(2) Subsection 49(5) of the Act is replaced by the following:
Cancellation of assignment	(5) Where the official receiver is unable to find a licensed trustee who is willing to act, the official receiver shall, after giving the bankrupt five days notice, cancel the assignment.
1992, c. 27, s. 18(1)	30. (1) Subsection 50(1.1) of the Act is replaced by the following:
Where proposal may not be made	(1.1) A proposal may not be made under this Division with respect to a debtor in respect of whom a consumer proposal has been filed under Division II until the administrator under the consumer proposal has been discharged.
1992, c. 27, s. 18(2)	(2) Subsections 50(2) and (3) of the Act are replaced by the following:
Documents to be lodged	(2) Subject to section 50.4, proceedings for a proposal shall be commenced in the case of an insolvent person by lodging with a licensed trustee, and in the case of a bankrupt by lodging with the trustee of the estate, a copy of the proposal in writing setting out the terms of the proposal and the particulars of any securities or sureties proposed, signed by the person making the proposal and the proposed sureties if any, and
	(a) if the person in respect of whom the proposal is made is bankrupt, the statement of affairs referred to in section 158; or
	(b) if the person in respect of whom the proposal is made is not bankrupt, a statement showing the financial position of the person at the date of the proposal, verified by affidavit as being correct to the belief and knowledge of the person making the proposal.
Approval of inspectors	(3) A proposal made in respect of a bankrupt shall be approved by the inspectors before any further action is taken thereon.
1992, c. 27, s. 18(3)	(3) Subsection 50(4.1) of the Act is replaced by the following:
Assignment not prevented	(4.1) Subsection (4) shall not be construed as preventing an insolvent person in respect of whom a proposal has been made from subsequently making an assignment.
1992, c. 27, s. 18(4)	(4) Paragraphs 50(6)(a) to (c) of the Act are replaced by the following:
	(a) a statement indicating the projected cash-flow of the insolvent person (in this section referred to as the ``cash-flow statement''), or a revised cash-flow statement where a cash-flow statement had previously been filed under subsection 50.4(2) in respect of that insolvent person, prepared by the person making the proposal, reviewed for its reasonableness by the trustee and signed by the trustee and the person making the proposal;
	(b) a report on the reasonableness of the cash-flow statement, in the prescribed form, prepared and signed by the trustee; and
	(c) a report containing prescribed representations by the person making the proposal regarding the preparation of the cash-flow statement, in the prescribed form, prepared and signed by the person making the proposal.
1992, c. 27, s. 18(4)	(5) Subsection 50(9) of the French version of the Act is replaced by the following:
Immunité	(9) S'il agit de bonne foi et prend toutes les précautions voulues pour bien réviser l'état, le syndic ne peut être tenu responsable du préjudice ou des pertes subis par la personne qui s'y fie.
1992, c. 27, s. 18(4)	(6) Subsection 50(11) of the Act is replaced by the following:
Report to creditors	(11) An interim receiver who has been directed under subsection 47.1(2) to carry out the duties set out in subsection (10) in substitution for the trustee shall deliver a report on the state of the insolvent person's business and financial affairs, containing any prescribed information, to the trustee at least fifteen days before the meeting of creditors referred to in subsection 51(1), and the trustee shall send the report to the creditors and the official receiver, in the prescribed manner, at least ten days before the meeting of creditors referred to in that subsection.
Court may declare proposal as deemed refused by creditors	(12) The court may, on application by the trustee, the interim receiver, if any, appointed under section 47.1 or a creditor, at any time before the meeting of creditors, declare that the proposal is deemed to have been refused by the creditors if the court is satisfied that
	(a) the debtor has not acted, or is not acting, in good faith and with due diligence;
	(b) the proposal will not likely be accepted by the creditors; or
	(c) the creditors as a whole would be materially prejudiced if the application under this subsection is rejected.
Claims against directors - compromise	(13) A proposal made in respect of a corporation may include in its terms provision for the compromise of claims against directors of the corporation relating to the obligations of the corporation where the directors are by law liable in their capacity as directors for the payment of such obligations.
Exception	(14) A provision for the compromise of claims against directors may not include claims that
	(a) relate to contractual rights of one or more creditors; or
	(b) are based on allegations of misrepresentation made by directors to creditors or of wrongful or oppressive conduct by directors.
Powers of court	(15) The court may declare that a claim against directors shall not be compromised if it is satisfied that the compromise would not be fair and reasonable in the circumstances.
Application of other provisions	(16) Subsection 62(2) and section 122 apply, with such modifications as the circumstances require, in respect of claims against directors compromised under a proposal of a debtor corporation.
Determination of classes of claims	(17) The court, on application made at any time after a proposal is filed, may determine the classes of claims of claimants against directors and the class into which any particular claimant's claim falls.
1992, c. 27, s. 19	31. Subsection 50.1(1) of the French version of the Act is replaced by the following:
Preuve de créance garantie	50.1 (1) Sous réserve des paragraphes (2) à (4), le créancier garanti à qui une proposition a été faite relativement à une réclamation garantie en particulier peut déposer auprès du syndic, en la forme prescrite, une preuve de réclamation garantie à cet égard; il peut, pour la totalité de sa réclamation, voter sur toute question se rapportant à la proposition. Les articles 124 à 126, dans la mesure où ils sont applicables, s'appliquent, avec les adaptations nécessaires, aux preuves de réclamations garanties.
1992, c. 27, s. 19	32. (1) Paragraph 50.4(8)(a) of the Act is replaced by the following:
	(a) the insolvent person is, on the expiration of that period or that extension, as the case may be, deemed to have made an assignment on the date of the initial bankruptcy event;
1992, c. 27, s. 19	(2) Paragraph 50.4(11)(d) of the French version of the Act is replaced by the following:
	d) le rejet de la demande causerait un préjudice sérieux à l'ensemble des créanciers.
1992, c. 27 s. 23	33. The portion of section 57 of the Act before paragraph (b) is replaced by the following:
Result of refusal of proposal	57. Where the creditors refuse a proposal in respect of an insolvent person,
	(a) the insolvent person is deemed to have made an assignment on the date of the initial bankruptcy event;
	34. The Act is amended by adding the following after section 57:
Appointment of new trustee	57.1 Where a declaration has been made under subsection 50(12) or 50.4(11), the court may, if it is satisfied that it would be in the best interests of the creditors to do so, appoint a trustee in lieu of the trustee appointed under the notice of intention or proposal that was filed.
1992, c. 27, s. 23	35. (1) Paragraph 58(b) of the Act is replaced by the following:
	(b) send a notice of the hearing of the application, in the prescribed manner and at least fifteen days before the date of the hearing, to the debtor, to every creditor who has proved a claim, whether secured or unsecured, to the person making the proposal and to the official receiver;
1992, c. 27, s. 23	(2) Paragraph 58(d) of the Act is replaced by the following:
	(d) at least two days before the date of the hearing, file with the court, in the prescribed form, a report on the proposal.
	36. Subsection 59(1) of the Act is replaced by the following:
Court to hear report of trustee, etc.	59. (1) The court shall, before approving the proposal, hear a report of the trustee in the prescribed form respecting the terms thereof and the conduct of the debtor, and, in addition, shall hear the trustee, the debtor, the person making the proposal, any opposing, objecting or dissenting creditor and such further evidence as the court may require.
1992, c. 27, s. 24(1)	37. Subsections 60(1.3) to (1.5) of the Act are replaced by the following:
Proposals by employers	(1.3) No proposal in respect of an employer shall be approved by the court unless
	(a) it provides for payment to the employees and former employees, immediately after court approval of the proposal, of amounts equal to the amounts that they would be qualified to receive under paragraph 136(1)(d) if the employer became bankrupt on the date of the filing of the notice of intention, or proposal if no notice of intention was filed, as well as wages, salaries, commissions or compensation for services rendered after that date and before the court approval of the proposal; and
	(b) the court is satisfied that the employer can and will make the payments as required under paragraph (a).
Voting on proposal	(1.4) For the purpose of voting on any question relating to a proposal in respect of an employer, no person has a claim for an amount referred to in paragraph (1.3)(a).
1992, c. 27, s. 25	38. The portion of subsection 61(2) of the Act before paragraph (b) is replaced by the following:
Non-approval of proposal by court	(2) Where the court refuses to approve a proposal in respect of an insolvent person a copy of which has been filed under section 62,
	(a) the insolvent person is deemed to have made an assignment on the date of the initial bankruptcy event;
1992, c. 27, s. 26	39. Subsections 62(1) and (1.1) of the Act are replaced by the following:
Filing of proposal	62. (1) Where a proposal is made in respect of an insolvent person, the trustee shall file a copy thereof with the official receiver.
Determination of claims	(1.1) Except in respect of claims referred to in subsection 14.06(8), where a proposal is made in respect of an insolvent person, the time with respect to which the claims of creditors shall be determined is the time of the filing of
	(a) the notice of intention; or
	(b) the proposal, if no notice of intention was filed.
Determination of claims re bankrupt	(1.2) Except in respect of claims referred to in subsection 14.06(8), where a proposal is made in respect of a bankrupt, the time with respect to which the claims of creditors shall be determined is the date on which the bankrupt became bankrupt.
1992, c. 27, s. 29	40. Section 64 of the Act is replaced by the following:
Assignment pending court approval of proposal	64. Where an insolvent person in respect of whom a notice of intention has been filed under section 50.4 or a proposal has been filed under section 62 makes an assignment at any time before the court has approved the proposal, the date of the assignment is deemed to be the date of the initial bankruptcy event.
1992, c. 27, s. 30	41. (1) The portion of paragraph 65.1(4)(a) of the Act before subparagraph (i) is replaced by the following:
	(a) as prohibiting a person from requiring immediate payment for goods, services, use of leased or licensed property or other valuable consideration provided after the filing of
	(2) The definition ``eligible financial contract'' in subsection 65.1(8) of the Act is amended by adding the following after paragraph (k):
	(k.1) any master agreement in respect of a master agreement referred to in paragraph (k),
1992, c. 27, s. 30	(3) The portion of subsection 65.1(9) of the Act before paragraph (a) is replaced by the following:
Application of paragraphs 69(1)(a) and 69.1(1)(a)	(9) For greater certainty, where an eligible financial contract entered into before the filing in respect of an insolvent person of
1992, c. 27, s. 30	42. (1) Subsection 65.2(1) of the English version of the Act is replaced by the following:
Insolvent person may disclaim 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 tenant under a lease of real property, the insolvent person may disclaim the lease on giving thirty days notice to the landlord in the prescribed manner, subject to subsection (2).
1992, c. 27, s. 30	(2) Subsections 65.2(2) to (6) of the Act are replaced by the following:
Landlord may challenge	(2) Within fifteen days after being given notice of the disclaimer of a lease under subsection (1), the landlord 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 such parties as it may direct, shall, subject to subsection (3), make such a declaration.
Where no declaration to be made	(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 of the lease and all other leases that the tenant has disclaimed under subsection (1).
Where offer to pay compensation for actual losses caused by disclaimer	(4) Where an offer is made in the proposal to compensate the landlord for the actual losses to the landlord resulting from the disclaimer under subsection (1) on the same terms as are being offered in the proposal to compensate unsecured creditors holding claims within any class of unsecured claims,
	(a) the landlord has no claim for accelerated rent;
	(b) the landlord may file a proof of claim in the proposal for the actual losses resulting from the disclaimer and may vote on the proposal as an unsecured creditor who holds a claim in the class for which the same terms are being offered for the amount of the claim as proven; and
	(c) the landlord's claim shall be classified as an unsecured claim of the class for which the same terms are being offered for all purposes in connection with the proposal.
Where compensation offered other than for actual losses	(5) Where an offer, other than an offer described in subsection (4), is made in the proposal to compensate the landlord for losses resulting from the disclaimer under subsection (1),
	(a) the landlord has no claim for accelerated rent;
	(b) the landlord may file a proof of claim in the proposal for the losses resulting from the disclaimer in an amount equal to the rent provided for in the lease in the first year of the lease after the disclaimer, plus fifteen per cent of the rent for the remainder of the term of the lease after that year, the total amount not to exceed three years rent, and may vote on the proposal in the class assigned for the amount of the claim as proven; and
	(c) claims of the landlord for losses resulting from the disclaimer may be included in the same class with claims of other creditors if the interests of the landlord and the other creditors are sufficiently similar to give them a commonality of interest, taking into account the portion of the landlord's claim that would be compensated under the proposal in comparison with the portions of the claims of those creditors that would be compensated, and such other criteria as are prescribed.
Where no offer of compensation	(6) Where no offer is made in the proposal to compensate the landlord for the losses resulting from the disclaimer under subsection (1),
	(a) the landlord has no claim for accelerated rent;