assignment, in the prescribed manner, to every party to the agreement.

• Marginal note:Exceptions

  (3) Subsection (1) does not apply in respect of rights and obligations

  • (a) under an eligible financial contract;

  • (b) under a lease referred to in subsection 65.2(1);

  • (c) under a collective agreement; and

  • (d) that are not assignable by reason of their nature.

• Marginal note:Factors to be considered

  (4) In deciding whether to make an assignment, the court must consider, among other things,

  • (a) whether the person to whom the rights and obligations are to be assigned would be able to perform the obligations; and

  • (b) whether it would be appropriate to assign the rights and obligations to that person.

• Marginal note:Restriction

  (5) The court may not make the assignment if the court is satisfied that the insolvent person is in default under the agreement.