Bankruptcy and Insolvency Act — B-3 50.4
Notice of intention 50.4 (1) Before filing a copy of a proposal with a licensed trustee, an insolvent person may file a notice of intention, in the prescribed form, with the official receiver in the insolvent person’s locality, stating (a) the insolvent person’s intention to make a proposal, (b) the name and address of the licensed trustee who has consented, in writing, to act as the trustee under the proposal, and (c) the names of the creditors with claims amounting to two hundred and fifty dollars or more and the amounts of their claims as known or shown by the debtor’s books, and attaching thereto a copy of the consent referred to in paragraph (b). Certain things to be filed (2) Within ten days after filing a notice of intention under subsection (1), the insolvent person shall file with the official receiver (a) a statement (in this section referred to as a “cash-flow statement”) indicating the projected cash-flow of the insolvent person on at least a monthly basis, prepared by the insolvent person, reviewed for its reasonableness by the trustee under the notice of intention and signed by the trustee and the insolvent person; (b) a report on the reasonableness of the cash-flow statement, in the prescribed form, prepared and signed by the trustee; and (c) a report containing prescribed representations by the insolvent person regarding the preparation of the cash-flow statement, in the prescribed form, prepared and signed by the insolvent person. Creditors may obtain statement (3) Subject to subsection (4), any creditor may obtain a copy of the cash-flow statement on request made to the trustee. Exception (4) The court may order that a cash-flow statement or any part thereof not be released to some or all of the creditors pursuant to subsection (3) where it is satisfied that (a) such release would unduly prejudice the insolvent person; and (b) non-release would not unduly prejudice the creditor or creditors in question. Trustee protected (5) If the trustee acts in good faith and takes reasonable care in reviewing the cash-flow statement, the trustee is not liable for loss or damage to any person resulting from that person’s reliance on the cash-flow statement. Trustee to notify creditors (6) Within five days after the filing of a notice of intention under subsection (1), the trustee named in the notice shall send to every known creditor, in the prescribed manner, a copy of the notice including all of the information referred to in paragraphs (1)(a) to (c). Trustee to monitor and report (7) Subject to any direction of the court under paragraph 47.1(2)(a), the trustee under a notice of intention in respect of an insolvent person (a) shall, for the purpose of monitoring the insolvent person’s business and financial affairs, have access to and examine the insolvent person’s property, including his premises, books, records and other financial documents, to the extent necessary to adequately assess the insolvent person’s business and financial affairs, from the filing of the notice of intention until a proposal is filed or the insolvent person becomes bankrupt; (b) shall file a report on the state of the insolvent person’s business and financial affairs — containing the prescribed information, if any — (i) with the official receiver without delay after ascertaining a material adverse change in the insolvent person’s projected cash-flow or financial circumstances, and (ii) with the court at or before the hearing by the court of any application under subsection (9) and at any other time that the court may order; and (c) shall send a report about the material adverse change to the creditors without delay after ascertaining the change. Where assignment deemed to have been made (8) Where an insolvent person fails to comply with subsection (2), or where the trustee fails to file a proposal with the official receiver under subsection 62(1) within a period of thirty days after the day the notice of intention was filed under subsection (1),