Entries by sheriff after levy
5. (1) Where a sheriff levies money under an execution against the property of a debtor or receives money in respect of a debt that has been attached or sold under section 15 of the Absconding Debtors Act, the sheriff shall forthwith make an entry in Form 1, in English or French, in a book to be kept in his or her office, and such book shall be open to the public for inspection without charge. Distribution (2) The money shall thereafter be distributed rateably among all execution creditors and other creditors whose executions or certificates given under this Act were in the sheriff’s hands at the time of the levy or receipt of the money or who deliver their executions or certificates to the sheriff within one month from the entry, subject to the provisions hereinafter contained as to the retention of dividends in the case of contested claims, and to the payment of the costs of the creditor under whose execution the amount was made, and subject also to subsection 3(6), and, as respects money recovered by garnishment, subject to the payment thereout to the creditor who obtained the attaching order of costs of such proceedings. Money realized on sale under interpleader order (3) Subsection (2) does not apply to money received by a sheriff as the proceeds of a sale of property by the sheriff under an interpleader order; but upon the determination of the interpleader proceeding in favour of the creditors the money, whether in the sheriff’s hands or in court pending such determination, shall, subject to subsection (4), be distributed by the sheriff among the creditors contesting the adverse claim. Rights of creditors in case of interpleader proceedings (4) Where proceedings are taken by a sheriff for relief under any provisions relating to interpleader, those creditors only who are parties thereto and who agree to contribute proportionately according to the amount of their executions or certificates to the expense of contesting any adverse claim are entitled to share in any benefit that may be derived from the contestation of such claim so far as is necessary to satisfy their executions or certificates. Order as to carriage of proceedings (5) The judge making the interpleader order may direct that one creditor has the carriage of the interpleader proceedings on behalf of all creditors interested, and the costs thereof, as between solicitor and client, are a first charge upon the money or goods that may be found to be applicable upon the executions or certificates. Time allowed (6) Upon an interpleader application, the judge may allow to other creditors who desire to take part in the contest a reasonable time in which to place their executions or certificates in the sheriff’s hands upon such terms as to costs and otherwise as are considered just. Application of subsequent levy (7) Where the sheriff, subsequent to the entry but within the month, levies a further amount from the property of a debtor or receives money in respect of a debt that has been attached or sold, it shall be dealt with as if it had been levied or received before the entry. Notice and distribution on further levy (8) If, after the month, a further amount is so levied or received, a new notice shall be entered and the distribution to be made of the amount so levied or received and of any further amount levied or received within a month of the entry of the last-mentioned entry shall be governed by the entry thereof in accordance with the foregoing provisions of this section, and so from time to time as further amounts are so levied or received. Share in subsequent distribution (9) A creditor who has shared in a previous distribution is entitled to share in a subsequent one only in respect of the amount remaining due to that creditor after crediting what the creditor has received in a previous distribution. Equality of all executions (10) In distributing money under this section, creditors who have executions against goods or lands only or against goods and lands are entitled to share rateably with all others any money realized under execution against either goods or lands or against both, or under an attaching order. Which creditors may share (11) Subject to subsection 3(6), a creditor is not entitled to share in the distribution unless by the delivery of an execution or otherwise under this Act the creditor has established a claim against the debtor either alone or jointly with some other person. Money realized (12) Where money in the hands of the sheriff for distribution is the proceeds of the property of an absconding debtor against whom an order of attachment has been issued under the Absconding Debtors Act, the period mentioned in subsection (2) is two months, and subsection (8) shall be read as if the words “the month” in the first line were “the two months”. R.S.O. 1990, c. C.45, s. 5.