GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bankruptcy and Insolvency Act — B-3 95
Preferences 95 (1) A transfer of property made, a provision of services made, a charge on property made, a payment made, an obligation incurred or a judicial proceeding taken or suffered by an insolvent person (a) in favour of a creditor who is dealing at arm’s length with the insolvent person, or a person in trust for that creditor, with a view to giving that creditor a preference over another creditor is void as against — or, in Quebec, may not be set up against — the trustee if it is made, incurred, taken or suffered, as the case may be, during the period beginning on the day that is three months before the date of the initial bankruptcy event and ending on the date of the bankruptcy; and (b) in favour of a creditor who is not dealing at arm’s length with the insolvent person, or a person in trust for that creditor, that has the effect of giving that creditor a preference over another creditor is void as against — or, in Quebec, may not be set up against — the trustee if it is made, incurred, taken or suffered, as the case may be, during the period beginning on the day that is 12 months before the date of the initial bankruptcy event and ending on the date of the bankruptcy. Preference presumed (2) If the transfer, charge, payment, obligation or judicial proceeding referred to in paragraph (1)(a) has the effect of giving the creditor a preference, it is, in the absence of evidence to the contrary, presumed to have been made, incurred, taken or suffered with a view to giving the creditor the preference — even if it was made, incurred, taken or suffered, as the case may be, under pressure — and evidence of pressure is not admissible to support the transaction. Exception (2.1) Subsection (2) does not apply, and the parties are deemed to be dealing with each other at arm’s length, in respect of the following: (a) a margin deposit made by a clearing member with a clearing house; or (b) a transfer, charge or payment made in connection with financial collateral and in accordance with the provisions of an eligible financial contract. Definitions (3) In this section, clearing house means a body that acts as an intermediary for its clearing members in effecting securities transactions; ( chambre de compensation ) clearing member means a person engaged in the business of effecting securities transactions who uses a clearing house as intermediary; ( membre ) creditor includes a surety or guarantor for the debt due to the creditor; ( créancier ) margin deposit means a payment, deposit or transfer to a clearing house under the rules of the clearing house to assure the performance of the obligations of a clearing member in connection with security transactions, including, without limiting the generality of the foregoing, transactions respecting futures, options or other derivatives or to fulfil any of those obligations. ( dépôt de couverture ) R.S., 1985, c. B-3, s. 95; 1997, c. 12, s. 78; 2004, c. 25, s. 56; 2007, c. 29, s. 100, c. 36, ss. 42, 112
Bankruptcy and Insolvency Act — B-3
clearing house means a body that acts as an intermediary for its clearing members in effecting securities transactions; ( chambre de compensation )
Bankruptcy and Insolvency Act — B-3
clearing member means a person engaged in the business of effecting securities transactions who uses a clearing house as intermediary; ( membre )
Bankruptcy and Insolvency Act — B-3
creditor includes a surety or guarantor for the debt due to the creditor; ( créancier )
Bankruptcy and Insolvency Act — B-3
margin deposit means a payment, deposit or transfer to a clearing house under the rules of the clearing house to assure the performance of the obligations of a clearing member in connection with security transactions, including, without limiting the generality of the foregoing, transactions respecting futures, options or other derivatives or to fulfil any of those obligations. ( dépôt de couverture )
Bankruptcy and Insolvency Act — B-3 96
Transfer at undervalue 96 (1) On application by the trustee, a court may declare that a transfer at undervalue is void as against, or, in Quebec, may not be set up against, the trustee — or order that a party to the transfer or any other person who is privy to the transfer, or all of those persons, pay to the estate the difference between the value of the consideration received by the debtor and the value of the consideration given by the debtor — if (a) the party was dealing at arm’s length with the debtor and (i) the transfer occurred during the period that begins on the day that is one year before the date of the initial bankruptcy event and that ends on the date of the bankruptcy, (ii) the debtor was insolvent at the time of the transfer or was rendered insolvent by it, and (iii) the debtor intended to defraud, defeat or delay a creditor; or (b) the party was not dealing at arm’s length with the debtor and (i) the transfer occurred during the period that begins on the day that is one year before the date of the initial bankruptcy event and ends on the date of the bankruptcy, or (ii) the transfer occurred during the period that begins on the day that is five years before the date of the initial bankruptcy event and ends on the day before the day on which the period referred to in subparagraph (i) begins and (A) the debtor was insolvent at the time of the transfer or was rendered insolvent by it, or (B) the debtor intended to defraud, defeat or delay a creditor. Establishing values (2) In making the application referred to in this section, the trustee shall state what, in the trustee’s opinion, was the fair market value of the property or services and what, in the trustee’s opinion, was the value of the actual consideration given or received by the debtor, and the values on which the court makes any finding under this section are, in the absence of evidence to the contrary, the values stated by the trustee. Meaning of person who is privy (3) In this section, a person who is privy means a person who is not dealing at arm’s length with a party to a transfer and, by reason of the transfer, directly or indirectly, receives a benefit or causes a benefit to be received by another person. R.S., 1985, c. B-3, s. 96; 1997, c. 12, s. 79; 2004, c. 25, s. 57; 2005, c. 47, s. 73; 2007, c. 36, s. 43
Bankruptcy and Insolvency Act — B-3 97
Protected transactions 97 (1) No payment, contract, dealing or transaction to, by or with a bankrupt made between the date of the initial bankruptcy event and the date of the bankruptcy is valid, except the following, which are valid if made in good faith, subject to the provisions of this Act with respect to the effect of bankruptcy on an execution, attachment or other process against property, and subject to the provisions of this Act respecting preferences and transfers at undervalue: (a) a payment by the bankrupt to any of the bankrupt’s creditors; (b) a payment or delivery to the bankrupt; (c) a transfer by the bankrupt for adequate valuable consideration; and (d) a contract, dealing or transaction, including any giving of security, by or with the bankrupt for adequate valuable consideration. Definition of adequate valuable consideration (2) The expression adequate valuable consideration in paragraph (1)(c) means a consideration of fair and reasonable money value with relation to that of the property assigned or transferred, and in paragraph (1)(d) means a consideration of fair and reasonable money value with relation to the known or reasonably to be anticipated benefits of the contract, dealing or transaction. Law of set-off or compensation (3) The law of set-off or compensation applies to all claims made against the estate of the bankrupt and also to all actions instituted by the trustee for the recovery of debts due to the bankrupt in the same manner and to the same extent as if the bankrupt were plaintiff or defendant, as the case may be, except in so far as any claim for set-off or compensation is affected by the provisions of this Act respecting frauds or fraudulent preferences. R.S., 1985, c. B-3, s. 97; 1992, c. 27, s. 41; 1997, c. 12, s. 80; 2004, c. 25, s. 58; 2005, c. 47, s. 74
Bankruptcy and Insolvency Act — B-3 98
Recovering proceeds if transferred 98 (1) If a person has acquired property of a bankrupt under a transaction that is void or voidable and set aside or, in the Province of Quebec, null or annullable and set aside, and has sold, disposed of, realized or collected the property or any part of it, the money or other proceeds, whether further disposed of or not, shall be deemed the property of the trustee. Trustee may recover (2) The trustee may recover the property or the value thereof or the money or proceeds therefrom from the person who acquired it from the bankrupt or from any other person to whom he may have resold, transferred or paid over the proceeds of the property as fully and effectually as the trustee could have recovered the property if it had not been so sold, disposed of, realized or collected. Operation of section (3) Notwithstanding subsection (1), where any person to whom the property has been sold or disposed of has paid or given therefor in good faith adequate valuable consideration, he is not subject to the operation of this section but the trustee’s recourse shall be solely against the person entering into the transaction with the bankrupt for recovery of the consideration so paid or given or the value thereof. Trustee subrogated (4) Where the consideration payable for or on any sale or resale of the property or any part thereof remains unsatisfied, the trustee is subrogated to the rights of the vendor to compel payment or satisfaction. R.S., 1985, c. B-3, s. 98; 2004, c. 25, s. 59(E)
Bankruptcy and Insolvency Act — B-3 98.1
General assignments of book debts ineffective 98.1 (1) If a person engaged in any trade or business makes an assignment of their existing or future book debts, or any class or part of those debts, and subsequently becomes bankrupt, the assignment of book debts is void as against, or, in the Province of Quebec, may not be set up against, the trustee with respect to any book debts that have not been paid at the date of the bankruptcy. Foregoing provisions not to apply in some cases (2) Subsection (1) does not apply to an assignment of book debts that is registered under any statute of any province providing for the registration of assignments of book debts if the assignment is valid in accordance with the laws of the province. Other cases (3) Nothing in subsection (1) renders void or, in the Province of Quebec, null any assignment of book debts due at the date of the assignment from specified debtors, or of debts growing due under specified contracts, or any assignment of book debts included in a transfer of a business made in good faith and for adequate valuable consideration. Definition of assignment (4) For the purposes of this section, assignment includes assignment by way of security, hypothec and other charges on book debts. 2005, c. 47, s. 75
Bankruptcy and Insolvency Act — B-3 99
Dealings with undischarged bankrupt 99 (1) All transactions by a bankrupt with any person dealing with the bankrupt in good faith and for value in respect of property acquired by the bankrupt after the bankruptcy, if completed before any intervention by the trustee, are valid against the trustee, and any estate, or interest or right, in the property that by virtue of this Act is vested in the trustee shall determine and pass in any manner and to any extent that may be required for giving effect to any such transaction. Receipt of money by banker (2) For the purposes of this section, the receipt of any money, security or negotiable instrument from or by the order or direction of a bankrupt by his banker and any payment and any delivery of any security or negotiable instrument made to or by the order or direction of a bankrupt by his banker shall be deemed to be a transaction by the bankrupt with his banker dealing with him for value. R.S., 1985, c. B-3, s. 99; 2004, c. 25, s. 60
Bankruptcy and Insolvency Act — B-3 101
subsection (1) and the interest thereon, that was received by the shareholder and not repaid to the corporation. Directors exonerated by law (3) A judgment pursuant to subsection (2) shall not be entered against or be binding on a director who had, in accordance with any applicable law governing the operation of the corporation, protested against the payment of the dividend or the redemption or purchase for cancellation of the shares of the capital stock of the corporation and had thereby exonerated himself or herself under that law from any liability therefor. Directors exonerated by law — compensation (3.1) A judgment under subsection (2.01) shall not be entered against or be binding on a director who had, in accordance with any applicable law governing the operation of the corporation, protested against the payment of termination pay, severance pay or incentive benefits or other benefits and had exonerated himself or herself under that law from any resulting liability. Directors’ right to recover (4) Nothing in this section shall be construed to affect any right, under any applicable law governing the operation of the corporation, of the directors to recover from a shareholder the whole or any part of any dividend, or any redemption or purchase price, made or paid to the shareholder when the corporation was insolvent or that rendered the corporation insolvent. Onus of proof — directors (5) For the purposes of subsection (2), the onus of proving (a) that the corporation was not insolvent at the time the transaction occurred and that the transaction did not render the corporation insolvent, or (b) that the directors had reasonable grounds to believe that the transaction was occurring at a time when the corporation was not insolvent or that the transaction would not render the corporation insolvent lies on the directors. Onus of proof — directors (5.1) For the purposes of subsection (2.01), a director has the onus of proving any of the following: (a) that the payment (i) occurred at a time when the corporation was not insolvent or did not render the corporation insolvent, (ii) was not conspicuously over the fair market value of the consideration received by the corporation, or (iii) was made in the ordinary course of business; or (b) that the director had reasonable grounds to believe that the payment (i) occurred at a time when the corporation was not insolvent or would not render the corporation insolvent, (ii) was not conspicuously over the fair market value of the consideration received by the corporation, or (iii) was made in the ordinary course of business. Onus of proof — shareholder (6) For the purposes of subsection (2.2), the onus of proving that the corporation was not insolvent at the time the transaction occurred and that the transaction did not render the corporation insolvent lies on the shareholder. R.S., 1985, c. B-3, s. 101; 1997, c. 12, s. 82; 2004, c. 25, s. 61(E) 2019, c. 29, s. 135
Bankruptcy and Insolvency Act — B-3 101.1
Application of sections 95 to 101 101.1 (1) Sections 95 to 101 apply, with any modifications that the circumstances require, to a proposal made under Division I of Part III unless the proposal provides otherwise. Interpretation (2) For the purposes of subsection (1), a reference in sections 95 to 101 (a) to “date of the bankruptcy” is to be read as a reference to “day on which a notice of intention is filed” or, if a notice of intention is not filed, as a reference to “day on which a proposal is filed”; and (b) to “bankrupt”, “insolvent person” or “debtor” is to be read as a reference to “debtor in respect of whom the proposal is filed”. Application of sections 95 to 101 if proposal annulled (3) If the proposal is annulled by the court under subsection 63(1) or as a result of a bankruptcy order or assignment, sections 95 to 101 apply as though the debtor became bankrupt on the date of the initial bankruptcy event. 1992, c. 27, s. 42; 2007, c. 36, s. 44
Bankruptcy and Insolvency Act — B-3 102
First meeting of creditors 102 (1) Subject to subsection (1.1), it is the duty of the trustee to inquire as to the names and addresses of the creditors of a bankrupt and, within five days after the date of the trustee’s appointment, to send in the prescribed manner to the bankrupt, to every known creditor and to the Superintendent a notice in the prescribed form of the bankruptcy and of the first meeting of creditors, to be held within the twenty-one day period following the day of the trustee’s appointment, at the office of the official receiver in the locality of the bankrupt, but the official receiver may, when the official receiver deems it expedient, authorize the meeting to be held at the office of any other official receiver or at such other place as the official receiver may fix. Extension of days (1.1) The official receiver in the locality of the bankrupt may extend the period during which the first meeting of creditors must be held (a) by ten days, or (b) where the official receiver is satisfied that special circumstances exist, by up to thirty days, where the official receiver is satisfied that the extension will not be detrimental to the creditors and is in the general interests of the administration of the estate. Documents to accompany notice (2) The trustee shall include with the notice referred to in subsection (1) a list of the creditors with claims amounting to twenty-five dollars or more and the amounts of their claims together with a proof of claim and proxy in the prescribed form but no name shall be inserted in the proxy before it is so sent. Information and notice (3) In the case of the bankruptcy of an individual, the trustee shall set out in the notice, in the prescribed form, information concerning the financial situation of the bankrupt and the obligation of the bankrupt, if any, to make payments required under section 68 to the estate of the bankrupt. Publication in local paper by trustee (4) A notice in the prescribed form shall, as soon as possible after the bankruptcy and not later than five days before the first meeting of creditors, be published in a local newspaper by the trustee. Purpose of meeting (5) The purpose of the first meeting of creditors shall be to consider the affairs of the bankrupt, to affirm the appointment of the trustee or substitute another in place thereof, to appoint inspectors and to give such directions to the trustee as the creditors may see fit with reference to the administration of the estate. R.S., 1985, c. B-3, s. 102; 1992, c. 1, s. 20, c. 27, s. 43; 1997, c. 12, s. 84; 2005, c. 47, s. 77
Bankruptcy and Insolvency Act — B-3 103
Meetings during administration 103 (1) The trustee may at any time call a meeting of creditors and he shall do so when directed by the court and whenever requested in writing by a majority of the inspectors or by twenty-five per cent in number of the creditors holding twenty-five per cent in value of the proved claims. Meetings convened by inspectors (2) A meeting of the creditors may be convened by a majority of the inspectors at any time when a trustee is not available to call a meeting or has neglected or failed to do so when so directed by the inspectors. R.S., c. B-3, s. 81
Bankruptcy and Insolvency Act — B-3 104
Notice of subsequent meetings 104 (1) Meetings of creditors other than the first shall be called by sending a notice of the time and place of the meeting together with an agenda outlining the items for discussion with a reasonable explanation of what is expected to be discussed for each item, not less than five days before the time of each meeting to each creditor at the address given in the creditor’s proof of claim. Notice to creditors with proved claims (2) After the first meeting of creditors, notice of any meeting or of any proceeding need not be given to any creditors other than those who have proved their claims. R.S., 1985, c. B-3, s. 104; 1997, c. 12, s. 85; 2005, c. 47, s. 78
Bankruptcy and Insolvency Act — B-3 105
Chair of first meeting 105 (1) The official receiver or his nominee shall be the chair at the first meeting of creditors and shall decide any questions or disputes arising at the meeting and from any such decision any creditor may appeal to the court. Chair of subsequent meetings (2) At all meetings of creditors other than the first, the trustee shall be the chair unless by resolution at the meeting some other person is appointed. Casting vote (3) The chair of any meeting of creditors shall, in the case of a tie, have a second or casting vote. Minutes of meeting (4) The chair of any meeting of creditors shall, within a reasonable time after each meeting, cause minutes of the proceedings at the meeting to be prepared. The minutes shall be signed by the chair or by the chair of the next meeting and shall be retained as part of the books, records and documents referred to in section 26 relating to the administration of the estate. Non-receipt of notice by creditor (5) Where a meeting of creditors is called, the proceedings had and resolutions passed at the meeting, unless the court otherwise orders, are valid, notwithstanding that some creditors had not received notice. R.S., 1985, c. B-3, s. 105; 2005, c. 47, ss. 79, 123(E)
Bankruptcy and Insolvency Act — B-3 106
Quorum 106 (1) One creditor entitled to vote, or the representative of such a creditor, constitutes a quorum for a meeting of creditors. Where no quorum (2) Where there is no quorum at the first meeting of creditors, (a) the appointment of the trustee shall be deemed to be confirmed; and (b) the chair shall adjourn the meeting (i) to such time and place as the chair fixes, or (ii) without fixing a time or place for a future meeting. Idem (2.1) Where there is no quorum at any meeting of creditors other than the first meeting, the chair shall adjourn the meeting to such time and place as the chair fixes. Adjournment with consent of meeting (3) The chair of any meeting of creditors may with the consent of the meeting adjourn the meeting from time to time. R.S., 1985, c. B-3, s. 106; 1992, c. 27, s. 44; 2005, c. 47, s. 123(E)
Bankruptcy and Insolvency Act — B-3 107
How creditors shall vote 107 Every class of creditors may express its views and wishes separately from every other class and the effect to be given to those views and wishes shall, in case of any dispute and subject to this Act, be in the discretion of the court. R.S., c. B-3, s. 85
Bankruptcy and Insolvency Act — B-3 108
Chair may admit or reject proof 108 (1) The chair of any meeting of creditors has power to admit or reject a proof of claim for the purpose of voting but his decision is subject to appeal to the court. Accept as proof (2) Notwithstanding anything in this Act, the chair may, for the purpose of voting, accept any letter or printed matter transmitted by any form or mode of telecommunication as proof of the claim of a creditor. In case of doubt (3) Where the chair is in doubt as to whether a proof of claim should be admitted or rejected, he shall mark the proof as objected to and allow the creditor to vote subject to the vote being declared invalid in the event of the objection being sustained. R.S., 1985, c. B-3, s. 108; 1992, c. 27, s. 45; 2005, c. 47, s. 123(E)