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Bankruptcy and Insolvency Act

Version of section 81.2 from 2004-12-15 to 2019-07-01:


Marginal note:Special right for farmers, fishermen and aquaculturists

  •  (1) Where

    • (a) a farmer has sold and delivered products of agriculture, a fisherman has sold and delivered products of the sea, lakes and rivers, or an aquaculturist has sold and delivered products of aquaculture, to another person (in this section referred to as the “purchaser”) for use in relation to the purchaser’s business,

    • (b) the products were delivered to the purchaser within the fifteen day period preceding

      • (i) the day on which the purchaser became bankrupt, or

      • (ii) the first day on which there was a receiver, within the meaning of subsection 243(2), in relation to the purchaser,

    • (c) as of the day referred to in subparagraph (b)(i) or (ii), the farmer, fisherman or aquaculturist has not been fully paid for the products, and

    • (d) the farmer, fisherman or aquaculturist files a proof of claim in the prescribed form in respect of the unpaid amount with the trustee or receiver, as the case may be, within thirty days after the day referred to in subparagraph (b)(i) or (ii),

    the claim of the farmer, fisherman or aquaculturist for the unpaid amount in respect of the products is secured by security on all the inventory of or held by the purchaser as of the day referred to in subparagraph (b)(i) or (ii), and the security ranks above every other claim, right, charge or security against that inventory, regardless of when that other claim, right, charge or security arose, except a supplier’s right, under section 81.1, to repossess goods, despite any other federal or provincial Act or law; and if the trustee or receiver, as the case may be, takes possession or in any way disposes of inventory covered by the security, the trustee or receiver is liable for the claim of the farmer, fisherman or aquaculturist to the extent of the net amount realized on the disposition of that inventory, after deducting the cost of realization, and is subrogated in and to all rights of the farmer, fisherman or aquaculturist to the extent of the amounts paid to them by the trustee or receiver.

  • Marginal note:Definitions

    (2) In this section,

    aquaculture

    aquaculture means the cultivation of aquatic plants and animals; (aquiculture)

    aquaculture operation

    aquaculture operation means any premises or site where aquaculture is carried out; (exploitation aquicole)

    aquaculturist

    aquaculturist includes the owner, occupier, lessor and lessee of an aquaculture operation; (aquiculteur)

    aquatic plants and animals

    aquatic plants and animals means plants and animals that, at most stages of their development or life cycles, live in an aquatic environment; (organismes animaux et végétaux aquatiques)

    farm

    farm means land in Canada used for the purpose of farming, which term includes livestock raising, dairying, bee-keeping, fruit growing, the growing of trees and all tillage of the soil; (ferme)

    farmer

    farmer includes the owner, occupier, lessor and lessee of a farm; (agriculteur)

    fish

    fish includes shellfish, crustaceans and marine animals; (poisson)

    fisherman

    fisherman means a person whose business consists in whole or in part of fishing; (pêcheur)

    fishing

    fishing means fishing for or catching fish by any method; (pêche)

    products of agriculture

    products of agriculture includes

    • (a) grain, hay, roots, vegetables, fruits, other crops and all other direct products of the soil, and

    • (b) honey, livestock (whether alive or dead), dairy products, eggs and all other indirect products of the soil; (produits agricoles)

    products of aquaculture

    products of aquaculture includes all cultivated aquatic plants and animals; (produits aquicoles)

    products of the sea, lakes and rivers

    products of the sea, lakes and rivers includes fish of all kinds, marine and freshwater organic and inorganic life and any substances extracted or derived from any water, but does not include products of aquaculture. (produits aquatiques)

  • Marginal note:Interpretation — products and by-products

    (3) For the purposes of this section, each thing included in the following terms as defined in subsection (2), namely,

    • (a) “products of agriculture”,

    • (b) “products of aquaculture”, and

    • (c) “products of the sea, lakes and rivers”,

    comprises that thing in any form or state and any part thereof and any product or by-product thereof or derived therefrom.

  • Marginal note:Section 81.1 applies

    (4) For greater certainty, “goods” in section 81.1 includes products of agriculture, products of the sea, lakes and rivers, and products of aquaculture.

  • Marginal note:Other rights saved

    (5) Nothing in this section precludes a farmer, fisherman or aquaculturist from exercising

    • (a) the right that that person may have under section 81.1 to repossess products of agriculture, products of the sea, lakes and rivers, or products of aquaculture; or

    • (b) any right that that person may have under the law of a province.

  • 1992, c. 27, s. 38
  • 1997, c. 12, s. 72(F)
  • 2004, c. 25, s. 49
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