Bill C-4
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1st Session, 38th Parliament,
53 Elizabeth II, 2004
house of commons of canada
BILL C-4
An Act to implement the Convention on International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Short title
1. This Act may be cited as the International Interests in Mobile Equipment (aircraft equipment) Act.
INTERPRETATION
Definitions
2. (1) The following definitions apply in this Act.
“aircraft objects”
« biens aéronautiques »
« biens aéronautiques »
“aircraft objects” has the same meaning as in Article I(2)(c) of the Aircraft Protocol.
“Aircraft Protocol”
« Protocole aéronautique »
« Protocole aéronautique »
“Aircraft Protocol” means the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment set out in Schedule 2.
“Convention”
« Convention »
« Convention »
“Convention” means the Convention on International Interests in Mobile Equipment set out in Schedule 1.
“declaration”
« déclaration »
« déclaration »
“declaration” means a declaration or designation made by Canada under the Convention or the Aircraft Protocol.
Same meaning
(2) Unless a contrary intention appears, words and expressions used in this Act have the same meaning as in the Convention and the Aircraft Protocol.
Interpretation
(3) In interpreting the Convention and the Aircraft Protocol, recourse may be had to
(a) the Official Commentary on the Convention on International Interests in Mobile Equipment and the Protocol thereto on Matters Specific to Aircraft Equipment, as approved for distribution by the Governing Council of the International Institute for the Unification of Private Law (UNIDROIT); and
(b) the Consolidated Text of the Convention on International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment set out in Schedule 3.
PURPOSE
Purpose
3. The purpose of this Act is to implement the provisions of the Convention and the Aircraft Protocol with respect to aircraft objects.
FORCE OF LAW
Force of law
4. (1) Subject to subsection (2), to the extent that they apply to Canada as described in declarations, the Convention and the Aircraft Protocol have the force of law with respect to aircraft objects during the period that the Aircraft Protocol is, by its terms, in force in respect of Canada.
Exception
(2) Subsection (1) does not apply in respect of Articles 47 to 62 of the Convention and Articles XI and XXVI to XXXII of the Aircraft Protocol.
HER MAJESTY
Binding on Her Majesty
5. This Act is binding on Her Majesty in right of Canada or a province.
INCONSISTENT LAWS
Inconsistent laws
6. If a provision of this Act, including a provision given force of law by section 4, is inconsistent with any other law, the provision prevails over the other law to the extent of the inconsistency.
COURTS
Courts
7. The superior courts of the provinces are courts of competent jurisdiction for the purpose of the enforcement of the provisions of this Act, including provisions given force of law by section 4.
REQUESTS FOR DECLARATIONS
Ministerial requests
8. (1) Requests from ministers of the Crown in right of Canada for declarations must be directed to the Minister of Foreign Affairs.
Provincial requests
(2) The Minister of Justice must forward to the Minister of Foreign Affairs requests received from the provinces for declarations.
REGULATIONS
Regulations
9. The Governor in Council may make any regulations that are necessary for carrying out any of the provisions of this Act, including the provisions given force of law by section 4.
AMENDMENTS TO CERTAIN ACTS
1991, c. 46
Bank Act
10. The Bank Act is amended by adding the following after section 436:
Regulations — aircraft objects
436.1 (1) The Governor in Council may make regulations respecting the application of sections 426 to 436 to aircraft objects, including regulations
(a) removing classes of aircraft objects from the application of those sections or reinstating their application to those classes of aircraft objects; and
(b) eliminating rights and powers acquired under those sections in relation to aircraft objects.
Definition of “aircraft objects”
(2) In subsection (1), “aircraft objects” has the same meaning as in subsection 2(1) of the International Interests in Mobile Equipment (aircraft equipment) Act.
R.S., c. B-3; 1992, c. 27, s. 2
Bankruptcy and Insolvency Act
11. Subsection 2(1) of the Bankruptcy and Insolvency Act is amended by adding the following in alphabetical order:
“aircraft objects”
« biens aéronautiques »
« biens aéronautiques »
“aircraft objects” has the same meaning as in subsection 2(1) of the International Interests in Mobile Equipment (aircraft equipment) Act;
12. Subsection 69(2) of the Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) to prevent a creditor who holds security on aircraft objects under an agreement with the insolvent person from taking possession of the equipment
(i) if, after the filing of the notice of intention under section 50.4, the insolvent person defaults in protecting or maintaining the equipment in accordance with the security agreement,
(ii) sixty days after the day on which the notice of intention was filed unless, during that period, the insolvent person remedied the default of every other obligation under the security agreement — other than a default constituted by the filing of the notice — and agreed to perform the obligations under the agreement in the future, other than the obligation not to become insolvent, or
(iii) if the insolvent person defaults in performing an obligation under the security agreement after the expiry of the sixty-day period, other than the obligation not to become insolvent.
13. Subsection 69.1(2) of the Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) to prevent a creditor who holds security on aircraft objects under an agreement with the insolvent person from taking possession of the equipment
(i) if, after the filing of the proposal, the insolvent person defaults in protecting or maintaining the equipment in accordance with the security agreement,
(ii) sixty days after the day on which the proposal was filed unless, during that period, the insolvent person remedied the default of every other obligation under the security agreement — other than a default constituted by the filing of the proposal — and agreed to perform the obligations under the agreement in the future, other than the obligation not to become insolvent, or
(iii) if the insolvent person defaults in performing an obligation under the security agreement after the expiry of the sixty-day period, other than the obligation not to become insolvent.
1992, c. 27, s. 36
14. (1) Subsection 69.3(1) of the Act is replaced by the following:
Stay of proceedings — bankruptcy
69.3 (1) Subject to subsections (2) and (3) and sections 69.4 and 69.5, on the bankruptcy of any debtor, no creditor has any remedy against the debtor or the debtor’s property, or may commence or continue any action, execution or other proceedings, for the recovery of a claim provable in bankruptcy, until the trustee has been discharged.
(2) Section 69.3 of the Act is amended by adding the following after subsection (2):
Secureed creditors — aircraft objects
(3) The bankruptcy of a debtor does not prevent a creditor who holds security on aircraft objects under an agreement with the bankrupt from taking possession of the equipment
(a) if, after the date of bankruptcy, the trustee defaults in protecting or maintaining the equipment in accordance with the security agreement;
(b) sixty days after the date of the bankruptcy unless, during that period, the trustee remedied the default of every other obligation under the security agreement — other than a default constituted by the bankruptcy — and agreed to perform the obligations under the agreement in the future, other than the obligation not to become insolvent; or
(c) if the trustee defaults in performing an obligation under the security agreement after the expiry of the sixty-day period, other than the obligation not to become insolvent.
R.S., c. C-36
Companies’ Creditors Arrangement Act
15. Section 2 of the Companies’ Creditors Arrangement Act is amended by adding the following in alphabetical order:
“aircraft objects”
« biens aéronautiques »
« biens aéronautiques »
“aircraft objects” has the same meaning as in subsection 2(1) of the International Interests in Mobile Equipment (aircraft equipment) Act;
16. The Act is amended by adding the following after section 11.3:
Limitation — aircraft objects
11.31 No order made under section 11 prevents a creditor who holds security on aircraft objects under an agreement with a debtor company in respect of which an application is made under this Act from taking possession of the equipment
(a) if, after the making of the order under subsection 11(3), the company defaults in protecting or maintaining the equipment in accordance with the security agreement;
(b) sixty days after the day on which an order is made under subsection 11(3) unless, during that period, the company remedied the default of every other obligation under the security agreement — other than a default constituted by the making of the initial application — and agreed to perform the obligations under the agreement in the future, other than the obligation not to become insolvent; or
(c) if the company defaults in performing an obligation under the security agreement after the expiry of the sixty-day period, other than the obligation not to become insolvent.
R.S., c. W-11; 1996, c. 6. s. 134
Winding-up and Restructuring Act
17. Subsection 2(1) of the Winding-up and Restructuring Act is amended by adding the following in alphabetical order:
“aircraft objects”
« biens aéronautiques »
« biens aéronautiques »
“aircraft objects” has the same meaning as in subsection 2(1) of the International Interests in Mobile Equipment (aircraft equipment) Act;
18. The Act is amended by adding the following after section 22.1:
Aircraft objects
22.2 Nothing in this Act prevents a creditor who holds security on aircraft objects under an agreement with a company in respect of which an application for a winding-up order is made for the reason set out in paragraph 10(c) from taking possession of the equipment
(a) if, after the making of the first order under this Act restraining further proceedings against the company, the company fails to protect or maintain the equipment in accordance with the security agreement;
(b) sixty days after the making of the order referred to in paragraph (a) unless, during that period, the company remedied the default of every other obligation under the security agreement — other than a default constituted by the making of the application — and agreed to perform the obligations under the agreement in the future, other than the obligation not to become insolvent; or
(c) if the company defaults in performing an obligation under the security agreement after the expiry of the sixty-day period, other than the obligation not to become insolvent.
COMING INTO FORCE
Order in council
19. The provisions of this Act, and the provisions of any Act as enacted by this Act, come into force on a day or days to be fixed by order of the Governor in Council.
Explanatory Notes
Bank Act
Clause 10: New.
Bankruptcy and Insolvency Act
Clause 11: New.
Clause 12: Relevant portion of subsection 69(2):
(2) The stays provided by subsection (1) do not apply
Clause 13: Relevant portion of subsection 69.1(2):
(2) The stays provided by subsection (1) do not apply
Clause 14: (1) Existing text of subsection 69.3(1):
69.3 (1) Subject to subsection (2) and sections 69.4 and 69.5, on the bankruptcy of any debtor, no creditor has any remedy against the debtor or the debtor’s property, or shall commence or continue any action, execution or other proceedings, for the recovery of a claim provable in bankruptcy, until the trustee has been discharged.
(2) New.
Companies’ Creditors Arrangement Act
Clause 15: New.
Clause 16: New.
Winding-up and Restructuring Act
Clause 17: New.
Clause 18: New.