(2) Subsection 95(3) of the Act is replaced by the following:
Exception	(2.1) Subsection (2) does not apply in respect of a margin deposit made by a clearing member with a clearing house.
Definitions	(3) In this section,
``clearing house'' « chambre de compensation »	``clearing house'' means a body that acts as an intermediary for its clearing members in effecting securities transactions;
``clearing member'' « membre »	``clearing member'' means a person engaged in the business of effecting securities transactions who uses a clearing house as intermediary;
``creditor'' « créancier »	``creditor'' includes a surety or guarantor for the debt due to the creditor;
``margin deposit « dépôt de couverture »	``margin deposit'' means a payment, deposit or transfer to a clearing house under the rules of the clearing house to assure the performance of the obligations of a clearing member in connection with security transactions, including, without limiting the generality of the foregoing, transactions respecting futures, options or other derivatives or to fulfil any of those obligations.
Application	(3) Subsection (2) applies to bankruptcies in respect of which proceedings are commenced after that subsection comes into force.
	79. Section 96 of the Act is replaced by the following:
Extended period	96. Where the conveyance, transfer, charge, payment, obligation or judicial proceeding mentioned in section 95 is in favour of a person related to the insolvent person, the period referred to in subsection 95(1) shall be one year instead of three months.
1992, c. 27, s. 41	80. Subsection 97(1) of the Act is replaced by the following:
Protected transactions	97. (1) Subject to the foregoing provisions of this Act with respect to the effect of bankruptcy on an execution, attachment or other process against property, and subject to the provisions of this Act respecting settlements, preferences and reviewable transactions, nothing in this Act invalidates, in the case of a bankruptcy,
	(a) any payment by the bankrupt to any of the bankrupt's creditors,
	(b) any payment or delivery to the bankrupt,
	(c) any conveyance or transfer by the bankrupt for adequate valuable consideration, or
	(d) any contract, dealing or transaction, including any giving of security, by or with the bankrupt for adequate valuable consideration,
	if the payment, delivery, conveyance, transfer, contract, dealing or transaction, as the case may be, was made in good faith and took place between the date of the initial bankruptcy event and the date of the bankruptcy.
	81. Subsection 100(1) of the Act is replaced by the following:
Examination of consideration in a reviewable transaction	100. (1) Where a bankrupt sold, purchased, leased, hired, supplied or received property or services in a reviewable transaction within the period beginning on the day that is one year before the date of the initial bankruptcy event and ending on the date of the bankruptcy, both dates included, the court may, on the application of the trustee, inquire into whether the bankrupt gave or received, as the case may be, fair market value in consideration for the property or services concerned in the transaction.
	82. (1) Subsections 101(1) to (3) of the Act are replaced by the following:
Inquiry into dividends and redemptions of shares	101. (1) Where a corporation that is bankrupt has paid a dividend, other than a stock dividend, or redeemed or purchased for cancellation any of the shares of the capital stock of the corporation within the period beginning on the day that is one year before the date of the initial bankruptcy event and ending on the date of the bankruptcy, both dates included, the court may, on the application of the trustee, inquire into the transaction to ascertain whether it occurred at a time when the corporation was insolvent or whether it rendered the corporation insolvent.
Judgment against directors	(2) The court may give judgment to the trustee against the directors of the corporation, jointly and severally, in the amount of the dividend or redemption or purchase price, with interest thereon, that has not been paid to the corporation where the court finds that
	(a) the transaction occurred at a time when the corporation was insolvent or the transaction rendered the corporation insolvent; and
	(b) the directors did not have reasonable grounds to believe that the transaction was occurring at a time when the corporation was solvent or the transaction would not render the corporation insolvent.
Criteria	(2.1) In making a determination under paragraph (2)(b), the court shall consider whether the directors acted as prudent and diligent persons would have acted in the same circumstances and whether the directors in good faith relied on
	(a) financial or other statements of the corporation represented to them by officers of the corporation or the auditor of the corporation, as the case may be, or by written reports of the auditor to fairly reflect the financial condition of the corporation; or
	(b) a report relating to the corporation's affairs prepared pursuant to a contract with the corporation by a lawyer, notary, accountant, engineer, appraiser or other person whose profession gave credibility to the statements made in the report.
Judgment against shareholders	(2.2) Where a transaction referred to in subsection (1) has occurred and the court makes a finding referred to in paragraph (2)(a), the court may give judgment to the trustee against a shareholder who is related to one or more directors or to the corporation or who is a director not liable by reason of paragraph (2)(b) or subsection (3), in the amount of the dividend or redemption or purchase price referred to in subsection (1) and the interest thereon, that was received by the shareholder and not repaid to the corporation.
Directors exonerated by law	(3) A judgment pursuant to subsection (2) shall not be entered against or be binding on a director who had, in accordance with any applicable law governing the operation of the corporation, protested against the payment of the dividend or the redemption or purchase for cancellation of the shares of the capital stock of the corporation and had thereby exonerated himself or herself under that law from any liability therefor.
	(2) Subsection 101(5) of the Act is replaced by the following:
Onus	(5) For the purposes of an inquiry under this section, the onus of proving that the corporation was not insolvent or, in the case of the directors, that there were reasonable grounds to believe that the corporation was not insolvent, when a dividend was paid or shares were redeemed or purchased for cancellation or that the payment of a dividend or a redemption of shares did not render the corporation insolvent lies on the directors or shareholders of the corporation.
Application	(3) Subsection (1) or (2) applies to bankruptcies or proposals in respect of which proceedings are commenced after that subsection comes into force.
1992, c. 27, s. 42(1)	83. Section 101.2 of the Act is replaced by the following:
Provisions to apply	101.2 Sections 91 to 101 apply as though the debtor became bankrupt on the date of the initial bankruptcy event where the proposal is annulled either by the court pursuant to subsection 63(1) or as a result of a receiving order or assignment.
1992, c. 27, s. 43(1)	84. (1) Subsection 102(1) of the Act is replaced by the following:
First meeting of creditors	102. (1) Subject to subsection (1.1), it is the duty of the trustee to inquire as to the names and addresses of the creditors of a bankrupt and, within five days after the date of the trustee's appointment, to send in the prescribed manner to the bankrupt, to every known creditor and to the Superintendent a notice in the prescribed form of the bankruptcy and of the first meeting of creditors, to be held within the twenty-one day period following the day of the trustee's appointment, at the office of the official receiver in the locality of the bankrupt, but the official receiver may, when the official receiver deems it expedient, authorize the meeting to be held at the office of any other official receiver or at such other place as the official receiver may fix.
	(2) Subsection 102(4) of the Act is replaced by the following:
Information and notice	(3) In the case of the bankruptcy of an individual, the trustee shall
	(a) set out in the notice, in the prescribed form, information concerning the financial situation of the bankrupt and the obligation of the bankrupt to make payments required under section 68 to the estate of the bankrupt; and
	(b) forthwith advise the official receiver, and any creditors who have requested such information, of
	(i) any material change relating to the financial situation of the bankrupt, and
	(ii) any amendment made under subsection 68(4) to the amount that the bankrupt is required to pay to the estate of the bankrupt.
Publication in local paper by trustee	(4) A notice in the prescribed form shall, as soon as possible after the bankruptcy and not later than five days before the first meeting of creditors, be published in a local newspaper by the trustee.
Application	(3) Subsection (1) or (2) applies to bankruptcies in respect of which proceedings are commenced after that subsection comes into force.
	85. Subsection 104(1) of the Act is replaced by the following:
Notice of subsequent meetings	104. (1) Meetings of creditors other than the first shall be called by sending a notice of the time and place thereof not less than five days before the time of each meeting to each creditor at the address given in the creditor's proof of claim.
1992, c. 27, s. 46(2)	86. Subsection 109(6) of the Act is replaced by the following:
Creditor not dealing at arm's length	(6) Except as otherwise provided by this Act, a creditor is not entitled to vote at any meeting of creditors if the creditor did not, at all times within the period beginning on the day that is one year before the date of the initial bankruptcy event in respect of the debtor and ending on the date of the bankruptcy, both dates included, deal with the debtor at arm's length.
	87. (1) Subsection 121(2) of the Act is replaced by the following:
Contingent and unliquidated claims	(2) The determination whether a contingent or unliquidated claim is a provable claim and the valuation of such a claim shall be made in accordance with section 135.
	(2) Section 121 of the Act is amended by adding the following after subsection (3):
Family support claims	(4) A claim for spousal or child support under any court order or agreement made before the date of the bankruptcy of a debtor for amounts accrued in the year before that date, plus any lump sum amount payable under the order or agreement before that date, is a claim provable in proceedings under this Act.
Application	(3) Subsection (1) or (2) applies to bankruptcies or proposals in respect of which proceedings are commenced after that subsection comes into force.
	88. Subsection 126(2) of the Act is replaced by the following:
Worker's wage claims	(2) Proofs of claims for wages of workers and others employed by the bankrupt may be made in one proof by the bankrupt or someone on behalf of the bankrupt or by a representative of a federal or provincial ministry responsible for labour matters or a representative of a union representing workers and others employed by the bankrupt, by attaching thereto a schedule setting out the names and addresses of the workers and others and the amounts severally due to them, but that proof does not disentitle any worker or other wage-earner to file a separate proof on their own behalf.
	89. (1) Section 135 of the Act is amended by adding the following after subsection (1):
Determination of provable claims	(1.1) The trustee shall determine whether any contingent claim or unliquidated claim is a provable claim, and, if a provable claim, the trustee shall value it, and the claim is thereafter, subject to this section, deemed a proved claim to the amount of its valuation.
1992, c. 27, s. 53	(2) Subsections 135(3) and (4) of the Act are replaced by the following:
Notice of determination or disallowance	(3) Where the trustee makes a determination under subsection (1.1) or, pursuant to subsection (2), disallows, in whole or in part, any claim, any right to a priority or any security, the trustee shall forthwith provide, in the prescribed manner, to the person whose claim was subject to a determination under subsection (1.1) or whose claim, right to a priority or security was disallowed under subsection (2), a notice in the prescribed form setting out the reasons for the determination or disallowance.
Determination or disallowance final and conclusive	(4) A determination under subsection (1.1) or a disallowance referred to in subsection (2) is final and conclusive unless, within a thirty day period after the service of the notice referred to in subsection (3) or such further time as the court may on application made within that period allow, the person to whom the notice was provided appeals from the trustee's decision to the court in accordance with the General Rules.
Application	(3) Subsection (1) or (2) applies to bankruptcies or proposals in respect of which proceedings are commenced after that subsection comes into force.
	90. (1) Subparagraphs 136(1)(b)(i) and (ii) of the Act are replaced by the following:
	(i) the expenses and fees of any person acting under a direction made under paragraph 14.03(1)(a),
	(ii) the expenses and fees of the trustee, and
	(iii) legal costs;
	(2) Subsection 136(1) of the Act is amended by adding the following after paragraph (d):
	(d.1) claims for spousal or child support under any court order or agreement made before the date of the bankruptcy for amounts accrued in the year before that date, plus any lump sum amount payable under the order or agreement before that date;
	(3) Paragraph 136(1)(f) of the French version of the Act is replaced by the following:
	f) le locateur quant aux arriérés de loyer pour une période de trois mois précédant la faillite, et, si une disposition du bail le prévoit, le loyer exigible par anticipation, pour une somme correspondant à trois mois de loyer au plus, mais le montant total ainsi payable ne peut dépasser la somme réalisée sur les biens se trouvant sur les lieux sous bail; tout paiement fait par le locataire au titre d'une telle disposition est porté au compte du montant payable par le syndic pour le loyer d'occupation;
1992, c. 27, s. 54(2)	(4) Paragraph 136(1)(i) of the French version of the Act is replaced by the following:
	i) les réclamations résultant de blessures subies par des employés du failli, que les dispositions d'une loi sur les accidents du travail ne visent pas, mais seulement jusqu'à concurrence des montants d'argent reçus des personnes garantissant le failli contre le préjudice résultant de ces blessures;
Application	(5) Subsection (2) applies to bankruptcies or proposals in respect of which proceedings are commenced after that subsection comes into force.
	91. Subsections 149(2) to (4) of the Act are replaced by the following:
Court may extend time	(2) Where a person notified under subsection (1) does not prove the claim within the time limit or within such further time as the court, on proof of merits and satisfactory explanation of the delay in making proof, may allow, the claim of that person shall, notwithstanding anything in this Act, be excluded from all share in any dividend, but a taxing authority may notify the trustee within the period referred to in subsection (1) that it proposes to file a claim as soon as the amount has been ascertained, and the time for filing the claim shall thereupon be extended to three months or such further time as the court may allow.
Federal income tax claims	(3) Notwithstanding subsection (2), a claim may be filed for an amount payable under the Income Tax Act within the time limit referred to in subsection (2) or within three months from the time the return of income or other evidence of the facts on which the claim is based is filed or comes to the attention of the Minister of National Revenue.
No dividend allowed	(4) Unless the trustee retains sufficient funds to provide for payment of any claims that may be filed under the Income Tax Act, no dividend shall be declared until the expiration of three months after the trustee has filed all returns that the trustee is required to file.
	92. (1) Section 155 of the Act is amended by adding the following after paragraph (d):
	(d.1) a first meeting of the creditors
	(i) is required to be called by the trustee only if it is requested within thirty days after the date of the bankruptcy by the official receiver or by creditors who have in the aggregate at least twenty-five per cent in value of the proven claims,
	(ii) must be called in the prescribed form and manner, and
	(iii) must be held within twenty-one days after being called;