Federal Law–Civil Law Harmonization Act, No. 2 (S.C. 2004, c. 25)
Full Document:
Assented to 2004-12-15
Marginal note:1997, c. 12, s. 27(F)
29. Subsection 46(1) of the Act is replaced by the following:
Marginal note:Appointment of interim receiver
46. (1) The court may, if it is shown to be necessary for the protection of the estate of a debtor, at any time after the filing of an application for a bankruptcy order and before a bankruptcy order is made, appoint a licensed trustee as interim receiver of the property or any part of the property of the debtor and direct the interim receiver to take immediate possession of the property or any part of it on an undertaking being given by the applicant that the court may impose with respect to interference with the debtor’s legal rights and with respect to damages in the event of the application being dismissed.
Marginal note:1992, c. 27, s. 16(1)
30. Subsection 47.2(1) of the Act is replaced by the following:
Marginal note:Orders respecting fees and expenses
47.2 (1) If an appointment of an interim receiver is made under section 47 or 47.1, the court may make any order respecting the payment of fees and disbursements of the interim receiver that it considers proper, including an order giving the interim receiver security, ranking ahead of any or all secured creditors, over any or all of the assets of the debtor in respect of the interim receiver’s claim for fees or disbursements, but the court shall not make such an order unless it is satisfied that all secured creditors who would be materially affected by the order were given reasonable advance notification and an opportunity to make representations to the court.
Marginal note:1997, c. 12, s. 29(1)(F)
31. Subsection 49(1) of the English version of the Act is replaced by the following:
Marginal note:Assignment for general benefit of creditors
49. (1) An insolvent person or, if deceased, the executor or administrator of their estate or the liquidator of the succession, with the leave of the court, may make an assignment of all the insolvent person’s property for the general benefit of the insolvent person’s creditors.
Marginal note:1992, c. 27, s. 18(1)
32. (1) The portion of subsection 50(1.4) of the Act before paragraph (a) is replaced by the following:
Marginal note:Classes of secured claims
(1.4) Secured claims may be included in the same class if the interests or rights of the creditors holding those claims are sufficiently similar to give them a commonality of interest, taking into account
Marginal note:1992, c. 27, s. 18(1)
(2) Paragraph 50(1.4)(b) of the Act is replaced by the following:
(b) the nature and rank of the security in respect of the claims;
Marginal note:1992, c. 27, s. 18(4)
(3) Subsection 50(8) of the French version of the Act is replaced by the following:
Marginal note:Exception
(8) Le tribunal peut rendre une ordonnance de non-communication de tout ou partie de l’état, s’il est convaincu que sa communication à l’un ou l’autre ou à l’ensemble des créanciers causerait un préjudice indu à la personne insolvable et que sa non-communication ne causerait pas de préjudice indu au créancier ou aux créanciers en question.
Marginal note:1992, c. 27, s. 19
33. Subsection 50.4(4) of the French version of the Act is replaced by the following:
Marginal note:Exception
(4) Le tribunal peut rendre une ordonnance de non-communication de tout ou partie de l’état, s’il est convaincu que sa communication à l’un ou l’autre ou à l’ensemble des créanciers causerait un préjudice indu à la personne insolvable ou encore que sa non-communication ne causerait pas de préjudice indu au créancier ou aux créanciers en question.
34. Subsection 63(2) of the French version of the Act is replaced by the following:
Marginal note:Validité des choses faites
(2) Une ordonnance rendue aux termes du paragraphe (1) l’est sans préjudice de la validité d’une vente ou autre disposition de biens ou d’un paiement dûment fait, ou d’une chose dûment exécutée en vertu de la proposition ou en conformité avec celle-ci et, nonobstant l’annulation de la proposition, une garantie donnée conformément à la proposition conserve pleine force et effet conformément à ses conditions.
35. Section 65 of the French version of the Act is replaced by the following:
Marginal note:Cas où la proposition est subordonnée à l’achat de nouvelles valeurs mobilières
65. Une proposition faite subordonnément à l’achat d’actions ou de valeurs mobilières ou à tout autre paiement ou contribution par les créanciers doit stipuler que la réclamation de tout créancier qui décide de ne pas participer à la proposition sera évaluée par le tribunal et payée en espèces lors de l’approbation de la proposition.
Marginal note:1997, c. 27, s. 30
36. The portion of subsection 65.1(1) of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Certain rights limited
65.1 (1) If a notice of intention or a proposal has been filed in respect of an insolvent person, no person may terminate or amend any agreement with the insolvent person, or claim an accelerated payment, or a forfeiture of the term, under any agreement with the insolvent person, by reason only that
Marginal note:1997, c. 12, s. 42(1)(E)
37. (1) Subsection 65.2(1) of the Act is replaced by the following:
Marginal note:Insolvent person may disclaim or resiliate commercial lease
65.2 (1) At any time between the filing of a notice of intention and the filing of a proposal, or on the filing of a proposal, in respect of an insolvent person who is a commercial lessee under a lease of real property or an immovable, the insolvent person may disclaim or resiliate the lease on giving thirty days notice to the lessor in the prescribed manner, subject to subsection (2).
Marginal note:1997, c. 12, s. 42(2)
(2) Subsections 65.2(2) to (7) of the English version of the Act are replaced by the following:
Marginal note:Lessor may challenge
(2) Within fifteen days after being given notice of the disclaimer or resiliation of a lease under subsection (1), the lessor may apply to the court for a declaration that subsection (1) does not apply in respect of that lease, and the court, on notice to any parties that it may direct, shall, subject to subsection (3), make that declaration.
Marginal note:Circumstances for not making declaration
(3) No declaration under subsection (2) shall be made if the court is satisfied that the insolvent person would not be able to make a viable proposal without the disclaimer or resiliation of the lease and all other leases that the lessee has disclaimed or resiliated under subsection (1).
Marginal note:Effects of disclaimer or resiliation
(4) If a lease is disclaimed or resiliated under subsection (1),
(a) the lessor has no claim for accelerated rent;
(b) the proposal must indicate whether the lessor may file a proof of claim for the actual losses resulting from the disclaimer or resiliation, or for an amount equal to the lesser of
(i) the aggregate of
(A) the rent provided for in the lease for the first year of the lease following the date on which the disclaimer or resiliation becomes effective, and
(B) fifteen per cent of the rent for the remainder of the term of the lease after that year, and
(ii) three years’ rent; and
(c) the lessor may file a proof of claim as indicated in the proposal.
Marginal note:Classification of claim
(5) The lessor’s claim shall be included in either
(a) a separate class of similar claims of lessors; or
(b) a class of unsecured claims that includes claims of creditors who are not lessors.
Marginal note:Lessor’s vote on proposal
(6) The lessor is entitled to vote on the proposal in whichever class referred to in subsection (5) the lessor’s claim is included, and for the amount of the claim as proven.
Marginal note:Determination of classes
(7) The court may, on application made at any time after the proposal is filed, determine the classes of claims of lessors and the class into which the claim of any of those particular lessors falls.
Marginal note:1997, c. 12, s. 43
38. Section 65.21 of the Act is replaced by the following:
Marginal note:Lease disclaimer or resiliation if lessee is a bankrupt
65.21 If, in respect of a proposal concerning a bankrupt person who is a commercial lessee under a lease of real property or an immovable, the lessee’s lease has been surrendered, disclaimed or resiliated in the bankruptcy proceedings, subsections 65.2(3) to (7) apply in the same manner and to the same extent as if the person was not a bankrupt but was an insolvent person in respect of which a disclaimer or resiliation referred to in those subsections applies.
Marginal note:1997, c. 12, s. 43
39. Section 65.22 of the English version of the Act is replaced by the following:
Marginal note:Bankruptcy after court approval
65.22 If an insolvent person who has disclaimed or resiliated a lease under subsection 65.2(1) becomes bankrupt after the court approval of the proposal and before the proposal is fully performed, any claim of the lessor in respect of losses resulting from the disclaimer or resiliation, including any claim for accelerated rent, shall be reduced by the amount of compensation paid under the proposal for losses resulting from the disclaimer or resiliation.
Marginal note:1992, c. 27, s. 32(1)
40. Section 66.29 of the Act is replaced by the following:
Marginal note:Administrator may issue certificate
66.29 (1) If a consumer proposal is approved or deemed approved by the court, the administrator may, if the administrator believes on reasonable grounds that the debtor owns land or other valuable property, issue a certificate in respect of the proposal, and may cause the certificate to be filed in any place where a certificate of judgment, writ of seizure and sale or other like document may be filed or where a legal hypothec of judgment creditors may be registered.
Marginal note:Effect of filing certificate
(2) A certificate filed under subsection (1) operates as a certificate of judgment, writ of execution or legal hypothec of judgment creditors until the proposal is fully performed.
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