Economic and Fiscal Update Implementation Act, 2021 (S.C. 2022, c. 5)

Marginal note:Limitation or prescription period

• 42 (1) Subject to subsections (4) and (6), any action or proceedings to recover money owing under a CEBA loan must be taken no more than six years after the date of the default.

• Marginal note:Default

  (2) For the purposes of subsection (1), the date of the default is the earlier of the day on which the person making the claim first knew, or ought reasonably to have known, that the default had occurred.

• Marginal note:Deduction, set-off or compensation

  (3) Money owing by a person under a CEBA loan may be recovered at any time by way of deduction from, set-off against or compensation against any sum of money that may be payable by Her Majesty in right of Canada to the person, other than an amount payable under section 122.61 of the Income Tax Act.

• Marginal note:Acknowledgment of liability

  (4) If a person’s liability for money owing under a CEBA loan is acknowledged in accordance with subsection (5) at any time during or after the limitation or prescription period described in subsection (1), an action or proceedings to recover the money may, subject to subsection (6), be brought within six years after the date of the acknowledgment.

• Marginal note:Types of acknowledgment

  (5) An acknowledgment of liability means

  • (a) a promise to pay the money owing, made by the person or their agent or mandatary or other representative;

  • (b) an acknowledgment of the money owing, made by the person or their agent or mandatary or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

  • (c) a part payment by the person or their agent or mandatary or other representative of the money owing; or

  • (d) an acknowledgment of the money owing, made in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts, by the person, their agent or mandatary or other representative or the trustee or administrator.

• Marginal note:Limitation or prescription period suspended

  (6) The running of a limitation or prescription period is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the person to recover money owing under a CEBA loan.

• Marginal note:Enforcement proceedings

  (7) This section does not apply in respect of an action or proceeding relating to the execution, renewal or enforcement of a judgment.