GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bankruptcy and Insolvency Act — B-3 248
Powers of court 248 (1) Where the court, on the application of the Superintendent, the insolvent person, the trustee (in the case of a bankrupt), a receiver or a creditor, is satisfied that the secured creditor, the receiver or the insolvent person is failing or has failed to carry out any duty imposed by sections 244 to 247, the court may make an order, on such terms as it considers proper, (a) directing the secured creditor, receiver or insolvent person, as the case may be, to carry out that duty, or (b) restraining the secured creditor or receiver, as the case may be, from realizing or otherwise dealing with the property of the insolvent person or bankrupt until that duty has been carried out, or both. Idem (2) On the application of the Superintendent, the insolvent person, the trustee (in the case of a bankrupt) or a creditor, made within six months after the statement of accounts was provided to the Superintendent pursuant to subsection 246(3), the court may order the receiver to submit the statement of accounts to the court for review, and the court may adjust, in such manner and to such extent as it considers proper, the fees and charges of the receiver as set out in the statement of accounts. 1992, c. 27, s. 89
Bankruptcy and Insolvency Act — B-3 249
Receiver may apply to court for directions 249 A receiver may apply to the court for directions in relation to any provision of this Part, and the court shall give, in writing, such directions, if any, as it considers proper in the circumstances. 1992, c. 27, s. 89
Bankruptcy and Insolvency Act — B-3 250
Right to apply to court 250 (1) An application may be made under section 248 or 249 notwithstanding any order of a court as defined in subsection 243(1). Where inconsistency (2) Where there is any inconsistency between an order made under section 248, or a direction given under section 249, and (a) the security agreement or court order under which the receiver acts or was appointed, or (b) any other order of the court that appointed the receiver, the order made under section 248 or the direction given under section 249, as the case may be, prevails to the extent of the inconsistency. 1992, c. 27, s. 89
Bankruptcy and Insolvency Act — B-3 251
Protection of receivers 251 No action lies against a receiver for loss or damage arising from the sending or providing by the receiver of a notice pursuant to section 245 or a statement or report pursuant to section 246, if done in good faith in compliance or intended compliance with those sections. 1992, c. 27, s. 89; 1997, c. 12, s. 117(F)
Bankruptcy and Insolvency Act — B-3 252
Defence available 252 In any proceeding where it is alleged that a secured creditor or a receiver contravened or failed to comply with any provision of this Part, it is a defence if the secured creditor or the receiver, as the case may be, shows that, at the time of the alleged contravention or failure to comply, he had reasonable grounds to believe that the debtor was not insolvent. 1992, c. 27, s. 89
Bankruptcy and Insolvency Act — B-3 253
 within the meaning of section 2; ( courtier en valeurs mobilières ) security means any document, instrument or written or electronic record that is commonly known as a security, and includes, without limiting the generality of the foregoing, (a) a document, instrument or written or electronic record evidencing a share, participation right or other right or interest in property or in an enterprise, including an equity share or stock, or a mutual fund share or unit, (b) a document, instrument or written or electronic record evidencing indebtedness, including a note, bond, debenture, mortgage, hypothec, certificate of deposit, commercial paper or mortgage-backed instrument, (c) a document, instrument or written or electronic record evidencing a right or interest in respect of an option, warrant or subscription, or under a commodity future, financial future, or exchange or other forward contract, or other derivative instrument, including an eligible financial contract, and (d) such other document, instrument or written or electronic record as is prescribed. ( valeur mobilière ou titre ) 1997, c. 12, s. 118; 2004, c. 25, s. 97(E); 2005, c. 47, s. 117; 2007, c. 29, s. 101
Bankruptcy and Insolvency Act — B-3 (a)
customer includes (a) a person with or for whom a securities firm deals as principal, or agent or mandatary, and who has a claim against the securities firm in respect of a security received, acquired or held by the securities firm in the ordinary course of business as a securities firm from or for a securities account of that person (i) for safekeeping or deposit or in segregation, (ii) with a view to sale, (iii) to cover a completed sale, (iv) pursuant to a purchase, (v) to secure performance of an obligation of that person, or (vi) for the purpose of effecting a transfer, (b) a person who has a claim against the securities firm arising out of a sale or wrongful conversion by the securities firm of a security referred to in paragraph (a), and (c) a person who has cash or other assets held in a securities account with the securities firm, but does not include a person who has a claim against the securities firm for cash or securities that, by agreement or operation of law, is part of the capital of the securities firm or a claim that is subordinated to claims of creditors of the securities firm; ( client )
Bankruptcy and Insolvency Act — B-3
customer compensation body means a prescribed body and includes, unless it is prescribed to be excluded from this definition, the Canadian Investor Protection Fund; ( organisme d’indemnisation des clients )
Bankruptcy and Insolvency Act — B-3
customer name securities means securities that on the date of bankruptcy of a securities firm are held by or on behalf of the securities firm for the account of a customer and are registered or recorded in the appropriate manner in the name of the customer or are in the process of being so registered or recorded, but does not include securities registered or recorded in the appropriate manner in the name of the customer that, by endorsement or otherwise, are negotiable by the securities firm; ( valeur mobilière immatriculée )
Bankruptcy and Insolvency Act — B-3
deferred customer means a customer whose misconduct, either in the customer’s capacity as a customer or otherwise, caused or materially contributed to the insolvency of a securities firm; ( client responsable )
Bankruptcy and Insolvency Act — B-3
eligible financial contract [Repealed, 2007, c. 29, s. 101]
Bankruptcy and Insolvency Act — B-3
hold , in relation to a security, includes holding it in electronic form; ( détenir )
Bankruptcy and Insolvency Act — B-3
net equity means, with respect to the securities account or accounts of a customer, maintained in one capacity, the net dollar value of the account or accounts, equal to the amount that would be owed by a securities firm to the customer as a result of the liquidation by sale or purchase at the close of business of the securities firm on the date of bankruptcy of the securities firm, of all security positions of the customer in each securities account, other than customer name securities reclaimed by the customer, including any amount in respect of a securities transaction not settled on the date of bankruptcy but settled thereafter, less any indebtedness of the customer to the securities firm on the date of bankruptcy including any amount owing in respect of a securities transaction not settled on the date of bankruptcy but settled thereafter, plus any payment of indebtedness made with the consent of the trustee after the date of bankruptcy; ( capitaux nets )
Bankruptcy and Insolvency Act — B-3
open contractual commitment means an enforceable contract of a securities firm to purchase or sell a security that was not completed by payment and delivery on the date of bankruptcy; ( contrat en cours )
Bankruptcy and Insolvency Act — B-3
securities firm means a person who carries on the business of buying and selling securities from, to or for a customer, whether or not as a member of an exchange, as principal, or agent or mandatary, and includes any person required to be registered to enter into securities transactions with the public, but does not include a corporate entity that is not a corporation within the meaning of section 2; ( courtier en valeurs mobilières )
Bankruptcy and Insolvency Act — B-3 (a)
security means any document, instrument or written or electronic record that is commonly known as a security, and includes, without limiting the generality of the foregoing, (a) a document, instrument or written or electronic record evidencing a share, participation right or other right or interest in property or in an enterprise, including an equity share or stock, or a mutual fund share or unit, (b) a document, instrument or written or electronic record evidencing indebtedness, including a note, bond, debenture, mortgage, hypothec, certificate of deposit, commercial paper or mortgage-backed instrument, (c) a document, instrument or written or electronic record evidencing a right or interest in respect of an option, warrant or subscription, or under a commodity future, financial future, or exchange or other forward contract, or other derivative instrument, including an eligible financial contract, and (d) such other document, instrument or written or electronic record as is prescribed. ( valeur mobilière ou titre )
Bankruptcy and Insolvency Act — B-3 254
Application of other provisions 254 (1) All of the provisions of this Act apply, with such modifications as the circumstances require, in respect of claims by customers for securities and customer name securities as if customers were creditors in respect of such claims. Application of transaction provisions (2) Sections 95 to 101 apply, with such modifications as the circumstances require, in respect of transactions of a customer with or through a securities firm relating to securities. Non-application (3) This Part does not apply to proceedings under Part III. Termination, netting or setting off or compensation (4) Nothing in this Part affects the rights of a party to a contract, including an eligible financial contract, with respect to termination, netting or setting off or compensation. Secured creditors (5) The operation of this Part is subject to the rights of secured creditors. 1997, c. 12, s. 118; 2004, c. 25, s. 98(E); 2007, c. 29, s. 102; 2017, c. 26, s. 10
Bankruptcy and Insolvency Act — B-3 255
Conflicts 255 All the provisions of this Act, in so far as they are applicable, apply in respect of bankruptcies under this Part, but if a conflict arises between the application of the provisions of this Part and the other provisions of this Act, the provisions of this Part prevail. 1997, c. 12, s. 118
Bankruptcy and Insolvency Act — B-3 257
Statement of customer account 257 The trustee of the estate of a securities firm shall send to customers a statement of customer accounts with the firm together with the notice under subsection 102(1). 1997, c. 12, s. 118
Bankruptcy and Insolvency Act — B-3 258
Deferred customers 258 (1) Where the trustee is of the opinion that a customer should be treated as a deferred customer, the trustee shall apply to the court for a ruling on the matter and shall send the customer a copy of the application, together with a statement of the reasons why the customer should be so treated, and the court may, on such notice as it considers appropriate, make such order as it considers appropriate in the circumstances. Application by customer compensation body (2) Where securities accounts of customers are protected by a customer compensation body, the customer compensation body may apply to the court for a ruling as to whether a customer should be treated as a deferred customer and, in the case of such an application, (a) the customer compensation body shall send the customer a copy of the application together with a statement setting out the reasons why the customer should be so treated; and (b) the court may, on such notice as it considers appropriate, make such order as it considers appropriate in the circumstances. 1997, c. 12, s. 118
Bankruptcy and Insolvency Act — B-3 259
Trustee powers 259 The trustee may, in respect of a bankruptcy under this Part, without the permission of inspectors until inspectors are appointed and thereafter with the permission of inspectors, (a) exercise a power of attorney in respect of and transfer any security vested in the trustee; (b) sell securities, other than customer name securities; (c) purchase securities; (d) discharge any security on securities vested in the trustee; (e) complete open contractual commitments; (f) maintain customers’ securities accounts and meet margin calls; (g) distribute cash and securities to customers; (h) transfer securities accounts to another securities firm, to the extent practicable, comply with customer requests regarding the disposal of open contractual commitments and the transfer of open contractual commitments to another securities firm, and enter into agreements to indemnify the other securities firm against shortages of cash or securities in transferred accounts; (i) liquidate any securities account without notice; and (j) sell, without tender, assets of the securities firm essential to the carrying on of its business. 1997, c. 12, s. 118; 2004, c. 25, s. 100; 2015, c. 3, s. 10(F)
Bankruptcy and Insolvency Act — B-3 260
Determination of customer name securities 260 The trustee shall (a) determine which of the securities in customers’ securities accounts are to be dealt with as customer name securities and those that are not to be dealt with as such; and (b) advise customers with securities determined to be customer name securities of the determination as soon as possible thereafter. 1997, c. 12, s. 118
Bankruptcy and Insolvency Act — B-3 261
Vesting of securities, etc., in trustee 261 (1) If a securities firm becomes bankrupt, the following securities and cash vest in the trustee: (a) securities owned by the securities firm; (b) securities and cash held by any person for the account of the securities firm; and (c) securities and cash held by the securities firm for the account of a customer, other than customer name securities. Establishment of a customer pool fund and a general fund (2) Where a securities firm becomes bankrupt and property vests in a trustee under subsection (1) or under other provisions of this Act, the trustee shall establish (a) a fund, in this Part called the “customer pool fund”, including therein (i) securities, including those obtained after the date of the bankruptcy, but excluding customer name securities and excluding eligible financial contracts to which the firm is a party, that are held by or for the account of the firm (A) for a securities account of a customer, (B) for an account of a person who has entered into an eligible financial contract with the firm and has deposited the securities with the firm to assure the performance of the person’s obligations under the contract, or (C) for the firm’s own account, (ii) cash, including cash obtained after the date of the bankruptcy, and including (A) dividends, interest and other income in respect of securities referred to in subparagraph (i), (B) proceeds of disposal of securities referred to in subparagraph (i), and (C) proceeds of policies of insurance covering claims of customers to securities referred to in subparagraph (i), that is held by or for the account of the firm (D) for a securities account of a customer, (E) for an account of a person who has entered into an eligible financial contract with the firm and has deposited the cash with the firm to assure the performance of the person’s obligations under the contract, or (F) for the firm’s own securities account, and (iii) any investments of the securities firm in its subsidiaries that are not referred to in subparagraph (i) or (ii); and (b) a fund, in this Part called the “general fund”, including therein all of the remaining vested property. 1997, c. 12, s. 118; 2004, c. 25, s. 101(F); 2005, c. 47, s. 119
Bankruptcy and Insolvency Act — B-3 262
Allocation and distribution of cash and securities in customer pool fund 262 (1) Cash and securities in the customer pool fund shall be allocated in the following priority: (a) for costs of administration referred to in paragraph 136(1)(b), to the extent that sufficient funds are not available in the general fund to pay such costs; (b) to customers, other than deferred customers, in proportion to their net equity; and (c) to the general fund. Where property deposited with securities firm under an EFC (1.1) Where (a) a person has, under the terms of an eligible financial contract with the securities firm, deposited property with the firm to assure the performance of the person’s obligations under the contract, and (b) that property is included in the customer pool fund pursuant to paragraph 261(2)(a), that person shall share in the distribution of the customer pool fund as if the person were a customer of the firm with a claim for net equity equal to the net value of the property deposited that would have been returnable to the person after deducting any amount owing by the person under the contract. Distribution (2) To the extent that securities of a particular type are available in the customer pool fund, the trustee shall distribute them to customers with claims to the securities, in proportion to their claims to the securities, up to the appropriate portion of their net equity, unless the trustee determines that, in the circumstances, it would be more appropriate to sell the securities and distribute the proceeds to the customers with claims to the securities in proportion to their claims to the securities. Compensation in kind (2.1) Subject to subsection (2), the trustee may satisfy all or part of a customer’s claim to securities of a particular type by delivering to the customer securities of that type to which the customer was entitled at the date of bankruptcy. For greater certainty, the trustee may, for that purpose, exercise the trustee’s power to purchase securities in accordance with section 259. Allocation of property in the general fund (3) Property in the general fund shall be allocated in the following priority: (a) to preferred creditors in the order set out in subsection 136(1); (b) rateably (i) to customers, other than deferred customers, having claims for net equity remaining after distribution of property from the customer pool fund and property provided by a customer compensation body, where applicable, in proportion to claims for net equity remaining, (ii) where applicable, to a customer compensation body to the extent that it paid or compensated customers in respect of their net equity, and (iii) to creditors in proportion to the values of their claims; (c) rateably to creditors referred to in section 137; and (d) to deferred customers, in proportion to their claims for net equity. 1997, c. 12, s. 118; 2005, c. 47, s. 120
Bankruptcy and Insolvency Act — B-3 263
Delivery of customer name securities 263 (1) Where a customer is not indebted to a securities firm, the trustee shall deliver to the customer the customer name securities that belong to the customer. Where customer indebted to securities firm (2) Where a customer to whom customer name securities belong and who is indebted to the securities firm on account of customer name securities not fully paid for, or on another account, discharges their indebtedness in full, the trustee shall deliver to that customer the customer name securities that belong to the customer. Customer indebted to securities firm (3) If a customer to whom customer name securities belong and who is indebted to the securities firm on account of customer name securities not fully paid for, or on another account, does not discharge their indebtedness in full, the trustee may, on notice to the customer, sell sufficient customer name securities to discharge the indebtedness, and those securities are then free of any right, title or interest of the customer. If the trustee so discharges the customer’s indebtedness, the trustee shall deliver any remaining customer name securities to the customer. 1997, c. 12, s. 118; 2005, c. 47, s. 121
Bankruptcy and Insolvency Act — B-3 264
Trustee to consult customer compensation body 264 Where the accounts of customers of a securities firm are protected, in whole or in part, by a customer compensation body, the trustee shall consult the customer compensation body on the administration of the bankruptcy, and the customer compensation body may designate an inspector to act on its behalf. 1997, c. 12, s. 118
Bankruptcy and Insolvency Act — B-3 265
Late claims 265 A customer may prove a claim after the distribution of cash and securities in the customer pool fund and is entitled to receive cash and securities in the hands of the trustee at the time the claim is proven up to the appropriate portion of the customer’s net equity before further distribution is made to other customers, but no such claim shall affect the previous distribution of the customer pool fund or the general fund. 1997, c. 12, s. 118
Bankruptcy and Insolvency Act — B-3 266
Statement of trustee required 266 In addition to any other statement or report required to be prepared under this Act, a trustee shall prepare (a) a statement indicating (i) the distribution of property in the customer pool fund among customers who have proved their claims, and (ii) the disposal of customer name securities; or (b) such other report relating to that distribution or disposal as the court may direct. 1997, c. 12, s. 118
Bankruptcy and Insolvency Act — B-3 267
Purpose 267 The purpose of this Part is to provide mechanisms for dealing with cases of cross-border insolvencies and to promote (a) cooperation between the courts and other competent authorities in Canada with those of foreign jurisdictions in cases of cross-border insolvencies; (b) greater legal certainty for trade and investment; (c) the fair and efficient administration of cross-border insolvencies that protects the interests of creditors and other interested persons, and those of debtors; (d) the protection and the maximization of the value of debtors’ property; and (e) the rescue of financially troubled businesses to protect investment and preserve employment. 1997, c. 12, s. 118; 2005, c. 47, s. 122
Bankruptcy and Insolvency Act — B-3 268
Definitions 268 (1) The following definitions apply in this Part. foreign court means a judicial or other authority competent to control or supervise a foreign proceeding. ( tribunal étranger ) foreign main proceeding means a foreign proceeding in a jurisdiction where the debtor has the centre of the debtor’s main interests. ( principale ) foreign non-main proceeding means a foreign proceeding, other than a foreign main proceeding. ( secondaire ) foreign proceeding means a judicial or an administrative proceeding, including an interim proceeding, in a jurisdiction outside Canada dealing with creditor’s collective interests generally under any law relating to bankruptcy or insolvency in which a debtor’s property and affairs are subject to control or supervision by a foreign court for the purpose of reorganization or liquidation. ( instances étrangères ) foreign representative means a person or body, including one appointed on an interim basis, who is authorized, in a foreign proceeding in respect of a debtor, to (a) administer the debtor’s property or affairs for the purpose of reorganization or liquidation; or (b) act as a representative in respect of the foreign proceeding. ( représentant étranger ) Centre of debtor’s main interests (2) For the purposes of this Part, in the absence of proof to the contrary, a debtor’s registered office and, in the case of a debtor who is an individual, the debtor’s ordinary place of residence are deemed to be the centre of the debtor’s main interests. 1997, c. 12, s. 118; 2004, c. 25, s. 102; 2005, c. 47, s. 122
Bankruptcy and Insolvency Act — B-3
foreign court means a judicial or other authority competent to control or supervise a foreign proceeding. ( tribunal étranger )