Budget Implementation Act, 2007 (S.C. 2007, c. 29)

Marginal note:1992, c. 27, s. 30; 1997, c. 12, s. 41(2)

• 92. (1) Subsection 65.1(8) of the Act is repealed.

• Marginal note:1997, c. 12, s. 41(3)

  (2) Subsection 65.1(9) of the Act is replaced by the following:

  • Marginal note:Permitted actions

    (9) Despite subsections 69(1) and 69.1(1), the following actions are permitted in respect of an eligible financial contract that is entered into before the filing, in respect of an insolvent person of a notice of intention or, where no notice of intention is filed, a proposal, and that is terminated on or after that filing, but only in accordance with the provisions of that contract:

    • (a) the netting or setting off or compensation of obligations between the insolvent person and the other parties to the eligible financial contract; and

    • (b) any dealing with financial collateral including

      • (i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and

      • (ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

  • Marginal note:Net termination values

    (10) If net termination values determined in accordance with an eligible financial contract referred to in subsection (9) are owed by the insolvent person to another party to the eligible financial contract, that other party is deemed, for the purposes of paragraphs 69(1)(a) and 69.1(1)(a), to be a creditor of the insolvent person with a claim provable in bankruptcy in respect of those net termination values.

93. Paragraph 65.11(2)(a) of the Act, as enacted by section 44 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:

94. Section 66.34 of the Act is amended by adding the following after subsection (6):