Bill C-109

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First Reading

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	105. (1) Subsection 178(1) of the Act is amended by adding the following after paragraph (a):
	(a.1) any award of damages by a court in civil proceedings in respect of an assault;
	(2) Subsection 178(1) of the Act is amended by striking out the word ``or'' at the end of paragraph (e), by adding the word ``or'' at the end of paragraph (f) and by adding the following after paragraph (f):
	(g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred
	(i) before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or
	(ii) within two years after the date on which the bankrupt ceased to be a full- or part-time student.
	(3) Section 178 of the Act is amended by adding the following after subsection (1):
Court may order non-applicatio n of subsection (1)	(1.1) At any time after two years after a bankrupt who has a debt referred to in paragraph (1)(g) ceases to be a full- or part-time student, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply to the debt if the court is satisfied that
	(a) the bankrupt has acted in good faith in connection with the bankrupt's liabilities under the loan; and
	(b) the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the liabilities under the loan.
Application	(4) Subsection (1), (2) or (3) applies to bankruptcies or proposals in respect of which proceedings are commenced after that subsection comes into force.
	106. Section 197 of the Act is amended by adding the following after subsection (6):
Costs where discharge opposed	(6.1) Where a creditor opposes the discharge of a bankrupt, the court may, if it grants the discharge on condition that the bankrupt pay an amount or consent to a judgment to pay an amount, award costs to the opposing creditor out of the estate in an amount not exceeding the amount realized by the estate under the conditional order, including any amount brought into the estate pursuant to the consent to judgment.
1992, c. 27, s. 71	107. Section 198 of the Act is replaced by the following:
Bankruptcy offences	198. (1) Any bankrupt who
	(a) makes any fraudulent disposition of the bankrupt's property before or after the date of the initial bankruptcy event,
	(b) refuses or neglects to answer fully and truthfully all proper questions put to the bankrupt at any examination held pursuant to this Act,
	(c) makes a false entry or knowingly makes a material omission in a statement or accounting,
	(d) after or within one year immediately preceding the date of the initial bankruptcy event, conceals, destroys, mutilates, falsifies, makes an omission in or disposes of, or is privy to the concealment, destruction, mutilation, falsification, omission from or disposition of, a book or document affecting or relating to the bankrupt's property or affairs, unless the bankrupt had no intent to conceal the state of the bankrupt's affairs,
	(e) after or within one year immediately preceding the date of the initial bankruptcy event, obtains any credit or any property by false representations made by the bankrupt or made by any other person to the bankrupt's knowledge,
	(f) after or within one year immediately preceding the date of the initial bankruptcy event, fraudulently conceals or removes any property of a value of fifty dollars or more or any debt due to or from the bankrupt, or
	(g) after or within one year immediately preceding the date of the initial bankruptcy event, hypothecates, pawns, pledges or disposes of any property that the bankrupt has obtained on credit and has not paid for, unless in the case of a trader the hypothecation, pawning, pledging or disposing is in the ordinary way of trade and unless the bankrupt had no intent to defraud,
	is guilty of an offence and is liable, on summary conviction, to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding one year or to both, or on conviction on indictment, to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding three years, or to both.
Failure to comply with duties	(2) A bankrupt who, without reasonable cause, fails to comply with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158 is guilty of an offence and is liable
	(a) on summary conviction, to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding one year, or to both; or
	(b) on conviction on indictment, to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding three years, or to both.
	108. Paragraphs 200(1)(a) and (b) of the Act are replaced by the following:
	(a) being engaged in any trade or business, at any time within the period beginning on the day that is two years before the date of the initial bankruptcy event and ending on the date of the bankruptcy, both dates included, that person has not kept and preserved proper books of account; or
	(b) within the period mentioned in paragraph (a), that person conceals, destroys, mutilates, falsifies or disposes of, or is privy to the concealment, destruction, mutilation, falsification or disposition of, any book or document affecting or relating to the person's property or affairs, unless the person had no intent to conceal the state of the person's affairs.
1992, c. 27, s. 76	109. Section 203.1 of the Act is replaced by the following:
Acting while licence suspended or cancelled	203.1 Any trustee who exercises any of the powers or performs any of the duties of a trustee while the trustee's licence has ceased to be valid for failure to pay licence fees, after the trustee's licence has been suspended or cancelled under subsection 13.2(5) or after having been informed pursuant to subsection 14.02(4) of the suspension or cancellation of the trustee's licence is guilty of an offence and is liable on summary conviction to a fine not exceeding five thousand dollars, or to imprisonment for a term not exceeding two years, or to both.
1992, c. 27, s. 77	110. Subsection 204.3(1) of the Act is replaced by the following:
Compensation for loss	204.3 (1) Where a person has been convicted of an offence under this Act and any other person has suffered loss or damage because of the commission of the offence, the court may, at the time sentence is imposed, order the person who has been convicted to pay to the person who has suffered loss or damage or to the trustee of the bankrupt an amount by way of satisfaction or compensation for loss of or damage to property suffered by that person as a result of the commission of the offence.
	111. Subsection 206(1) of the Act is replaced by the following:
Report of offence	206. (1) Where the official receiver or trustee believes on reasonable grounds that an offence under this Act or the Criminal Code relating to the property of the bankrupt was committed either before or after the date of the initial bankruptcy event by the bankrupt or any other person, the official receiver or trustee shall make a report thereon to the Deputy Attorney General or other appropriate legal officer of the province concerned or to such person as is duly designated by that legal officer for that purpose.
	112. Subsection 209(3) of the Act is repealed.
1992, c. 27, s. 80	113. Section 214 of the Act is replaced by the following:
Fees to officers of the court	214. The fees payable to officers of the court including official receivers shall be established by the General Rules, whether generally or for a particular province, and where so mentioned in the General Rules, shall belong to the Crown in right of the province.
	114. The Act is amended by adding the following after section 215:
Review by Parliament	216. (1) This Act shall, on the expiration of seven years after the coming into force of this section, stand referred to such committee of the Senate, of the House of Commons or of both Houses of Parliament as may be designated or established to review the administration and operation of this Act.
Report	(2) The committee shall, within one year after beginning the review or within such further time as the Senate, the House of Commons or both Houses of Parliament, as the case may be, may authorize, submit a report on the review to that House or both Houses, including a statement of any changes to this Act that the committee would recommend.
	115. Subsection 227(1) of the Act is replaced by the following:
Review of consolidation order	227. (1) The court may, on application to review a consolidation order of the clerk made by notice of motion within fifteen days after the making of the order by any of the parties affected thereby, review the consolidation order and confirm or vary it or set it aside and make such disposition of the matter as the court sees fit.
	116. Subsection 233(5) of the Act is replaced by the following:
Proceedings where continuing default	(5) Where a debtor defaults in making any payment into court required to be made under a consolidation order and the default continues for a period of three months, all the registered creditors are entitled to proceed forthwith, each independently of the others and without reference to the court, for the enforcement of their claims under the consolidation order, unless the court otherwise directs on being satisfied, on application by the debtor, that the circumstances giving rise to the default and to its continuation were beyond the control of the debtor.
1992, c. 27, s. 89(1)	117. Section 251 of the French version of the Act is replaced by the following:
Protection du séquestre	251. Le séquestre est à l'abri de toute poursuite pour le préjudice ou les pertes résultant de l'envoi ou de la fourniture par lui de tout avis prévu à l'article 245 ou de toute déclaration ou tout rapport établis conformément à l'article 246, s'il a agi de bonne foi dans l'exercice effectif ou censé tel des pouvoirs et fonctions que lui confèrent ces articles.
	118. (1) The Act is amended by adding the following after section 252:
	PART XII
	SECURITIES FIRM BANKRUPTCIES
	Interpretation
Definitions	253. In this Part,
``customer'' « client »	``customer'' includes
	(a) a person with or for whom a securities firm deals as principal or agent and who has a claim against the securities firm in respect of a security received, acquired or held by the securities firm in the ordinary course of business as a securities firm from or for a securities account of that person
	(i) for safekeeping or in segregation,
	(ii) with a view to sale,
	(iii) to cover a completed sale,
	(iv) pursuant to a purchase,
	(v) to secure performance of an obliga tion of that person, or
	(vi) for the purpose of effecting a transfer,
	(b) a person who has a claim against the securities firm arising out of a sale or wrongful conversion by the securities firm of a security referred to in paragraph (a), and
	(c) a person who has cash or other assets held in a securities account with the securities firm,
	but does not include a person who has a claim against the securities firm for cash or securities that, by agreement or operation of law, is part of the capital of the securities firm or a claim that is subordinated to claims of creditors of the securities firm;
``customer compensation body « organisme d'indemnisati on des clients »	``customer compensation body'' means a prescribed body and includes, unless it is prescribed to be excluded from this definition, the Canadian Investor Protection Fund;
``customer name securities'' « valeur mobilière immatriculée »	``customer name securities'' means securities that on the date of bankruptcy of a securities firm are held by or on behalf of the securities firm for the account of a customer and are registered in the name of the customer or are in the process of being so registered, but does not include securities registered in the name of the customer that, by endorsement or otherwise, are in negotiable form;
``deferred customer'' « client responsable »	``deferred customer'' means a customer whose misconduct caused or materially contributed to the insolvency of a securities firm;
``net equity'' « capitaux nets »	``net equity'' means, with respect to the securities account or accounts of a customer, maintained in one capacity, the net dollar value of the account or accounts, equal to the amount that would be owed by a securities firm to the customer as a result of the liquidation by sale or purchase at the close of business of the securities firm on the date of bankruptcy of the securities firm, of all security positions of the customer in each securities account, other than customer name securities reclaimed by the customer, including any amount in respect of a securities transaction not settled on the date of bankruptcy but settled thereafter, less any indebtedness of the customer to the securities firm on the date of bankruptcy including any amount owing in respect of a securities transaction not settled on the date of bankruptcy but settled thereafter, plus any payment of indebtedness made with the consent of the trustee after the date of bankruptcy;
``open contractual commitment'' « contrat en cours »	``open contractual commitment'' means an enforceable contract of a securities firm to purchase or sell a security that was not completed by payment and delivery on the date of bankruptcy;
``securities firm'' « courtier en valeurs mobilières »	``securities firm'' means a person who carries on the business of buying and selling securities, whether or not as a member of an exchange, as principal or agent, and includes any person required to be registered to enter into securities transactions with the public, but does not include a corporate entity that is not a corporation within the meaning of section 2;
``security'' « valeur mobilière » ou « titre »	``security'' means any document, instrument or writing that is commonly known as a security, and includes, without limiting the generality of the foregoing,
	(a) a stock, equity share, certificate or other document evidencing an interest in property,
	(b) a note or evidence of indebtedness, including a bond, debenture, mortgage, certificate of deposit or commercial paper or a mortgage-backed instrument,
	(c) a mutual fund unit,
	(d) an option, right, warrant, subscription, commodity, financial future, exchange or other forward contract, or other derivative instrument, including an eligible financial contract within the meaning of subsection 65.1(8), and
	(e) such other document, writing or other investment entity as is prescribed,
	but does not include any document, writing or other investment entity that is, as prescribed, excluded from being a security for the purposes of this definition.

Bill C-109

PART XII

SECURITIES FIRM BANKRUPTCIES

Interpretation