Bill C-501

3rd Session, 40th Parliament,

59-60 Elizabeth II, 2010-2011

house of commons of canada

BILL C-501

An Act to amend the Bankruptcy and Insolvency Act (termination and severance pay)

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

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2. The Bankruptcy and Insolvency Act is amended by adding the following after subsection 81.3(1):

81.3 (1.1) The claim of a clerk, servant, travelling salesperson, labourer or worker who is owed termination and severance pay by a bankrupt, less any amount paid by the trustee or by a receiver for that termination or severance pay, is secured as of the date of the bankruptcy by security on the bankrupt's current assets as of the date of the bankruptcy.

3. The Act is amended by adding the following after subsection 81.4(1):

81.4 (1.1) The claim of a clerk, servant, travelling salesperson, labourer or worker who is owed termination and severance pay by a person who is subject to a receivership, less any amount paid by a receiver or trustee for that termination or severance pay, is secured by security on the person's current assets that are in the possession or under the control of the receiver.

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