Budget Implementation Act, 2007 (S.C. 2007, c. 29)
Full Document:
Assented to 2007-06-22
95. Section 69.2 of the Act is amended by adding the following after subsection (4):
Marginal note:Exception
(5) No order may be made under subsection (4) if the order would have the effect of preventing a secured creditor from realizing or otherwise dealing with financial collateral.
96. Section 69.3 of the Act is amended by adding the following after subsection (2):
Marginal note:Exception
(2.1) No order may be made under subsection (2) if the order would have the effect of preventing a secured creditor from realizing or otherwise dealing with financial collateral.
97. Paragraph 84.1(3)(a) of the Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, is replaced by the following:
(a) under an eligible financial contract;
98. Section 84.2 of the Act, as enacted by section 68 of chapter 47 of the Statutes of Canada, 2005, is amended by adding the following after subsection (6):
Marginal note:Eligible financial contracts
(7) Subsection (1) does not apply
(a) in respect of an eligible financial contract; or
(b) to prevent a member of the Canadian Payments Association from ceasing to act as a clearing agent or group clearer for an insolvent person in accordance with the Canadian Payments Act and the by-laws and rules of that Association.
Marginal note:Permitted actions
(8) Despite section 69.3, the following actions are permitted in respect of an eligible financial contract that is entered into before the time of the bankruptcy, and is terminated on or after that time, but only in accordance with the provisions of that contract:
(a) the netting or setting off or compensation of obligations between the individual bankrupt 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
(9) If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the individual bankrupt 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 individual bankrupt with a claim provable in bankruptcy in respect of those net termination values.
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