Bankruptcy and Insolvency Act — B-3 69
Stay of proceedings — notice of intention 69 (1) Subject to subsections (2) and (3) and sections 69.4, 69.5 and 69.6, on the filing of a notice of intention under section 50.4 by an insolvent person, (a) no creditor has any remedy against the insolvent person or the insolvent person’s property, or shall commence or continue any action, execution or other proceedings, for the recovery of a claim provable in bankruptcy, (b) no provision of a security agreement between the insolvent person and a secured creditor that provides, in substance, that on (i) the insolvent person’s insolvency, (ii) the default by the insolvent person of an obligation under the security agreement, or (iii) the filing by the insolvent person of a notice of intention under section 50.4, the insolvent person ceases to have such rights to use or deal with assets secured under the agreement as he would otherwise have, has any force or effect, (c) Her Majesty in right of Canada may not exercise Her rights under (i) subsection 224(1.2) of the Income Tax Act , or (ii) any provision of the Canada Pension Plan or of the Employment Insurance Act that (A) refers to subsection 224(1.2) of the Income Tax Act , and (B) provides for the collection of a contribution, as defined in the Canada Pension Plan , an employee’s premium or employer’s premium, as defined in the Employment Insurance Act , or a premium under Part VII.1 of that Act, and of any related interest, penalties or other amounts, in respect of the insolvent person where the insolvent person is a tax debtor under that subsection or provision, and (d) Her Majesty in right of a province may not exercise her rights under any provision of provincial legislation in respect of the insolvent person where the insolvent person is a debtor under the provincial legislation and the provision has a similar purpose to subsection 224(1.2) of the Income Tax Act , or refers to that subsection, to the extent that it provides for the collection of a sum, and of any related interest, penalties or other amounts, where the sum (i) has been withheld or deducted by a person from a payment to another person and is in respect of a tax similar in nature to the income tax imposed on individuals under the Income Tax Act , or (ii) is of the same nature as a contribution under the Canada Pension Plan if the province is a province providing a comprehensive pension plan as defined in subsection 3(1) of the Canada Pension Plan and the provincial legislation establishes a provincial pension plan as defined in that subsection, until the filing of a proposal under subsection 62(1) in respect of the insolvent person or the bankruptcy of the insolvent person. Limitation (2) The stays provided by subsection (1) do not apply (a) to prevent a secured creditor who took possession of secured assets of the insolvent person for the purpose of realization before the notice of intention under section 50.4 was filed from dealing with those assets; (b) to prevent a secured creditor who gave notice of intention under subsection 244(1) to enforce that creditor’s security against the insolvent person more than ten days before the notice of intention under section 50.4 was filed, from enforcing that security, unless the secured creditor consents to the stay; (c) to prevent a secured creditor who gave notice of intention under subsection 244(1) to enforce that creditor’s security from enforcing the security if the insolvent person has, under subsection 244(2), consented to the enforcement action; or (d) [Repealed, 2012, c. 31, s. 416] Limitation (3) A stay provided by paragraph (1)(c) or (d) does not apply, or terminates, in respect of Her Majesty in right of Canada and every province if (a) the insolvent person defaults on payment of any amount that becomes due to Her Majesty after the filing of the notice of intention and could be subject to a demand under (i) subsection 224(1.2) of the Income Tax Act , (ii) any provision of the Canada Pension Plan or of the Em