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Bill S-4

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Consequences of administra-
tion

(4) Where any federal real property or federal immovable is under the administration of a Minister for the purposes of a department, that Minister has the right to the use of that property for the purposes of that department, subject to any conditions or restrictions imposed by or under this or any other Act or any order of the Governor in Council, but is not entitled by reason only of the administration of the property to dispose of it or to retain the proceeds of its use or disposition or the fruits and revenues of its use.

For greater certainty

(5) For greater certainty, a Minister may have the administration of federal real property or federal immovables for the purposes of any department of which that Minister is the Minister.

Signature is evidence

(5.1) Despite subsections (1) to (3), if a Minister is satisfied that the federal real property or federal immovable described in an instrument or act referred to in section 5 or 11, a licence referred to in section 6 or a plan referred to in section 7 is under the Minister's administration, that property is deemed to be under the administration of the Minister and the signature of the Minister on the instrument, act, licence or plan is conclusive evidence that the Minister is so satisfied.

Administratio n by corporation

(6) If, by or under any Act or any order of the Governor in Council, a corporation has, by the use of any expression mentioned in subsection (2) or any similar expression, the right to the use of any federal real property or federal immovable, and no Minister has the administration of the property, the corporation has, for the purposes of paragraphs 16(1)(g) and (h) and (2)(g), the administration of that property.

21. Subsections 19(1) and (2) of the Act are replaced by the following:

Defence property vested in Her Majesty

19. (1) Such of the real property and immovables mentioned in the schedule to the Ordnance and Admiralty Lands Act, chapter 115 of the Revised Statutes of Canada, 1927, as was on June 1, 1950 vested in Her Majesty, by whatever mode of conveyance it was acquired or taken and whether in fee, for life, for years or otherwise, and all the appurtenances of the real property and the accessories and dependencies of the immovables, unless disposed of since that date, continue absolutely vested in Her Majesty for the purposes of Canada in the same manner and to the same extent as on June 1, 1950.

Disposition of defence property

(2) Until the Governor in Council provides otherwise, federal real property and federal immovables that are declared by the Governor in Council to be necessary for the defence of Canada shall not be disposed of, but the Governor in Council may authorize the lease or other use of any such property as the Governor in Council thinks best for the advantage of Canada.

22. Section 20 of the Act is replaced by the following:

Grants or concessions to deceased persons not null or void

20. A Crown grant that is issued to or in the name of a person who is deceased is not for that reason null or void, but the title to the real property or immovable intended to be granted or conceded vests in the heirs, assigns or successors, legatees or legatees by particular title, or other legal representatives of the deceased person according to the laws in force in the province in which the property is situated as if the Crown grant had issued to or in the name of the deceased person during the person's lifetime.

23. Section 21 of the French version of the Act is replaced by the following:

Correction

21. Si la concession de l'État comporte une erreur d'écriture, une fausse appellation, une description incorrecte ou défectueuse de l'immeuble ou du bien réel, une omission dans les conditions ou tout autre vice, le ministre de la Justice peut, en l'absence de revendication contraire, ordonner que la concession défectueuse soit annulée et remplacée par une concession correcte; cette dernière a dès lors la même valeur que si elle avait été octroyée à la date de la concession annulée.

24. Subsection 22(1) of the Act is replaced by the following:

Relief from inconsistent transactions

22. (1) Where, through error, inconsistent transactions relating to the same federal real property or federal immovable have been entered into, the Governor in Council may

    (a) order a new grant of federal real property, or a new concession of a federal immovable, of such value as the Governor in Council considers just and equitable, to be made to any person deprived as a result of the error;

    (b) make a new transfer of administration and control of federal real property, or of federal immovables, of such value as the Governor in Council considers just and equitable, to Her Majesty in any right other than Canada to provide relief from the error;

    (c) in the case of a sale, lease or licence, order a refund to be made of any money paid on account of the sale, lease or licence, with interest at a rate established in the manner prescribed by the Governor in Council; or

    (d) where the property was transferred by or from the original holder or has been improved before the discovery of the error, or where an original Crown grant was a free grant, order a new grant of any federal real property, or a new concession of any federal immovable, that the Governor in Council considers just and equitable to be made to the original holder.

PART 4

R.S., c. B-3

AMENDMENTS TO THE BANKRUPTCY AND INSOLVENCY ACT

1997, c. 12, s. 1(1)

25. The definition ``secured creditor'' in subsection 2(1) of the Bankruptcy and Insolvency Act is replaced by the following:

``secured creditor''
« créancier garanti »

``secured creditor'' means a person holding a mortgage, hypothec, pledge, charge or lien on or against the property of the debtor or any part of that property as security for a debt due or accruing due to the person from the debtor, or a person whose claim is based on, or secured by, a negotiable instrument held as collateral security and on which the debtor is only indirectly or secondarily liable, and includes

      (a) a person who has a right of retention or a prior claim constituting a real right, within the meaning of the Civil Code of Québec or any other statute of the Province of Quebec, on or against the property of the debtor or any part of that property, or

      (b) any of

        (i) the vendor of any property sold to the debtor under a conditional or instalment sale,

        (ii) the purchaser of any property from the debtor subject to a right of redemption, or

        (iii) the trustee of a trust constituted by the debtor to secure the performance of an obligation,

      if the exercise of the person's rights is subject to the provisions of Book Six of the Civil Code of Québec entitled Prior Claims and Hypothecs that deal with the exercise of hypothecary rights;

26. Paragraph 5(3)(c) of the English version of the Act is replaced by the following:

    (c) where not otherwise provided for, require the deposit of one or more continuing guaranty bonds or continuing suretyships as security for the due accounting of all property received by trustees and for the due and faithful performance by them of their duties in the administration of estates to which they are appointed, in any amount that the Superintendent may determine, which amount may be increased or decreased as the Superintendent may deem expedient, and the security shall be in a form satisfactory to the Superintendent and may be enforced by the Superintendent for the benefit of the creditors;

27. Subsection 50(4) of the English version of the Act is replaced by the following:

Proposal, etc., not to be withdrawn

(4) No proposal or any security, guarantee or suretyship tendered with the proposal may be withdrawn pending the decision of the creditors and the court.

28. Section 75 of the French version of the Act is replaced by the following:

La loi provinciale s'applique en faveur de l'acheteur moyennant valeur

75. Nonobstant les autres dispositions de la présente loi, un acte, transport, transfert, contrat de vente, charge ou hypothèque, consenti à un acheteur ou à un créancier hypothécaire de bonne foi, ou consenti en sa faveur, pour contrepartie valable et suffisante, et couvrant des biens immeubles visés par une ordonnance de séquestre ou une cession en vertu de la présente loi, est valable et efficace selon sa teneur et selon les lois de la province dans laquelle ces biens sont situés, aussi pleinement et efficacement, et pour toutes fins et intentions, que si aucune ordonnance de séquestre n'avait été rendue ou cession faite en vertu de la présente loi, à moins que l'ordonnance de séquestre, la cession, ou un avis de cette ordonnance ou de cette cession, ou un avis, n'ait été enregistré contre les biens au bureau approprié, antérieurement à l'enregistrement de l'acte, du transport, du transfert, du contrat de vente, de la charge ou de l'hypothèque, conformément aux lois de la province où sont situés les biens.

29. Subsection 94(4) of the Act is replaced by the following:

Definition of ``assignment''

(4) For the purposes of this section, ``assignment'' includes assignment by way of security, hypothec and other charges on book debts.

30. Subsection 120(6) of the Act is replaced by the following:

Special services

(6) An inspector duly authorized by the creditors or by the other inspectors to perform special services for the estate may be allowed a special fee for those services, subject to approval of the court, which may vary that fee as it deems proper having regard to the nature of the services rendered in relation to the obligations of the inspector to the estate to act in good faith for the general interests of the administration of the estate.

31. Paragraph 136(1)(e) of the Act is replaced by the following:

    (e) municipal taxes assessed or levied against the bankrupt, within the two years immediately preceding the bankruptcy, that do not constitute a secured claim against the real property or immovables of the bankrupt, but not exceeding the value of the interest of the bankrupt in the property in respect of which the taxes were imposed as declared by the trustee;

32. Paragraph 178(1)(d) of the Act is replaced by the following:

    (d) any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or, in the Province of Quebec, as a trustee or administrator of the property of others;

33. (1) The portion of subsection 183(1) of the French version of the Act before paragraph (a) is replaced by the following:

Tribunaux compétents

183. (1) Les tribunaux suivants possèdent la compétence en droit et en equity qui doit leur permettre d'exercer la juridiction de première instance, auxiliaire et subordonnée en matière de faillite et en d'autres procédures autorisées par la présente loi durant leurs termes respectifs, tels que ces termes sont maintenant ou peuvent par la suite être tenus, pendant une vacance judiciaire et en chambre :

(2) Paragraph 183(1)(b) of the Act is repealed.

(3) Subsection 183(2) of the Act is replaced by the following:

Superior Court jurisdiction in the Province of Quebec

(1.1) In the Province of Quebec, the Superior Court is invested with the jurisdiction that will enable it to exercise original, auxiliary and ancillary jurisdiction in bankruptcy and in other proceedings authorized by this Act during its term, as it is now, or may be hereafter, held, and in vacation and in chambers.

Courts of appeal - common law provinces

(2) Subject to subsection (2.1), the courts of appeal throughout Canada, within their respective jurisdictions, are invested with power and jurisdiction at law and in equity, according to their ordinary procedures, except as varied by this Act or the General Rules, to hear and determine appeals from the courts vested with original jurisdiction under this Act.

Court of Appeal of the Province of Quebec

(2.1) In the Province of Quebec, the Court of Appeal, within its jurisdiction, is invested with power and jurisdiction, according to its ordinary procedures, except as varied by this Act or the General Rules, to hear and determine appeals from the Superior Court.

PART 5

R.S., c. C-50; 1990, c. 8, s. 21

AMENDMENTS TO THE CROWN LIABILITY AND PROCEEDINGS ACT

34. (1) The definition ``tort'' in section 2 of the Crown Liability and Proceedings Act is repealed.

(2) Section 2 of the Act is amended by adding the following in alphabetical order:

``liability''
« responsabi-
lité »

``liability'', for the purposes of Part 1, means

      (a) in the Province of Quebec, extracontractual civil liability, and

      (b) in any other province, liability in tort;

35. The Act is amended by adding the following after section 2:

Definition of ``person''

2.1 For the purposes of sections 3 to 5, ``person'' means a natural person of full age and capacity other than Her Majesty in right of Canada or a province.

36. Section 3 of the Act and the heading before it are replaced by the following:

Liability and Civil Salvage

Liability

3. The Crown is liable for the damages for which, if it were a person, it would be liable

    (a) in the Province of Quebec, in respect of

      (i) the damage caused by the fault of a servant of the Crown, or

      (ii) the damage resulting from the act of a thing in the custody of or owned by the Crown or by the fault of the Crown as custodian or owner; and

    (b) in any other province, in respect of

      (i) a tort committed by a servant of the Crown, or

      (ii) a breach of duty attaching to the ownership, occupation, possession or control of property.

37. Section 4 of the Act is replaced by the following:

Motor vehicles

4. The Crown is liable for the damage sustained by anyone by reason of a motor vehicle, owned by the Crown, on a highway, for which the Crown would be liable if it were a person.

38. Subsection 5(1) of the Act is replaced by the following:

Civil salvage

5. (1) Subject to subsection (2), the law relating to civil salvage, whether of life or property (except sections 453 to 456, 459 to 463 and 465 of the Canada Shipping Act), applies in relation to salvage services rendered in assisting any Crown ship or aircraft, or in saving life from the ship or aircraft, or in saving any cargo or apparel belonging to the Crown, in the same manner as if the ship, aircraft, cargo or apparel belonged to a person.

39. Section 9 of the French version of the Act is replaced by the following:

Incompatibilit é entre recours et droit à une pension ou indemnité

9. Ni l'État ni ses préposés ne sont susceptibles de poursuites pour toute perte - notamment décès, blessure ou dommage - ouvrant droit au paiement d'une pension ou indemnité sur le Trésor ou sur des fonds gérés par un organisme mandataire de l'État.

40. Sections 10 and 11 of the Act are replaced by the following:

Liability for acts of servants

10. No proceedings lie against the Crown by virtue of subparagraph 3(a)(i) or (b)(i) in respect of any act or omission of a servant of the Crown unless the act or omission would, apart from the provisions of this Act, have given rise to a cause of action for liability against that servant or the servant's personal representative or succession.

Motor vehicles

11. No proceedings lie against the Crown by virtue of section 4 in respect of damage sustained by any person by reason of a motor vehicle on a highway unless the driver of the motor vehicle or the driver's personal representative or succession is liable for the damage so sustained.

41. Section 13 of the Act is replaced by the following:

Application of subparagraphs 3(a)(ii) and (b)(ii)

13. (1) Subparagraphs 3(a)(ii) and (b)(ii) are not applicable in respect of any property owned by the Crown unless the Crown or a person acting for the Crown has, in fact,

    (a) in the case of personal property and movables, taken physical control of it; and

    (b) in the case of real property or immovables, entered into occupation of it.

Effect of orders

(2) Where the Governor in Council has, by order published in the Canada Gazette, declared that the Crown has, before, on or after November 15, 1954, ceased to be in control or in occupation of any property specified in paragraphs (1)(a) and (b), subparagraphs 3(a)(ii) and (b)(ii) are not applicable in respect of the specified property from the day of publication of the order until the day the order is revoked.

42. Section 14 of the Act is replaced by the following:

Proceedings in rem

14. Nothing in this Act

    (a) authorizes proceedings in rem in respect of any claim against the Crown;

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