Bankruptcy and Insolvency Act
Marginal note:Statutory Crown securities
87 (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.
(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
- Date modified: