Bankruptcy and Insolvency Act

Version of section 256 from 2004-12-15 to 2009-09-17:


Marginal note:Applications re securities firm

  •  (1) In addition to any creditor who may file an application in accordance with sections 43 to 45, an application for a bankruptcy order against a securities firm may be filed by

    • (a) a securities commission established under an enactment of a province, if

      • (i) the securities firm has committed an act of bankruptcy referred to in section 42 or subsection (2) of this section within the six months before the filing of the application and while the securities firm was licensed or registered by the securities commission to carry on business in Canada, and

      • (ii) in the case in which the act of bankruptcy was that referred to in subsection (2), the suspension referred to in that subsection is in effect when the application is filed;

    • (b) a securities exchange recognized by a provincial securities commission, if

      • (i) the securities firm has committed an act of bankruptcy referred to in section 42 or subsection (2) of this section within the six months before the filing of the application and while the securities firm was a member of the securities exchange, and

      • (ii) in the case in which the act of bankruptcy was that referred to in subsection (2), the suspension referred to in that subsection is in effect when the application is filed;

    • (c) a customer compensation body, if

      • (i) the securities firm has committed an act of bankruptcy referred to in section 42 or subsection (2) of this section within the six months before the filing of the application and while the securities firm had customers whose securities accounts were protected, in whole or in part, by the customer compensation body, and

      • (ii) in the case in which the act of bankruptcy was that referred to in subsection (2), the suspension referred to in that subsection is in effect when the application is filed; and

    • (d) a person who, in respect of property of a securities firm, is a receiver, receiver-manager, liquidator or other person with similar functions appointed under a federal or provincial enactment relating to securities that provides for the appointment of that other person, if the securities firm has committed an act of bankruptcy referred to in section 42 within the six months before the filing of the application.

  • Marginal note:Interpretation

    (2) For the purposes of paragraphs (1)(a) to (c),

    • (a) the suspension by a securities commission referred to in paragraph (1)(a) of a securities firm’s registration to trade in securities, or

    • (b) the suspension by a securities exchange referred to in paragraph (1)(b) of a securities firm’s membership in that exchange

    constitutes an act of bankruptcy if the suspension is due to the failure of the firm to meet capital adequacy requirements.

  • Marginal note:Service on securities commission

    (3) If

    • (a) a securities exchange files an application under paragraph (1)(b), or

    • (b) a customer compensation body files an application under paragraph (1)(c),

    a copy of the application must be served on the securities commission, if any, having jurisdiction in the locality of the securities firm where the application was filed, before

    • (c) any prescribed interval preceding the hearing of the application, or

    • (d) any shorter interval that may be fixed by the court and that precedes the hearing of the application.

  • 1997, c. 12, s. 118
  • 2004, c. 25, s. 99
Date modified: