51 (1) The Lawyers Fund for Client Compensation is continued as the Compensation Fund in English and Fonds d’indemnisation in French.  2006, c. 21, Sched. C, s. 71 (1). Same (1.1) The Society shall maintain the Fund and shall hold it in trust for the purposes of this section.  1998, c. 21, s. 25 (1). Derivation of funds (2) The following shall be paid into the Fund: 1.  All money paid to the Society under subsection (3). 2.  All money recovered by the Society under subsection (7). 3.  All money contributed to the Fund by any person. 4.  All money earned from the investment of money in the Fund.  2006, c. 21, Sched. C, s. 71 (2). Fund levy (3) Every licensee, other than those of a class exempted by the by-laws, shall pay to the Society, for the Fund, such sum as is prescribed from time to time by the by-laws.  R.S.O. 1990, c. L.8, s. 51 (3); 1998, c. 21, s. 25 (3); 2006, c. 21, Sched. C, s. 71 (3). Insurance (4) The Society may insure with any insurer licensed to carry on business in Ontario for such purposes and on such terms as Convocation considers expedient in relation to the Fund, and, in such event, the money in the Fund may be used for the payment of premiums.  R.S.O. 1990, c. L.8, s. 51 (4); 1998, c. 21, s. 25 (4). Grants (5) Convocation in its absolute discretion may make grants from the Fund in order to relieve or mitigate loss sustained by a person in consequence of, (a)  dishonesty on the part of a person, while a licensee, in connection with his or her professional business or in connection with any trust of which he or she was or is a trustee; or (b)  dishonesty, before the amendment day, on the part of a person, while a member, in connection with his or her law practice or in connection with any trust of which he or she was or is a trustee.  2006, c. 21, Sched. C, s. 71 (4). Same (5.1) Subsection (5) applies even if after the commission of the act of dishonesty, the dishonest person has died, has ceased to administer his or her affairs or has ceased to be a licensee or member.  2006, c. 21, Sched. C, s. 71 (4). Limitation on grants (5.2) Without limiting the discretion of Convocation under subsection (5), (a)  if, at the time of the commission of the act of dishonesty, the dishonest person was a member or was licensed to practise law in Ontario as a barrister and solicitor, Convocation may decide not to make a grant under subsection (5) except out of the following money in the Fund, (i)  money paid to the Society under subsection (3), (A)  after the amendment day, by persons licensed to practise law in Ontario as barristers and solicitors, and (B)  before the amendment day, by members, (ii)  money recovered by the Society under subsection (7), whether before or after the amendment day, on account of losses sustained by persons in consequence of, (A)  dishonesty, before the amendment day, on the part of members, and (B)  dishonesty, after the amendment day, on the part of persons licensed to practise law in Ontario as barristers and solicitors, (iii)  money contributed to the Fund, whether before or after the amendment day, that is not money paid to the Society under subsection (3) or money recovered by the Society under subsection (7), and (iv)  regarding money earned, whether before or after the amendment day, from the investment of money in the Fund, the proportion of the earned money that is attributable to the investment of the money referred to in subclauses (i), (ii) and (iii); and (b)  if, at the time of the commission of the act of dishonesty, the dishonest person was licensed to provide legal services in Ontario, Convocation may decide not to make a grant under subsection (5) except out of the following money in the Fund, (i)  money paid to the Society under subsection (3) by persons licensed to provide legal services in Ontario, (ii)  money recovered by the Society under subsection (7) on account of losses sustained by persons in consequence of dishonesty on the part of persons licensed to provide legal services in Ontario, (iii)  money contributed to the Fund that is not money paid to the Society under subsection (3) or money recovered by the Society under subsection (7), and (iv)  regarding money earned from the investment of money in the Fund, the proportion of the earned money that is attributable to the investment of the money referred to in subclauses (i), (ii) and (iii).  2006, c. 21, Sched. C, s. 71 (4). Conditions of grants (6) No grant shall be made out of the Fund unless notice in writing of the loss is received by the Society within six months after the loss came to the knowledge of the person suffering the loss or within such further time, not exceeding eighteen months, as in any case may be allowed by Convocation.  R.S.O. 1990, c. L.8, s. 51 (6); 1998, c. 21, s. 25 (6); 2006, c. 21, Sched. C, s. 71 (5). Subrogation (7) If a grant is made under this section, the Society is subrogated, to the extent of the amount of the grant, to all rights and remedies to which the grantee was entitled on account of the loss in respect of which the grant was made, (a)  against the dishonest person or any other person; or (b)  in the event of the death, insolvency or other disability of the dishonest person or other person, against the personal representative or other person administering the estate.  2006, c. 21, Sched. C, s. 71 (6). Grantees’ rights conditionally limited (8) A grantee or, in the event of the death, insolvency or other disability of a grantee, the personal representative or other person administering the estate of the grantee, has no right to receive anything from the dishonest person or the dishonest person’s estate, in respect of the loss in respect of which the grant was made, until the Society has been reimbursed the full amount of the grant.  2006, c. 21, Sched. C, s. 71 (6). Reimbursement from bankrupt’s estate (9) If a grant is made under this section and the dishonest person is or becomes bankrupt, the Society is entitled, (a)  to assert and prove a claim in the bankruptcy for the amount of the grant; and (b)  to receive all dividends on the Society’s claim until the Society has been reimbursed the full amount of the grant.  2006, c. 21, Sched. C, s. 71 (6). Delegation of powers to committee or referee or both (10) Convocation may delegate any of the powers conferred upon it by this section to a committee of Convocation and, whether or not Convocation has made any such delegation, it may appoint any licensee as a referee and delegate to the licensee any of the powers conferred upon it by this section that are not delegated to a committee.  R.S.O. 1990, c. L.8, s. 51 (10); 2006, c. 21, Sched. C, s. 71 (7). Same (10.1) In establishing a committee for the purposes of subsection (10), Convocation may appoint to the committee one or more members of the Paralegal Standing Committee who are licensed to provide legal services in Ontario.  2010, c. 16, Sched. 2, s. 4 (2). Reports (11) Where Convocation has delegated any of its powers under this section to a committee or to a referee, the committee or referee, as the case may be, shall report as required to Convocation but, where there is a delegation to both a committee and a referee, the referee shall report as required to the committee.  R.S.O. 1990, c. L.8, s. 51 (11). Summons (11.1) For the purposes of this section, an employee of the Society holding an office prescribed by the by-laws for the purpose of this section may require any person, by summons, (a)  to give evidence on oath or affirmation at a hearing before Convocation, a committee or a referee; and (b)  to produce in evidence at a hearing before Convocation, a committee or a referee documents and things specified by the employee.  2006, c. 21, Sched. C, s. 71 (8). Application of Public Inquiries Act, 2009 (11.2) Subsections 33 (4), (5) and (16) and 34 (4) of the Public Inquiries Act, 2009 apply, with necessary modifications, if a summons is issued under subsection (11.1).  2009, c. 33, Sched. 6, s. 64. Costs of administration (12) There may be paid out of the Fund the costs of its administration, including the costs of investigations and hearings and all other costs, salaries and expenses necessarily incidental to the administration of the Fund.  R.S.O. 1990, c. L.8, s. 51 (12); 1998, c. 21, s. 25 (8). Definitions (13) In this section, “amendment day” means the day subsection 2 (6) of Schedule C to the Access to Justice Act, 2006 came into force; (“jour de la modification”) “member” means a member as defined in section 1, as it read immediately before the amendment day. (“membre”)  2006, c. 21, Sched. C, s. 71 (9). Section Amendments with date in force (d/m/y) 1998, c. 21, s. 25 (1-8) - 01/02/1999 2006, c. 21, Sched. C, s. 71 (1-9) - 01/05/2007 2009, c. 33, Sched. 6, s. 64 - 01/06/2011 2010, c. 16, Sched. 2, s. 4 (2) - 25/10/2010 The Law Foundation of Ontario