Bankruptcy and Insolvency Act
Sections and provisions with full text and the judgments that cite each one.
Section 242 — Application of this Part
The Governor in Council shall, at the request of the lieutenant governor in council of a province, declare, by order, that this Part applies or ceases to apply, as the case may be, in respect of the…
Section 243 — Court may appoint receiver
Subject to subsection (1.1), on application by a secured creditor, a court may appoint a receiver to do any or all of the following if it considers it to be just or convenient to do so: take…
Section 244 — Advance notice
A secured creditor who intends to enforce a security on all or substantially all of the inventory, the accounts receivable, or the other property of an insolvent person that was acquired for, or is…
Section 245 — Receiver to give notice
A receiver shall, as soon as possible and not later than ten days after becoming a receiver, by appointment or otherwise, in respect of property of an insolvent person or a bankrupt, send a notice of…
Section 246 — Receiver’s statement
A receiver shall, forthwith after taking possession or control, whichever occurs first, of property of an insolvent person or a bankrupt, prepare a statement containing the prescribed information…
Section 246.1 — Intellectual property — sale or disposition
If the insolvent person or the bankrupt is a party to an agreement that grants to another party a right to use intellectual property that is included in a sale or disposition by the receiver, that…
Section 247 — Good faith, etc.
A receiver shall act honestly and in good faith; and deal with the property of the insolvent person or the bankrupt in a commercially reasonable manner.
Section 248 — Powers of court
Where the court, on the application of the Superintendent, the insolvent person, the trustee (in the case of a bankrupt), a receiver or a creditor, is satisfied that the secured creditor, the…
Section 249 — Receiver may apply to court for directions
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.
Section 250 — Right to apply to court
An application may be made under section 248 or 249 notwithstanding any order of a court as defined in subsection 243(1). Where there is any inconsistency between an order made under section 248, or…
Section 251 — Protection of receivers
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…
Section 252 — Defence available
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,…
Section 253 — Definitions
In this Part, customer includes 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…
Section 254 — Application of other provisions
All of the provisions of this Act apply, with such modifications as the circumstances require, in respect of claims by customers for securities and customer name securities as if customers were…
Section 255 — Conflicts
All the provisions of this Act, in so far as they are applicable, apply in respect of bankruptcies under this Part, but if a conflict arises between the application of the provisions of this Part and…
Section 256 — Applications re securities firm
In addition to any creditor who may file an application in accordance with sections 43 to 45, an application for a bankruptcy order against a securities firm may be filed by a securities commission…
Section 257 — Statement of customer account
The trustee of the estate of a securities firm shall send to customers a statement of customer accounts with the firm together with the notice under subsection 102(1).
Section 258 — Deferred customers
Where the trustee is of the opinion that a customer should be treated as a deferred customer, the trustee shall apply to the court for a ruling on the matter and shall send the customer a copy of the…
Section 259 — Trustee powers
The trustee may, in respect of a bankruptcy under this Part, without the permission of inspectors until inspectors are appointed and thereafter with the permission of inspectors, exercise a power of…
Section 260 — Determination of customer name securities
The trustee shall determine which of the securities in customers’ securities accounts are to be dealt with as customer name securities and those that are not to be dealt with as such; and advise…
Section 261 — Vesting of securities, etc., in trustee
If a securities firm becomes bankrupt, the following securities and cash vest in the trustee: securities owned by the securities firm; securities and cash held by any person for the account of the…
Section 262 — Allocation and distribution of cash and securities in customer pool fund
Cash and securities in the customer pool fund shall be allocated in the following priority: for costs of administration referred to in paragraph 136(1)(b), to the extent that sufficient funds are not…
Section 263 — Delivery of customer name securities
Where a customer is not indebted to a securities firm, the trustee shall deliver to the customer the customer name securities that belong to the customer. Where a customer to whom customer name…
Section 264 — Trustee to consult customer compensation body
Where the accounts of customers of a securities firm are protected, in whole or in part, by a customer compensation body, the trustee shall consult the customer compensation body on the…
Section 265 — Late claims
A customer may prove a claim after the distribution of cash and securities in the customer pool fund and is entitled to receive cash and securities in the hands of the trustee at the time the claim…
Section 266 — Statement of trustee required
In addition to any other statement or report required to be prepared under this Act, a trustee shall prepare a statement indicating the distribution of property in the customer pool fund among…
Section 267 — Purpose
The purpose of this Part is to provide mechanisms for dealing with cases of cross-border insolvencies and to promote cooperation between the courts and other competent authorities in Canada with…
Section 268 — Definitions
The following definitions apply in this Part. foreign court means a judicial or other authority competent to control or supervise a foreign proceeding. ( tribunal étranger ) foreign main proceeding…
Section 269 — Application for recognition of a foreign proceeding
A foreign representative may apply to the court for recognition of the foreign proceeding in respect of which he or she is a foreign representative. Subject to subsection (3), the application must be…
Section 270 — Order recognizing foreign proceeding
If the court is satisfied that the application for the recognition of a foreign proceeding relates to a foreign proceeding and that the applicant is a foreign representative in respect of that…
Section 271 — Effects of recognition of a foreign main proceeding
Subject to subsections (2) to (4), on the making of an order recognizing a foreign proceeding that is specified to be a foreign main proceeding, no person shall commence or continue any action,…
Section 272 — Orders
If an order recognizing a foreign proceeding is made, the court may, on application by the foreign representative who applied for the order, if the court is satisfied that it is necessary for the…
Section 273 — Terms and conditions of orders
An order under this Part may be made on any terms and conditions that the court considers appropriate in the circumstances.
Section 274 — Commencement or continuation of proceedings
If an order recognizing a foreign proceeding is made, the foreign representative may commence or continue any proceedings under sections 43, 46 to 47.1 and 49 and subsections 50(1) and 50.4(1) in…
Section 275 — Cooperation — court
If an order recognizing a foreign proceeding is made, the court shall cooperate, to the maximum extent possible, with the foreign representative and the foreign court involved in the foreign…
Section 276 — Obligations of foreign representative
If an order recognizing a foreign proceeding is made, the foreign representative who applied for the order shall without delay, inform the court of any substantial change in the status of the…
Section 277 — Concurrent proceedings
If any proceedings under this Act in respect of a debtor are commenced at any time after an order recognizing the foreign proceeding is made, the court shall review any order made under section 272…
Section 278 — Multiple foreign proceedings
If, at any time after an order is made in respect of a foreign non-main proceeding in respect of a debtor, an order recognizing a foreign main proceeding is made in respect of the debtor, the court…
Section 279 — Authorization to act as representative of proceeding under this Act
The court may authorize any person or body to act as a representative in respect of any proceeding under this Act for the purpose of having them recognized in a jurisdiction outside Canada.
Section 280 — Foreign representative status
An application by a foreign representative for any order under this Part does not submit the foreign representative to the jurisdiction of the court for any other purpose except with regard to the…
Section 281 — Foreign proceeding appeal
A foreign representative is not prevented from making an application to the court under this Part by reason only that proceedings by way of appeal or review have been taken in a foreign proceeding,…
Section 282 — Presumption of insolvency
For the purposes of this Part, if a bankruptcy, an insolvency or a reorganization or a similar order has been made in respect of a debtor in a foreign proceeding, a certified copy of the order is, in…
Section 283 — Credit for recovery in other jurisdictions
If a bankruptcy order, a proposal or an assignment is made in respect of a debtor under this Act, the following shall be taken into account in the distribution of dividends to the debtor’s creditors…
Section 284 — Court not prevented from applying certain rules
Nothing in this Part prevents the court, on the application of a foreign representative or any other interested person, from applying any legal or equitable rules governing the recognition of foreign…
Section 285 — Review of Act
Within five years after the coming into force of this section, the Minister shall cause to be laid before both Houses of Parliament a report on the provisions and operation of this Act, including any…