Order to refrain from dealing with assets
26. (1) Where, (a) an investigation of any person has been ordered under section 24; or (b) criminal proceedings or proceedings in relation to a contravention of any Act or regulation are about to be or have been instituted against a person that are connected with or arise out of the business in respect of which such person is registered, the Superintendent, if he or she believes it advisable for the protection of clients or customers of the person referred to in clause (a) or (b) may, in writing, 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) or (b) to hold such assets or trust funds or direct the person referred to in clause (a) or (b) 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 the person’s 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 Superintendent 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. M.39, s. 26 (1); 1997, c. 28, ss. 172, 180 (1). Bond in lieu (2) Subsection (1) does not apply where the person referred to in clause (1) (a) or (b) files with the Superintendent, (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; or (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 Superintendent may determine. R.S.O. 1990, c. M.39, s. 26 (2); 1997, c. 19, s. 37; 1997, c. 28, s. 172 (1). 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 the Superior Court of Justice which 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. M.39, s. 26 (3); 2006, c. 19, Sched. C, s. 1 (1). Notice to land registrar (4) In any of the circumstances mentioned in clause (1) (a) or (b), the Superintendent may in writing notify any land registrar that proceedings are being or are about to be taken that may affect land belonging to the person referred to in the notice, and the notice shall be registered against the lands mentioned therein and has the same effect as the registration of a certificate of pending litigation except that the Superintendent may in writing revoke or modify the notice. R.S.O. 1990, c. M.39, s. 26 (4); 1997, c. 28, ss. 172 (1), 180 (2). Cancellation of direction or registration (5) Any person referred to in clause (1) (a) or (b) in respect of whom a direction has been given by the Superintendent under subsection (1) or any person having an interest in land in respect of which a notice has been registered under subsection (4) may, at any time, apply to the Tribunal for cancellation in whole or in part of the direction or registration and the Tribunal shall dispose of the application after a hearing and may, if it finds that such a direction or registration is not required in whole or in part for the protection of clients or customers of the applicant or of other persons interested in the land or that the interests of other persons are unduly prejudiced thereby, cancel the direction or registration in whole or in part, and the applicant, the Superintendent and such other persons as the Tribunal may specify are parties to the proceedings before the Tribunal. R.S.O. 1990, c. M.39, s. 26 (5); 1997, c. 28, s. 172. Court application (6) The Superintendent may, where he or she has given a direction under subsection (1) or a notice under subsection (4), apply to a judge of the Superior Court of Justice who may give directions or make an order as to the disposition of assets, trust funds or land affected by the direction or notice and as to costs. 1994, c. 27, s. 91 (2); 1997, c. 28, s. 172 (1); 2006, c. 19, Sched. C, s. 1 (1). Same (7) An application by the Superintendent for directions under this section may be made without notice to any other person or party. 1994, c. 27, s. 91 (2); 1997, c. 28, s. 172 (1).