Garnishment
19. (1) If the Minister has knowledge or suspects that within ninety days a person is or is about to become indebted or liable to make a payment to a person liable to make a payment under this Act, the Minister may by registered letter or by letter served personally, require the first-named person to pay the money otherwise payable to the second-named person in whole or in part to the Treasurer immediately on account of the liability under this Act and the requirement shall apply to all money that would otherwise be so paid in the ninety days next following the receipt of the letter. R.S.O. 1990, c. C.16, s. 19 (1). Idem (2) Despite subsection (1), if the Minister has knowledge or suspects that within ninety days, (a) a bank, credit union, trust corporation or other similar institution is about to loan or advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by a person liable to make a payment under this Act, who is indebted to the institution; or (b) a person, other than an institution, is about to loan or advance money to or make a payment on behalf of, a person who is liable to make a payment under this Act and who, (i) is employed by or engaged in providing goods or services to the first-named person and who was, or will within ninety days be, so employed or so engaged, or (ii) is not dealing at arm’s length with the first-named person, the Minister may, by registered letter, or by letter served personally, require the institution or person to pay immediately to the Treasurer, on account of the liability of the person liable to make a payment under this Act, all or part of the money that would otherwise have been loaned, advanced or paid, and any money paid to the Treasurer shall be deemed to have been loaned, advanced or paid to the person liable to make a payment under this Act. R.S.O. 1990, c. C.16, s. 19 (2). Continuing effect of requisition (3) If the Minister has required a person to pay to the Treasurer money otherwise payable as interest, rent, remuneration, a dividend, an annuity payment or other periodic payment to a person who is liable to make a payment under this Act, (a) the requirement applies to all periodic payments to be made by the first-named person to the second-named person after the date of receipt of the Minister’s letter until the liability of the second-named person is satisfied; and (b) the payments required to be paid to the Treasurer shall be the full amount of each payment or in such lesser amount as the Minister may designate in the Minister’s letter. R.S.O. 1990, c. C.16, s. 19 (3). Idem (4) The receipt of the Treasurer for money paid as required under this section is sufficient discharge of the original liability to the extent of the payment. R.S.O. 1990, c. C.16, s. 19 (4). Liability of debtor (5) Every person who has discharged any liability to a person liable to make a payment under this Act without complying with the requirement under this section is liable to pay to Her Majesty in right of Ontario the lesser of an amount equal to the liability discharged and the amount that person was required to pay to the Treasurer under this section. R.S.O. 1990, c. C.16, s. 19 (5). Idem (6) Every institution that fails to comply with a requirement under subsection (2) is liable to pay to Her Majesty in right of Ontario an amount equal to the lesser of, (a) the aggregate of the money advanced or paid; and (b) the amount that it was required under subsection (2) to pay the Treasurer. R.S.O. 1990, c. C.16, s. 19 (6). Service (7) If a person who is or is about to become indebted or liable to make a payment to a person liable to payment under this Act carries on business under a name or style other than his or her own name, the registered letter under subsection (1) may be addressed to the name or style under which he or she carries on business and, in the case of personal service, it shall be deemed to have been validly served if it has been left with an adult person employed at the place of business of the addressee. R.S.O. 1990, c. C.16, s. 19 (7). Idem (8) If the persons who are or are about to become indebted or liable to make a payment to a person liable to make a payment under this Act carry on business as a partnership, a letter under subsection (1) may be addressed to the partnership name and, in the case of personal service, it shall be deemed to have been validly served if it has been served on one of the partners or left with an adult person employed at the place of business of the partnership. R.S.O. 1990, c. C.16, s. 19 (8). Wages Act applies (9) This section is subject to the Wages Act. R.S.O. 1990, c. C.16, s. 19 (9). Failure to remit (10) If any person, without reasonable excuse, has failed to remit to the Treasurer the money as required under this section, the Minister may apply before a judge of the Superior Court of Justice for an order directing that person to remit the money. R.S.O. 1990, c. C.16, s. 19 (10); 2006, c. 19, Sched. C, s. 1 (1).