GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bankruptcy and Insolvency Act — B-3 47
Appointment of interim receiver 47 (1) If the court is satisfied that a notice is about to be sent or was sent under subsection 244(1), it may, subject to subsection (3), appoint a trustee as interim receiver of all or any part of the debtor’s property that is subject to the security to which the notice relates until the earliest of (a) the taking of possession by a receiver, within the meaning of subsection 243(2), of the debtor’s property over which the interim receiver was appointed, (b) the taking of possession by a trustee of the debtor’s property over which the interim receiver was appointed, and (c) the expiry of 30 days after the day on which the interim receiver was appointed or of any period specified by the court. Directions to interim receiver (2) The court may direct an interim receiver appointed under subsection (1) to do any or all of the following: (a) take possession of all or part of the debtor’s property mentioned in the appointment; (b) exercise such control over that property, and over the debtor’s business, as the court considers advisable; (c) take conservatory measures; and (d) summarily dispose of property that is perishable or likely to depreciate rapidly in value. When appointment may be made (3) An appointment of an interim receiver may be made under subsection (1) only if it is shown to the court to be necessary for the protection of (a) the debtor’s estate; or (b) the interests of the creditor who sent the notice under subsection 244(1). Place of filing (4) An application under subsection (1) is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor. R.S., 1985, c. B-3, s. 47; 1992, c. 27, s. 16; 2005, c. 47, s. 30; 2007, c. 36, s. 14
Bankruptcy and Insolvency Act — B-3 47.1
Appointment of interim receiver 47.1 (1) If a notice of intention has been filed under section 50.4 or a proposal has been filed under subsection 62(1), the court may at any time after the filing, subject to subsection (3), appoint as interim receiver of all or any part of the debtor’s property, (a) the trustee under the notice of intention or proposal; (b) another trustee; or (c) the trustee under the notice of intention or proposal and another trustee jointly. Duration of appointment (1.1) The appointment expires on the earliest of (a) the taking of possession by a receiver, within the meaning of subsection 243(2), of the debtor’s property over which the interim receiver was appointed, (b) the taking of possession by a trustee of the debtor’s property over which the interim receiver was appointed, and (c) court approval of the proposal. Directions to interim receiver (2) The court may direct an interim receiver appointed under subsection (1) to do any or all of the following: (a) carry out the duties set out in subsection 50(10) or 50.4(7), in substitution for the trustee referred to in that subsection or jointly with that trustee; (b) take possession of all or part of the debtor’s property mentioned in the order of the court; (c) exercise such control over that property, and over the debtor’s business, as the court considers advisable; (d) take conservatory measures; and (e) summarily dispose of property that is perishable or likely to depreciate rapidly in value. When appointment may be made (3) An appointment of an interim receiver may be made under subsection (1) only if it is shown to the court to be necessary for the protection of (a) the debtor’s estate; or (b) the interests of one or more creditors, or of the creditors generally. Place of filing (4) An application under subsection (1) is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor. 1992, c. 27, s. 16; 2005, c. 47, s. 31; 2007, c. 36, s. 15
Bankruptcy and Insolvency Act — B-3 47.2
Orders respecting fees and expenses 47.2 (1) If an appointment of an interim receiver is made under section 47 or 47.1, the court may make any order respecting the payment of fees and disbursements of the interim receiver that it considers proper, including an order giving the interim receiver security, ranking ahead of any or all secured creditors, over any or all of the assets of the debtor in respect of the interim receiver’s claim for fees or disbursements, but the court shall not make such an order unless it is satisfied that all secured creditors who would be materially affected by the order were given reasonable advance notification and an opportunity to make representations to the court. Meaning of disbursements (2) In subsection (1), “disbursements” do not include payments made in operating a business of the debtor. Accounts, discharge of interim receivers (3) With respect to interim receivers appointed under section 46, 47 or 47.1, (a) the form and content of their accounts, including their final statement of receipts and disbursements, (b) the procedure for the preparation and taxation of those accounts, and (c) the procedure for the discharge of the interim receiver shall be as prescribed. 1992, c. 27, s. 16; 2004, c. 25, s. 30; 2005, c. 47, s. 32; 2015, c. 3, s. 7(F)
Bankruptcy and Insolvency Act — B-3 48
Application of sections 43 to 46 48 Sections 43 to 46 do not apply to individuals whose principal occupation and means of livelihood is fishing, farming or the tillage of the soil or to any individual who works for wages, salary, commission or hire at a rate of compensation not exceeding twenty-five hundred dollars per year and does not on their own account carry on business. R.S., 1985, c. B-3, s. 48; 1997, c. 12, s. 28
Bankruptcy and Insolvency Act — B-3 49
Assignment for general benefit of creditors 49 (1) An insolvent person or, if deceased, the executor or administrator of their estate or the liquidator of the succession, with the leave of the court, may make an assignment of all the insolvent person’s property for the general benefit of the insolvent person’s creditors. Sworn statement (2) The assignment must be accompanied by a sworn statement in the prescribed form showing the debtor’s property that is divisible among his or her creditors, the names and addresses of all his or her creditors and the amounts of their respective claims. Filing of assignment (3) The assignment made under subsection (1) shall be offered to the official receiver in the locality of the debtor, and it is inoperative until filed with that official receiver, who shall refuse to file the assignment unless it is in the prescribed form or to the like effect and accompanied by the sworn statement required by subsection (2). Appointment of trustee (4) Where the official receiver files the assignment made under subsection (1), he shall appoint as trustee a licensed trustee whom he shall, as far as possible, select by reference to the wishes of the most interested creditors if ascertainable at the time, and the official receiver shall complete the assignment by inserting therein as grantee the name of the trustee. Cancellation of assignment (5) Where the official receiver is unable to find a licensed trustee who is willing to act, the official receiver shall, after giving the bankrupt five days notice, cancel the assignment. Procedure in small estates (6) Where the bankrupt is not a corporation and in the opinion of the official receiver the realizable assets of the bankrupt, after the claims of secured creditors are deducted, will not exceed five thousand dollars or such other amount as is prescribed, the provisions of this Act relating to the summary administration of estates shall apply. Future property not to be considered (7) In the determination of the realizable assets of a bankrupt for the purposes of subsection (6), no regard shall be had to any property that may be acquired by the bankrupt or devolve on the bankrupt before the bankrupt’s discharge. Where subsection (6) ceases to apply (8) The official receiver may direct that subsection (6) shall cease to apply in respect of the bankrupt where the official receiver determines that (a) the realizable assets of the bankrupt, after the claims of secured creditors are deducted, exceed five thousand dollars or the amount prescribed, as the case may be, or (b) the costs of realization of the assets of the bankrupt are a significant proportion of the realizable value of the assets, and the official receiver considers that such a direction is appropriate. R.S., 1985, c. B-3, s. 49; 1992, c. 1, s. 15, c. 27, s. 17; 1997, c. 12, s. 29; 2004, c. 25, s. 31(E); 2005, c. 47, s. 33
Bankruptcy and Insolvency Act — B-3 50.1
Secured creditor may file proof of secured claim 50.1 (1) Subject to subsections (2) to (4), a secured creditor to whom a proposal has been made in respect of a particular secured claim may respond to the proposal by filing with the trustee a proof of secured claim in the prescribed form, and may vote, on all questions relating to the proposal, in respect of that entire claim, and sections 124 to 126 apply, in so far as they are applicable, with such modifications as the circumstances require, to proofs of secured claim. Proposed assessed value (2) Where a proposal made to a secured creditor in respect of a claim includes a proposed assessed value of the security in respect of the claim, the secured creditor may file with the trustee a proof of secured claim in the prescribed form, and may vote as a secured creditor on all questions relating to the proposal in respect of an amount equal to the lesser of (a) the amount of the claim, and (b) the proposed assessed value of the security. Idem (3) Where the proposed assessed value is less than the amount of the secured creditor’s claim, the secured creditor may file with the trustee a proof of claim in the prescribed form, and may vote as an unsecured creditor on all questions relating to the proposal in respect of an amount equal to the difference between the amount of the claim and the proposed assessed value. Idem (4) Where a secured creditor is dissatisfied with the proposed assessed value of his security, the secured creditor may apply to the court, within fifteen days after the proposal is sent to the creditors, to have the proposed assessed value revised, and the court may revise the proposed assessed value, in which case the revised value henceforth applies for the purposes of this Part. Where no secured creditor in a class takes action (5) Where no secured creditor having a secured claim of a particular class files a proof of secured claim at or before the meeting of creditors, the secured creditors having claims of that class shall be deemed to have voted for the refusal of the proposal. 1992, c. 27, s. 19; 1997, c. 12, s. 31(F)
Bankruptcy and Insolvency Act — B-3 50.2
Excluded secured creditor 50.2 A secured creditor to whom a proposal has not been made in respect of a particular secured claim may not file a proof of secured claim in respect of that claim. 1992, c. 27, s. 19
Bankruptcy and Insolvency Act — B-3 50.3
Rights in bankruptcy 50.3 On the bankruptcy of an insolvent person who made a proposal to one or more secured creditors in respect of secured claims, any proof of secured claim filed pursuant to section 50.1 ceases to be valid or effective, and sections 112 and 127 to 134 apply in respect of a proof of claim filed by any secured creditor in the bankruptcy. 1992, c. 27, s. 19
Bankruptcy and Insolvency Act — B-3 50.5
Trustee to help prepare proposal 50.5 The trustee under a notice of intention shall, between the filing of the notice of intention and the filing of a proposal, advise on and participate in the preparation of the proposal, including negotiations thereon. 1992, c. 27, s. 19
Bankruptcy and Insolvency Act — B-3 50.6
Order — interim financing 50.6 (1) On application by a debtor in respect of whom a notice of intention was filed under section 50.4 or a proposal was 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 debtor’s property is subject to a security or charge — in an amount that the court considers appropriate — in favour of a person specified in the order who agrees to lend to the debtor an amount approved by the court as being required by the debtor, having regard to the debtor’s cash-flow statement referred to in paragraph 50(6)(a) or 50.4(2)(a), as the case may be. The security or charge may not secure an obligation that exists before the order is made. Individuals (2) In the case of an individual, (a) they may not make an application under subsection (1) unless they are 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. Priority (3) The court may order that the security or charge rank in priority over the claim of any secured creditor of the debtor. Priority — previous orders (4) The court may order that the security or charge rank in priority over any security or charge arising from a previous order made under subsection (1) only with the consent of the person in whose favour the previous order was made. Factors to be considered (5) In deciding whether to make an order, the court is to consider, among other things, (a) the period during which the debtor is expected to be subject to proceedings under this Act; (b) how the debtor’s business and financial affairs are to be managed during the proceedings; (c) whether the debtor’s management has the confidence of its major creditors; (d) whether the loan would enhance the prospects of a viable proposal being made in respect of the debtor; (e) the nature and value of the debtor’s property; (f) whether any creditor would be materially prejudiced as a result of the security or charge; and (g) the trustee’s report referred to in paragraph 50(6)(b) or 50.4(2)(b), as the case may be. 2005, c. 47, s. 36; 2007, c. 36, s. 18
Bankruptcy and Insolvency Act — B-3 51
Calling of meeting of creditors 51 (1) The trustee shall call a meeting of the creditors, to be held within twenty-one days after the filing of the proposal with the official receiver under subsection 62(1), by sending in the prescribed manner to every known creditor and to the official receiver, at least ten days before the meeting, (a) a notice of the date, time and place of the meeting; (b) a condensed statement of the assets and liabilities; (c) a list of the creditors with claims amounting to two hundred and fifty dollars or more and the amounts of their claims as known or shown by the debtor’s books; (d) a copy of the proposal; (e) the prescribed forms, in blank, of (i) proof of claim, (ii) in the case of a secured creditor to whom the proposal was made, proof of secured claim, and (iii) proxy, if not already sent; and (f) a voting letter as prescribed. In case of a prior meeting (2) Where a meeting of his creditors at which a statement or list of the debtor’s assets, liabilities and creditors was presented was held before the trustee is required by this section to convene a meeting to consider the proposal and at the time when the debtor requires the convening of the meeting the condition of the debtor’s estate remains substantially the same as at the time of the former meeting, the trustee may omit observance of the provisions of paragraphs (1)(b) and (c). Chair of first meeting (3) The official receiver, or the nominee thereof, shall be the chair of the meeting referred to in subsection (1) and shall decide any questions or disputes arising at the meeting, and any creditor may appeal any such decision to the court. R.S., 1985, c. B-3, s. 51; 1992, c. 1, s. 20, c. 27, s. 20; 1999, c. 31, s. 19(F); 2005, c. 47, s. 123(E)
Bankruptcy and Insolvency Act — B-3 52
Adjournment of meeting for further investigation and examination 52 Where the creditors by ordinary resolution at the meeting at which a proposal is being considered so require, the meeting shall be adjourned to such time and place as may be fixed by the chair (a) to enable a further appraisal and investigation of the affairs and property of the debtor to be made; or (b) for the examination under oath of the debtor or of such other person as may be believed to have knowledge of the affairs or property of the debtor, and the testimony of the debtor or such other person, if transcribed, shall be placed before the adjourned meeting or may be read in court on the application for the approval of the proposal. R.S., 1985, c. B-3, s. 52; 2005, c. 47, s. 123(E)
Bankruptcy and Insolvency Act — B-3 53
Creditor may assent or dissent 53 Any creditor who has proved a claim, whether secured or unsecured, may indicate assent to or dissent from the proposal in the prescribed manner to the trustee prior to the meeting, and any assent or dissent, if received by the trustee at or prior to the meeting, has effect as if the creditor had been present and had voted at the meeting. R.S., 1985, c. B-3, s. 53; 1992, c. 1, s. 20, c. 27, s. 21
Bankruptcy and Insolvency Act — B-3 54.1
Class — creditors having equity claims 54.1 Despite paragraphs 54(2)(a) and (b), creditors having equity claims are to be in the same class of creditors in relation to those claims unless the court orders otherwise and may not, as members of that class, vote at any meeting unless the court orders otherwise. 2007, c. 36, s. 20
Bankruptcy and Insolvency Act — B-3 55
Creditors may provide for supervision of debtor’s affairs 55 At a meeting to consider a proposal, the creditors, with the consent of the debtor, may include such provisions or terms in the proposal with respect to the supervision of the affairs of the debtor as they may deem advisable. R.S., c. B-3, s. 37
Bankruptcy and Insolvency Act — B-3 56
Appointment of inspectors 56 The creditors may appoint one or more, but not exceeding five, inspectors of the estate of the debtor, who shall have the powers of an inspector under this Act, subject to any extension or restriction of those powers by the terms of the proposal. R.S., c. B-3, s. 38
Bankruptcy and Insolvency Act — B-3 57
Result of refusal of proposal 57 Where the creditors refuse a proposal in respect of an insolvent person, (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 either (i) forthwith call a meeting of creditors present at that time, which meeting shall be deemed to be a meeting called under section 102, or (ii) if no quorum exists for the purpose of subparagraph (i), send notice, within five days after the day the certificate mentioned in paragraph (b.1) is issued, of the meeting of creditors under section 102, and at either 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. R.S., 1985, c. B-3, s. 57; 1992, c. 27, s. 23; 1997, c. 12, s. 33; 2005, c. 47, s. 38; 2017, c. 26, s. 7
Bankruptcy and Insolvency Act — B-3 57.1
Appointment of new trustee 57.1 Where a declaration has been made under subsection 50(12) or 50.4(11), the court may, if it is satisfied that it would be in the best interests of the creditors to do so, appoint a trustee in lieu of the trustee appointed under the notice of intention or proposal that was filed. 1997, c. 12, s. 34
Bankruptcy and Insolvency Act — B-3 58
Application for court approval 58 On acceptance of a proposal by the creditors, the trustee shall (a) within five days after the acceptance, apply to the court for an appointment for a hearing of the application for the court’s approval of the proposal; (b) send a notice of the hearing of the application, in the prescribed manner and at least fifteen days before the date of the hearing, to the debtor, to every creditor who has proved a claim, whether secured or unsecured, to the person making the proposal and to the official receiver; (c) forward a copy of the report referred to in paragraph (d) to the official receiver at least ten days before the date of the hearing; and (d) at least two days before the date of the hearing, file with the court, in the prescribed form, a report on the proposal. R.S., 1985, c. B-3, s. 58; 1992, c. 1, s. 20, c. 27, s. 23; 1997, c. 12, s. 35
Bankruptcy and Insolvency Act — B-3 59
Court to hear report of trustee, etc. 59 (1) The court shall, before approving the proposal, hear a report of the trustee in the prescribed form respecting the terms thereof and the conduct of the debtor, and, in addition, shall hear the trustee, the debtor, the person making the proposal, any opposing, objecting or dissenting creditor and such further evidence as the court may require. Court may refuse to approve the proposal (2) Where the court is of the opinion that the terms of the proposal are not reasonable or are not calculated to benefit the general body of creditors, the court shall refuse to approve the proposal, and the court may refuse to approve the proposal whenever it is established that the debtor has committed any one of the offences mentioned in sections 198 to 200. Reasonable security (3) Where any of the facts mentioned in section 173 are proved against the debtor, the court shall refuse to approve the proposal unless it provides reasonable security for the payment of not less than fifty cents on the dollar on all the unsecured claims provable against the debtor’s estate or such percentage thereof as the court may direct. Court may order amendment (4) If a court approves a proposal, it may order that the debtor’s constating instrument be amended in accordance with the proposal to reflect any change that may lawfully be made under federal or provincial law. R.S., 1985, c. B-3, s. 59; 1997, c. 12, s. 36; 2000, c. 12, s. 10; 2007, c. 36, s. 21
Bankruptcy and Insolvency Act — B-3 60
section (1), shall be distributed by him to the creditors. Distribution of promissory notes, stock, etc., of debtor (3) Where the proposal provides for the distribution of property in the nature of promissory notes or other evidence of obligations by or on behalf of the debtor or, when the debtor is a corporation, shares in the capital stock of the corporation, the property shall be dealt with in the manner prescribed in subsection (2) as nearly as may be. Section 147 applies (4) Section 147 applies to all distributions made to the creditors by the trustee pursuant to subsection (2) or (3). Power of court (5) Subject to subsections (1) to (1.7), the court may either approve or refuse to approve the proposal. R.S., 1985, c. B-3, s. 60; 1992, c. 27, s. 24; 1997, c. 12, s. 37; 2000, c. 30, s. 144; 2005, c. 47, s. 39; 2007, c. 36, ss. 22, 99; 2009, c. 33, s. 22; 2012, c. 16, s. 79 2023, c. 6, s. 2