Bill S-3

Canada Cooperatives Act

Clause 72: (1) to (3) Existing text of the definitions:

“call” means an option transferable by delivery, to demand delivery of a specified number or amount of securities at a fixed price within a specified time but does not include an option or right to acquire securities of the cooperative that granted the option or right to acquire.

“personal representative” means a person who stands in place of and represents another person including, but not limited to, a trustee, an executor, an administrator, a receiver, an agent, a liquidator of a succession, a guardian, a tutor, a curator, a mandatary or an attorney.

“proxy” means a completed and executed form of proxy by means of which a shareholder appoints a proxyholder to attend and act on the shareholder’s behalf at a meeting of the shareholders.

“put” means an option transferable by delivery, to deliver a specified number or amount of securities at a fixed price within a specified time.

“security interest” means an interest in or charge on property of a cooperative to secure payment of a debt or the performance of an obligation of the cooperative.

Clause 73: Relevant portion of subsection 11(1):

11. (1) Articles of incorporation must be in the form fixed by the Director and contain the following particulars :

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(i) whether the cooperative is to be incorporated with or without membership share capital, and, if there is to be no membership share capital, a statement that the interest of each member as member is, subject to subsection 7(3), the same as that of every other member;

Clause 74: (1) and (2) Relevant portion of subsection 15(1):

15. (1) The by-laws of a cooperative must provide for

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(e) whether the interest of a member in the cooperative may, subject to section 46, be transferred or assigned, and any conditions or restrictions that apply to such a transfer or assignment;

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(i) subject to sections 39 and 40 and Parts 20 and 21, the conditions on which membership is terminated, whether by withdrawal or by involuntary termination, if it may be terminated otherwise than as provided for in this Act, and the determination of the value and disposition of the member’s interest in the cooperative on termination; and

Clause 75: Existing text of subsection 34(2):

(2) A document executed on behalf of a cooperative is not invalid merely because a corporate seal is not affixed to it.

Clause 76: Relevant portion of subsection 85(7):

(7) Subsection (6) does not apply to

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(c) a trustee in bankruptcy, receiver, receiver-manager or secured creditor who participates in the management of the cooperative or exercises control over its property solely for the purpose of the realization of security or the administration of a bankrupt’s estate, in the case of a trustee in bankruptcy.

Clause 77: Existing text of subsection 102(7):

(7) If a director pays a debt owed under this section and the debt is proven in liquidation and dissolution or bankruptcy proceedings, the director is entitled to any preference that the employee would have been entitled to and, if judgment is obtained, is entitled to an assignment of the judgment.

Clause 78: Relevant portion of subsection 119(2):

(2) The face of each certificate that the cooperative issues in respect of membership shares or member loans after the coming into force of this section must contain

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(f) a statement that there is a charge on the membership shares or member loans represented by the certificate in favour of the cooperative for any indebtedness of the member to the cooperative.

Clause 79: (1) Existing text of subsection 123(1):

123. (1) A cooperative has a charge on a membership share or any amount standing to the credit of a member or the personal representative of a member for a debt of that member to the cooperative.

(2) Relevant portion of subsection 123(2):

(2) A cooperative may

(a) enforce a charge referred to in subsection (1) in the manner set out in its by-laws; or

Clause 80: Existing text of section 129:

129. (1) Subject to subsection 183(2), the articles may provide that the cooperative has a charge on an investment share registered in the name of a shareholder or the personal representative of a shareholder for a debt of the shareholder to the cooperative, including an amount unpaid as of the date a body corporate was continued under this Act, in respect of an investment share issued by it.

(2) A cooperative may enforce a charge referred to in subsection (1) in accordance with its by-laws.

Clause 81: Relevant portion of subsection 130(6):

(6) The Governor in Council may make regulations with respect to a cooperative that constrains the issue, transfer or ownership of its investment shares, prescribing

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(d) the powers of the directors to require disclosure of beneficial ownership of investment shares of the cooperative and the right of the cooperative and its directors, employees and agents to rely on that disclosure and the effects of that reliance; and

Clause 82: Existing text of subsection 131(3):

(3) A person who owned an investment share that was sold under this section is divested of all interests in the investment share and is entitled to receive only the net proceeds of the sale and any net income on the proceeds.

Clause 83: Relevant portion of section 137:

137. Unless the articles, the by-laws or a unanimous agreement provide otherwise, the directors may, subject to subsection 126(2), without the authorization of the members or shareholders,

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(c) give guarantees;

Clause 84: Relevant portion of subsection 138(3):

(3) Despite subsection (2), a cooperative may, subject to subsection (4), add to the stated capital accounts maintained for the shares of classes or series the whole or any part of the amount of the money, or the value of the things and services, it receives in an exchange if the cooperative issues shares

(a) in exchange for

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(ii) shares of, or another interest in, an entity that immediately before the exchange, or that because of the exchange, did not deal with the cooperative at arm’s length within the meaning of that expression in the Income Tax Act; or

Clause 85: Existing text of subsection 145(1):

145. (1) A cooperative may, and may permit its subsidiaries to, hold, in the capacity of a legal representative, shares in itself or in its holding body corporate only if the cooperative, holding body corporate or subsidiary does not have a beneficial interest in the shares.

Clause 86: (1) Existing text of the definition:

“form of proxy” means a written or printed form that, on completion and execution by or on behalf of a shareholder, becomes a proxy.

(2) Relevant portion of the definition:

“solicit” or “solicitation”

(a) includes

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(ii) a request to execute or not to execute a form of proxy or to revoke a proxy,

Clause 87: (1) Existing text of subsection 164(2):

(2) For a proxy to be valid, it must be executed by the shareholder or by their personal representative authorized in writing.

(2) Relevant portion of subsection 164(4):

(4) A shareholder may revoke a proxy

(a) by depositing a document in writing executed by the shareholder or by their personal representative authorized in writing

(3) Existing text of subsection 164(5):

(5) The directors may specify in a notice calling a meeting of shareholders a time not more than forty-eight hours, excluding Saturdays and holidays, before the meeting or adjournment before which time proxies to be used at the meeting must be deposited with the cooperative or its agent.

Clause 88: (1) Existing text of the definitions:

“adverse claim”, in respect of a security, includes a claim that a transfer was or would be wrongful or that a particular adverse person is the owner of or has an interest in the security.

“fiduciary” means a trustee, guardian, committee, curator, tutor, executor, administrator, representative of a deceased person, or any other person acting in a fiduciary capacity.

“purchaser” means a person who takes an interest in a security by sale, mortgage, hypothec, pledge, issue, reissue, gift or any other voluntary transaction.

(2) Relevant portion of the definition:

“issuer” includes a cooperative that

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(b) directly or indirectly creates fractional interests in its rights or property and issues securities as evidence of the fractional interests.

(3) Relevant portion of the definition:

“security” or “security certificate” means a document issued by a cooperative that is

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(d) evidence of an investment share, participation or other interest in or obligation of a cooperative,

Clause 89: (1) Existing text of subsection 183(2):

(2) No restriction, charge, agreement or endorsement described in subsection (3) is effective against a transferee of a security, issued by a cooperative or by a body corporate before it is continued under this Act, who has no actual knowledge of the restriction, charge, agreement or endorsement unless it or a reference to it is noted conspicuously on the security certificate.

(2) and (3) Relevant portion of subsection 183(3):

(3) The restrictions, charges, agreements and endorsements referred to in subsection (2) are

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(b) a charge in favour of the cooperative;

Clause 90: Relevant portion of subsection 185(2):

(2) The directors may attach conditions to scrip certificates issued by the cooperative, including conditions that

(a) the scrip certificates become null or void if not exchanged for an investment share representing a full investment share before a specified date; and

Clause 91: Existing text of section 187:

187. A cooperative may appoint an agent to maintain securities registers on its behalf.

Clause 92: Existing text of section 194:

194. If an individual who is less than eighteen years of age exercises a right of ownership in a security of a cooperative, no subsequent repudiation or avoidance is effective against the cooperative.

Clause 93: Existing text of subsection 200(1):

200. (1) The terms of a security include those stated on the security and those incorporated by reference to another document, Act of Parliament or the legislature of a province, regulation, rule or order to the extent that the incorporated terms do not conflict with those stated on the security.

Clause 94: Existing text of section 211:

211. A purchaser of a limited interest acquires rights only to the extent of the interest purchased.

Clause 95: Existing text of section 225:

225. Failure of a fiduciary to comply with the document that is the source of the fiduciary’s power or with the law of the jurisdiction governing the fiduciary relationship does not render the fiduciary’s endorsement unauthorized for the purposes of this Part.

Clause 96: Existing text of subsection 231(2):

(2) If a security is part of a fungible bulk, a purchaser of the security is the owner of the proportionate interest in the fungible bulk.

Clause 97: Existing text of sections 235 and 236:

235. No seizure of a security or other interest evidenced by the security is effective until the person making the seizure obtains possession of the security.

236. An agent or mandatary, or a bailee or depositary, who in good faith has received securities and sold, pledged or delivered them according to the instructions of the mandator, pledgor, depositor or principal is not in breach of a fiduciary duty or otherwise liable even though they have no right to dispose of the securities.

Clause 98: Relevant portion of section 245:

245. An authenticating trustee, transfer agent or other agent or mandatary of an issuer has, in respect of the issue, registration of transfer and cancellation of a security of the issuer,

Clause 99: Relevant portion of subsection 253(2):

(2) For the purposes of this section,

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(b) a person is deemed not to be independent if the person, or another person with whom the person is in business,

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(iii) has been a receiver, receiver-manager, liquidator or trustee in bankruptcy of the cooperative or any of its affiliates within two years of the proposed appointment of the person as auditor of the cooperative.

Clause 100: Existing text of the definitions:

“trustee” means a person appointed as trustee under the terms of a trust indenture to which a cooperative is a party, and includes a successor trustee.

“trust indenture” means a deed, indenture or other document, including a supplement or amendment to such a document, made by a cooperative under which the cooperative issues debt obligations and in which a person is appointed as trustee for the holders of the debt obligations issued under it.

Clause 101: Existing text of the heading:

RECEIVERS AND RECEIVER-MANAGERS

Clause 102: Existing text of sections 278 and 279:

278. (1) Subject to the rights of secured creditors, a receiver of any property of a cooperative may

(a) receive the income from the property and pay the liabilities connected with it; and

(b) realize the security interest of those on whose behalf the receiver is appointed.

(2) Despite subsection (1) but subject to any order that the court may make under section 282, a receiver who is not appointed manager of the cooperative may not carry on the business of the cooperative.

279. Despite section 278, if a receiver of a cooperative is also appointed manager of the cooperative, the receiver may carry on any business of the cooperative to protect the security interest of those on whose behalf he or she was appointed.

Clause 103: Existing text of section 280:

280. If a receiver or receiver-manager is appointed by a court or pursuant to an instrument, no director shall exercise the directors’ powers that the receiver or receiver-manager is authorized to exercise until the receiver or receiver-manager is discharged.

Clause 104: (1) Existing text of subsections 281(1) and (2):

281. (1) A receiver or receiver-manager appointed by a court must act in accordance with any directions of the court.

(2) A receiver or receiver-manager appointed pursuant to an instrument must act in accordance with the instrument and any direction that the court may make under section 282.

(2) Relevant portion of subsection 281(3):

(3) A receiver or receiver-manager must

Clause 105: Existing text of section 282:

282. A court may, on the application of a receiver or receiver-manager appointed by a court or pursuant to a document, or any other interested person, make any order giving directions on any matter relating to the duties of the receiver or receiver-manager appointed by it or pursuant to a document that it considers appropriate, including an order

(a) appointing, replacing or discharging a receiver or receiver-manager and approving the accounts of the receiver or receiver-manager;

(b) determining the notice to be given to any person or dispensing with notice to any person;

(c) fixing the remuneration of the receiver or receiver-manager;

(d) requiring the receiver or receiver-manager, or a person by or on behalf of whom the receiver or receiver-manager was appointed, to make good any default in connection with the receiver’s or receiver-manager’s custody or management of the property and business of the cooperative, or relieving a receiver or receiver-manager, or a person by or on behalf of whom a receiver or receiver-manager was appointed, from any default on any terms that the court considers appropriate;

(e) confirming any act of the receiver or receiver-manager; and

(f) giving directions on any other matter relating to the duties of the receiver or receiver-manager.

Clause 106: (1) and (2) Relevant portion of section 283:

283. A receiver or receiver-manager must

(a) take the property of the cooperative into custody and control in accordance with the court order or instrument pursuant to which the receiver or receiver-manager is appointed;

(b) open and maintain a bank account as receiver or receiver-manager of the cooperative for the money of the cooperative coming under their control;

(c) keep detailed accounts of all transactions carried out as receiver or receiver-manager;

(d) keep accounts of the administration as receiver or receiver-manager and cause them to be made available during usual business hours for inspection by the directors;

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(f) on completion of their duties, render a final account of the administration in the form that the receiver or receiver-manager has adopted for preparation of interim accounts under paragraph (e); and

Clause 107: (1) Relevant portion of subsection 302(6):

(6) A dissenting member or shareholder may, no later than twenty-one days after receiving the notice under subsection (5), or if no notice is received, no later than twenty-one days after learning that the resolution was adopted, send to the cooperative a written notice that contains

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(c) a demand

(i) in the case of a dissenting member, for withdrawal from the cooperative, for payment of all membership shares at their fair value and for repayment of any other interest held by the member in the cooperative, fair value being determined on the day before the resolution was adopted, and

(2) Existing text of subsection 302(19):

(19) On an application under subsection (16) or (17), all dissenting members and shareholders whose shares or other interests have not been purchased are joined as parties and the cooperative must notify them, advising each of them of the right to participate in, and the consequences of, the application. No dissenting member or shareholder is required to give security for costs in the application.

Clause 108: (1) and (2) Relevant portion of section 316:

316. In connection with the liquidation and dissolution of a cooperative, the court may, if it is satisfied that the cooperative is able to pay or adequately provide for the discharge of all its obligations, make any order it thinks fit, including an order

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(b) appointing a liquidator, with or without security, and fixing their remuneration, or replacing a liquidator;

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(k) after notice has been given to all interested parties, relieving a liquidator from an omission or default on any terms that the court thinks fit and confirming any act of the liquidator;

Clause 109: Relevant portion of subsection 321(1):

321. (1) A liquidator may

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(e) do all acts and execute any documents in the name and on behalf of the cooperative;

Clause 110: Existing text of subsection 322(4):

(4) A liquidator must give notice of their intention to make an application under subsection (2) to the Director, to each inspector appointed under section 316, to each member or shareholder and to any person who provided a security or fidelity bond for the liquidation, and must publish the notice in a newspaper published or distributed in the place where the cooperative has its registered office, in any manner set out in the by-laws or as otherwise directed by the court.

Clause 111: Relevant portion of subsection 326(5):

(5) A court may order an action referred to in subsection (4) to be brought against the persons who were members or shareholders as a class, subject to any conditions that the court thinks fit, and, if the plaintiff establishes a claim, the court may refer the proceedings to a referee or other officer of the court who may

(a) add as a party to the proceedings each member or shareholder who was found by the plaintiff;

Clause 112: Existing text of subsections 335(1) to (3):

335. (1) For the purposes of this section, a security includes a membership share or an interest in one.

(2) If the Director is satisfied that, for the purposes of Part 9 or 10 or for the purposes of enforcing any regulation made under section 130, there is reason to inquire into the ownership or control of a security of a cooperative or any of its affiliates, the Director may require any person that the Director reasonably believes has or has had an interest in the security or acts or has acted on behalf of a person with such an interest to report to the Director or to any designated person,

(a) information that the person has or can reasonably be expected to obtain as to present and past interests in the security; and

(b) the names and addresses of the persons so interested and of any person who acts or has acted in relation to the security on behalf of the persons so interested.

(3) For the purposes of subsection (2), a person is deemed to hold an interest in a security if

(a) in the case of a membership share, the person is or is entitled to be entered in the records of the cooperative as the owner of the membership share; and

(b) in the case of an investment share,

(i) the person has a right to vote or to acquire or dispose of the investment share or an interest in it,

(ii) the person’s consent is necessary for the exercise of the rights or privileges of any other person interested in the investment share, or

(iii) any other person interested in the investment share can be required or is accustomed to exercise rights or privileges attached to it in accordance with that person’s instructions.

Clause 113: Existing text of section 336:

336. Nothing in this Part may be construed as affecting the privilege that exists in respect of lawyers and notaries and their clients.

Clause 114: Existing text of subsection 337.5(1.1):

(1.1) Subsection (1) does not apply when the plaintiff brings the action as a member of a partnership or other association or as a trustee in bankruptcy, liquidator or receiver of a body corporate.

Clause 115: Existing text of subsection 341(2):

(2) No application made and no action brought or intervened in under this Part is to be stayed, discontinued, settled or dismissed for want of prosecution without the approval of the court given on any terms that the court considers appropriate.

Clause 116: Existing text of section 346:

346. If a cooperative or any director, officer, employee, agent, auditor, trustee, receiver, receiver-manager or liquidator of a cooperative does not comply with the Act, the regulations, the articles, the by-laws or a unanimous agreement, a complainant or the Director may, in addition to any other right, apply to a court for an order directing any such person to comply with or restraining them from acting in breach of it. On the application, the court may order compliance and make any further order it thinks fit.

Clause 117: Existing text of subsection 367(4):

(4) Any articles, notice, resolution, requisition, statement or other document required or permitted to be executed or signed by more than one individual for the purposes of this Act may be executed or signed in several documents of like form, each of which is executed or signed by one or more of the individuals. The documents, when duly executed or signed by all individuals required or permitted, as the case may be, to do so, shall be deemed to constitute one document for the purposes of this Act.

Clause 118: Relevant portion of subsection 373(2):

(2) When this Act requires that articles or a statement relating to a cooperative be sent to the Director,

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(b) on receiving the articles or statement in the form that the Director has fixed, any other required documents and the required fees, the Director must

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(iv) send the certificate, or a copy, image or photographic, electronic or other reproduction of it, to the cooperative or its agent, and

Consumer Packaging and Labelling Act

Clause 119: Existing text of the definition:

“product” means any article that is or may be the subject of trade or commerce but does not include land or any interest therein;

Clause 120: Existing text of subsection 20(3):

(3) Where a corporation commits an offence under this Act, any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

Clause 121: Existing text of subsection 21(1):

21. (1) In any prosecution for an offence under this Act, it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused, whether or not the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without his knowledge or consent and that he exercised all due diligence to prevent its commission.

Electricity and Gas Inspection Act

Clause 122: (1) and (2) Relevant portion of section 10:

10. Subject to the regulations, any person

(a) may, on making application in prescribed manner, be accredited by the director for purposes of the verification, sealing, reverification and resealing of any meter or any class, type or design of meter and the execution of prescribed functions incidental thereto by that person or his servant acting on his behalf and under his authority; and

(b) shall, in the event of the granting of his application pursuant to paragraph (a), be issued with a certificate of accreditation in prescribed form by the director.

Clause 123: Existing text of subsection 26(5):

(5) No person who is an accredited meter verifier or a seller of electricity, gas or meters or who is employed as a servant or agent by an accredited meter verifier or a seller of electricity may be appointed or designated pursuant to this section or act as a person so appointed or designated.

Clause 124: (1) Existing text of subsections 31(2) and (3):

(2) Where any meter is ordered to be forfeited under subsection (1), any person, other than a party to the proceedings that resulted in the order, who claims an interest in the meter as owner, mortgagee, lien holder or holder of any like interest may, within thirty days after the making of the order of forfeiture, apply to any superior court of competent jurisdiction for an order under subsection (5) whereupon the court shall fix a day for the hearing of the application.

(3) An applicant for an order under subsection (5) shall, at least thirty days prior to the day fixed for the hearing of the application, serve a notice of the application and of the hearing on the Minister and on all other persons claiming an interest in the meter that is the subject-matter of the application as owner, mortgagee, lien holder or holder of any like interest of whom he has knowledge.

(2) Existing text of subsection 31(5):

(5) Where, on the hearing of an application under this section, the court is satisfied that the applicant or any intervenor

(a) is innocent of any complicity in any conduct that caused the meter to be subject to forfeiture and of any collusion in relation to any such conduct, and

(b) exercised all reasonable care in respect of the persons permitted to obtain possession and use of the meter to satisfy himself that it was not likely to be used in the commission of an offence under paragraph 30(b) or, in the case of a mortgagee or lien holder, that he exercised such care with respect to the mortgagor or the lien giver,

the applicant, intervenor or both are entitled to an order declaring that their interests are not affected by the forfeiture and declaring the nature and extent of each of their interests and the priorities among them, and the court may, in addition, order that the meter to which the interests relate be delivered to one or more of the persons found to have an interest therein or that an amount equal to the value of each of the interests so declared be paid to the persons found to have those interests.

Clause 125: Existing text of subsection 35(2):

(2) Where a contractor or corporation commits an offence under this Act, any officer, director or agent of the contractor or corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and is liable on conviction to the punishment provided for the offence whether or not the contractor or corporation has been prosecuted or convicted.

Clause 126: (1) Existing text of subsection 36(1):

36. (1) In any prosecution for an offence under this Act it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused whether or not the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without his knowledge or consent and that he exercised all due diligence to prevent its commission.

(2) Existing text of subsection 36(4):

(4) A prosecution for an offence under this Act may be brought against and in the name of an unincorporated body that is a contractor and, for the purposes of that prosecution, the body shall be deemed to be a person and any act or thing done or omitted by any officer or agent of the body within the scope of his authority to act on behalf of the body shall be deemed to be an act or thing done or omitted by the body.

Expropriation Act

Clause 127: (1) to (3) Existing text of the definitions:

“expropriated interest” means any right, estate or interest that has been lost, in whole or in part, by the registration of a notice of confirmation under Part I;

“interest in land”, in relation to land in the Province of Quebec, includes the interest of a lessee therein;

“land” includes buildings, structures and other things in the nature of fixtures and mines and minerals whether precious or base, on, above or below the surface;

“owner”, in relation to any expropriated interest, includes the owner of a leasehold interest;

“register” includes file or deposit;

“registrar” means the registrar or master of deeds or land titles or other officer with whom the title to land is registered or recorded.

(4) and (5) New.

Clause 128: Existing text of subsection 4(1):

4. (1) Any interest in land, including any of the interests mentioned in section 7, that, in the opinion of the Minister, is required by the Crown for a public work or other public purpose may be expropriated by the Crown in accordance with the provisions of this Part.

Clause 129: (1) Existing text of subsections 4.1(1) to (3):

4.1 (1) Where a railway company, as defined in section 87 of the Canada Transportation Act, requires an interest in land for the purposes of its railway and has unsuccessfully attempted to purchase the interest in land, the railway company may request the Minister of Transport to have the Minister have the interest in land expropriated by the Crown in accordance with this Part.

(2) The Minister shall have the interest in land expropriated by the Crown in accordance with this Part where

(a) the Minister of Transport is of the opinion that the interest in land is required by the railway company for its railway and recommends to the Governor in Council that it be expropriated in accordance with this Part; and

(b) the Governor in Council consents to the expropriation of the interest in land.

(3) If the Minister of Transport is of the opinion that the interest in land is required by the railway company for its railway, the Minister is deemed to be of the opinion that the interest in land is required by the Crown for a public work or other public purpose.

(2) to (4) Existing text of subsections 4.1(6) to (8):

(6) The Minister may require the company to provide security, in an amount determined by the Minister and subject to any terms and conditions that the Minister may specify, for the payment of any fees or charges that are or may become payable under this section.

(7) For the purpose of this section, the reference to the Crown in section 15 shall be construed as a reference to the railway company that made a request under subsection (1).

(8) Where an interest in land that was vested in the Crown before the expropriation vests in a railway company pursuant to section 15, the railway company may not alienate that interest except to transfer it to the Crown.

Clause 130: Existing text of sections 5 to 7:

5. (1) Whenever, in the opinion of the Minister, any interest in land is required by the Crown for a public work or other public purpose, the Minister may request the Attorney General of Canada to register a notice of intention to expropriate the interest, signed by the Minister, setting out

(a) a description of the land;

(b) the nature of the interest intended to be expropriated and whether the interest is intended to be subject to any existing interest in the land;

(c) an indication of the public work or other public purpose for which the interest is required; and

(d) a statement that it is intended that the interest be expropriated by the Crown.

(2) On receiving from the Minister a request to register a notice of intention described in this section, the Attorney General of Canada shall cause the notice, together with a plan of the land to which the notice relates, to be registered in the office of the registrar for the county, district or registration division in which the land is situated, and, after causing such investigations and searches to be made respecting the state of the title to the land as appear to him to be necessary or desirable, the Attorney General of Canada shall furnish the Minister with a report setting out the names and latest known addresses, if any, of the persons appearing to have any right, estate or interest in the land, so far as he has been able to ascertain them.

(3) Where, in the opinion of the Minister, the interest to which a notice of intention described in this section relates is required by the Crown for a purpose related to the safety or security of Canada or a state allied or associated with Canada and it would not be in the public interest further to indicate that purpose, a statement in the notice to the effect that the interest is required by the Crown for such a purpose is sufficient compliance with paragraph (1)(c) without further indication thereof.

(4) Subject to subsection (3), the Minister shall, for the purposes of sections 9 and 10 and to the extent that it appears to him to be practicable and in the public interest to do so, make available to any person on request any additional information that is available to the Minister with respect to the public work or other public purpose for which the interest to which a notice registered under this section relates is required by the Crown.

6. (1) Where a notice or plan registered under section 5 contains any omission, mis-statement or erroneous description, a corrected notice or plan may be registered, which shall be deemed to relate back to the day the original notice or plan was registered.

(2) A notice registered under section 5 is not invalid by reason only that it does not set out the nature of the interest intended to be expropriated and, in that case, the interest intended to be expropriated includes all the interests in the land to which the notice relates.

(3) A notice registered under section 5 is not invalid by reason only that it does not set out whether the interest intended to be expropriated is intended to be subject to an existing interest in the land to which the notice relates, and, where it does not do so, the interest intended to be expropriated is not subject to that existing interest.

(4) Where it appears to the Attorney General of Canada that any land or interest in land to which a notice registered under section 5 relates belongs to Her Majesty in right of any province, he shall thereupon cause the attorney general of the province to be notified of the registration and of the particulars thereof.

7. A notice of intention may set out, as the nature of the interest intended to be expropriated, any estate or interest in land, including, without restricting the generality of the foregoing,

(a) an interest limited as to time or by condition or otherwise;

(b) an easement, profit or servitude;

(c) any right to, over or in respect of land that might be conferred by the owner of the land, whether or not that right, if conferred by the owner, could be asserted against a subsequent owner of the land;

(d) any restriction on the use of land that might be assumed by covenant or other agreement, whether or not that restriction, if assumed by the owner of the land, could be asserted against a subsequent owner thereof; and

(e) the exclusive possession of land for a limited time or for a definite or indefinite period, subject to such conditions or limitations, if any, as may be specified in the notice.

Clause 131: (1) Relevant portion of subsection 8(1):

8. (1) Where a notice of intention to expropriate an interest in land has been registered, the Minister shall cause a copy of the notice

(2) Existing text of subsection 8(3):

(3) There shall be included in any notice or copy thereof published or sent as described in subsection (1) a statement of the provisions of section 9 as that section applies to the intended expropriation of the interest to which the notice relates.

Clause 132: Existing text of section 9:

9. Any person who objects to the intended expropriation of an interest in land to which a notice of intention relates may, within thirty days after the day the notice is given, serve on the Minister an objection in writing stating the name and address of that person and indicating the nature of the objection, the grounds on which the objection is based and the nature of the interest of that person in the matter of the intended expropriation.

Clause 133: (1) Existing text of subsection 10(6):

(6) Any person who may be heard at a public hearing under this section may be represented by counsel at the hearing.

(2) Existing text of subsection 10(11):

(11) Where, before a notice of intention is registered, the Governor in Council is of the opinion that the physical possession or use by the Crown of the land to the extent of the interest intended to be expropriated is, by reason of special circumstances, urgently required and that to order that a public hearing be conducted with respect thereto would occasion a delay prejudicial to the public interest, the Governor in Council may direct that no order be made by the Minister under subsection (1) with respect to the intended expropriation and, in which case, a statement to that effect shall be included in the notice of intention.

Clause 134: Existing text of subsection 11(3):

(3) Whenever, at the time of confirming an intention to expropriate an interest in land, the Minister is of the opinion that a more limited interest only is required by the Crown for a public work or other public purpose, the Minister may confirm the intention to expropriate the more limited interest, in which case the Minister shall be deemed to have abandoned the intention to expropriate the remainder of the interest.

Clause 135: Existing text of sections 12 and 13:

12. (1) Where the Minister has abandoned an intention to expropriate an interest in land otherwise than by confirming an intention to expropriate a more limited interest therein, the Minister shall forthwith cause a notice of abandonment of the intention to be sent

(a) to each of the persons then appearing to have any right, estate or interest in the land, so far as the Attorney General of Canada has been able to ascertain them, and each other person who served an objection on the Minister under section 9; and

(b) to the Attorney General of Canada, who shall thereupon confirm the abandonment by causing the notice to be registered in the office of the registrar where the notice of intention was registered.

(2) Where an intention to expropriate an interest or remainder of an interest in land has been abandoned, compensation in accordance with this Part shall be paid by the Crown to the person who was the owner of the interest or remainder at the time when the notice of intention was registered.

13. Where the Minister, after receiving and considering a report of a hearing officer appointed to conduct a public hearing with respect to an objection served on the Minister by any person under section 9, has confirmed an intention to expropriate an interest in land, or a more limited interest therein, in the manner provided in section 14, the Minister shall, at the written request of the person who served the objection, furnish that person with a copy of the report of the hearing officer and, where effect was not given to the objection, a statement of the reasons that the Minister had for not giving effect thereto.

Clause 136: Existing text of subsection 14(1):

14. (1) The Minister may confirm an intention to expropriate an interest in land to which a notice of intention relates, or a more limited interest therein, by requesting the Attorney General of Canada to register a notice of confirmation, signed by the Minister, setting out,

(a) if the interest expropriated is the same as the interest to which the notice of intention relates, a statement that the intention to expropriate that interest is confirmed; or

(b) if the interest expropriated is a more limited interest than the interest to which the notice of intention relates, a statement that the intention to expropriate the interest to which the notice of intention relates is confirmed except as expressly specified in the statement.

Clause 137: Existing text of sections 15 and 16:

15. On the registration of a notice of confirmation,

(a) the interest confirmed to be expropriated becomes and is absolutely vested in the Crown; and

(b) any other right, estate or interest is, as against the Crown or any person claiming through or under the Crown, thereby lost to the extent that that right, estate or interest is inconsistent with the interest confirmed to be expropriated.

16. (1) Where a notice of confirmation has been registered, the Minister shall,

(a) forthwith after the registration of the notice, cause a copy thereof to be sent to each of the persons then appearing to have any right, estate or interest in the land, so far as the Attorney General of Canada has been able to ascertain them, and each other person who served an objection on the Minister under section 9; and

(b) within ninety days after the registration of the notice, or, if at any time before the expiration of those ninety days an application has been made under section 18, within the later of

(i) ninety days after the registration of the notice, or

(ii) thirty days after the day the application is finally disposed of,

make to each person who is entitled to compensation under this Part, in respect of an expropriated interest to which the notice of confirmation relates, an offer in writing of compensation, in an amount estimated by the Minister to be equal to the compensation to which that person is then entitled under this Part in respect of that interest, not conditional on the provision by that person of any release or releases and without prejudice to the right of that person, if he accepts the offer, to claim additional compensation in respect thereof.

(2) Where, in any case, it is not practicable for the Minister to make an offer of compensation under this section in respect of an expropriated interest within the applicable period described in paragraph (1)(b), the Minister shall make such an offer as soon as practicable after the expiration of that period and in any event before any compensation is adjudged by the Court to be payable under this Part in respect thereof, in which case, interest as described in subsection 36(4) is payable in addition to any other interest payable under section 36 to the person entitled to compensation in respect thereof.

(3) An offer of compensation made to a person under this section in respect of an expropriated interest shall be based on a written appraisal of the value of that interest, and a copy of the appraisal shall be sent to that person at the time of the making of the offer.

(4) There shall be included in any copy of a notice of confirmation sent to any person as described in paragraph (1)(a) a statement of the provisions of section 29 as that section applies to him, and there shall be included in any offer in writing sent to any person as described in paragraph (1)(b) a statement to the effect that the offer is not conditional on the provision by him of any release or releases and is made without prejudice to his right, if he accepts the offer, to claim additional compensation in respect of the expropriated interest.

Clause 138: (1) Existing text of subsection 18(1):

18. (1) Where the Attorney General of Canada, at any time after the registration of a notice of confirmation, is in doubt as to the persons who had any right, estate or interest in the land to which the notice relates or as to the nature or extent thereof, the Attorney General of Canada may apply to the Court to make a determination respecting the state of the title to the land or any part thereof immediately before the registration of the notice, and to adjudge who had a right, estate or interest in the land at that time, and the nature and extent thereof.

(2) Existing text of subsections 18(3) and (4):

(3) After the hearing under subsection (2), the Court shall either adjudge for the purposes of this Part what persons had any right, estate or interest in the land to which the notice of confirmation relates immediately before the registration of the notice, and the nature and extent thereof, or direct an issue or issues to be tried for the purpose of enabling the Court to make such an adjudication.

(4) An adjudication made by the Court for the purposes of this Part shall be deemed to be a final judgment of the Court and, subject to variation on appeal, if any, shall finally determine for all purposes of this Part what persons had any right, estate or interest in the land to which the notice of confirmation relates immediately before the registration of the notice, and the nature and extent thereof.

Clause 139: Existing text of sections 19 to 21:

19. (1) Notwithstanding section 15, the Crown becomes entitled to take physical possession or make use of any land to which a notice of confirmation relates, to the extent of the interest expropriated, only at such of the following times as is applicable, namely,

(a) at the time of the registration of the notice of confirmation, if at that time no other person who was the owner of an interest therein immediately before the registration of the notice of confirmation is in occupation of the land;

(b) at such time, if any, after the registration of the notice of confirmation as physical possession or use of the land to the extent of the interest expropriated is given up to the Crown without any notice under paragraph (c) having been sent to the persons described in that paragraph; or

(c) in any other case, at such time after the registration of the notice of confirmation as

(i) the Minister has sent a notice to each of the persons appearing to have had any right, estate or interest therein at the time of the registration of the notice of confirmation, so far as the Attorney General of Canada has been able to ascertain them, or, where an application has been made under section 18 and has been finally disposed of, to each of the persons adjudged to have had an interest therein immediately before the registration of the notice of confirmation, that physical possession or use is required by the Crown on and after the expiration of such period as is specified in the notice, being not less than ninety days after the sending of the notice to each of those persons, and either that period has expired or physical possession or use has been given up to the Crown before the expiration of that period, and

(ii) the Minister has made an offer under section 16 to each of the persons then entitled to compensation under this Part in respect of an interest therein.

(2) Where, at any time before or after a notice of confirmation has been registered, the Governor in Council is of the opinion that the physical possession or use by the Crown of the land to which the notice relates to the extent of the interest expropriated or intended to be expropriated is, by reason of special circumstances, urgently required, the Governor in Council may direct

(a) that there be substituted for the ninety days referred to in paragraph (1)(c) such lesser number of days as in his opinion the circumstances require; or

(b) where an application has been made under section 18 but has not been finally disposed of, that physical possession or use may be taken or made by the Crown notwithstanding that no offer has then been made under section 16.

20. (1) Where, at any time before any compensation is paid in respect of an interest expropriated, the Minister is of the opinion that the interest is not or is no longer required by the Crown for a public work or other public purpose, or that a more limited interest only is so required, the Minister may give notice that he intends to abandon the interest or the remainder of the interest, as the case may be, by causing a copy of the notice to be sent to each of the persons mentioned in paragraph 19(1)(c), each of whom may, within thirty days from the day a copy of the notice was sent to him, serve on the Minister a notice in writing that he elects to

(a) accept the abandonment, and have the interest or remainder revest in him to the extent that the abandonment would operate to revest it in him; or

(b) reject the abandonment.

(2) If each of the persons to whom a notice is sent under subsection (1) serves a notice on the Minister under that subsection that he elects to accept the abandonment, the Minister may cause a notice of abandonment of the interest expropriated or the remainder of the interest, as the case may be, to be sent to each of those persons and to the Attorney General of Canada, who shall thereupon confirm the abandonment by causing the notice to be registered in the office of the registrar where the notice of confirmation was registered.

21. Where an interest expropriated or a remainder of an interest in land is confirmed to be abandoned, the interest expropriated thereupon revests in the persons from whom it was taken or the persons entitled to claim through or under them, or the land thereupon revests in those persons subject to the more limited interest therein retained by the Crown, as the case may be.

Clause 140: Existing text of section 22:

22. Every registrar shall receive and permanently preserve in his office such notices and plans as the Attorney General of Canada causes to be registered under this Part, and shall endorse thereon the day, hour and minute when they were received by him as the time of registration and make such entries in his records as will make their registration of public record.

Clause 141: Relevant portion of section 23:

23. Unless questioned by the Crown,

...

(b) it shall be deemed that

(i) all of the interests to which a notice of intention relates are,

(ii) a more limited interest only to which a notice of confirmation relates is, or

(iii) an interest stated in a notice of abandonment to be abandoned or the remainder of the interest, as the case may be, is not or is no longer,

in the opinion of the Minister required by the Crown for a public work or other public purpose; and

(c) it shall be deemed that, on being caused to be registered by the Attorney General of Canada in the office of the registrar where a notice of intention to expropriate an interest in land was registered, a document purporting to be a notice of confirmation of the intention to expropriate that interest or a more limited interest only in the land is a notice of confirmation thereof thereupon registered in accordance with this Part.

Clause 142: Existing text of sections 25 to 27:

25. (1) Compensation shall be paid by the Crown to each person who, immediately before the registration of a notice of confirmation, was the owner of a right, estate or interest in the land to which the notice relates, to the extent of his expropriated interest, the amount of which compensation shall be equal to the aggregate of

(a) the value of the expropriated interest at the time of its taking, and

(b) the amount of any decrease in value of the remaining property of the owner, determined as provided in section 27.

(2) For the purposes of this section and sections 26 and 27, the time of the taking of an expropriated interest is,

(a) where an election has been made under subsection (3) by the owner thereof, the time specified by him in his election; and

(b) in any other case, the time when the notice of confirmation was registered.

(3) Where no copy of a notice of confirmation was sent to a person whose name is set out in the report of the Attorney General of Canada referred to in subsection 5(2) or who served an objection on the Minister under section 9 until a time more than ninety days after the registration of the notice, that person may, at any time before any compensation is paid to him in respect of any expropriated interest of which he was the owner immediately before the registration of the notice of confirmation, elect to have the value of the interest determined at either

(a) the time when the notice of confirmation was registered, or

(b) the time when the copy of the notice of confirmation was sent to him,

as specified by him in his election.

26. (1) The rules set out in this section shall be applied in determining the value of an expropriated interest.

(2) Subject to this section, the value of an expropriated interest is the market value thereof, that is to say, the amount that would have been paid for the interest if, at the time of its taking, it had been sold in the open market by a willing seller to a willing buyer.

(3) Where the owner of an expropriated interest was in occupation of any land at the time the notice of confirmation was registered and, as a result of the expropriation, it has been necessary for him to give up occupation of the land, the value of the expropriated interest is the greater of

(a) the market value thereof determined as set out in subsection (2), and

(b) the aggregate of

(i) the market value thereof determined on the basis that the use to which the expropriated interest was being put at the time of its taking was its highest and best use, and

(ii) the costs, expenses and losses arising out of or incidental to the owner’s disturbance, including moving to other premises, but if those costs, expenses and losses cannot practically be estimated or determined, there may be allowed in lieu thereof a percentage, not exceeding fifteen, of the market value determined as set out in subparagraph (i),

plus the value to the owner of any element of special economic advantage to him arising out of or incidental to his occupation of the land, to the extent that no other provision is made by this paragraph for the inclusion thereof in determining the value of the expropriated interest.

(4) In any case where the Crown has taken physical possession or made use of the land referred to in subsection (3) on the expiration of a period of notice to the owner shorter than the ninety days mentioned in paragraph 19(1)(c), there shall be added to the value of the expropriated interest otherwise determined under this section an additional amount equal to ten per cent thereof.

(5) Notwithstanding subsection (3), where any parcel of land to which a notice of confirmation relates had any building or other structure erected thereon that was specially designed for use for the purpose of a school, hospital, municipal institution or religious or charitable institution or for any similar purpose, the use of which building or other structure for that purpose by the owner has been rendered impracticable as a result of the expropriation, the value of the expropriated interest is, if the expropriated interest was and, but for the expropriation, would have continued to be used for that purpose and at the time of its taking there was no general demand or market therefor for that purpose, the greater of

(a) the market value of the expropriated interest determined as set out in subsection (2), and

(b) the aggregate of

(i) the cost of any reasonably alternative interest in land for that purpose, and

(ii) the cost, expenses and losses arising out of or incidental to moving to and re-establishment on other premises, but if those costs, expenses and losses cannot practically be estimated or determined, there may be allowed in lieu thereof a percentage, not exceeding fifteen, of the cost determined under subparagraph (i),

minus the amount by which the owner has improved, or may reasonably be expected to improve, his position through re-establishment on other premises.

(6) In any case where the Crown has taken physical possession or made use of the parcel of land referred to in subsection (5) on the expiration of a period of notice to the owner shorter than the ninety days mentioned in paragraph 19(1)(c), there shall be added to the value of the expropriated interest otherwise determined under this section an additional amount equal to ten per cent thereof.

(7) For the purposes of subparagraphs (3)(b)(ii) and (5)(b)(ii), consideration shall be given to the time and circumstances in which a former owner was allowed to continue in occupation of the land after the Crown became entitled to take physical possession or make use thereof, and to any assistance given by the Minister to enable the former owner to seek and obtain alternative premises.

(8) Where an expropriated interest was, immediately before the registration of a notice of confirmation, being used by the owner thereof for the purposes of his residence and the value of the interest otherwise determined under this section is less than the minimum amount sufficient to enable the owner, at the earlier of

(a) the time of payment to him of any compensation in respect of the interest, otherwise than pursuant to any offer made to him under section 16, and

(b) the time when the Crown became entitled to take physical possession or make use of the land to the extent of the interest expropriated,

to relocate his residence in or on premises reasonably equivalent to the premises expropriated, there shall be added to the value of the interest otherwise determined under this section the amount by which that minimum amount exceeds that value.

(9) Where an expropriated interest was, immediately before the registration of a notice of confirmation, owned by the owner thereof as a leasehold interest, there shall be substituted for the amount determined under subparagraph (3)(b)(ii) or (5)(b)(ii), or the amount by which the minimum amount referred to in subsection (8) exceeds the value of the interest referred to therein otherwise determined under this section, as the case may be, such part of that amount as is appropriate having regard to

(a) the length of the term of the leasehold interest and the portion of the term remaining at the time at which the determination is relevant;

(b) any right or reasonable prospect of renewal of the term that the owner of the leasehold interest had; and

(c) any investment in the land by the owner of the leasehold interest and the nature of any business carried on by him thereon.

(10) Where an expropriated interest was, immediately before the registration of a notice of confirmation, subject to an interest in land that was held by the owner thereof as security only, in this subsection called a “security interest”,

(a) the value of the expropriated interest is the aggregate of

(i) the value thereof otherwise determined under this section as though it had not been subject to any security interest, and

(ii) the amount of any loss or anticipated loss to the owner of the expropriated interest resulting from a difference in rates of interest during the remainder of the period for which any principal amount payable under the terms of the security was advanced, that difference to be calculated on the basis of an assumed rate of interest not in excess of the prevailing rate of interest for an equivalent security, to the extent that no other provision is made by this section for the inclusion of an amount in respect of the loss or anticipated loss in determining the value of the expropriated interest,

less the value of each security interest to which the expropriated interest was subject, determined as provided in paragraph (b) but as though no amount were included therein by virtue of subparagraph (ii) of that paragraph;

(b) the value of the security interest is the aggregate of

(i) the principal amount outstanding under the terms of the security, and any interest due or accrued thereunder, at the time of the registration of the notice of confirmation, and

(ii) an amount equal to three times the interest element, calculated as a monthly amount, of any payment of interest or of principal and interest payable under the terms of the security at the rate in effect thereunder immediately before the registration of the notice of confirmation,

and where the expropriated interest was subject to more than one security interest, the value of each security interest shall be determined in the order of its priority but in no case shall the value of any security interest to which an expropriated interest was subject exceed the value of the expropriated interest otherwise determined under this section as though it had not been subject to any security interest, less the value of each other security interest the value of which is required by this subsection to be determined in priority thereto; and

(c) where part only of the interest that was subject to a security interest was expropriated, the value of the security interest is that proportion of the value thereof otherwise determined under this subsection as though the whole of the interest subject to the security interest had been expropriated, that

(i) the value of the part only of the interest, otherwise determined under this subsection as though it had not been subject to any security interest,

is of

(ii) the value of the whole of the interest otherwise determined under this subsection as though it had not been subject to any security interest,

less the same proportion of the interest element of any payment made under the terms of the security, between the time of the registration of the notice of confirmation and the time of payment of any compensation in respect of the security interest, otherwise than pursuant to any offer made to the owner thereof under section 16.

(11) In determining the value of an expropriated interest, no account shall be taken of

(a) any anticipated or actual use by the Crown of the land at any time after the expropriation;

(b) any value established or claimed to be established by or by reference to any transaction or agreement involving the sale, lease or other disposition of the interest or any part thereof, where the transaction or agreement was entered into after the registration of the notice of intention to expropriate;

(c) any increase or decrease in the value of the interest resulting from the anticipation of expropriation by the Crown or from any knowledge or expectation, prior to the expropriation, of the public work or other public purpose for which the interest was expropriated; or

(d) any increase in the value of the interest resulting from its having been put to a use that was contrary to law.

27. (1) The amount of the decrease in value, if any, of the remaining property of an owner is the value of all of his interests in land immediately before the time of the taking of the expropriated interest, determined as provided in section 26, minus the aggregate of

(a) the value of the expropriated interest; and

(b) the value of all his remaining interests in land immediately after the time of the taking of the expropriated interest.

(2) For the purpose of paragraph (1)(b), the value of the remaining interests in land of an owner immediately after the time of the taking of the expropriated interest shall be determined as provided in section 26, except that in determining that value account shall be taken of any increase or decrease in the value of any remaining interest in land of the owner, that immediately before the registration of the notice of confirmation was held by him together with the expropriated interest, resulting from the construction or use or anticipated construction or use of any public work on the land to which the notice relates or from the use or anticipated use of that land for any public purpose.

Clause 143: Existing text of subsections 28(1) and (2):

28. (1) The fact of

(a) an abandonment or revesting under this Part of an interest or remainder of an interest in land, or

(b) any undertaking given on behalf of the Crown by the Minister, or by any other person within the scope of his authority, to make any alteration, construct any work or grant or convey any other land or interest therein,

shall be taken into account, in connection with all other circumstances of the case, in determining the amount to be paid to any person claiming compensation for an expropriated interest.

(2) Where an intention to expropriate an interest or remainder of an interest in land has been abandoned, the compensation payable by the Crown to the owner thereof is the amount of any actual loss sustained by the owner, after the time when the notice of intention was registered and before the time when the abandonment of the intention, or the intention to expropriate a more limited interest, as the case may be, was confirmed, in consequence of the registration

(a) of the notice of intention, where the intention to expropriate the interest has been abandoned; or

(b) of the notice of intention in so far as that notice relates to the remainder of the interest, where the intention to expropriate the remainder has been abandoned.

Clause 144: (1) Existing text of subsections 30(1) and (2):

30. (1) Where, after an offer of compensation in respect of an expropriated interest has been made under section 16 to any person, in this section referred to as “the owner”, the owner and the Minister are unable to agree on the amount of compensation to which the owner is then entitled, either the owner or the Minister may, within sixty days after the making of the offer, serve on the other a notice to negotiate settlement of the compensation to which the owner is then entitled.

(2) Where a notice referred to in subsection (1) has been served as provided in that subsection, no proceedings under sections 31 and 32 shall be instituted, or if instituted shall be proceeded with, by or on behalf of either the owner or the Attorney General of Canada in respect of the expropriation, until the expiration of sixty days from the serving of the notice, unless before the expiration of those sixty days the negotiator to whom the matter is referred under subsection (4) has made a report to the Minister that he has been unable to effect a settlement and has sent a copy of his report to the owner.

(2) Existing text of subsections 30(4) to (6):

(4) Forthwith after any notice to negotiate is served on the Minister or an owner in accordance with this section, the Minister shall refer the matter to a negotiator appointed under subsection (3) who shall, on reasonable notice to the owner and the Minister, meet with them or their authorized representatives, make such inspection of the land as he deems necessary, receive and consider any appraisals, valuations or other written or oral evidence submitted to him on which either the owner or the Minister relies for his estimation of the amount of the compensation payable, whether or not the evidence would be admissible in proceedings before a court, and endeavour to effect a settlement of the compensation payable.

(5) The negotiator shall, within sixty days from the service of the notice to negotiate, report to the Minister his success or failure in the matter of the negotiation, and shall thereupon send a copy of his report to the owner.

(6) Evidence of anything said or of any admission made in the course of a negotiation under this section is not admissible in any proceedings before a court for the recovery or determination of the compensation payable to the owner.

Clause 145: (1) and (2) Relevant portion of subsection 31(1):

31. (1) Subject to section 30,

(a) a person entitled to compensation in respect of an expropriated interest may,

...

(b) the Attorney General of Canada may at any time after the registration of the notice of confirmation, whether or not proceedings under paragraph (a) have been commenced, file a notice in the matter in the Court setting out

...

(ii) the names, so far as they have been ascertained, of each of the persons entitled to compensation in respect of an expropriated interest and the names of the persons who are to be parties to the proceedings,

Clause 146: Existing text of subsection 32(5):

(5) A judgment, whether by consent, default or otherwise, in any proceedings under this section or section 31 bars all further claims of the parties thereto and of any persons claiming through or under them, including any claim in respect of dower or of dower not yet open or in respect of any mortgage, hypothec or other right or encumbrance, and the Court shall declare the amount of compensation payable and make such order for the distribution, payment or investment of any compensation money, and for the securing of the rights of all persons interested, as may be necessary.

Clause 147: Existing text of sections 33 to 35:

33. (1) Any compensation agreed to be payable or the compensation adjudged by the Court under this Part to be payable in respect of an expropriated interest stands in the stead of the interest.

(2) Any compensation agreed to be payable or the compensation adjudged by the Court under this Part to be payable in respect of a security interest described in subsection 26(10) shall, for all purposes as between the owner of the interest subject to the security interest and the owner of the security interest, be deemed to discharge any liability, under the terms of the security, of the owner of the interest subject to the security interest, to the extent of the compensation so agreed or adjudged to be payable, and, where any amount or proportion of any amount described in subparagraph 26(10)(b)(ii) is included in the compensation, to be in full satisfaction of any notice or bonus required under the terms of the security in respect of the prepayment thereof resulting from the expropriation.

34. Where any compensation in respect of an expropriated interest has been paid to a person of whose right to claim compensation the Crown had notice at the time of payment, no compensation is payable to another person, whether the right or interest of that other person is derived from the person to whom compensation has been paid or otherwise, if under the law of the province in which the land is situated the right or interest giving rise to the claim to compensation of that other person would have been void or unenforceable against the Crown had the Crown, at the time the notice of intention was registered, been a purchaser of the interest.

35. Where any compensation has been paid to a person in respect of an expropriated interest pursuant to an offer made to him under section 16, the amount so paid to that person shall be deducted from the amount of the compensation adjudged by the Court under this Part to be payable to him in respect thereof, and where the amount so paid exceeds the amount so adjudged to be payable, the excess constitutes a debt due to the Crown and may be recovered by the Crown in any court of competent jurisdiction.

Clause 148: Existing text of the definition:

“compensation” means the amount of the compensation adjudged by the Court under this Part to be payable in respect of an expropriated interest;

Clause 149: Existing text of subsection 37(1):

37. (1) Where a notice of intention has been registered, any person authorized in writing in that behalf by the Minister may, at any reasonable time on notice to a person in occupation of the land to which the notice relates, enter on the land for the purpose of making any inspection of the land that he is authorized by this Part to make, or for the purpose of making an appraisal of the value of the land or any interest therein.

Clause 150: Existing text of subsection 38(1):

38. (1) When the Minister, or a person acting for the Minister, is prevented from entering on or taking physical possession or making use of any land to the extent of any interest expropriated under this Part, a judge of the Court or any judge of a superior court of a province may, on proof of the expropriation and, when required, of the right of the Crown to take physical possession or make use thereof, and after notice to show cause given in such manner and to such persons who shall be parties to the proceedings as the judge prescribes, issue his warrant in accordance with the form set out in the schedule to the appropriate sheriff directing him to put the Minister, or a person authorized to act for him, in physical possession of the land to the extent of the interest expropriated.

Clause 151: Existing text of subsection 39(2):

(2) Where the amount of the compensation adjudged under this Part to be payable to a party to any proceedings in the Court under sections 31 and 32 in respect of an expropriated interest does not exceed the total amount of any offer made under section 16 and any subsequent offer made to the party in respect thereof before the commencement of the trial of the proceedings, the Court shall, unless it finds the amount of the compensation claimed by the party in the proceedings to have been unreasonable, direct that the whole of the party’s costs of and incident to the proceedings be paid by the Crown, and where the amount of the compensation so adjudged to be payable to the party exceeds that total amount, the Court shall direct that the whole of the party’s costs of and incident to the proceedings, determined by the Court on a solicitor and client basis, be paid by the Crown.

Clause 152: (1) Existing text of subsection 44(1):

44. (1) The Court may, where a trustee, guardian or other person representing any person under a disability or any other persons including issue unborn is unable or unwilling to act on his or their behalf or where any such person or persons including issue unborn are not so represented, after such notice as the Court may direct, appoint a trustee, guardian or other person ad litem to act on his or their behalf for the purposes of this Act.

(2) Existing text of subsection 44(3):

(3) Any contract, agreement, release or receipt made or given by any person appointed under subsection (1) and any conveyance or other instrument made or given in pursuance of the contract or agreement is binding for all purposes on the person by whom and any person or persons including issue unborn on behalf of whom the contract, agreement, release or receipt is made or given.