24.1 (1) Any amount collected or collectable as or on account of tax under this Act by a collector or registered importer shall be deemed, despite any security interest in the amount so collected or collectable, to be held in trust for Her Majesty in right of Ontario and separate and apart from the person’s property and from property held by any secured creditor that but for the security interest would be the person’s property and shall be paid over by the person in the manner and at the time provided under this Act and the regulations.  1997, c. 43, Sched. E, s. 3. Extension of trust (2) Despite any provision of this or any other Act, where at any time an amount deemed by subsection (1) to be held in trust is not paid as required under this Act, property of the collector or registered importer and property held by any secured creditor of the person that but for a security interest would be property of the person, equal in value to the amount so deemed to be held in trust shall be deemed, (a)  to be held, from the time the amount was collected or collectable by the person, separate and apart from the property of the person in trust for Her Majesty in right of Ontario whether or not the property is subject to a security interest; and (b)  to form no part of the estate or property of the person from the time the amount was so collected or collectable whether or not the property has in fact been kept separate and apart from the estate or property of the person and whether or not the property is subject to such security interest.  1997, c. 43, Sched. E, s. 3. Same (3) The property described in subsection (2) shall be deemed to be beneficially owned by Her Majesty in right of Ontario despite any security interest in such property or in the proceeds of such property, and the proceeds of such property shall be paid to the Minister in priority to all such security interests.  1997, c. 43, Sched. E, s. 3. Exception (4) This section and subsection 26 (2.1) do not apply in proceedings to which the Bankruptcy and Insolvency Act (Canada) or the Companies’ Creditors Arrangement Act (Canada) apply.  1997, c. 43, Sched. E, s. 3. Minister’s certificate (5) Every person who, as assignee, liquidator, administrator, receiver, receiver-manager, secured or unsecured creditor or agent of the creditor, trustee or other like person, other than a trustee appointed under the Bankruptcy and Insolvency Act
(Canada), takes control or possession of the property of any collector or registered importer shall, before distributing such property or the proceeds from the realization thereof under that person’s control, obtain from the Minister a certificate that the amount deemed by subsection (1) to be held in trust, including any interest and penalties payable by the collector or registered importer, has been paid or that security acceptable to the Minister has been given.  1997, c. 43, Sched. E, s. 3. No distribution without Minister’s certificate (6) Any person described in subsection (5) who distributes any property described in that subsection or the proceeds of the realization thereof without having obtained the certificate required by that subsection is personally liable to Her Majesty in right of Ontario for an amount equal to the amount deemed by subsection (1) to be held in trust, including any interest and penalties payable by the collector or registered importer.  1997, c. 43, Sched. E, s. 3. Notice to be given (7) The person described in subsection (5) shall, within 30 days from the date of that person’s assumption of possession or control, give written notice thereof to the Minister.  1997, c. 43, Sched. E, s. 3. Minister to advise of indebtedness (8) As soon as practicable after receiving such notice, the Minister shall advise the person described in subsection (5) of the amount deemed by subsection (1) to be held in trust, including any interest and penalties thereon.  1997, c. 43, Sched. E, s. 3. Definitions (9) In this section and in subsection 26 (2.1), “secured creditor” means a person who has a security interest in the property of another person or who acts for or on behalf of that person with respect to the security interest, and includes a trustee appointed under a trust deed relating to a security interest, a receiver or receiver-manager appointed by a secured creditor or by a court on the application of a secured creditor and any other person performing a similar function; (“créancier garanti”) “security interest” means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatsoever or whenever arising, created or deemed to arise or otherwise provided for, but does not include a security interest prescribed by the Minister as one to which this section does not apply. (“sûreté”)  1997, c. 43, Sched. E, s. 3. Application (10) This section, subsection 25.1 (11.1) and clauses 30.1 (2) (b) and (c) apply in respect of any tax collected or collectable by a collector or registered importer on or after January 1, 1998, whether or not the security interest was acquired before that date.  1997, c. 43, Sched. E, s. 3. Section Amendments with date in force (d/m/y) 1997, c. 43, Sched. E, s. 3 - 18/12/1997