Canada Business Corporations Act (R.S.C., 1985, c. C-44)

Act current to 2013-05-20 and last amended on 2011-11-29. Previous Versions

Marginal note:Notice of default

90. The trustee shall give to the holders of debt obligations issued under a trust indenture, within thirty days after the trustee becomes aware of the occurrence thereof, notice of every event of default arising under the trust indenture and continuing at the time the notice is given, unless the trustee reasonably believes that it is in the best interests of the holders of the debt obligations to withhold such notice and so informs the issuer and guarantor in writing.

  • 1974-75-76, c. 33, s. 85;
  • 1978-79, c. 9, s. 1(F).
Marginal note:Duty of care

91. A trustee in exercising their powers and discharging their duties shall

  • (a) act honestly and in good faith with a view to the best interests of the holders of the debt obligations issued under the trust indenture; and

  • (b) exercise the care, diligence and skill of a reasonably prudent trustee.

  • R.S., 1985, c. C-44, s. 91;
  • 2001, c. 14, s. 135(E).
Marginal note:Reliance on statements

92. Notwithstanding section 91, a trustee is not liable if they rely in good faith on statements contained in a statutory declaration, certificate, opinion or report that complies with this Act or the trust indenture.

  • R.S., 1985, c. C-44, s. 92;
  • 2001, c. 14, s. 135(E).
Marginal note:No exculpation

93. No term of a trust indenture or of any agreement between a trustee and the holders of debt obligations issued thereunder or between the trustee and the issuer or guarantor shall operate so as to relieve a trustee from the duties imposed on the trustee by section 91.

  • R.S., 1985, c. C-44, s. 93;
  • 2001, c. 14, s. 135(E).

PART IX

RECEIVERS, RECEIVER-MANAGERS AND SEQUESTRATORS

Marginal note:Functions of receiver or sequestrator

94. A receiver or sequestrator of any property of a corporation may, subject to the rights of secured creditors, receive the income from the property, pay the liabilities connected with the property and realize the security interest of those on behalf of whom the receiver or sequestrator is appointed, but, except to the extent permitted by a court, the receiver or sequestrator may not carry on the business of the corporation.

  • R.S., 1985, c. C-44, s. 94;
  • 2001, c. 14, s. 135(E);
  • 2011, c. 21, s. 44(E).
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Marginal note:Functions of receiver-manager

95. A receiver-manager of the corporation may carry on any business of the corporation to protect the security interest of those on behalf of whom the receiver-manager is appointed.

  • R.S., 1985, c. C-44, s. 95;
  • 2001, c. 14, s. 135(E);
  • 2011, c. 21, s. 45.
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