Bill C-101

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Second Reading

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Other crossings may be ordered	103. (1) If a railway company and an owner of land adjoining the company's railway do not agree on the construction of a crossing across the railway, the Agency, on the application of the owner, may order the company to construct a suitable crossing if the Agency considers it necessary for the owner's enjoyment of the land.
Terms and conditions	(2) The Agency may include in its order terms and conditions governing the construction and maintenance of the crossing.
Costs of construction and maintenance	(3) The owner of the land shall pay the costs of constructing and maintaining the crossing.
	DIVISION III
	FINANCIAL TRANSACTIONS OF RAILWAY COMPANIES
	Mortgages and Hypotheques
Deposit and notice of mortgage or hypotheque	104. (1) A mortgage or hypothec issued by a railway company, or an assignment or other document affecting the mortgage or hypotheque, may be deposited in the office of the Registrar General of Canada, and notice of the deposit must be published in the Canada Gazette without delay.
Other filing, deposit or registration not necessary	(2) The mortgage or hypothec, assignment or other document need not be deposited, registered or filed under any other law or statute respecting real or personal property if it has been deposited and a notice has been published in accordance with subsection (1).
	Documents Dealing with Rolling Stock
Deposit of documents	105. (1) A document, or a copy or summary of a document, evidencing any of the following transactions may be deposited in the office of the Registrar General of Canada:
	(a) a lease, sale, conditional sale, mortgage, hypothec, bailment or security agreement relating to rolling stock or any accessories or appurtenances relating thereto; and
	(b) an amendment, assignment or discharge of a document mentioned in paragraph (a).
Contents of summary	(2) A summary of a document must include any information that the Governor in Council may prescribe by regulation.
Effect of deposit	(3) Once the deposit is made, the document need not be deposited, registered or filed under any other law or statute respecting real or personal property, and the document is valid against all persons.
Notice of deposit	(4) Notice of the deposit must be published in the Canada Gazette without delay.
	Insolvent Railway Companies
Scheme may be filed in Federal Court	106. (1) If a railway company is insolvent, the directors may prepare a scheme of arrangement between the company and its creditors and may file it in the Federal Court.
May affect shareholders and capital	(2) The scheme may include provisions for settling and defining any rights of shareholders of the railway company as among themselves and for raising additional share and loan capital, if necessary.
Documents to be filed	(3) There must be filed with the scheme
	(a) a declaration in writing to the effect that the railway company is unable to meet its engagements with its creditors; and
	(b) an affidavit made by the president and directors of the company, or by a majority of them, that the declaration is true to the best of their knowledge.
Federal Court may restrain action	(4) After the scheme is filed, the Federal Court may, on the application of the railway company, restrain any action against the company on any terms that the Federal Court considers appropriate.
Limitation	(5) No order of the Federal Court or any other court restraining action against the railway company affects the right of any person to take possession of the rolling stock of the company as a creditor under a security agreement, mortgage or hypothec or as a lessor or conditional vendor, whether as trustee or otherwise, unless
	(a) within 60 days after filing the scheme of arrangement, or any extended period to which the person may agree, the railway company agrees to perform all its obligations under the security agreement, mortgage, hypothec, lease or conditional sale agreement; and
	(b) any event that occurred before the scheme was filed and that constitutes a default under the security agreement, mortgage, hypothec, lease or conditional sale agreement is cured before the later of
	(i) 30 days after the event, and
	(ii) the end of the period mentioned in paragraph (a).
Extension of 60-day period	(6) An extension of the 60 day period under paragraph (5)(a) does not prejudice the right to take possession of the rolling stock.
Assent to scheme	107. (1) The scheme is assented to when it is both assented to by the ordinary shareholders of the railway company at a special meeting called for that purpose and assented to in writing by three quarters in value of the holders of
	(a) mortgages, hypothecs, bonds and debenture stock of the company;
	(b) any rent charge, or other payment, charged on the receipts of or payable by the company in consideration of the purchase of the railway of another company; and
	(c) each class of guaranteed or preferred shares of the company.
Assent of lessor	(2) If the railway company leases a railway from another company, the scheme is assented to by the other company when it is assented to
	(a) by the ordinary shareholders of the other company at a special meeting called for that purpose; and
	(b) in writing by three quarters in value of the holders of mortgages, hypotheques, bonds and debenture stock of the other company and each class of guaranteed or preferred shares of that company.
No assent required from class not interested	(3) Assent to the scheme is not required by a class of holders mentioned in subsection (1) or another company mentioned in subsection (2) if the scheme does not prejudicially affect any right or interest of that class or company.
Application for confirmation of scheme	108. (1) The directors of the railway company may apply to the Federal Court for confirmation of the scheme if, at any time within three months after the scheme is filed, or within any extended time that the Federal Court may allow, the directors consider the scheme to be assented to in accordance with section 107.
Notice of application	(2) Notice of the application must be published in the Canada Gazette.
Confirmation of Federal Court	(3) The Federal Court, after hearing the directors and any other persons whom it considers entitled to be heard on the application, may confirm the scheme, if it is satisfied that
	(a) the scheme has been assented to in accordance with section 107 within the period mentioned in subsection (1); and
	(b) no sufficient objection to the scheme has been established.
Registration in Federal Court	(4) When the scheme is confirmed, it shall be registered in the Federal Court, and from then on it is binding on the company and all persons.
Notice	(5) Notice of the confirmation and registration of the scheme must be published in the Canada Gazette.
Rules of practice	109. The judges of the Federal Court may, with the approval of the Governor in Council, make general rules governing the practice and procedure of the Court under sections 106 to 108.
Copies of the scheme to be kept for sale	110. The railway company shall keep at its principal or head office printed copies of the scheme when confirmed and registered, and shall provide a copy to any person who requests one and pays a fee not exceeding the cost of making the copy.
	DIVISION IV
	RATES, TARIFFS AND SERVICES
	Interpretation
Definitions	111. In this Division,
``competitive line rate'' « prix de ligne concurrentiel »	``competitive line rate'' means a rate determined with respect to a shipper in accordance with section 133;
``confidential contract'' « contrat confidentiel »	``confidential contract'' means a contract entered into under subsection 126(1);
``connecting carrier'' « transporteur de liaison »	``connecting carrier'' means a railway company, other than a local carrier, that moves traffic to or from an interchange over a portion of a continuous route in respect of which the railway company and the shipper agree on the movement of the traffic, including the applicable rate;
``interchange' ' « lieu de corresponden ce »	``interchange'' means a place where the line of one railway company connects with the line of another railway company and where loaded or empty cars may be stored until delivered or received by the other railway company;
``interswitch'' « interconnexi on »	``interswitch'' means to transfer traffic from the lines of one railway company to the lines of another railway company in accordance with regulations made under section 128;
``interswitchin g rate'' Version anglaise seulement	``interswitching rate'' means a rate established by, or determined in accordance with, regulations made under paragraph 128(1)(b);
``local carrier'' « transporteur local »	``local carrier'' means a railway company that moves traffic to or from an interchange on a continuous route from the point of origin or to the point of destination that is served exclusively by the railway company;
``service obligations'' Version anglaise seulement	``service obligations'' means obligations under section 113 or 114.
	Rates and Conditions of Service
Commercially fair and reasonable	112. A rate or condition of service established by the Agency under this Division must be commercially fair and reasonable.
	Level of Services
Accommodati on for traffic	113. (1) A railway company shall, according to its powers, in respect of a railway owned or operated by it,
	(a) furnish, at the point of origin, at the point of junction of the railway with another railway, and at all points of stopping established for that purpose, adequate and suitable accommodation for the receiving and loading of all traffic offered for carriage on the railway;
	(b) furnish adequate and suitable accommodation for the carriage, unloading and delivering of the traffic;
	(c) without delay, and with due care and diligence, receive, carry and deliver the traffic;
	(d) furnish and use all proper appliances, accommodation and means necessary for receiving, loading, carrying, unloading and delivering the traffic; and
	(e) furnish any other service incidental to transportation that is customary or usual in connection with the business of a railway company.
Carriage on payment of rates	(2) Traffic must be taken, carried to and from, and delivered at the points referred to in paragraph (1)(a) on the payment of the lawfully payable rate.
Compensation for provision of rolling stock	(3) Where a shipper provides rolling stock for the carriage by the railway company of the shipper's traffic, the company shall, at the request of the shipper, establish specific reasonable compensation to the shipper in a tariff for the provision of the rolling stock.
Confidential contract between company and shipper	(4) A shipper and a railway company may, by means of a confidential contract or other written agreement, agree on the manner in which the obligations under this section are to be fulfilled by the company.
Facilities for traffic	114. (1) A railway company shall, according to its powers, afford to all persons and other companies all adequate and suitable accommodation for receiving, carrying and delivering traffic on and from its railway, for the transfer of traffic between its railway and other railways and for the return of rolling stock.
Through traffic	(2) For the purposes of subsection (1), adequate and suitable accommodation includes reasonable facilities for the receiving, carriage and delivery by the company
	(a) at the request of any other company, of through traffic and, in the case of goods shipped by carload, of the car with the goods shipped in it, to and from the railway of the other company, at a through rate; and
	(b) at the request of any person interested in through traffic, of such traffic at through rates.
Connecting railway to reasonable facilities	(3) Every railway company that has or operates a railway forming part of a continuous line of railway with or that intersects any other railway, or that has any terminus, station or wharf near to any terminus, station or wharf of another railway, shall afford all reasonable facilities for delivering to that other railway, or for receiving from or carrying by its railway, all the traffic arriving by that other railway without any unreasonable delay, so that
	(a) no obstruction is offered to the public desirous of using those railways as a continuous line of communication; and
	(b) all reasonable accommodation, by means of the railways of those companies, is at all times afforded to the public for that purpose.
Similar facilities for truckers	(4) If a railway company provides facilities for the transportation by rail of motor vehicles or trailers operated by any company under its control for the conveyance of goods for hire or reward,
	(a) the railway company shall offer to all companies operating motor vehicles or trailers for the conveyance of goods for hire or reward similar facilities at the same rates and on the same terms and conditions as those applicable to the motor vehicles or trailers operated by the company under its control; and
	(b) the Agency may disallow any rate or tariff that is not in compliance with this subsection and direct the company to substitute a rate or tariff that complies with this subsection.
Adequate and suitable accommodati on	115. For the purposes of subsection 113(1) or 114(1), adequate and suitable accommodation includes reasonable facilities
	(a) for the junction of private sidings or private spurs with a railway owned or operated by a company referred to in that subsection; and
	(b) for receiving, carrying and delivering traffic on and from private sidings or private spurs and placing cars and moving them on and from those private sidings or private spurs.
Complaint and investigation concerning company's obligations	116. (1) On receipt of a complaint made by any person that a railway company is not fulfilling any of its service obligations, the Agency shall
	(a) conduct, as expeditiously as possible, an investigation of the complaint that, in its opinion, is warranted; and
	(b) within one hundred and twenty days after receipt of the complaint, determine whether the company is fulfilling that obligation.
Confidential contract binding on Agency	(2) If a company and a shipper agree, by means of a confidential contract, on the manner in which service obligations under section 113 are to be fulfilled by the company, the terms of that agreement are binding on the Agency in making its determination.

Bill C-101

DIVISION III

FINANCIAL TRANSACTIONS OF RAILWAY COMPANIES

DIVISION IV

RATES, TARIFFS AND SERVICES