GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bankruptcy and Insolvency Act — B-3 61
Annulment of bankruptcy 61 (1) The approval by the court of a proposal made after bankruptcy operates to annul the bankruptcy and to revest in the debtor, or in such other person as the court may approve, all the right, title and interest of the trustee in the property of the debtor, unless the terms of the proposal otherwise provide. Non-approval of proposal by court (2) Where the court refuses to approve a proposal in respect of an insolvent person a copy of which has been filed under section 62, (a) the insolvent person is deemed to have thereupon made an assignment; (b) the trustee shall, without delay, file with the official receiver, in the prescribed form, a report of the deemed assignment; (b.1) the official receiver shall issue a certificate of assignment, in the prescribed form, which has the same effect for the purposes of this Act as an assignment filed under section 49; and (c) the trustee shall, within five days after the day the certificate mentioned in paragraph (b.1) is issued, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary resolution, notwithstanding section 14, affirm the appointment of the trustee or appoint another licensed trustee in lieu of that trustee. (3) [Repealed, 1992, c. 27, s. 25] Costs when proposal refused (4) No costs incurred by a debtor on or incidental to an application to approve a proposal, other than the costs incurred by the trustee, shall be allowed out of the estate of the debtor if the court refuses to approve the proposal. R.S., 1985, c. B-3, s. 61; 1992, c. 27, s. 25; 1997, c. 12, s. 38; 2005, c. 47, s. 40; 2017, c. 26, s. 8(E)
Bankruptcy and Insolvency Act — B-3 62
Filing of proposal 62 (1) If a proposal is made in respect of an insolvent person, the trustee shall file with the official receiver a copy of the proposal and the prescribed statement of affairs. Determination of claims (1.1) Except in respect of claims referred to in subsection 14.06(8), where a proposal is made in respect of an insolvent person, the time with respect to which the claims of creditors shall be determined is the time of the filing of (a) the notice of intention; or (b) the proposal, if no notice of intention was filed. Determination of claims re bankrupt (1.2) Except in respect of claims referred to in subsection 14.06(8), where a proposal is made in respect of a bankrupt, the time with respect to which the claims of creditors shall be determined is the date on which the bankrupt became bankrupt. On whom approval binding (2) Subject to subsection (2.1), a proposal accepted by the creditors and approved by the court is binding on creditors in respect of (a) all unsecured claims; and (b) the secured claims in respect of which the proposal was made and that were in classes in which the secured creditors voted for the acceptance of the proposal by a majority in number and two thirds in value of the secured creditors present, or represented by a proxyholder, at the meeting and voting on the resolution to accept the proposal. When insolvent person is released from debt (2.1) A proposal accepted by the creditors and approved by the court does not release the insolvent person from any particular debt or liability referred to in subsection 178(1) unless the proposal explicitly provides for the compromise of that debt or liability and the creditor in relation to that debt or liability voted for the acceptance of the proposal. Certain persons not released (3) The acceptance of a proposal by a creditor does not release any person who would not be released under this Act by the discharge of the debtor. R.S., 1985, c. B-3, s. 62; 1992, c. 27, s. 26; 1997, c. 12, s. 39; 2005, c. 47, s. 41; 2007, c. 36, s. 23
Bankruptcy and Insolvency Act — B-3 62.1
Default in performance of proposal 62.1 Where (a) default is made in the performance of any provision in a proposal, (b) the default is not waived (i) by the inspectors, or (ii) if there are no inspectors, by the creditors, and (c) the default is not remedied by the insolvent person within the prescribed time, the trustee shall, within such time and in such form and manner as are prescribed, so inform all the creditors and the official receiver. 1992, c. 27, s. 27
Bankruptcy and Insolvency Act — B-3 63
Receiving order on default, etc. 63 (1) Where default is made in the performance of any provision in a proposal, or where it appears to the court that the proposal cannot continue without injustice or undue delay or that the approval of the court was obtained by fraud, the court may, on application thereto, with such notice as the court may direct to the debtor, and, if applicable to the trustee and to the creditors, annul the proposal. Validity of things done (2) An order made under subsection (1) shall be made without prejudice to the validity of any sale, disposition of property or payment duly made, or anything duly done under or in pursuance of the proposal, and notwithstanding the annulment of the proposal, a guarantee given pursuant to the proposal remains in full force and effect in accordance with its terms. Annulment for offence (3) A proposal, although accepted or approved, may be annulled by order of the court at the request of the trustee or of any creditor whenever the debtor is afterwards convicted of any offence under this Act. Effect of annulling order (4) On the annulment of a proposal, the debtor shall be deemed to have thereupon made an assignment and the order annulling the proposal shall so state. Meeting of creditors to be called (5) Where an order annulling a proposal has been made, the trustee shall, within five days after the order is made, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary resolution, notwithstanding section 14, affirm the appointment of the trustee or appoint another licensed trustee in lieu of that trustee. Consequences of annulment (6) Where an order annulling the proposal described in subsection (5) has been made, the trustee shall forthwith file a report thereof in the prescribed form with the official receiver, who shall thereupon issue a certificate of assignment in the prescribed form, which has the same effect for the purposes of this Act as an assignment filed pursuant to section 49. R.S., 1985, c. B-3, s. 63; 1992, c. 27, s. 28; 2004, c. 25, s. 34(F)
Bankruptcy and Insolvency Act — B-3 64
Removal of directors 64 (1) The court may, on the application of any person interested in the matter, make an order removing from office any director of a debtor in respect of whom a notice of intention has been filed under section 50.4 or a proposal has been filed under subsection 62(1) if the court is satisfied that the director is unreasonably impairing or is likely to unreasonably impair the possibility of a viable proposal being made in respect of the debtor or is acting or is likely to act inappropriately as a director in the circumstances. Filling vacancy (2) The court may, by order, fill any vacancy created under subsection (1). R.S., 1985, c. B-3, s. 64; 1992, c. 27, s. 29; 1997, c. 12, s. 40; 1999, c. 31, s. 20; 2005, c. 47, s. 42
Bankruptcy and Insolvency Act — B-3 64.1
Security or charge relating to director’s indemnification 64.1 (1) On application by a person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) and on notice to the secured creditors who are likely to be affected by the security or charge, a court may make an order declaring that all or part of the property of the person is subject to a security or charge — in an amount that the court considers appropriate — in favour of any director or officer of the person to indemnify the director or officer against obligations and liabilities that they may incur as a director or officer after the filing of the notice of intention or the proposal, as the case may be. Priority (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the person. Restriction — indemnification insurance (3) The court may not make the order if in its opinion the person could obtain adequate indemnification insurance for the director or officer at a reasonable cost. Negligence, misconduct or fault (4) The court shall make an order declaring that the security or charge does not apply in respect of a specific obligation or liability incurred by a director or officer if in its opinion the obligation or liability was incurred as a result of the director’s or officer’s gross negligence or wilful misconduct or, in Quebec, the director’s or officer’s gross or intentional fault. 2005, c. 47, s. 42; 2007, c. 36, s. 24
Bankruptcy and Insolvency Act — B-3 64.2
Court may order security or charge to cover certain costs 64.2 (1) On notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring that all or part of the property of a person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) is subject to a security or charge, in an amount that the court considers appropriate, in respect of the fees and expenses of (a) the trustee, including the fees and expenses of any financial, legal or other experts engaged by the trustee in the performance of the trustee’s duties; (b) any financial, legal or other experts engaged by the person for the purpose of proceedings under this Division; and (c) any financial, legal or other experts engaged by any other interested person if the court is satisfied that the security or charge is necessary for the effective participation of that person in proceedings under this Division. Priority (2) The court may order that the security or charge rank in priority over the claim of any secured creditor of the person. Individual (3) In the case of an individual, (a) the court may not make the order unless the individual is carrying on a business; and (b) only property acquired for or used in relation to the business may be subject to a security or charge. 2005, c. 47, s. 42; 2007, c. 36, s. 24
Bankruptcy and Insolvency Act — B-3 65
Where proposal is conditional on purchase of new securities 65 A proposal made conditional on the purchase of shares or securities or on any other payment or contribution by the creditors shall provide that the claim of any creditor who elects not to participate in the proposal shall be valued by the court and shall be paid in cash on approval of the proposal. R.S., 1985, c. B-3, s. 65; 2004, c. 25, s. 35(F)
Bankruptcy and Insolvency Act — B-3 65.1
nation values determined in accordance with an eligible financial contract referred to in subsection (9) are owed by the insolvent person to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the insolvent person with a claim provable in bankruptcy in respect of those net termination values. 1992, c. 27, s. 30; 1997, c. 12, s. 41; 2001, c. 9, s. 573; 2004, c. 25, s. 36(E); 2005, c. 47, s. 43; 2007, c. 29, s. 92; 2012, c. 31, s. 415
Bankruptcy and Insolvency Act — B-3 65.12
Application for authorization to serve a notice to bargain 65.12 (1) An insolvent person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) who is a party to a collective agreement and who is unable to reach a voluntary agreement with the bargaining agent to revise any of its provisions may, on giving five days notice to the bargaining agent, apply to the court for an order authorizing the insolvent person to serve a notice to bargain under the laws of the jurisdiction governing collective bargaining between the insolvent person and the bargaining agent. Conditions for issuance of order (2) The court may issue the order only if it is satisfied that (a) the insolvent person would not be able to make a viable proposal, taking into account the terms of the collective agreement; (b) the insolvent person has made good faith efforts to renegotiate the provisions of the collective agreement; and (c) the failure to issue the order is likely to result in irreparable damage to the insolvent person. No delay on vote on proposal (3) The vote of the creditors in respect of a proposal may not be delayed solely because the period provided in the laws of the jurisdiction governing collective bargaining between the insolvent person and the bargaining agent has not expired. Claims arising from revision of collective agreement (4) If the parties to the collective agreement agree to revise the collective agreement after proceedings have been commenced under this Act in respect of the insolvent person, the bargaining agent that is a party to the agreement has a claim, as an unsecured creditor, for an amount equal to the value of concessions granted by the bargaining agent with respect to the remaining term of the collective agreement. Order to disclose information (5) On the application of the bargaining agent and on notice to the person to whom the application relates, the court may, subject to any terms and conditions it specifies, make an order requiring the person to make available to the bargaining agent any information specified by the court in the person’s possession or control that relates to the insolvent person’s business or financial affairs and that is relevant to the collective bargaining between the insolvent person and the bargaining agent. The court may make the order only after the insolvent person has been authorized to serve a notice to bargain under subsection (1). Unrevised collective agreements remain in force (6) For greater certainty, any collective agreement that the insolvent person and the bargaining agent have not agreed to revise remains in force. Parties (7) For the purpose of this section, the parties to a collective agreement are the insolvent person and the bargaining agent who are bound by the collective agreement. 2005, c. 47, s. 44
Bankruptcy and Insolvency Act — B-3 65.13
erty — including the other party’s right to enforce an exclusive use — during the term of the agreement, including any period for which the other party extends the agreement as of right, as long as the other party continues to perform its obligations under the agreement in relation to the use of the intellectual property. 2005, c. 47, s. 44; 2007, c. 36, s. 27 2018, c. 27, s. 266
Bankruptcy and Insolvency Act — B-3 65.2
Insolvent person may disclaim or resiliate commercial lease 65.2 (1) At any time between the filing of a notice of intention and the filing of a proposal, or on the filing of a proposal, in respect of an insolvent person who is a commercial lessee under a lease of real property or an immovable, the insolvent person may disclaim or resiliate the lease on giving thirty days notice to the lessor in the prescribed manner, subject to subsection (2). Lessor may challenge (2) Within fifteen days after being given notice of the disclaimer or resiliation of a lease under subsection (1), the lessor may apply to the court for a declaration that subsection (1) does not apply in respect of that lease, and the court, on notice to any parties that it may direct, shall, subject to subsection (3), make that declaration. Circumstances for not making declaration (3) No declaration under subsection (2) shall be made if the court is satisfied that the insolvent person would not be able to make a viable proposal without the disclaimer or resiliation of the lease and all other leases that the lessee has disclaimed or resiliated under subsection (1). Effects of disclaimer or resiliation (4) If a lease is disclaimed or resiliated under subsection (1), (a) the lessor has no claim for accelerated rent; (b) the proposal must indicate whether the lessor may file a proof of claim for the actual losses resulting from the disclaimer or resiliation, or for an amount equal to the lesser of (i) the aggregate of (A) the rent provided for in the lease for the first year of the lease following the date on which the disclaimer or resiliation becomes effective, and (B) fifteen per cent of the rent for the remainder of the term of the lease after that year, and (ii) three years’ rent; and (c) the lessor may file a proof of claim as indicated in the proposal. Classification of claim (5) The lessor’s claim shall be included in either (a) a separate class of similar claims of lessors; or (b) a class of unsecured claims that includes claims of creditors who are not lessors. Lessor’s vote on proposal (6) The lessor is entitled to vote on the proposal in whichever class referred to in subsection (5) the lessor’s claim is included, and for the amount of the claim as proven. Determination of classes (7) The court may, on application made at any time after the proposal is filed, determine the classes of claims of lessors and the class into which the claim of any of those particular lessors falls. Section 146 not affected (8) Nothing in subsections (1) to (7) affects the operation of section 146 in the event of bankruptcy. 1992, c. 27, s. 30; 1997, c. 12, s. 42; 2004, c. 25, s. 37
Bankruptcy and Insolvency Act — B-3 65.21
Lease disclaimer or resiliation if lessee is a bankrupt 65.21 If, in respect of a proposal concerning a bankrupt person who is a commercial lessee under a lease of real property or an immovable, the lessee’s lease has been surrendered, disclaimed or resiliated in the bankruptcy proceedings, subsections 65.2(3) to (7) apply in the same manner and to the same extent as if the person was not a bankrupt but was an insolvent person in respect of which a disclaimer or resiliation referred to in those subsections applies. 1997, c. 12, s. 43; 2004, c. 25, s. 38
Bankruptcy and Insolvency Act — B-3 65.22
Bankruptcy after court approval 65.22 If an insolvent person who has disclaimed or resiliated a lease under subsection 65.2(1) becomes bankrupt after the court approval of the proposal and before the proposal is fully performed, any claim of the lessor in respect of losses resulting from the disclaimer or resiliation, including any claim for accelerated rent, shall be reduced by the amount of compensation paid under the proposal for losses resulting from the disclaimer or resiliation. 1997, c. 12, s. 43; 2004, c. 25, s. 39(E)
Bankruptcy and Insolvency Act — B-3 65.3
Certificate where proposal performed 65.3 Where a proposal is fully performed, the trustee shall give a certificate to that effect, in the prescribed form, to the debtor and to the official receiver. 1992, c. 27, s. 30
Bankruptcy and Insolvency Act — B-3 66
Act to apply 66 (1) All the provisions of this Act, except Division II of this Part, in so far as they are applicable, apply, with such modifications as the circumstances require, to proposals made under this Division. Assignments (1.1) For the purposes of subsection (1), in deciding whether to make an order under subsection 84.1(1), the court is to consider, in addition to the factors referred to in subsection 84.1(3), whether the trustee approved the proposed assignment. Final statement of receipts and disbursements (1.2) For the purposes of subsection (1), the trustee is to prepare the final statement of receipts and disbursements referred to in section 151 without delay after (a) the debtor files or is deemed to have filed an assignment; (b) the trustee informs the creditors and the official receiver of a default made in the performance of any provision in a proposal; or (c) the trustee gives the certificate referred to in section 65.3 in respect of the proposal. Examination by official receiver (1.3) For the purposes of subsection (1), the examination under oath by the official receiver under subsection 161(1) is to be held — on the attendance of the person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) — before the proposal is approved by the court or the person becomes bankrupt. Division to be applied conjointly with other Acts (1.4) The provisions of this Division may be applied together with the provisions of an Act of Parliament, or of the legislature of a province, that authorizes or provides for the sanction of compromises or arrangements between a corporation and its shareholders or any class of its shareholders. Effect of Companies’ Creditors Arrangement Act (2) Notwithstanding the Companies’ Creditors Arrangement Act , (a) proceedings commenced under that Act shall not be dealt with or continued under this Act; and (b) proceedings shall not be commenced under Part III of this Act in respect of a company if a compromise or arrangement has been proposed in respect of the company under the Companies’ Creditors Arrangement Act and the compromise or arrangement has not been agreed to by the creditors or sanctioned by the court under that Act. R.S., 1985, c. B-3, s. 66; 1992, c. 27, s. 31; 1997, c. 12, s. 44; 2005, c. 47, s. 45; 2007, c. 36, s. 28
Bankruptcy and Insolvency Act — B-3 66.11
Definitions 66.11 In this Division, administrator means (a) a trustee, or (b) a person appointed or designated by the Superintendent to administer consumer proposals; ( administrateur ) consumer debtor means an individual who is bankrupt or insolvent and whose aggregate debts, excluding any debts secured by the individual’s principal residence, are not more than $250,000 or any other prescribed amount; ( débiteur consommateur ) consumer proposal means a proposal made under this Division. ( proposition de consommateur ) 1992, c. 27, s. 32; 1997, c. 12, s. 45; 2005, c. 47, s. 46
Bankruptcy and Insolvency Act — B-3 (a)
administrator means (a) a trustee, or (b) a person appointed or designated by the Superintendent to administer consumer proposals; ( administrateur )
Bankruptcy and Insolvency Act — B-3
consumer debtor means an individual who is bankrupt or insolvent and whose aggregate debts, excluding any debts secured by the individual’s principal residence, are not more than $250,000 or any other prescribed amount; ( débiteur consommateur )
Bankruptcy and Insolvency Act — B-3
consumer proposal means a proposal made under this Division. ( proposition de consommateur )
Bankruptcy and Insolvency Act — B-3 66.12
Consumer proposal 66.12 (1) A consumer proposal may be made by a consumer debtor, subject to subsections (2) and 66.32(1). Dealing with certain consumer proposals together (1.1) Two or more consumer proposals may, in such circumstances as are specified in directives of the Superintendent, be dealt with as one consumer proposal where they could reasonably be dealt with together because of the financial relationship of the consumer debtors involved. Restriction (2) A consumer debtor who has filed a notice of intention or a proposal under Division I may not make a consumer proposal until the trustee appointed in respect of the notice of intention or proposal under Division I has been discharged. To whom consumer proposal is made (3) A consumer proposal shall be made to the creditors generally. Creditors’ response (4) Any creditor may respond to a consumer proposal by filing with the administrator a proof of claim in the manner provided for in (a) sections 124 to 126, in the case of unsecured creditors; or (b) sections 124 to 134, in the case of secured creditors. Term of consumer proposal (5) A consumer proposal must provide that its performance is to be completed within five years. Priority of claims, fees (6) A consumer proposal must provide (a) for the payment in priority to other claims of all claims directed to be so paid in the distribution of the property of the consumer debtor; (b) for the payment of all prescribed fees and expenses (i) of the administrator on and incidental to proceedings arising out of the consumer proposal, and (ii) of any person in respect of counselling provided pursuant to paragraph 66.13(2)(b); and (c) for the manner of distributing dividends. 1992, c. 27, s. 32; 1997, c. 12, s. 46; 2005, c. 47, s. 47(E)