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Bankruptcy and Insolvency Act

Version of section 87 from 2004-12-15 to 2009-09-17:

Marginal note:Statutory Crown securities

  •  (1) A security provided for in federal or provincial legislation for the sole or principal purpose of securing a claim of Her Majesty in right of Canada or a province or of a workers' compensation body is valid in relation to a bankruptcy or proposal only if the security is registered, before the earliest of

    • (a) the date an application is filed against the debtor,

    • (b) the date the debtor makes an assignment,

    • (c) the date the debtor files a notice of intention under section 50.4, and

    • (d) the date on which a proposal is filed,

    pursuant to a prescribed system of registration.

  • Marginal note:Idem

    (2) In relation to a bankruptcy or proposal, a security referred to in subsection (1) that is registered in accordance with that subsection

    • (a) is subordinate to securities in respect of which all steps necessary to make them effective against other creditors were taken before that registration; and

    • (b) is valid only in respect of amounts owing to Her Majesty or a workers' compensation body at the time of that registration, plus any interest subsequently accruing on those amounts.

  • R.S., 1985, c. B-3, s. 87
  • 1992, c. 27, s. 39
  • 1997, c. 12, s. 74
  • 2004, c. 25, s. 53

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