Section 87 — Bankruptcy and Insolvency Act: Statutory Crown securities

A security provided for in federal or provincial legislation for the sole or principal purpose of securing a claim of Her Majesty in right of Canada or of a province or of a workers’ compensation body is valid in relation to a bankruptcy or proposal only if the security is registered under a prescribed system of registration before the date of the initial bankruptcy event. In relation to a bankruptcy or proposal, a security referred to in subsection (1) that is registered in accordance with that subsection is subordinate to securities in respect of which all steps necessary to make them effective against other creditors were taken before that registration;

and is valid only in respect of amounts owing to Her Majesty or a workers’ compensation body at the time of that registration, plus any interest subsequently accruing on those amounts.