Instructional Staff
10. (1) The Superintendent may in his or her discretion declare any bond mentioned in section 9 forfeited and thereupon the amount thereof becomes due and owing by the person bound thereby as a debt due the Crown in right of Ontario, (a) where a registrant has been convicted of, (i) an offence under the Act, or (ii) an offence involving fraud or theft or conspiracy to commit an offence involving fraud or theft under the Criminal Code (Canada), and the conviction has become final; (b) where proceedings by or in respect of a registrant have been taken under the Bankruptcy Act (Canada) either by way of assignment or by petition or where proceedings have been taken by way of winding up, and in the case of a petition, a receiving order under the Bankruptcy Act (Canada) or a winding up order has been made and the order has become final; or (c) where during the two-year period mentioned in subsection 9 (7) the Superintendent receives a notice in writing of a claim against the registrant by or on behalf of a student in respect of a course of instruction or a contract for a course of instruction together with evidence satisfactory to the Superintendent as to the validity of such claim or that legal proceedings have been commenced against the registrant. R.R.O. 1990, Reg. 939, s. 10 (1); O. Reg. 752/91, s. 4. (2) Where a bond secured by the deposit of collateral security is forfeited under subsection (1), the Superintendent may sell the collateral security at the current market price. R.R.O. 1990, Reg. 939, s. 10 (2). (3) Where the Crown in right of Ontario becomes a creditor or a person in respect of a debt due the Crown arising from the provisions of subsection (1), the Superintendent may take such proceedings as he or she sees fit under the Bankruptcy Act (Canada), the Courts of Justice Act, the Corporations Act or the Winding-up Act (Canada) for the appointment of an interim receiver, custodian, trustee, receiver or liquidator, as the case may be. R.R.O. 1990, Reg. 939, s. 10 (3). (4) The Superintendent may in his or her discretion within two years of the forfeiture, (a) assign any bond forfeited under subsection (1) and transfer the collateral security, if any; (b) pay over any money recovered under the bond; or (c) pay over any money realized from the sale of the collateral security under subsection (2), to any person who, (d) is a judgment creditor of any registrant, including any member of a partnership, in respect of whose conduct the bond has been conditioned, where the judgment was based on a claim arising out of a transaction involving a course of instruction or a contract for a course of instruction; (e) in respect of a claim for less than $100 against any registrant, including any member of a partnership, in respect of whose conduct the bond has been conditioned, arising out of a transaction involving a course of instruction or a contract for a course of instruction; or (f) has proven to the satisfaction of the Superintendent that the person has a claim against the bankrupt registrant, including any member of a partnership, in respect of whose conduct the bond has been conditioned, arising out of a transaction involving a course of instruction or a contract for a course of instruction, if the claim or transaction occurred during the period referred to in clause 9 (7) (a) or (b). R.R.O. 1990, Reg. 939, s. 10 (4). (5) Where the proceeds of the bond are insufficient to satisfy the total amount of all the judgments and claims filed with the Superintendent within the two-year period from the date of forfeiture mentioned in subsection (4), the Superintendent may distribute the proceeds of the bond among the judgment creditors and claimants proportionately. R.R.O. 1990, Reg. 939, s. 10 (5). (6) When the proceeds of the bond exceed the total amount of the judgments and claims filed with the Superintendent within the two-year period from the date of forfeiture mentioned in subsection (4), the Superintendent may pay the remaining balance of the proceeds of the bond to the person who paid over the proceeds of the bond under subsection (1) or who assigned the collateral security realized. R.R.O. 1990, Reg. 939, s. 10 (6). (7) Where a bond has been forfeited and no judgment or claim of a creditor has been filed with the Superintendent within the two-year period from the date of forfeiture mentioned in subsection (4), the Superintendent may pay the proceeds of the bond to the person who paid over the proceeds of the bond under subsection (1) or who assigned the collateral security realized. R.R.O. 1990, Reg. 939, s. 10 (7). (8) Only judgments of creditors that have become final prior to the expiration of the two-year period from the date of forfeiture mentioned in subsection (4) shall be eligible to share in the proceeds of the bond. R.R.O. 1990, Reg. 939, s. 10 (8). (9) Despite subsection (8), the Superintendent may in his or her discretion pay to the Accountant of the Ontario Court from the proceeds of the bond the amount of a judgment of a creditor where a judgment has been obtained but has not become final prior to the expiration of the two-year period from the date of forfeiture mentioned in subsection (4), and such amount shall be held in trust for such creditor until the judgment becomes final. R.R.O. 1990, Reg. 939, s. 10 (9). Advertising