GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bankruptcy and Insolvency Act — B-3 13.3
Where trustee is not qualified to act 13.3 (1) Except with the permission of the court and on such conditions as the court may impose, no trustee shall act as trustee in relation to the estate of a debtor (a) where the trustee is, or at any time during the two preceding years was, (i) a director or officer of the debtor, (ii) an employer or employee of the debtor or of a director or officer of the debtor, (iii) related to the debtor or to any director or officer of the debtor, or (iv) the auditor, accountant or legal counsel, or a partner or an employee of the auditor, accountant or legal counsel, of the debtor; or (b) where the trustee is (i) the trustee under a trust indenture issued by the debtor or any person related to the debtor, or the holder of a power of attorney under an act constituting a hypothec within the meaning of the Civil Code of Québec that is granted by the debtor or any person related to the debtor, or (ii) related to the trustee, or the holder of a power of attorney, referred to in subparagraph (i). Copy of application to Superintendent (1.1) A trustee who applies for the permission of the court for the purposes of subsection (1) shall without delay send a copy of the application to the Superintendent. Where disclosure required (2) No trustee shall act as a trustee in relation to the estate of a debtor where the trustee is already (a) the trustee in the bankruptcy of, or in a proposal concerning, any person related to the debtor, or (b) the receiver, within the meaning of subsection 243(2), or the liquidator of the property of any person related to the debtor, without making, at the time of being appointed as trustee in relation to the estate of the debtor and at the first meeting of creditors, full disclosure of that fact and of the potential conflict of interest. 1992, c. 27, s. 9; 1997, c. 12, s. 9(F); 2004, c. 25, s. 13; 2005, c. 47, s. 11; 2007, c. 36, s. 4(F)
Bankruptcy and Insolvency Act — B-3 13.4
Trustee may act for secured creditor 13.4 (1) No trustee may, while acting as the trustee of an estate, act for or assist a secured creditor to assert a claim against the estate or to realize or otherwise deal with a security that the secured creditor holds, unless the trustee has obtained a written opinion from independent legal counsel that the security is valid and enforceable against the estate. Notification by trustee (1.1) Forthwith on commencing to act for or assist a secured creditor of the estate in the manner set out in subsection (1), a trustee shall notify the Superintendent and the creditors or the inspectors (a) that the trustee is acting for the secured creditor; (b) of the basis of any remuneration from the secured creditor; and (c) of the opinion referred to in subsection (1). Trustee to provide opinion (2) Within two days after receiving a request therefor, a trustee shall provide the Superintendent with a copy of the opinion referred to in subsection (1) and shall also provide a copy to each creditor who has made a request therefor. 1992, c. 27, s. 9; 1997, c. 12, s. 10; 2004, c. 25, s. 14(E); 2005, c. 47, s. 12; 2007, c. 36, s. 5
Bankruptcy and Insolvency Act — B-3 13.5
Code of Ethics 13.5 A trustee shall comply with the prescribed Code of Ethics. 1992, c. 27, s. 9; 2005, c. 47, s. 13
Bankruptcy and Insolvency Act — B-3 13.6
Persons disqualified from working for trustee 13.6 A trustee shall not engage the services of a person (a) whose trustee licence has been cancelled under paragraph 13.2(5)(a) or subsection 14.01(1); or (b) who is the subject of a direction made by the Superintendent under paragraph 14.03(1)(d). 1997, c. 12, s. 11; 2005, c. 47, s. 13
Bankruptcy and Insolvency Act — B-3 14
Appointment of trustee by creditors 14 The creditors may, at any meeting by special resolution, appoint or substitute another licensed trustee for the trustee named in an assignment, a bankruptcy order or a proposal, or otherwise appointed or substituted. R.S., 1985, c. B-3, s. 14; 1992, c. 27, s. 9; 2004, c. 25, s. 15
Bankruptcy and Insolvency Act — B-3 14.01
Decision affecting licence 14.01 (1) If, after making or causing to be made an inquiry or investigation into the conduct of a trustee, it appears to the Superintendent that (a) a trustee has not properly performed the duties of a trustee or has been guilty of any improper management of an estate, (b) a trustee has not fully complied with this Act, the General Rules, directives of the Superintendent or any law with regard to the proper administration of any estate, or (c) it is in the public interest to do so, the Superintendent may do one or more of the following: (d) cancel or suspend the licence of the trustee; (e) place such conditions or limitations on the licence as the Superintendent considers appropriate including a requirement that the trustee successfully take an exam or enrol in a proficiency course; (f) require the trustee to make restitution to the estate of such amount of money as the estate has been deprived of as a result of the trustee’s conduct; and (g) require the trustee to do anything that the Superintendent considers appropriate and that the trustee has agreed to. Application to former trustees (1.1) This section and section 14.02 apply, in so far as they are applicable, in respect of former trustees, with such modifications as the circumstances require. Delegation (2) The Superintendent may delegate by written instrument, on such terms and conditions as are therein specified, any or all of the Superintendent’s powers, duties and functions under subsection (1), subsection 13.2(5), (6) or (7) or section 14.02 or 14.03. Notification to trustees (3) Where the Superintendent delegates in accordance with subsection (2), the Superintendent or the delegate shall (a) where there is a delegation in relation to trustees generally, give written notice of the delegation to all trustees; and (b) whether or not paragraph (a) applies, give written notice of the delegation of a power to any trustee who may be affected by the exercise of that power, either before the power is exercised or at the time the power is exercised. 1992, c. 27, s. 9; 1997, c. 12, s. 12; 2005, c. 47, s. 14; 2007, c. 36, s. 6
Bankruptcy and Insolvency Act — B-3 14.02
Notice to trustee 14.02 (1) Before deciding whether to exercise any of the powers referred to in subsection 14.01(1), the Superintendent shall send the trustee written notice of the powers that the Superintendent may exercise and the reasons why they may be exercised and afford the trustee a reasonable opportunity for a hearing. Summons (1.1) The Superintendent may, for the purpose of the hearing, issue a summons requiring and commanding any person named in it (a) to appear at the time and place mentioned in it; (b) to testify to all matters within their knowledge relative to the subject matter of the inquiry or investigation into the conduct of the trustee; and (c) to bring and produce any books, records, data, documents or papers — including those in electronic form — in their possession or under their control relative to the subject matter of the inquiry or investigation. Effect throughout Canada (1.2) A person may be summoned from any part of Canada by virtue of a summons issued under subsection (1.1). Fees and allowances (1.3) Any person summoned under subsection (1.1) is entitled to receive the like fees and allowances for so doing as if summoned to attend before the Federal Court. Procedure at hearing (2) At a hearing referred to in subsection (1), the Superintendent (a) has the power to administer oaths; (b) is not bound by any legal or technical rules of evidence in conducting the hearing; (c) shall deal with the matters set out in the notice of the hearing as informally and expeditiously as the circumstances and a consideration of fairness permit; and (d) shall cause a summary of any oral evidence to be made in writing. Record (3) The notice referred to in subsection (1) and, where applicable, the summary of oral evidence referred to in paragraph (2)(d), together with such documentary evidence as the Superintendent receives in evidence, form the record of the hearing and the record and the hearing are public, unless the Superintendent is satisfied that personal or other matters that may be disclosed are of such a nature that the desirability of avoiding public disclosure of those matters, in the interest of a third party or in the public interest, outweighs the desirability of the access by the public to information about those matters. Decision (4) The decision of the Superintendent after a hearing referred to in subsection (1), together with the reasons therefor, shall be given in writing to the trustee not later than three months after the conclusion of the hearing, and is public. Review by Federal Court (5) A decision of the Superintendent given pursuant to subsection (4) is deemed to be a decision of a federal board, commission or other tribunal that may be reviewed and set aside pursuant to the Federal Courts Act . 1992, c. 27, s. 9; 1997, c. 12, s. 13; 2002, c. 8, s. 182; 2005, c. 47, s. 15; 2007, c. 36, s. 7
Bankruptcy and Insolvency Act — B-3 14.03
Conservatory measures 14.03 (1) Subject to subsection (2), the Superintendent may, for the protection of an estate, the rights of the creditors or the debtor, (a) direct a person to deal with property of the estate described in the direction in such manner as may be indicated in the direction, including the continuation of the administration of the estate; (b) direct any person to take such steps as the Superintendent considers necessary to preserve the books, records, data, including data in electronic form, and documents of the estate; (c) direct a bank or other depository not to pay out funds held to the credit of the estate except in accordance with the direction; and (d) direct the official receiver not to appoint the trustee in respect of any new estates until a decision is made under subsection 13.2(5) or 14.01(1). Circumstances (2) The circumstances in which the Superintendent is authorized to exercise the powers set out in subsection (1) are where (a) an estate is left without a trustee by the death, removal or incapacity of the trustee; (b) the Superintendent makes or causes to be made any inquiry or investigation under paragraph 5(3)(e); (c) the Superintendent exercises any of the powers set out in section 14.01; (d) the fees referred to in subsection 13.2(2) have not been paid in respect of the trustee’s licence; (e) a trustee becomes insolvent; (f) a trustee has been found guilty of an indictable offence that, in the Superintendent’s opinion, is of a character that would impair the trustee’s capacity to perform the trustee’s fiduciary duties, or has failed to comply with any of the conditions or limitations to which the trustee’s licence is subject; or (g) a circumstance referred to in paragraph 13.2(5)(c) or (d) exists and the Superintendent is considering cancelling the licence under subsection 13.2(5). Contents and effect of direction (3) A direction given pursuant to subsection (1) (a) shall state the statutory authority pursuant to which the direction is given; (b) is binding on the person to whom it is given; and (c) is, in favour of the person to whom it is given, conclusive proof of the facts set out therein. Liability ceases on compliance (4) A person who complies with a direction given pursuant to subsection (1) is not liable for any act done by the person only to comply with the direction. 1992, c. 27, s. 9; 1997, c. 12, s. 14; 1999, c. 31, s. 18(E); 2005, c. 47, s. 16; 2007, c. 36, s. 8(F)
Bankruptcy and Insolvency Act — B-3 14.04
Removal and appointment 14.04 The court, on the application of any interested person, may for cause remove a trustee and appoint another licensed trustee in the trustee’s place. 1992, c. 27, s. 9
Bankruptcy and Insolvency Act — B-3 14.05
Where there is no licensed trustee, etc. 14.05 Where a debtor resides or carries on business in a locality in which there is no licensed trustee, and no licensed trustee can be found who is willing to act as trustee, the court or the official receiver may appoint a responsible person residing in the locality of the debtor to administer the estate of the debtor, and that person, for that purpose, has all the powers of a licensed trustee under this Act, and the provisions of this Act apply to that person as if a licence had been issued to that person under paragraph 5(3)(a). 1992, c. 27, s. 9
Bankruptcy and Insolvency Act — B-3 14.06
hen the trustee is appointed, by (i) the court or body having jurisdiction under the law pursuant to which the order was made to enable the trustee to contest the order, or (ii) the court having jurisdiction in bankruptcy for the purposes of assessing the economic viability of complying with the order; or (c) if the trustee had, before the order was made, abandoned or renounced or been divested of any interest in any real property, or any right in any immovable, affected by the condition or damage. Stay may be granted (5) The court may grant a stay of the order referred to in subsection (4) on such notice and for such period as the court deems necessary for the purpose of enabling the trustee to assess the economic viability of complying with the order. Costs for remedying not costs of administration (6) If the trustee has abandoned or renounced any interest in any real property, or any right in any immovable, affected by the environmental condition or environmental damage, claims for costs of remedying the condition or damage shall not rank as costs of administration. Priority of claims (7) Any claim by Her Majesty in right of Canada or a province against the debtor in a bankruptcy, proposal or receivership for costs of remedying any environmental condition or environmental damage affecting real property or an immovable of the debtor is secured by security on the real property or immovable affected by the environmental condition or environmental damage and on any other real property or immovable of the debtor that is contiguous with that real property or immovable and that is related to the activity that caused the environmental condition or environmental damage, and the security (a) is enforceable in accordance with the law of the jurisdiction in which the real property or immovable is located, in the same way as a mortgage, hypothec or other security on real property or immovables; and (b) ranks above any other claim, right, charge or security against the property, despite any other provision of this Act or anything in any other federal or provincial law. Claim for clean-up costs (8) Despite subsection 121(1), a claim against a debtor in a bankruptcy or proposal for the costs of remedying any environmental condition or environmental damage affecting real property or an immovable of the debtor shall be a provable claim, whether the condition arose or the damage occurred before or after the date of the filing of the proposal or the date of the bankruptcy. 1992, c. 27, s. 9; 1997, c. 12, s. 15; 2004, c. 25, s. 16; 2005, c. 47, s. 17; 2007, c. 36, s. 9
Bankruptcy and Insolvency Act — B-3 14.07
Effect of defect or irregularity in appointment 14.07 No defect or irregularity in the appointment of a trustee vitiates any act done by the trustee in good faith. 1992, c. 27, s. 9
Bankruptcy and Insolvency Act — B-3 14.08
Majority of officers and directors must hold licences 14.08 A body corporate may hold a licence as a trustee only if a majority of its directors and a majority of its officers hold licences as trustees. 1992, c. 27, s. 9
Bankruptcy and Insolvency Act — B-3 14.09
Acts of body corporate 14.09 A body corporate that holds a licence as a trustee may perform the duties and exercise the powers of a trustee only through a director or officer of the body corporate who holds a licence as a trustee. 1992, c. 27, s. 9
Bankruptcy and Insolvency Act — B-3 14.1
Not carrying on business of trust company 14.1 Every body corporate that is incorporated by or under an Act of Parliament and that holds a licence as a trustee may carry on the business of a trustee anywhere in Canada and shall not, in respect of its operations as a trustee, be construed to be carrying on the business of a trust company. 1992, c. 27, s. 9
Bankruptcy and Insolvency Act — B-3 15
Official name in bankruptcy and proposal proceedings 15 The official name of a trustee acting in bankruptcy proceedings is “The Trustee of the Estate of ( insert name of the bankrupt ), a bankrupt”, and the official name of a trustee acting with respect to a proposal by an insolvent person is “The Trustee acting in re the proposal of ( insert the name of the debtor )”. R.S., c. B-3, s. 11
Bankruptcy and Insolvency Act — B-3 15.1
Declaration 15.1 A trustee is deemed to be a trustee for the purposes of the definition trustee in section 2 of the Criminal Code . 1997, c. 12, s. 16; 2004, c. 25, s. 17(F)
Bankruptcy and Insolvency Act — B-3 16
Security to be given by trustee 16 (1) Every trustee duly appointed shall, as soon as they are appointed, give security in cash or by bond or suretyship of a guaranty company satisfactory to the official receiver for the due accounting for, the payment and the transfer of all property received by the trustee as trustee and for the due and faithful performance of the trustee’s duties. Security to be given by trustee (2) The security required to be given under subsection (1) shall be given to the official receiver in favour of the creditors generally and may be enforced by any succeeding trustee or by any one of the creditors on behalf of all by direction of the court, and may be increased or reduced by the official receiver. Trustee to take possession and make inventory (3) The trustee shall, as soon as possible, take possession of the deeds, books, records and documents and all property of the bankrupt and make an inventory, and for the purpose of making an inventory the trustee is entitled to enter, subject to subsection (3.1), on any premises on which the deeds, books, records, documents or property of the bankrupt may be, even if they are in the possession of an executing officer, a secured creditor or other claimant to them. Warrant required to enter (3.1) Where the premises referred to in subsection (3) are occupied by a person other than the bankrupt, the trustee may not enter the premises without the consent of that other person except under the authority of a warrant issued under section 189. Trustee to be receiver (4) The trustee shall, in relation to and for the purpose of acquiring or retaining possession of the property of the bankrupt, be in the same position as if he were a receiver of the property appointed by the court, and the court may on his application enforce the acquisition or retention accordingly. Right of trustee to books of account, etc. (5) No person is, as against the trustee, entitled to withhold possession of the books of account belonging to the bankrupt or any papers or documents, including material in electronic form, relating to the accounts or to any trade dealings of the bankrupt or to set up any lien or right of retention thereon. R.S., 1985, c. B-3, s. 16; R.S., 1985, c. 31 (1st Supp.), s. 3; 1994, c. 26, s. 7; 1997, c. 12, s. 17; 2004, c. 25, s. 18
Bankruptcy and Insolvency Act — B-3 17
Property to be delivered to trustee 17 (1) Where a person has in his possession or power any property of the bankrupt that he is not by law entitled to retain as against the bankrupt or the trustee, that person shall deliver the property to the trustee. Power to act anywhere (2) For the purpose of obtaining possession of and realizing on the property of the bankrupt, a trustee has power to act as such anywhere. R.S., c. B-3, s. 12
Bankruptcy and Insolvency Act — B-3 18
Conservatory measures 18 The trustee may when necessary in the interests of the estate of the bankrupt (a) take conservatory measures and summarily dispose of property that is perishable or likely to depreciate rapidly in value; and (b) carry on the business of the bankrupt until the date fixed for the first meeting of creditors. R.S., c. B-3, s. 12
Bankruptcy and Insolvency Act — B-3 19
Legal advice or action before first meeting 19 (1) The trustee may prior to the first meeting of creditors obtain such legal advice and take such court proceedings as he may consider necessary for the recovery or protection of the property of the bankrupt. In case of emergency (2) In the case of an emergency where the necessary authority cannot be obtained from the inspectors in time to take appropriate action, the trustee may obtain such legal advice and institute such legal proceedings and take such action as he may deem necessary in the interests of the estate of the bankrupt. (3) [Repealed, 2005, c. 47, s. 18] R.S., 1985, c. B-3, s. 19; 2004, c. 25, s. 19(F); 2005, c. 47, s. 18
Bankruptcy and Insolvency Act — B-3 20
Divesting property by trustee 20 (1) The trustee may, with the permission of the inspectors, divest all or any part of the trustee’s right, title or interest in any real property or immovable of the bankrupt by a notice of quit claim or renunciation by the trustee, and the official in charge of the land titles or registry office, as the case may be, where title to the real property or immovable is registered shall accept and register in the land register the notice when tendered for registration. Registration of notice (2) Registration of a notice under subsection (1) operates as a discharge or release of any documents previously registered in the land register by or on behalf of the trustee with respect to the property referred to in the notice. R.S., 1985, c. B-3, s. 20; 1997, c. 12, s. 18; 2004, c. 25, s. 20
Bankruptcy and Insolvency Act — B-3 21
Verifying bankrupt’s statement of affairs 21 The trustee shall verify the bankrupt’s statement of affairs referred to in paragraph 158(d). R.S., 1985, c. B-3, s. 21; 2005, c. 47, s. 19
Bankruptcy and Insolvency Act — B-3 22
Duties regarding returns 22 The trustee is not liable to make any return that the bankrupt was required to make more than one year prior to the commencement of the calendar year, or the fiscal year of the bankrupt where that is different from the calendar year, in which he became a bankrupt. R.S., c. B-3, s. 12
Bankruptcy and Insolvency Act — B-3 23
Trustee to permit inspection of records 23 The trustee shall at all reasonable times permit any authorized person to inspect the books and papers of the bankrupt in order to prepare or verify returns that the bankrupt is by statute required to file. R.S., c. B-3, s. 12
Bankruptcy and Insolvency Act — B-3 24
Insuring property 24 (1) The trustee shall forthwith temporarily insure and keep insured in his official name all the insurable property of the bankrupt, for such amount and against such hazards as he may deem advisable until the inspectors are appointed, whereupon the inspectors shall determine the amount for which and the hazards against which the bankrupt’s property shall be insured by the trustee. Losses payable to trustee (2) All insurance covering property of the bankrupt in force at the date of the bankruptcy shall in the event of loss suffered, without any notice to the insurer or other action on the part of the trustee and notwithstanding any statute or rule of law or contract or provision to a contrary effect, become payable immediately to the trustee as if the name of the trustee were written in the policy or contract of insurance as that of the insured or as if no change of title or ownership had come about and the trustee were the insured. R.S., c. B-3, s. 13