Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)
Full Document:
Act current to 2013-04-29 and last amended on 2013-04-01. Previous Versions
Marginal note:Receiver may apply to court for directions
249. A receiver may apply to the court for directions in relation to any provision of this Part, and the court shall give, in writing, such directions, if any, as it considers proper in the circumstances.
- 1992, c. 27, s. 89.
Marginal note:Right to apply to court
250. (1) An application may be made under section 248 or 249 notwithstanding any order of a court as defined in subsection 243(1).
Marginal note:Where inconsistency
(2) Where there is any inconsistency between an order made under section 248, or a direction given under section 249, and
(a) the security agreement or court order under which the receiver acts or was appointed, or
(b) any other order of the court that appointed the receiver,
the order made under section 248 or the direction given under section 249, as the case may be, prevails to the extent of the inconsistency.
- 1992, c. 27, s. 89.
Marginal note:Protection of receivers
251. No action lies against a receiver for loss or damage arising from the sending or providing by the receiver of a notice pursuant to section 245 or a statement or report pursuant to section 246, if done in good faith in compliance or intended compliance with those sections.
- 1992, c. 27, s. 89;
- 1997, c. 12, s. 117(F).
Marginal note:Defence available
252. In any proceeding where it is alleged that a secured creditor or a receiver contravened or failed to comply with any provision of this Part, it is a defence if the secured creditor or the receiver, as the case may be, shows that, at the time of the alleged contravention or failure to comply, he had reasonable grounds to believe that the debtor was not insolvent.
- 1992, c. 27, s. 89.
PART XII
SECURITIES FIRM BANKRUPTCIES
Interpretation
Marginal note:Definitions
253. In this Part,
“customer”
« client »
“customer” includes
(a) a person with or for whom a securities firm deals as principal, or agent or mandatary, and who has a claim against the securities firm in respect of a security received, acquired or held by the securities firm in the ordinary course of business as a securities firm from or for a securities account of that person
(i) for safekeeping or deposit or in segregation,
(ii) with a view to sale,
(iii) to cover a completed sale,
(iv) pursuant to a purchase,
(v) to secure performance of an obligation of that person, or
(vi) for the purpose of effecting a transfer,
(b) a person who has a claim against the securities firm arising out of a sale or wrongful conversion by the securities firm of a security referred to in paragraph (a), and
(c) a person who has cash or other assets held in a securities account with the securities firm,
but does not include a person who has a claim against the securities firm for cash or securities that, by agreement or operation of law, is part of the capital of the securities firm or a claim that is subordinated to claims of creditors of the securities firm;
“customer compensation body”
« organisme d’indemnisation des clients »
“customer compensation body” means a prescribed body and includes, unless it is prescribed to be excluded from this definition, the Canadian Investor Protection Fund;
“customer name securities”
« valeur mobilière immatriculée »
“customer name securities” means securities that on the date of bankruptcy of a securities firm are held by or on behalf of the securities firm for the account of a customer and are registered or recorded in the appropriate manner in the name of the customer or are in the process of being so registered or recorded, but does not include securities registered or recorded in the appropriate manner in the name of the customer that, by endorsement or otherwise, are negotiable by the securities firm;
“deferred customer”
« client responsable »
“deferred customer” means a customer whose misconduct, either in the customer’s capacity as a customer or otherwise, caused or materially contributed to the insolvency of a securities firm;
- “eligible financial contract”
“eligible financial contract”[Repealed, 2007, c. 29, s. 101]
“hold”
« détenir »
“hold”, in relation to a security, includes holding it in electronic form;
“net equity”
« capitaux nets »
“net equity” means, with respect to the securities account or accounts of a customer, maintained in one capacity, the net dollar value of the account or accounts, equal to the amount that would be owed by a securities firm to the customer as a result of the liquidation by sale or purchase at the close of business of the securities firm on the date of bankruptcy of the securities firm, of all security positions of the customer in each securities account, other than customer name securities reclaimed by the customer, including any amount in respect of a securities transaction not settled on the date of bankruptcy but settled thereafter, less any indebtedness of the customer to the securities firm on the date of bankruptcy including any amount owing in respect of a securities transaction not settled on the date of bankruptcy but settled thereafter, plus any payment of indebtedness made with the consent of the trustee after the date of bankruptcy;
“open contractual commitment”
« contrat en cours »
“open contractual commitment” means an enforceable contract of a securities firm to purchase or sell a security that was not completed by payment and delivery on the date of bankruptcy;
“securities firm”
« courtier en valeurs mobilières »
“securities firm” means a person who carries on the business of buying and selling securities from, to or for a customer, whether or not as a member of an exchange, as principal, or agent or mandatary, and includes any person required to be registered to enter into securities transactions with the public, but does not include a corporate entity that is not a corporation within the meaning of section 2;
“security”
« valeur mobilière » ou « titre »
“security” means any document, instrument or written or electronic record that is commonly known as a security, and includes, without limiting the generality of the foregoing,
(a) a document, instrument or written or electronic record evidencing a share, participation right or other right or interest in property or in an enterprise, including an equity share or stock, or a mutual fund share or unit,
(b) a document, instrument or written or electronic record evidencing indebtedness, including a note, bond, debenture, mortgage, hypothec, certificate of deposit, commercial paper or mortgage-backed instrument,
(c) a document, instrument or written or electronic record evidencing a right or interest in respect of an option, warrant or subscription, or under a commodity future, financial future, or exchange or other forward contract, or other derivative instrument, including an eligible financial contract, and
(d) such other document, instrument or written or electronic record as is prescribed.
- 1997, c. 12, s. 118;
- 2004, c. 25, s. 97(E);
- 2005, c. 47, s. 117;
- 2007, c. 29, s. 101.
- Date modified:
