GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Canada Not-for-profit Corporations Act — C-7.75 72
Staleness 72 (1) The following events do not constitute notice of an adverse claim except if the debt obligation becomes stale within the meaning of subsection (2): (a) an event that creates a right to performance of the principal obligation evidenced by the debt obligation; or (b) an event that sets the date on or after which the debt obligation is to be presented or surrendered for redemption or exchange. Staleness of debt obligation (2) A debt obligation becomes stale if (a) the purchaser takes the debt obligation later than the prescribed period that is after (i) the date on which performance of the principal obligation evidenced by the debt obligation was due, or (ii) the date on or after which the debt obligation was to be presented or surrendered for redemption or exchange; or (b) the payment of money or the delivery of debt obligations is required in order to present or surrender the debt obligation, the money or debt obligations are available on the day for the payment or delivery and the purchaser takes the debt obligation later than the prescribed period that is after that day.
Canada Not-for-profit Corporations Act — C-7.75 73
Guarantee 73 (1) A person who presents a debt obligation for registration of transfer or for payment or exchange guarantees to the issuer that the person is entitled to do so. Limitation on guarantee (2) A good faith purchaser who receives a new, reissued or re-registered debt obligation and who registers a transfer guarantees only that the purchaser has no knowledge of any unauthorized signature in a necessary endorsement.
Canada Not-for-profit Corporations Act — C-7.75 74
Content of guarantee 74 A person who transfers a debt obligation to a purchaser for value guarantees by the transfer only that (a) the transfer is effective and rightful; (b) the debt obligation is genuine and has not been materially altered; and (c) the person knows of nothing that might impair the validity of the debt obligation.
Canada Not-for-profit Corporations Act — C-7.75 75
Guarantee of intermediary 75 An intermediary delivering a debt obligation to a purchaser who knows that the intermediary is an intermediary guarantees only its good faith.
Canada Not-for-profit Corporations Act — C-7.75 76
Guarantee of broker 76 A broker shall give to a customer, to the issuer and to a purchaser the guarantees provided in sections 73 to 75 and has the rights and privileges of a purchaser under those sections, and those guarantees of and in favour of the broker acting as an agent or mandatary are in addition to guarantees given by the customer and guarantees given in favour of the customer.
Canada Not-for-profit Corporations Act — C-7.75 77
Right to compel endorsement 77 If a registered debt obligation is delivered to a purchaser without a necessary endorsement, the purchaser has the right to demand the endorsement. The purchaser becomes a good faith purchaser after the endorsement.
Canada Not-for-profit Corporations Act — C-7.75 78
Definition of appropriate 78 (1) In section 79 , subsections 86 (1) and 94 (1) and section 98 , appropriate , with respect to a person, means that the person is (a) the person who is specified by the debt obligation or by a special endorsement to be entitled to the debt obligation; (b) if the person described in paragraph (a) is described as a fiduciary but is no longer serving as one, either that person or their successor; (c) if the debt obligation or endorsement mentioned in paragraph (a) specifies more than one person as fiduciaries and one or more of those persons is no longer a fiduciary, the remaining fiduciary or fiduciaries, whether or not a successor has been appointed or qualified; (d) if the person described in paragraph (a) is an individual and is without capacity to act by reason of death, minority or incapability, the person’s fiduciary; (e) if the debt obligation or endorsement mentioned in paragraph (a) specifies more than one person with a right of survivorship and by reason of death not all of the persons can sign, the survivor or survivors; (f) a person who has the legal power to sign; or (g) to the extent that a person described in any of paragraphs (a) to (f) may act through an agent or mandatary, the person’s authorized agent or mandatary. Time for determination (2) The authority of a person signing is determined as of the time of signing. 2009, c. 23, s. 78; 2018, c. 8, s. 99
Canada Not-for-profit Corporations Act — C-7.75 79
Endorsement 79 (1) An endorsement of a debt obligation in registered form for the purposes of assignment or transfer is made when an appropriate person signs either the debt obligation or a separate document, or when the signature of an appropriate person is written without more on the back of the debt obligation. Blank or special (2) An endorsement may be in blank or special. Blank endorsement (3) An endorsement in blank includes an endorsement to bearer. Special endorsement (4) A special endorsement specifies the person to whom the debt obligation is to be transferred or who has power to transfer it. Right of holder (5) A holder may convert an endorsement in blank into a special endorsement.
Canada Not-for-profit Corporations Act — C-7.75 80
Immunity of endorser 80 Unless agreed otherwise, the endorser does not, by the endorsement, assume any obligation that the debt obligation will be honoured by the issuer.
Canada Not-for-profit Corporations Act — C-7.75 81
Partial endorsement 81 An endorsement purporting to be an endorsement of only part of a debt obligation representing units intended by the issuer to be separately transferable is effective to the extent of the endorsement.
Canada Not-for-profit Corporations Act — C-7.75 82
Effect of failure by fiduciary to comply 82 Failure of a fiduciary to comply with the document that is the source of the fiduciary’s power or with the law of the jurisdiction governing the fiduciary relationship does not render the fiduciary’s endorsement unauthorized for the purposes of this Part.
Canada Not-for-profit Corporations Act — C-7.75 83
Effect of endorsement 83 An endorsement of a debt obligation does not constitute a transfer until delivery of the debt obligation on which it appears or, if the endorsement is on a separate document, until delivery of both the debt obligation and the document.
Canada Not-for-profit Corporations Act — C-7.75 84
Endorsement in bearer form 84 An endorsement of a debt obligation in bearer form may give notice of an adverse claim under section 69 but does not otherwise affect any of the holder’s rights.
Canada Not-for-profit Corporations Act — C-7.75 85
Effect of unauthorized endorsement 85 (1) The owner of a debt obligation may assert the ineffectiveness of an endorsement against the issuer or a purchaser, other than a purchaser for value without notice of an adverse claim who has in good faith received a new, reissued or re-registered debt obligation on registration of transfer, unless the owner (a) has ratified an unauthorized endorsement of the debt obligation; or (b) is otherwise precluded from impugning the effectiveness of an unauthorized endorsement. Liability of issuer (2) An issuer who registers the transfer of a debt obligation on an unauthorized endorsement is liable for improper registration.
Canada Not-for-profit Corporations Act — C-7.75 86
Warranties of guarantor of signature 86 (1) A person who guarantees the signature of an endorser of a debt obligation warrants that, at the time of signing, the signer was an appropriate person to endorse and the signature was genuine. Limitation of liability (2) A person who guarantees the signature of an endorser does not otherwise warrant the rightfulness of the transfer to which the signature relates. Warranties of guarantor of endorsement (3) A person who guarantees the endorsement of a debt obligation warrants both the signature and the rightfulness, in all respects, of the transfer to which the signature relates, but an issuer may not require a guarantee of endorsement as a condition to registration of transfer. Extent of liability (4) If a guarantee referred to in subsection (1) or (3) is made to any person who, relying on the guarantee, takes or deals with the debt obligation, the guarantor is liable to the person for any loss resulting from breach of warranty.
Canada Not-for-profit Corporations Act — C-7.75 87
Presumption of delivery 87 Delivery of a debt obligation to a purchaser occurs when (a) the purchaser or a person designated by the purchaser acquires possession of it; (b) the purchaser’s broker acquires possession of a debt obligation specially endorsed to or issued in the name of the purchaser; (c) the purchaser’s broker sends the purchaser confirmation of the purchase and the broker in the broker’s records identifies a specific debt obligation as belonging to the purchaser; or (d) in respect of an identified debt obligation to be delivered while still in the possession of a third person, that person acknowledges that it is held for the purchaser.
Canada Not-for-profit Corporations Act — C-7.75 88
Presumption of ownership 88 (1) A purchaser is the owner of a debt obligation held for the purchaser by a broker, but a purchaser is not a holder except in the cases described in paragraphs 87 (b) and (c). Ownership of part of fungible bulk (2) If a debt obligation is part of a fungible bulk, by nature or usage of trade, a purchaser of the debt obligation is the owner of the proportionate share in the bulk. Notice to debt obligations broker of adverse claim (3) Notice of an adverse claim received by a broker or by a purchaser after the broker takes delivery as a holder for value is not effective against the broker or the purchaser, except that, as between the broker and the purchaser, the purchaser may demand delivery of an equivalent debt obligation in respect of which no notice of an adverse claim has been received.
Canada Not-for-profit Corporations Act — C-7.75 89
Delivery of debt obligation 89 (1) Unless agreed otherwise, if a sale of a debt obligation is made through brokers, on a stock exchange or otherwise, (a) the selling customer fulfils their duty to deliver when the customer delivers the debt obligation to the selling broker or to a person designated by the selling broker or when they cause an acknowledgement to be made to the selling broker that the debt obligation is held for the selling broker; and (b) the selling broker, including a correspondence broker, acting for a selling customer fulfils their duty to deliver by delivering the debt obligation or a similar debt obligation to the buying broker or to a person designated by the buying broker or by effecting clearance of the sale in accordance with the rules of the exchange on which the transaction took place. Duty to deliver (2) Except as provided otherwise in this section and unless agreed otherwise, a transferor’s duty to deliver a debt obligation under a contract of purchase is not fulfilled until the transferor delivers the debt obligation in negotiable form to the purchaser or to a person designated by the purchaser, or causes an acknowledgement to be made to the purchaser that the debt obligation is held for the purchaser. Delivery to debt obligations broker (3) A sale to a broker purchasing for the broker’s own account is subject to subsection (2) and not subsection (1), unless the sale is made on a stock exchange.
Canada Not-for-profit Corporations Act — C-7.75 90
Right to reclaim possession 90 (1) A person against whom the transfer of a debt obligation is wrongful may, against anyone except a good faith purchaser, (a) reclaim possession of the debt obligation or obtain possession of a new debt obligation evidencing all or part of the same rights; or (b) claim damages. Recovery when unauthorized endorsement (2) If the transfer of a debt obligation is wrongful by reason of an unauthorized endorsement, the owner may reclaim possession of the debt obligation or a new debt obligation even from a good faith purchaser if the ineffectiveness of the purported endorsement is asserted against the purchaser under section 85 .
Canada Not-for-profit Corporations Act — C-7.75 91
Right to requisites for registration 91 (1) Unless agreed otherwise, a transferor shall, on demand, supply a purchaser with proof of the transferor’s authority to transfer a debt obligation or with any other requisite that is necessary to obtain registration of the transfer of a debt obligation, but if the transfer is not for value, it is not necessary for the transferor to provide authority to transfer unless the purchaser pays the reasonable and necessary costs of the proof and transfer. Rescission of transfer (2) If a transferor fails to comply with a demand under subsection (1) within a reasonable time, the purchaser may reject, rescind or resolve the transfer.
Canada Not-for-profit Corporations Act — C-7.75 92
Seizure of debt obligation 92 No seizure of a debt obligation or other interest or right evidenced by the debt obligation is effective until the person making the seizure obtains possession of the debt obligation.
Canada Not-for-profit Corporations Act — C-7.75 93
Not liable if good faith delivery 93 An agent or mandatary, or a bailee, who in good faith has received debt obligations and sold, pledged or delivered them according to the instructions of the principal or mandator is not in breach of their duties as a fiduciary or otherwise liable even though they have no right to dispose of the debt obligations.
Canada Not-for-profit Corporations Act — C-7.75 94
Duty to register transfer 94 (1) If a debt obligation in registered form is presented for transfer, the issuer shall register the transfer if (a) the debt obligation is endorsed by an appropriate person; (b) reasonable assurance is given that the endorsement is genuine and effective; (c) the issuer has no duty to inquire into adverse claims or has discharged that duty; (d) all applicable laws relating to the collection of taxes have been complied with; (e) the transfer is rightful or is to a good faith purchaser; and (f) any transfer fee referred to in section 39 has been paid. Liability for delay (2) An issuer who has a duty to register a transfer of a debt obligation is liable to the person presenting it for registration for any loss resulting from an unreasonable delay in registration or from the failure or refusal to register the transfer.
Canada Not-for-profit Corporations Act — C-7.75 95
Assurance of endorsement 95 (1) An issuer may require an assurance that each necessary endorsement on a debt obligation is genuine and effective by requiring a guarantee of the signature of the person endorsing the debt obligation and by requiring (a) if the endorsement is by an agent or mandatary, reasonable assurance of authority to sign; (b) if the endorsement is by a fiduciary, evidence of appointment or incumbency; (c) if there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and (d) in any other case, assurance that corresponds as closely as is feasible to the cases set out in paragraphs (a) to (c). Sufficiency of guarantee (2) For the purpose of subsection (1), a guarantee of the signature of a person is sufficient if it is signed by or on behalf of a person whom the issuer believes, on reasonable grounds, to be a responsible person. Standards (3) An issuer may adopt reasonable standards to determine responsible persons. Sufficiency of evidence of appointment or incumbency (4) For the purpose of paragraph (1)(b), the following constitute sufficient evidence of appointment or incumbency of a fiduciary: (a) in the case of a fiduciary of a deceased debt obligation holder’s estate or succession, a certified or notarial copy of the document referred to in paragraph 53 (1)(c) and dated not earlier than the first day of the prescribed period before a debt obligation is presented for transfer; or (b) in the case of any other fiduciary, a copy of a document showing the appointment or other evidence believed by the issuer to be appropriate. Standards (5) An issuer may adopt reasonable standards with respect to evidence referred to in paragraph (4)(b). No notice to issuer (6) An issuer is deemed not to have notice of the contents of a document referred to in subsection (4) that is obtained by the issuer except to the extent that the contents relate directly to appointment or incumbency.
Canada Not-for-profit Corporations Act — C-7.75 96
Notice from additional documentation 96 If an issuer, in relation to a transfer, demands assurance other than an assurance specified in subsection 95 (1) and obtains a copy of a will, trust or partnership agreement or a by-law or similar document, the issuer is deemed to have notice of all matters contained in the document that affect the transfer.
Canada Not-for-profit Corporations Act — C-7.75 97
Limited duty of inquiry 97 (1) An issuer to whom a debt obligation is presented for registration has a duty to inquire into adverse claims if (a) the issuer receives written notice of an adverse claim at a time and in a manner that provide the issuer with a reasonable opportunity to act on it before the issue of a new, reissued or re-registered debt obligation and the notice discloses the name and address of the claimant, the registered owner and the issue of which the debt obligation is a part; or (b) the issuer is deemed to have notice of an adverse claim from a document that it obtained under section 96 . Discharge of duty (2) An issuer may discharge a duty of inquiry by any reasonable means, including notifying an adverse claimant by registered mail sent to the address provided by the adverse claimant or, if no such address has been provided, to the adverse claimant’s residence or regular place of business, that a debt obligation has been presented for registration of transfer by a named person and that the transfer will be registered unless, no later than the prescribed period after the date of sending the notice, the issuer (a) is served with a court order; or (b) is provided with an indemnity bond or, in Quebec, a guarantee sufficient in the issuer’s judgement to protect the issuer and any transfer agent or other agent or mandatary of the issuer from any loss that may be incurred by any of them as a result of complying with the adverse claim.
Canada Not-for-profit Corporations Act — C-7.75 98
Inquiry into adverse claim 98 Unless an issuer is deemed to have notice of an adverse claim from a document that is obtained under section 96 or has received notice of an adverse claim under subsection 97 (1), if a debt obligation presented for registration is endorsed by an appropriate person, the issuer has no duty to inquire into adverse claims and, in particular, (a) an issuer registering a debt obligation in the name of a person who is a fiduciary or who is described as a fiduciary is not bound to inquire into the existence, extent or correct description of the fiduciary relationship and the issuer may then assume without inquiry that the newly registered owner continues to be the fiduciary until the issuer receives written notice that the fiduciary is no longer acting as such with respect to the particular debt obligation; (b) an issuer registering a transfer on an endorsement by a fiduciary has no duty to inquire into whether the transfer is made in compliance with the document or with the law of the jurisdiction governing the fiduciary relationship; and (c) an issuer is deemed not to have notice of the contents of a court record or a registered document even if the record or document is in the issuer’s possession and the transfer is made on the endorsement of a fiduciary to the fiduciary specifically or to the fiduciary’s nominee.
Canada Not-for-profit Corporations Act — C-7.75 99
Duration of notice of adverse claim 99 A written notice of adverse claim received by an issuer is effective for the prescribed period unless the notice is renewed in writing.
Canada Not-for-profit Corporations Act — C-7.75 100
Limitation on issuer’s liability 100 (1) Except as provided otherwise in any applicable law relating to the collection of taxes, an issuer is not liable to the owner or any other person who incurs a loss as a result of the registration of a transfer of a debt obligation if (a) the necessary endorsements were on or with the debt obligation; and (b) the issuer had no duty to inquire into adverse claims or had discharged that duty. Duty of issuer on wrongful registration (2) If an issuer has registered a transfer of a debt obligation to a person not entitled to it, the issuer shall on demand deliver a similar debt obligation to the owner unless (a) the issuer is not liable by virtue of subsection (1); (b) the owner is precluded by subsection 101 (1) from asserting a claim; or (c) the delivery would result in an overissue to which section 54 applies.
Canada Not-for-profit Corporations Act — C-7.75 101
Lost or stolen debt obligation 101 (1) The owner of a debt obligation who fails to notify the issuer of an adverse claim, in writing, within a reasonable time after the owner knows of the loss, apparent destruction or wrongful taking of the debt obligation is precluded from asserting against the issuer a claim to a new debt obligation if the issuer has registered a transfer of the debt obligation. Duty to issue new debt obligation (2) If the owner of a debt obligation claims that the debt obligation has been lost, destroyed or wrongfully taken, the issuer shall issue a new debt obligation in place of the original one if the owner (a) so requests before the issuer has notice that the debt obligation has been acquired by a good faith purchaser; (b) provides the issuer with a sufficient indemnity bond or, in Quebec, a sufficient guarantee; and (c) satisfies any other reasonable requirements imposed by the issuer. Duty to register transfer (3) If, after the issue of a new debt obligation under subsection (2), a good faith purchaser of the original debt obligation presents the original one for registration of transfer, the issuer shall register the transfer unless registration would result in an overissue to which section 54 applies. Right of issuer to recover (4) In addition to the rights that an issuer has by reason of an indemnity bond or, in Quebec, a guarantee, the issuer may recover the new debt obligation issued under subsection (2) from the person to whom it was issued or any person taking under that person other than a good faith purchaser.
Canada Not-for-profit Corporations Act — C-7.75 102
Duty 102 An authenticating trustee, transfer agent or other agent or mandatary of an issuer has, in respect of the issue, registration of transfer and cancellation of a debt obligation of the issuer, (a) a duty to the issuer to exercise good faith and reasonable diligence; and (b) the same obligations to the holder or owner of the debt obligation and the same rights, privileges and immunities as the issuer.
Canada Not-for-profit Corporations Act — C-7.75 103
Notice to agent or mandatary 103 Notice to an authenticating trustee, transfer agent or other agent or mandatary of an issuer is notice to the issuer in respect of the functions performed by the agent or mandatary.