Order to refrain from dealing with assets
12. (1) Where, (a) an investigation of any person has been ordered under section 11; or (b) an order has been issued against a person under section 6 or 7; or (c) an assurance of voluntary compliance has been given under section 9, the Director, if he or she believes it advisable for the protection of consumers of the person referred to in clause (a), (b) or (c) may, in writing or by telegram, direct any person having on deposit or under control or for safekeeping any assets or trust funds of the person referred to in clause (a), (b) or (c) to hold such assets or trust funds or direct the person referred to in clause (a), (b) or (c) to refrain from withdrawing any such assets or trust funds from any person having any of them on deposit or under control or for safekeeping or to hold such assets or any trust funds of clients, customers or others in his, her or its possession or control in trust for any interim receiver, custodian, trustee, receiver or liquidator appointed under the Bankruptcy Act (Canada), the Courts of Justice Act, the Corporations Act, the Business Corporations Act or the Winding-up Act (Canada), or until the Director revokes or the Tribunal cancels such direction or consents to the release of any particular assets or trust funds from the direction but, in the case of a bank, loan or trust corporation, the direction only applies to the office, branches or agencies thereof named in the direction. R.S.O. 1990, c. B.18, s. 12 (1). Bond in lieu (2) Subsection (1) does not apply where the person referred to in clause (1) (a), (b) or (c) files with the Director, (a) a personal bond accompanied by collateral security; (b) a bond of an insurer licensed under the Insurance Act to write surety and fidelity insurance; (c) a bond of a guarantor, other than an insurer referred to in clause (b), accompanied by collateral security, in such form, terms and amount as the Director determines. R.S.O. 1990, c. B.18, s. 12 (2); 1997, c. 19, s. 28. Application for direction (3) Any person in receipt of a direction given under subsection (1), if in doubt as to the application of the direction to any assets or trust funds, or in case of a claim being made thereto by a person not named in the direction, may apply to a judge of the Superior Court of Justice who may direct the disposition of such assets or trust funds and may make such order as to costs as seems just. R.S.O. 1990, c. B.18, s. 12 (3); 2001, c. 9, Sched. D, s. 14. Application for cancellation of direction or registration (4) Any person referred to in clause (1) (a), (b) or (c) in respect of whom a direction has been given by the Director under subsection (1) may, at any time, apply to the court for cancellation in whole or in part of the direction and the court shall dispose of the application after a hearing and may, if it finds that such a direction is not required in whole or in part for the protection of consumers of the applicant or that the interests of other persons are unduly prejudiced thereby, cancel the direction in whole or in part, and the applicant, the Director and such other persons as the court may specify are parties to the proceedings before the court. R.S.O. 1990, c. B.18, s. 12 (4). Court application (5) The Director may, where he or she has given a direction under subsection (1), apply to a judge of the Superior Court of Justice who may give directions or make an order as to the disposition of assets or trust funds affected by the direction and as to costs. 1994, c. 27, s. 73; 2001, c. 9, Sched. D, s. 14. Same (6) An application by the Director for directions under this section may be made without notice to any other person or party. 1994, c. 27, s. 73.