(b) to the extent provided in subsection 87(2), to claims that are secured by a security referred to in subsection 87(1), if the security is registered in accordance with that subsection.
Application	(2) Subsection (1) applies to bankruptcies or proposals in respect of which proceedings are commenced after that subsection comes into force.
1992, c. 27, s. 39(1)	74. (1) The portion of subsection 87(1) of the Act before paragraph (a) is replaced by the following:
Statutory Crown securities	87. (1) A security provided for in federal or provincial legislation for the sole or principal purpose of securing a claim of Her Majesty in right of Canada or a province or of a workers' compensation body is valid in relation to a bankruptcy or proposal only if the security is registered, before the earliest of
1992, c. 27, s. 39(1)	(2) Paragraph 87(2)(b) of the Act is replaced by the following:
	(b) is valid only in respect of amounts owing to Her Majesty or a workers' compensation body at the time of that registration, plus any interest subsequently accruing on those amounts.
Application	(3) Subsection (1) applies to bankruptcies or proposals in respect of which proceedings are commenced after that subsection comes into force.
1992, c. 27, s. 40(F)	75. Subsections 91(1) and (2) of the Act are replaced by the following:
Certain settlements void	91. (1) Any settlement of property made within the period beginning on the day that is one year before the date of the initial bankruptcy event in respect of the settlor and ending on the date that the settlor became bankrupt, both dates included, is void against the trustee.
If bankrupt within five years	(2) Any settlement of property made within the period beginning on the day that is five years before the date of the initial bankruptcy event in respect of the settlor and ending on the date that the settlor became bankrupt, both dates included, is void against the trustee if the trustee can prove that the settlor was, at the time of making the settlement, unable to pay all the settlor's debts without the aid of the property comprised in the settlement or that the interest of the settlor in the property did not pass on the execution thereof.
R.S., c. 31 (1st Supp.), s. 71	76. Section 92 of the Act is replaced by the following:
Certain marriage contracts void as against trustee	92. Any covenant or contract made by any person, hereinafter called ``the settlor'', in consideration of the settlor's marriage, either for the future payment of money for the benefit of the settlor's spouse or children, or for the future settlement on or for the settlor's spouse or children, of property wherein the settlor had not at the date of the marriage any estate or interest, whether vested or contingent, in possession or remainder, and not being money or property in right of the settlor's spouse is, if the settlor becomes bankrupt and the covenant or contract has not been executed at the date of the initial bankruptcy event in respect of the settlor, void against the trustee except so far as it enables the persons entitled under the covenant or contract to claim a dividend in the settlor's bankruptcy proceedings under or in respect of the covenant or contract, but any such claim to a dividend shall be postponed until all claims of the other creditors have been satisfied.
	77. (1) Paragraph 93(1)(a) of the Act is replaced by the following:
	(a) the payment or transfer was made more than six months before the date of the initial bankruptcy event in respect of the settlor;
	(2) Subsection 93(2) of the Act is replaced by the following:
If declared void	(2) Where any payment or transfer mentioned in subsection (1) is declared void, the persons to whom it was made are entitled to claim for dividend under or in respect of the covenant or contract in like manner as if it had not been executed at the date of the initial bankruptcy event.
	78. (1) Subsection 95(1) of the Act is replaced by the following:
Avoidance of preference in certain cases	95. (1) Every conveyance or transfer of property or charge thereon made, every payment made, every obligation incurred and every judicial proceeding taken or suffered by any insolvent person in favour of any creditor or of any person in trust for any creditor with a view to giving that creditor a preference over the other creditors is, where it is made, incurred, taken or suffered within the period beginning on the day that is three months before the date of the initial bankruptcy event and ending on the date the insolvent person became bankrupt, both dates included, deemed fraudulent and void as against the trustee in the bankruptcy.
	(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 compensa- tion »	``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) No payment, delivery, conveyance, transfer, contract, dealing or transaction to, by or with a bankrupt made between the date of the initial bankruptcy event and the date of the bankruptcy is valid, except the following, which are valid if made in good faith, 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:
	(a) a payment by the bankrupt to any of the bankrupt's creditors;
	(b) a payment or delivery to the bankrupt;
	(c) a conveyance or transfer by the bankrupt for adequate valuable consideration; and
	(d) a contract, dealing or transaction, including any giving of security, by or with the bankrupt for adequate valuable consideration.
	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) Where a transaction referred to in subsection (1) has occurred, 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 not insolvent 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 of proof - directors	(5) For the purposes of subsection (2), the onus of proving
	(a) that the corporation was not insolvent at the time the transaction occurred and that the transaction did not render the corporation insolvent, or
	(b) that the directors had reasonable grounds to believe that the transaction was occurring at a time when the corporation was not insolvent or that the transaction would not render the corporation insolvent
	lies on the directors.
Onus of proof - shareholder	(6) For the purposes of subsection (2.2), the onus of proving that the corporation was not insolvent at the time the transaction occurred and that the transaction did not render the corporation insolvent lies on the shareholder.
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 in respect of a debt or liability referred to in paragraph 178(1)(b) or (c) payable under an order or agreement made before the date of the initial bankruptcy event in respect of the bankrupt and at a time when the spouse or child was living apart from the bankrupt, whether the order or agreement provides for periodic amounts or lump sum amounts, is a claim provable 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):
Determi- nation 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 determina- tion 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.