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Winding-up and Restructuring Act (R.S.C., 1985, c. W-11)

Act current to 2020-05-17 and last amended on 2015-02-26. Previous Versions

Marginal note:Execution, etc.

 Every attachment, sequestration, distress or execution put in force against the assets of the authorized foreign bank after the making of a winding-up order in respect of it is void.

  • R.S., 1985, c. W-11, s. 155
  • 1996, c. 6, s. 160
  • 1999, c. 28, s. 92

Marginal note:Liquidator to prepare statement

 A liquidator shall, within 120 days after appointment in respect of an authorized foreign bank, prepare a statement of

  • (a) the assets, debts and liabilities of the authorized foreign bank in respect of its business in Canada and of the value of those assets as shown by the books and records of the authorized foreign bank; and

  • (b) the assets of the authorized foreign bank, other than those in respect of its business in Canada, and the value of the assets as shown by the books and records of the authorized foreign bank or, where the books and records are not available, an estimated value of the assets.

  • R.S., 1985, c. W-11, s. 156
  • 1996, c. 6, s. 160
  • 1999, c. 28, s. 92

Marginal note:What debts may be proved

  •  (1) When the business in Canada of an authorized foreign bank is being wound up and its assets are being liquidated under this Act, only debts and claims against the authorized foreign bank in respect of its business in Canada in existence at the commencement of the winding-up, certain or contingent, matured or not, and liquidated or unliquidated, are admissible to proof and, subject to subsection (2), the amount of any claim admissible to proof is the unpaid debt or other liability of the authorized foreign bank in respect of its business in Canada outstanding or accrued at the commencement of the winding-up.

  • Marginal note:Uncertain claims valued

    (2) In case of any claim subject to any contingency or for unliquidated damages or which for any other reason does not bear a certain value, the court shall determine the value of the claim and the amount for which it shall rank.

  • R.S., 1985, c. W-11, s. 157
  • 1996, c. 6, s. 160
  • 1999, c. 28, s. 92

Marginal note:Law of set-off to apply

 The law of set-off, as administered by the courts, whether of law or equity, applies, in the same manner and to the same extent as if the business in Canada of the authorized foreign bank was not being wound up under this Act, only to

  • (a) claims by creditors of the authorized foreign bank in respect of its business in Canada; and

  • (b) proceedings for the recovery of debts due or accruing due to an authorized foreign bank in respect of its business in Canada at the commencement of the winding-up.

  • R.S., 1985, c. W-11, s. 158
  • 1996, c. 6, s. 160
  • 1999, c. 28, s. 92

Marginal note:Distribution of property

  •  (1) Where a winding-up order is made in respect of an authorized foreign bank, claims shall be paid in the following order of priority:

    • (a) charges, costs and expenses, including the remuneration of the liquidator, incurred in the winding-up of the business in Canada of the authorized foreign bank and of the liquidation of its assets;

    • (b) claims of preferred creditors, specified in section 72; and

    • (c) debts and liabilities of the authorized foreign bank in respect of its business in Canada in order of priority as set out in sections 625 and 627 of the Bank Act.

  • Marginal note:Distribution and release of surplus assets

    (2) Any assets that remain after payment of the claims referred to in paragraphs (1)(a) to (c) are to be applied firstly in payment of interest from the commencement of the winding-up at the rate of five per cent per annum on all claims proved in the winding-up and according to their priority. The liquidator may, with the approval of the court, release to the authorized foreign bank any assets remaining after payment of the interest.

  • 1999, c. 28, s. 92

Marginal note:Transfer to foreign liquidator

 Where an authorized foreign bank is in liquidation in the jurisdiction in which its head office is situated or where it principally carries on business, the Superintendent may, if the Superintendent deems it advisable and in the interests of the creditors of the authorized foreign bank, authorize the liquidator, subject to the approval of the court, to transfer the assets of the authorized foreign bank to the liquidator in that jurisdiction.

  • 1999, c. 28, s. 92

Marginal note:Right of action not debarred

 Subject to this Act, where the assets of an authorized foreign bank are not sufficient to cover in full all claims referred to in paragraphs 158.1(1)(a) to (c), the creditors are not barred from any recourse they have, either in law or equity, except in respect of the share, if any, received in the distribution of the assets.

  • 1999, c. 28, s. 92

PART IIIRestructuring of Insurance Companies

Marginal note:Definitions

 In this Part,

company

company means an insurance company; (société)

foreign company

foreign company means a foreign insurance company; (Version anglaise seulement)

policy

policy includes, without limiting the generality of its meaning, policy as defined in subsection 2(1) of the Insurance Companies Act. (police)

  • R.S., 1985, c. W-11, s. 159
  • R.S., 1985, c. 18 (3rd Supp.), s. 43
  • 1991, c. 47, s. 747
  • 1996, c. 6, s. 161

Marginal note:Application of Part

  •  (1) This Part applies only to insurance companies.

  • Marginal note:Transitional

    (2) This Part applies only in respect of applications for winding-up orders that are made after the date of coming into force of this subsection, and applications for winding-up orders that were made on or before that date shall be dealt with in accordance with the provisions of this Part as they read immediately before that date.

  • 1991, c. 47, s. 747
  • 1996, c. 6, s. 161
 
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