Bill C-15
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in a company, society, foreign company or
provincial company within the meaning of the
Insurance Companies Act or an insurance
company incorporated by or under an Act of
a legislature of a province and authorized
under the laws of the province to issue policies
of the class being transferred or reinsured,
where the terms of the transfer or reinsurance
are, in the opinion of the court having regard
to the priorities set out in this Part, fair and
equitable to
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| Transfer and
reinsurance of
policies by
liquidator
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(2) The liquidator may, with the approval of
the court and without the consent of the
policyholders, arrange for the transfer or
reinsurance of all or a portion of the policies
of the company, other than policies in Canada,
in any body corporate where the terms of the
transfer or reinsurance are, in the opinion of
the court, having regard to the priorities set out
in this Part, fair and equitable to
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| Transfer or
reinsurance is
in lieu of
claim on
policy
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(3) The transfer or reinsurance of policies
referred to in subsections (1) and (2) shall be
in lieu of the claim for the value of those
policies computed as provided in section 163.
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| Partial
payment or
reinsurance
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162.1 Where the liquidator estimates that
the assets of the company are insufficient to
provide for the payment in full of the preferred
claims specified in section 72, for the payment
in full of claims referred to in subparagraphs
161(1)(c)(i) or (ii) and for the transfer or
reinsurance in full of policies of the company,
the claims referred to in subparagraphs
161(1)(c)(i) or (ii) may be paid at, and the
transfer or reinsurance may be effected at,
such percentage of the full amount of the
policies as may be approved by the court.
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| Modification
of policies
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162.2 The court may, on the application of
the liquidator, without the consent of the
policyholders concerned but on such notice to
them as the court considers appropriate,
modify the terms of all or any of the policies
of insurance of the company held by those
policyholders if the court is satisfied that the
modification will have no adverse material
impact on the policyholders under the terms of
the policies.
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| Computation
of claims
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163. (1) Claims of policyholders of the
company to the value of their policies referred
to in subparagraphs 161(1)(c)(i) or (ii) shall be
computed by the liquidator in accordance with
such methods of computation as the
Superintendent may deem fair and reasonable,
less any amount previously advanced by the
company on the security of the policies.
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| Amendment
thereof
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(2) The methods of computation
established by the Superintendent are binding
on all concerned, subject only to modification
by the Superintendent.
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| Transfer of
funds and
securities to
the liquidator
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164. (1) The funds and securities of the
company in Canada that may be on deposit
with any government in Canada or with
trustees or otherwise held for the company or
for the protection of the policyholders of the
company of the class or classes that are
affected by the winding-up order shall, on
order of the court having jurisdiction, be
transferred to the liquidator.
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| Assets on
deposit
outside
Canada
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(2) Where the company is a Canadian
company that has deposited with the
government of any state or country outside
Canada, or with any trustee or other person in
that state or country, any of its funds or
securities for the protection of the company's
policyholders in that state or country, the
liquidator may request that government,
trustee or other person to transfer those funds
and securities to the liquidator and on the
transfer being made, those funds and
securities shall be used for the benefit of all the
company's policyholders in the same manner
as any other assets of the company.
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| Consequence
of
non-transfer
of assets
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(3) Where a government, trustee or other
person referred to in subsection (2) does not
transfer the funds and securities deposited
with it within such period commencing with
the date of the liquidator's request therefor as
the Court may fix, the policyholders of the
company, for whose protection the deposit
was made, are deemed to have refused the
reinsurance, if any, arranged by the liquidator,
and, whether transfer or reinsurance has been
arranged or not, to have forfeited all right and
claim to any share of the assets of the company
other than the funds or securities so deposited
for their protection outside Canada.
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| Transfer to
foreign
liquidator
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165. Where a foreign company is in
liquidation in the country in which its head
office is situated, the Superintendent may, if
the Superintendent deems it advisable and in
the interests of the policyholders in Canada,
authorize the liquidator, subject to the
approval of the court, to transfer the assets of
the foreign company to the liquidator in that
country.
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| Liquidator to
prepare
statement of
claimants and
creditors
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166. (1) The liquidator shall, without the
filing of any claim, notice or evidence or the
taking of any action by any person, prepare a
statement of all the persons appearing by the
books and records of the company to be
creditors of the company or to be claimants
under any policy including any matured,
valued or cancelled policy, taking cognizance
in that connection of all claims that have
arisen in accordance with the terms of the
policies of which the liquidator has notice.
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| Collocation
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(2) The statement referred to in subsection
(1) shall show the amount, determined as
provided in section 161 in respect of
policyholders, for which each person is to rank
as a claimant or a creditor and every such
person shall be collocated and ranked as, and
is entitled to the right of, a claimant or a
creditor for the amount so ascertained by the
liquidator, without filing any claim, notice or
evidence, or taking any action.
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| Objections
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(3) Any collocation made pursuant to
subsection (2) may be contested by any person
interested, and any person who is not
collocated, or who is dissatisfied with the
amount for which the person is collocated,
may file a claim.
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| Amendment
of statement
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(4) The liquidator or the court may rectify
any statement prepared under subsection (1)
on account of omissions or errors therein
notified to the liquidator or discovered by the
liquidator at any time before the completion of
the liquidation, and only the claims appearing
in the statement or amended statement shall be
regarded in the distribution of the assets.
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| Right of
action not
debarred
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167. Where the assets are not sufficient to
cover in full all claims appearing in the
statement or amended statement described in
section 166, the policyholders are not barred
from any recourse they have, either in law or
equity, against the company issuing the policy
or against any shareholder or director thereof,
except in respect of the share, if any, received
in the distribution of those assets.
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| Copy of
statement
filed in Office
of the
Superin- tendent
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168. (1) A copy of the statement referred to
in subsection 166(1), certified by the
liquidator, shall be filed in the Office of the
Superintendent, after not less than thirty days
notice of the liquidator's intention to do so has
been given by the liquidator by notice in the
Canada Gazette and in the official gazette of
each province, and in two newspapers
published at or nearest the place where the
head office of the company or the chief agency
of the company in Canada, as the case may be,
is situated.
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| When
policyholder
to rank as
creditor
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(2) Any claim that has arisen under the
terms of a policy of which notice is received
by the liquidator after the date of the filing of
a statement referred to in subsection 166(1) or
an amended statement referred to in
subsection 166(4) shall rank on the assets only
for the value entered in the statement, unless
the assets are sufficient to pay all claimants in
full, and in that case the policyholder shall
rank as a creditor for the balance of the
policyholder's claim.
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| Notice of
filing
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169. The liquidator shall send by prepaid
mail a notice of the filing of the statement
under subsection 168(1) to each claimant or
creditor named in the statement, addressed to
the latest address on record with the company,
stating therein the amount for which the
creditor or claimant is entitled to rank against
the assets of the company.
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| Report to
Superin- tendent
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170. Where the company is a company,
society, foreign company or provincial
company within the meaning of subsection
2(1) of the Insurance Companies Act, the
liquidator shall report to the Superintendent
once in every six months, or more often, as the
Superintendent may require, on the condition
of the affairs of the company, with such
particulars as the Superintendent may require.
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| Publication of
notice of
proceedings
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171. Publication in the Canada Gazette, in
the official gazette of each province and in two
newspapers published at or nearest the place
where the head office of the company or chief
agency of the company in Canada, as the case
may be, is situated, of notice of any
proceedings of which, under this Act,
creditors should be notified, is sufficient
notice to holders of policies in respect of
which no notice of claim has been received.
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| Priority of
certain claims
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172. Nothing in this Part prejudices or
affects the priority of any mortgage, lien or
charge on the property of the company.
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PAYMENT CLEARING AND SETTLEMENT ACT |
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| Enactment of
scheduled Act
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162. The Payment Clearing and
Settlement Act is enacted as set out in the
schedule.
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GENERAL, RELATED AND CONSEQUENTIAL AMENDMENTS |
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| R.S., c. C-21
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Canadian Payments Association Act |
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163. Subsection 31(3) of the Canadian
Payments Association Act is repealed.
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| 1992, c. 56
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Green Shield Canada Act |
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164. Subsections 16(3) and (4) of the
Green Shield Canada Act are replaced by
the following:
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| Winding-up
and
Restructuring
Act
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(3) The Winding-up and Restructuring Act
applies to the Association.
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| Bankruptcy
and
Insolvency Act
not applicable
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(4) The Bankruptcy and Insolvency Act
does not apply to the Association.
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165. (1) The portion of subsection 17(1) of
the Act before paragraph (a) is replaced by
the following:
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| Application of
Insurance
Companies
Act
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17. (1) The following provisions of the
Insurance Companies Act as those provisions
read on the coming into force of An Act to
amend, enact and repeal certain laws relating
to financial institutions, enacted during the
2nd Session of the 35th Parliament, together
with any regulations made thereunder, apply
to the Association, with such modifications as
the circumstances require and subject to any
express provision elsewhere in this Act,
namely:
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(2) Paragraph 17(1)(d) of the Act is
replaced by the following:
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Repeal |
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| Repeal of
R.S., c. I-22
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166. The Investment Companies Act is
repealed.
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References to Winding-up Act |
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167. (1) The following provisions are
amended by replacing the expression
``Winding-up Act'' with the expression
``Winding-up and Restructuring Act'':
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(2) A reference to the ``Winding-up Act''
in any other Act or in any instrument
issued, made or established under any Act
shall, unless the context otherwise requires,
be read as a reference to the ``Winding-up
and Restructuring Act''.
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COMING INTO FORCE |
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| Coming into
force
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168. This Act or any of its provisions or
any provision of any other Act enacted or
amended by this Act comes into force on a
day or days to be fixed by order of the
Governor in Council.
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