SNL1996 CHAPTER J-1.1 - JUDGMENT ENFORCEMENT ACT

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

Short title

1. This Act may be cited as the Judgment Enforcement Act .

1996 cJ-1.1 s1

Interpretation

2. (1) In this Act

(a) "accession" means goods that are installed in or affixed to other goods;

(b) "agricultural products" includes

(i) crops or livestock, and

(ii) products of crops or livestock in their unmanufactured states,

while in the possession of a person engaged in agricultural operations including raising, fattening or grazing livestock;

(c) "aquaculture" means the cultivation of plants and animals that, at most stages of their development or life cycles, live in an aquatic environment;

(d) "attachment order" means an attachment order issued under Part II;

(e) "building materials" means materials that are incorporated into a building and includes goods attached to a building so that their removal

(i) would necessarily involve the dislocation or destruction of some other part of the building and cause substantial damage to the building, apart from the loss of value of the building resulting from the removal, or

(ii) would result in weakening the structure of the building or exposing the building to weather damage or deterioration,

but does not include

(iii) heating, air conditioning or conveyancing devices, or

(iv) machinery installed in a building or on land for use in carrying on an activity inside the building or on the land;

(f) "chattel paper" means one or more writings that evidence both a monetary obligation and a security interest in or lease of specific goods or specific goods and accessions;

(g) [Rep. by 2007 cS-13.01 s109]

(h) "court", unless the context indicates otherwise, means the Trial Division or a judge of the Trial Division;

(i) "creditor", except in Part XIII and unless the context indicates otherwise, means a person in whose favour there is a notice of judgment;

(j) "crops" means crops, whether matured or otherwise and whether naturally grown or planted, attached to land by roots or forming part of trees or plants attached to land, and includes trees only if they are

(i) being grown as nursery stock,

(ii) being grown for uses other than for the production of lumber and wood products, or

(iii) intended to be replanted in another location for the purpose of reforestation;

(k) "debtor" unless the context indicates otherwise, means a person against whom there is a notice of judgment;

(l) "deposit account" means a chequing, savings, demand or similar account at a bank, trust company, credit union or other deposit-taking institution in the province but does not include an account or arrangement under which money is deposited for a fixed term, whether or not the term may be abridged, extended or renewed;

(m) "distribute", "distribution" and "distributable" means to pay out or a payment in accordance with Part XI;

(n) "document of title" means a writing issued by or addressed to a bailee

(i) that covers goods in the bailee's possession that are identified or are fungible portions of an identified mass, and

(ii) in which it is stated that the goods in the bailee's possession that are identified in it will be delivered to a named person, to the transferee of the person, to bearer or to the order of a named person;

(o) "eligible claim", unless the context indicates otherwise, means an eligible claim referred to in section 153;

(p) "enforcement debt" means the amount calculated under section 22 with respect to a money judgment for which there is a notice of judgment;

(q) "enforcement documents" means the documents referred to in section 23;

(r) "enforcement proceedings" means an action, step or measure authorized by this Act to be taken for the purpose of enforcing a money judgment, and includes an order made under subsection 10(2) of the Small Claims Act, but does not include proceedings authorized under Part XIII;

(s) "exempt" means not subject to enforcement proceedings;

(t) "exigible" means subject to enforcement proceedings;

(u) "farming" means the production of agricultural products;

(v) "fish" means fish, including shellfish and crustaceans and marine mammals;

(w) "fishing" means fishing for or catching fish by a method other than from an aquaculture facility;

(x) "fixture" means tangible personal property that has been annexed to land and that is regarded in law as part of the land to which it has been annexed but does not include building materials;

(y) "goods" means tangible personal property other than chattel paper, a document of title, an instrument, a security certificate and money, and includes fixtures, growing crops and the unborn young of animals, but does not include trees that are crops until they are severed or minerals until they are extracted;

(z) "instructing creditor" means the creditor upon whose instructions or as a result of whose initiation certain enforcement proceedings are, as provided in this Act, taken or continued;

(aa) "instrument" means

(i) a bill, note or cheque within the meaning of the Bills of Exchange Act ( Canada ),

(ii) other writing that evidences a right to the payment of money and is of a kind that in the ordinary course of business is transferred by delivery with a necessary endorsement or assignment, or

(iii) a letter of credit or an advice of credit if the letter or advice states that it must be surrendered on claiming payment under it,

but does not include

(iv) chattel paper, a document of title, a security certificate, or

(v) a writing that provides for or creates an interest in land, or

(vi) a writing that provides for or creates a mortgage or charge in respect of an interest in land and specifically identifies the interest in the writing;

(bb) "judgment" includes an order, decree, certificate, duty or right that may be enforced as or in the same manner as a judgment of the court including a judgment made under the Small Claims Act and the Federal Court Act , but does not include a support order registered with the director under the Support Orders Enforcement Act, 2006 , except as provided in section 3;

(cc) "land", except in Part III , includes

(i) an interest in land, and

(ii) except where the context otherwise requires a fixture,

but does not include

(iii) growing crops, or

(iv) an interest in land that secures an obligation or an obligation that arises in connection with an interest in or lease of land;

(dd) "maintenance claim" means a money judgment that is or is based on a support order as defined in the Support Order Enforcement Act ;

(ee) [Rep. by 2007 cS-13.01 s109]

(ff) "minister" means the minister appointed under the Executive Council Act to administer this Act;

(gg) "money judgment" means a judgment requiring a person to pay money, or that part of a judgment which requires a person to pay money but does not include money payable under an order for contempt;

(hh) "notice of attachment" means a notice of an attachment order which is registered under this Act and the data authorized to effect that registration and where the context permits, the data authorized to be registered with respect to an amendment of that attachment order;

(ii) "notice of claim" means, except where the context otherwise requires, a notice of claim referred to in section 162;

(jj) "notice of judgment" means a notice of a money judgment registered under this Act and, where the context permits, the data authorized to be registered with respect to an amendment, renewal or discharge of a notice of judgment;

(kk) "notice of objection" means, a notice of objection described in section 159;

(ll) "notice of seizure" means a notice from the sheriff to the debtor indicating that property is seized;

(mm) "obligation" means a legal or equitable duty to pay money;

(nn) "person" when used to refer to a creditor includes the Crown in right of the province except where the context indicates otherwise;

(oo) "personal property" means, except as provided in Part III , property other than land;

(oo.1) "personal property registry" means the personal property registry established under the Personal Property Security Act;

(pp) "products of aquaculture" includes all cultivated plants and animals that, at most stages of their development or life cycles, live in an aquatic environment while in their unmanufactured state and in the possession of a person whose occupation is aquaculture;

(qq) "products of the sea, lakes and rivers" includes fish of all kinds, marine and fresh water life and other substances taken from water while in their unmanufactured state and in the possession of a person whose occupation is fishing, but does not include products of aquaculture;

(rr) "property" includes

(i) things, as well as rights or interests in things,

(ii) a thing regarded in law or equity as property, or as an interest in property,

(iii) a right or interest that can be transferred for value from one person to another,

(iv) a right, including a contingent or future right, to be paid money or receive another kind of property, and

(v) a cause of action;

(ss) "register" and "registered" unless the context indicates otherwise, means registered in the registry;

(tt) "registry" unless the context indicates otherwise means the registry established under section 13;

(uu) "registry of deeds" means the Registry of Deeds established under theRegistration of Deeds Act ;

(vv) "related notice of judgment" means

(i) with respect to a particular debtor, a notice of judgment that would be disclosed if a search was conducted of the registry using the name of that debtor as shown in information received from a creditor,

(ii) with respect to a defendant under Part II, a notice of judgment that would be disclosed if a search was conducted of the registry using the name of that defendant as shown on the attachment order,

but does not include

(iii) a notice of judgment that would clearly be excluded as not applying to the particular debtor or defendant based on the information disclosed on a search of the registry, or

(iv) a notice of judgment with respect to a debtor or defendant which the sheriff or creditor knows is not the particular debtor or defendant;

(ww) "secured obligation" means an obligation secured by an interest in property;

(ww.1) "security" means a security as defined in the Securities Transfer Act ;

(xx) "security certificate" means a security certificate as defined in the Securities Transfer Act ;

(yy) "security interest", with respect to personal property, means

(i) an interest in personal property that secures payment or performance of an obligation, but does not include the interest of a seller who has shipped goods to a buyer under a negotiable bill of lading or its equivalent to the order of the seller or to the order of an agent of the seller, unless the parties have otherwise evidenced an intention to create or provide for a security interest in the goods, and

(ii) the interest of

(A) a consignor who delivers goods to a consignee under a commercial consignment,

(B) a lessor under a lease for a term of more than one year,

(D) a buyer under a sale of goods without a change of possession

that does not secure payment or performance of an obligation;

(yy.1) "serial numbered goods" means goods that are prescribed by the regulations as serial numbered goods;

(zz) "sheriff" means the High Sheriff appointed under the Sheriff's Act, 1991 ;

(zz.1) "small claims creditor" means a creditor in whose favour there is a notice of judgment with respect to a money judgment made under the Small Claims Act;

(aaa) "statement of status" means a statement of status referred to in section 20; and

(bbb) "wage claim" means the portion of a money judgment that is at a particular time declared by the Director of Labour Standards to be for wages as defined in the Labour Standards Act .

(2) For the purpose of this Act

(a) a natural person knows or has knowledge when information is acquired by the person under circumstances in which a reasonable person would take cognizance of it;

(b) a partnership knows or has knowledge when information has come to the attention of one of the general partners or a person having control or management of the partnership business under circumstances in which a reasonable person would take cognizance of it;

(c) a corporation knows or has knowledge when information, in writing, has been delivered to the corporation’s registered office or attorney for service, or when information has come to the attention of

(i) a managing director or officer of the corporation, or

(ii) a senior employee of the corporation with responsibility for matters to which the information relates,

under circumstances in which a reasonable person would take cognizance of it;

(d) the members of an association know or have knowledge when information has come to the attention of

(i) a managing director or officer of the association,

(ii) a senior employee of the association with responsibility for matters to which the information relates, or

(iii) all members,

under circumstances in which a reasonable person would take cognizance of it; and

(e) a government knows or has knowledge when information has come to the attention of a senior employee of the government with responsibility for matters to which the information relates under circumstances in which a reasonable person would take cognizance of it.

(3) A reference in this Act to a specific provision or Part of this Act includes a reference to a regulation made under this Act respecting a matter that is the subject of that provision or Part.

1996 cJ-1.1 s2; 1998 c22 s1; 1998 cP-7.1 s81; 2006 cS-31.1 s85; 2007 cS-13.01 s109

PART I
GENERAL

Application

3. (1) All money judgments shall be enforced in accordance with this Act.

(2) Notwithstanding subsection (1), where another Act provides for the enforcement of a money judgment, this Act shall not apply, except to the extent that the other Act provides that

(a) the judgment or order may be enforced as or in the same manner as a judgment of the court; or

(b) this Act shall apply.

(3) Notwithstanding subsection (1), where a support order filed with the director under the Support Orders Enforcement Act, 2006 is in arrears, the director appointed under that Act may register that support order in accordance with section 38 and that registered support order, to the extent of the arrears, shall be considered to be a notice of judgment to which this Act applies and the director shall be considered a creditor for the purpose of the Act.

(3.1) Notwithstanding paragraph 2(1)(bb) and subsection (3), where a support order is not filed with the director under the Support Orders Enforcement Act, 2006, that support order may be registered in accordance with section 38 and when registered it shall be considered to be a notice of judgment to which this Act applies.

(4) Where an Act of the province does not provide for the enforcement of a money judgment, this Act shall apply.

(5) The following applies to enforcement proceedings:

(a) a money judgment, a notice of which is registered, authorizes and directs the sheriff to carry out the instructions of an instructing creditor under this Act;

(b) except as otherwise provided in this or another Act, all property of a debtor is subject to enforcement proceedings under this Act;

(c) except as otherwise specifically provided in this or another Act, all enforcement proceedings are considered to be taken on behalf of and for the benefit of all the creditors of a debtor;

(d) except as provided in this or another Act, a person may not be arrested or imprisoned for defaulting in the payment of a money judgment;

(e) except as provided in paragraphs (g) and (h) an action of the sheriff carried out with the written consent of all interested persons shall be considered to have been carried out in accordance with this Act;

(f) all rights, duties and functions of creditors and the sheriff under this Act shall be exercised or discharged in good faith and in a commercially reasonable manner;

(g) a waiver by a debtor of a right or duty under this Act is void if it was given before the right or duty arose;

(h) a waiver by a debtor of an exemption given by this Act shall be void; and

(i) nothing in this section shall be construed so that it prevents a creditor from soliciting or accepting from a debtor payment that is otherwise lawful.

SN1997 cJ-1.1 s3; 1997 c3 s1; 1998 c22 s2; 2006 cS-31.1 s85

Labrador Inuit rights

3.1 This Act shall be read and applied in conjunction with the Labrador Inuit Land Claims Agreement Act and, where a provision of this Act is inconsistent or conflicts with a provision, term or condition of the Labrador Inuit Land Claims Agreement Act, the provision, term or condition of the Labrador Inuit Land Claims Agreement Act shall have precedence over the provision of this Act.

2004 cL-3.1 s43

Crown is bound

4. (1) This Act binds the Crown in exercising rights or remedies as a creditor in enforcement proceedings.

(2) Notwithstanding subsection (1), this Act shall not prevent the Crown from collecting a debt through proceedings otherwise available to the Crown under another Act.

1996 cJ-1.1 s4

Administration of enforcement system

5. (1) The sheriff shall supervise the registry and the system of enforcement of judgments under this Act.

(2) The sheriff may designate an employee of his or her office or another employee of the government of the province to assist in the supervision of the judgment enforcement system under this Act and to co-ordinate enforcement proceedings conducted under this Act.

1996 cJ-1.1 s5

Assistance and advice

6. The sheriff may use assistance and advice, including the paid assistance and advice of agents, brokers or advisors in order to carry out the duties and functions under this Act.

1996 cJ-1.1 s6

Offence

7. (1) Except where authorized, a person shall not

(a) carry out or attempt to carry out the functions that may only be carried out by the sheriff under this Act;

(b) purport to be a person in a position to or authorized to carry out functions that may only be carried out by the sheriff under this Act; or

(c) use a name, title, description or abbreviation, or otherwise act in a manner that expressly or otherwise might lead to the belief that the person is in a position to or authorized to carry out functions that may be carried out by the sheriff under this Act.

(2) A person who acts contrary to subsection (1) is guilty of an offence.

1996 cJ-1.1 s7

Execution of documents, etc.

8. For the purpose of dealing with or disposing of property under this Act, the sheriff may

(a) do an act or thing that would otherwise be done by a debtor; and

(b) execute or endorse a document that would otherwise be executed or endorsed by a debtor.

1996 cJ-1.1 s8

Payment of fees and expenses

9. (1) The sheriff is not required to act on instruction from a creditor until the creditor has paid the required fees and the reasonably anticipated expenses of carrying out the instruction, or made arrangements for payment that are satisfactory to the sheriff.

(2) The sheriff may terminate enforcement proceedings where the instructing creditor has not paid the required fees and reasonably anticipated expenses of continuing the enforcement proceedings, or made arrangements for payment that are satisfactory to the sheriff, within 15 days of a request for payment from the sheriff.

(3) A person who has instructed the sheriff to conduct enforcement proceedings under this Act and the solicitor for that person are liable to pay the sheriff's fees and expenses permitted by law.

1996 cJ-1.1 s9

Discontinuance of proceedings

10. (1) Before seized property is released, other than as provided in subsection 80(2), or a garnishment is discontinued, a notice of the release or the discontinuance shall, not less than 15 days before the date of the release or discontinuance of the garnishment be served on all the creditors having related notices of judgment at the time that the notice was given.

(2) Before a sale of land under Part VII is discontinued,

(a) a notice of discontinuance in the required form shall be served on all creditors with related notices of judgment at the time the notice was served; and

(b) a sale may be postponed for not fewer than 15 days from the service of the notice referred to in paragraph (a).

(3) If within 15 days from the day of being served with a notice under this section, a creditor instructs the sheriff, in writing, to continue the proceedings,

(a) the proceedings shall continue; and

(b) where more than one creditor instructs that the proceedings be continued, the creditor whose instructions were first received by the sheriff shall from then on be considered to be the instructing creditor.

1996 cJ-1.1 s10

Application to court

11. (1) The court or, the Court of Appeal where an application is made to that court, may, on application by an interested person under this Act, or incidental to, or in substitution for an order made or sought under another Act, give directions with respect to or determine a matter or issue that arises out of enforcement proceedings.

(2) On considering an application under this Act, the court or, the Court of Appeal, where an application is made to that court, may

(a) make an order, including a binding declaration of right and injunctive relief, that is necessary to ensure compliance with this Act or to ensure protection of the interests of a person in property that is subject to enforcement proceedings;

(b) give directions to a person regarding the exercise of that person's rights or performance of that person's functions or duties under this Act;

(d) in whole, or in part, and on terms that it considers appropriate, stay the enforcement of rights provided in this Act;

(e) direct that a creditor replace another creditor as the instructing creditor;

(f) abridge a period of time provided for under this Act;

(g) in the case of an application made under a provision of this Act other than subsection (1), give another order, direction or relief that is permitted or otherwise provided for under that provision;

(h) make an order granted under this Act subject to the terms or conditions that it considers appropriate or necessary;

(i) [Rep. by 1998 c22 s3]

(j) award costs; and

(k) make another order, not inconsistent with this Act, that it considers appropriate or necessary.

1996 cJ-1.1 s11; 1998 c22 s3

Service

12. (1) Except as otherwise provided in this Act, a notice, order, approval or other document is sufficiently served or given where delivered personally or sent by registered mail to the person to whom service or delivery is to be made at the latest known address of that person.

(2) Except as otherwise provided in this or another Act, service of a notice, order, approval or other document shall be carried out by the sheriff.

(3) Where service upon a debtor is required under Part VII , and the debtor cannot be served personally or by registered mail, the sheriff may post a notice on the land of the debtor in addition to attempting service by the other required means and that notice shall indicate the information required to be served.

(4) Where a notice, order, approval or other document is required to be served under this Act within a fixed time period or otherwise, failure to make that service within the required time shall not invalidate enforcement proceedings under this Act provided that the debtor, creditor or another person has not been demonstrably prejudiced by that failure.

(5) Where service of a document is carried out by the sheriff under this Act, that document may be a facsimile copy of the original document.

1996 cJ-1.1 s12

Registry

13. (1) There shall be for the province a registry for the purpose of registering

(a) notices of judgment and notices of attachment under this Act; and

(b) notices and registrations of documents as provided in another Act.

(2) The sheriff shall maintain a computer storage and retrieval system consisting of hardware, software, electronic and other equipment and facilities necessary for the registration of notices and other information under this or another Act.

(3) Registration of the notices and other information in the registry, in relation to the offshore area, shall be effected in accordance with the provisions of this Act.

(4) In this section "offshore area" means offshore area as defined in theHibernia Development Project Act ( Canada ).

(5) The registration of a notice and other information in the registry shall not be considered to be constructive notice to another person of the existence of that notice or information.

1996 cJ-1.1 s13

Searches of the registry

14. (1) Upon payment of a fee, a person may search the records of the registry and obtain a printed search result.

(2) A search under subsection (1) may be conducted for a

(a) debtor, in the name of that debtor;

(b) defendant under Part II, in the name of the defendant; or

(3) A printed search result that purports to be issued by the sheriff is receivable as evidence and is, in the absence of evidence to the contrary, proof of the registration of a notice of judgment, notice of attachment or other notice to which the search relates.

1996 cJ-1.1 s14; 1998 cP-7.1 s81

Recovery for loss

15. (1) A person may bring an action against the sheriff to recover loss or damage suffered by that person because of an error or omission in the operation of the registry if the loss or damage resulted from reliance on a printed search result issued by the registry.

(2) The sheriff is not liable for loss or damage suffered by a person because of

(a) oral advice given by the sheriff, an employee or agent respecting this Act or another Act that provides for registration in the registry, or the operation of the registry, unless the person bringing the action proves that the sheriff, employee or agent was not acting in good faith; or

(b) the failure of the electronic registry to effect a registration or to effect a registration correctly.

1996 cJ-1.1 s15

Cause of action

16. (1) Except as otherwise provided in this Act, a person who has suffered loss or damage as a result of another person's failure to comply with this Act

(a) has a cause of action against that other person with respect to that failure; and

(b) is entitled, if the court, or the Provincial Court where the amount claimed does not exceed the jurisdictional limits of that court, finds that a loss or damage has been suffered, to a judgment for the damages suffered or $200, whichever is greater.

(2) Notwithstanding subsection (1) and the Proceedings Against the Crown Act , the sheriff, an employee or agent of the sheriff and a clerk, deputy clerk or other employee of the Provincial Court is not personally liable for an error or omission in respect of the discharge or purported discharge of a duty or function under this Act.

1996 cJ-1.1 s16; 1997 c3 s2; 1998 c22 s4; 2001 c42 s23

Payment of claim for loss

17. (1) The total amount recoverable in an action under section 15 shall not exceed the amounts prescribed by regulation.

(2) If damages are paid to a claimant under this section, the Crown is subrogated to the rights of the claimant against a person indebted to the claimant whose debt to the claimant was the basis of the loss or damage in respect of which the claim was paid.

(3) If the amount of the damages paid to a claimant is less than the value the claimant would have had if the error or omission had not occurred, the right of subrogation under subsection (2) does not prejudice the right of the claimant to recover in priority to the Crown an amount equal to the difference between the amount paid to the claimant and the value the claimant would have had if the error or omission had not occurred.

(4) The minister responsible for the administration of the Consolidated Revenue Fund may, without action being brought, pay out of the fund the amount of a claim against the sheriff when authorized to do so by the minister on the report of the sheriff setting out the facts and his or her opinion that the claim is just and reasonable.

(5) When an award of damages has been made in favour of a claimant and the time for appeal has expired, or when an appeal is disposed of in whole or in part in favour of the claimant, the minister responsible for the administration of the Consolidated Revenue Fund shall pay out of the fund the amount specified in the judgment including the costs of the claimant if the judgment so provides.

1996 cJ-1.1 s17

Administrative records

18. (1) In addition to the registry established under section 13, the sheriff shall maintain a computer storage and retrieval system for the purpose of maintaining records of enforcement proceedings made with respect to a money judgment or an attachment order and maintain other records as required by this Act or as considered necessary for the efficient administration of this Act.

(2) The records referred to in subsection (1) shall include records of

(a) instructions received from creditors;

(b) steps taken to carry out creditor's instructions and their results;

(d) money received, indicating the source and the date of receipt;

(e) money paid out, indicating the amount paid to each recipient;

(f) the amount of the enforcement debt with respect to a notice of judgment; and

(g) other matters for which another Act or the regulations require the sheriff to maintain a record for the efficient administration of this Act.

(3) Notwithstanding section 19, where information is recorded under paragraph (2)(g) relating to a support order under the Support Orders Enforcement Act, 2006 , that information shall not be released except to indicate to a creditor that there is an outstanding support order under that Act.

1996 cJ-1.1 s18; 2006 cS-31.1 s85

Public access to records

19. (1) Upon payment of a fee, the sheriff shall provide information required to be maintained under section 18 which would not be disclosed by a printed search result under section 14.

(2) Notwithstanding subsection (1),

(a) the sheriff shall provide information with respect to the status and conduct of enforcement proceedings reasonably requested by a creditor on the status of that creditor or proceedings carried out by the sheriff for that creditor; and

(b) the sheriff may determine the information which may be released under subsection (1).

1996 cJ-1.1 s19

Statement of status

20. (1) A statement of status required under this Act with respect to a money judgment shall state the

(a) information; and

(b) current status,

of that money judgment as required by the sheriff.

(2) A statement of status shall be made under oath or affirmation.

1996 cJ-1.1 s20

Notice of change

21. (1) A creditor shall deliver to the sheriff written notice of

(a) a reduction in the amount outstanding on the judgment; or

(b) a stay of enforcement or proceedings ordered by a court,

within 15 days of the reduction or court order.

(2) Where a creditor does not deliver written notice as provided in subsection (1), the creditor shall be liable for pecuniary loss suffered by the debtor as a result of that noncompliance.

1996 cJ-1.1 s21

Enforcement debt

22. Enforcement debt with respect to a notice of judgment is an amount equal to

(a) the sum of

(i) the amount outstanding on the judgment as stated in the notice of judgment including registration fees,

(ii) interest in accordance with the Judgment Interest Act that has accrued with respect to the judgment,

(iii) fees or expenses paid or payable by the creditor to the sheriff after the registration of the notice of judgment, and

(iv) all other amounts to be added to the amount outstanding on the judgment of which the sheriff has written notice,

minus

(b) the sum of

(i) the total of all distributions paid to the creditor, or to which the creditor is entitled under Part XI, and

(ii) all other amounts to be deducted from the amount outstanding on the judgment of which the sheriff has written notice.

1996 cJ-1.1 s22

Enforcement documents

23. (1) The enforcement documents are:

(a) a notice of seizure, a copy of a garnishee order or a notice of intention to sell land;

(b) a notice of objection form, together with an envelope addressed to the sheriff;

(d) a statement of the amount of each enforcement debt with respect to each related notice of judgment;

(e) a notice of third party interests to be completed by the debtor; and

(f) instructions to the debtor including a reference to the right to apply for a stay of enforcement.

(2) Enforcement documents shall be in the required form.

1996 cJ-1.1 s23; 1998 c22 s5

Employee protection

24. (1) An employer shall not dismiss, suspend, lay off, penalize, discipline or discriminate against a debtor who is an employee if the reason for that is related to the commencement or possible commencement of enforcement proceedings under this Act.

(2) A debtor who believes that he or she has been dismissed, suspended, laid off, penalized, disciplined or discriminated against contrary to subsection (1) or (4) may apply to the court and the court may, if it finds reasonable grounds for that belief, make an order in favour of the debtor that it considers just, including an order for reinstatement and an award of damages.

(3) An employer who does not appear to defend an application made under subsection (2) shall be considered to have dismissed, suspended, laid off, penalized, disciplined or discriminated against the debtor who made the application.

(4) An employer who has suspended, laid off, penalized, disciplined, or has discriminated against a debtor who is an employee, while a garnishee order with respect to employment earnings is in effect, or within 6 months after it has ceased to have effect, is guilty of an offence unless a just cause is shown for that action.

(5) A claimant or a creditor who, except as permitted by this Act or by an order of the court,

(a) conducts inquiries at the place of employment of or through a person who employs a debtor or defendant for the purpose of collecting or enforcing a claim or money judgment;

(b) delivers a questionnaire under section 64 or 65 to a person who employs a debtor or defendant; or

is guilty of an offence.

(6) For the purpose of subsection (5), the terms "claim", "claimant" and "defendant" have the same meaning as in Part II.

1996 cJ-1.1 s25; 1998 c22 s6

PART II
PREJUDGMENT RELIEF

Definitions

25. In this Part

(a) "claim" means a claim that might result in a money judgment being granted if the claim were established;

(b) "claimant" means a person asserting a claim;

(c) "dealing", in reference to property, includes transferring, mortgaging, charging, using, disposing of, creating an interest in or doing anything to the property;

(d) "defendant" means a person against whom a claim is asserted;

(e) "exigible property" means property that would be exigible if the defendant were a debtor; and

(f) "third person" means a person other than a defendant or a claimant.

1996 cJ-1.1 s25; 1998 c22 s7

Process for enforcement

26. Except as otherwise provided in this or another Act, a claim shall be enforced by proceedings under this Part.

1996 cJ-1.1 s26

Attachment order

27. (1) A claimant may apply to the court for an attachment order where

(a) the claimant has commenced or is about to commence proceedings in the province to establish the claimant's claim; or

(b) the claimant has commenced proceedings before a foreign tribunal to establish a claim if

(i) a judgment or award of the foreign tribunal could be enforced in the province by action or by proceedings under an enactment dealing with the reciprocal enforcement of judgments or awards, and

(ii) the defendant appears to have exigible property in the province.

(2) On hearing an application made under subsection (1) the court may make an attachment order if it is satisfied that

(a) there is a serious issue to be tried; and

(b) there are reasonable grounds for believing that the defendant is dealing with the defendant's exigible property, or is likely to deal with that property,

(i) otherwise than for the purpose of meeting the defendant's reasonable and ordinary business or living expenses, and

(ii) in a manner that would be likely to seriously hinder the claimant in the enforcement of a judgment against the defendant.

1996 cJ-1.1 s27

Scope of attachment order

28. (1) The court may in an attachment order

(a) direct that the order applies

(i) to all or specific exigible property of the defendant, or

(ii) to exigible property to be subsequently identified in writing by the sheriff;

(b) prohibit a dealing with exigible property of the defendant;

(d) require the defendant or a person who has possession or control of exigible property of the defendant to deliver the property up to a person identified in the order;

(e) authorize the claimant to apply for the issuing of a garnishee order;

(f) appoint a receiver; and

(g) include in the order a term, condition or provision that the court considers necessary or desirable.

(2) Notwithstanding subsection 27(2), the court shall not grant an attachment order unless the claimant undertakes to

(a) prosecute the proceeding to judgment without delay; and

(b) pay damages or indemnity that the court may decide should be paid to the defendant or a third person,

and where the court grants an attachment order, the court may require the claimant

(d) to provide security in the form of a bond or otherwise in respect of an undertaking.

(3) A bond required by the court under paragraph (2)(d) shall be

(a) in an amount that the court considers appropriate;

(b) accompanied by 2 sufficient sureties or other sufficient security approved by the court; and

and the court may require that bonding be provided by a corporation registered under the Insurance Adjusters, Agents and Brokers Act .

(4) Where an attachment order is granted, it shall be granted in a manner to cause as little inconvenience to the defendant as is consistent with achieving the purpose for which the order is granted.

(5) An attachment order shall not attach property that exceeds an amount or a value that appears to the court to be necessary to meet the claimant’s claim, including interest and costs, and related notices of judgment and notices of attachment, unless the court is of the view that a limitation of the amount or value would make the operation of the order unworkable or ineffective.

(6) For the purpose of subsection (1),

(a) if the sheriff is authorized to issue a garnishee order, Part VIII, with the necessary changes, applies to that garnishment;

(b) if a receiver is appointed, Part IX, with the necessary changes, applies in respect of that receivership; and

(c) if the order is to apply to exigible property to be subsequently identified in writing by the sheriff, the writing shall be considered to be included as a part of the order.

(7) An interested person may apply to the court to vary or terminate an attachment order.

1996 cJ-1.1 s28; 1998 c22 s8

Attachment order without notice

29. (1) An application for an attachment order may be made without notice to another person.

(2) An attachment order made without notice to another person and granted shall specify a date, not more than 30 days from the day that the order is granted, on which the order shall expire unless the order is extended on an application on notice to the defendant.

(3) If the court is satisfied that it would be inappropriate for an attachment order granted without notice to another person to expire automatically after 30 days, the order may specify a later expiry date or specify that it remains in effect until it terminates in accordance with section 30.

(4) The court, on application by the claimant, who shall give notice to the defendant, may direct that an attachment order that was granted without notice to another person remain in effect until the order terminates under section 30 or as otherwise directed by the court.

(5) If an application under subsection (4) cannot reasonably be heard and determined before the expiry date of the relevant attachment order, the court may, on application without notice to another person, extend the period of time during which the order remains in force pending the determination of the application.

(6) When an application on notice to the defendant is made under subsection (4),

(a) the onus is on the claimant to establish that the attachment order should be continued;

(b) the court shall not continue the attachment order unless the circumstances that exist at the time of hearing of the application justify the continued existence of the attachment order; and

(c) the court may terminate the order if the court is satisfied that the claimant failed to make full and fair disclosure of the material information that existed at the time that the claimant made the application without notice to another person for the attachment order.

1996 cJ-1.1 s29

Termination of attachment order

30. (1) Except as otherwise ordered by the court, an attachment order terminates

(a) on the dismissal or discontinuance of the claimant's proceedings; or

(b) 60 days after the day of the entry of a judgment in favour of the claimant,

whichever occurs first.

(2) The court may extend the operation of an attachment order beyond the times set out in subsection (1) if it appears just and equitable to do so.

1996 cJ-1.1 s30

Provision of alternative security

31. Where property is attached under an attachment order,

(a) the defendant;

(b) a person claiming an interest in the attached property; or

may have the property released from attachment by providing sufficient alternative security in a form and amount determined,

(d) by agreement between all interested persons; or

(e) by the court, having regard to all the circumstances, including the apparent value of the defendant's interest in the attached property.

1996 cJ-1.1 s31

Sale , etc. of attached property

32. (1) An application may be made to the court to authorize the sale or other disposition of property that is subject to an attachment order without the consent of the owner of the property and the court may authorize that sale or disposition if, in the opinion of the court,

(a) the property will

(i) depreciate substantially in value, or

(ii) be unduly expensive to keep under attachment; or

(b) it is necessary or prudent to sell or dispose of the property for another reason not referred to in paragraph (a).

(2) Where the court authorizes the sale or disposition of property under subsection (1), the sheriff shall sell or dispose of that property in a manner consistent with enforcement proceedings under this Act.

1996 cJ-1.1 s32

Registration of attachment order and disclosure

33. (1) Where an attachment order is in force, a claimant may register a notice of that attachment in the registry which shall be effective until the attachment order terminates under section 30, or one year after registration, whichever comes first.

(2) A notice of attachment may be renewed by registration before the expiration of the current one year registration period and that renewed notice of attachment shall be effective for one year after the time when the original notice of attachment would have otherwise expired.

(3) Sections 41 to 43 and 45 shall apply to a registration of a notice of attachment with the necessary changes, as if the notice of attachment were a notice of judgment.

(4) The court may, at any time after the granting of an attachment order and before the entry of final judgment, order a person to disclose information the person possesses regarding property that a plaintiff seeks to attach under the order.

1996 cJ-1.1 s33

Priorities

34. (1) Priority between a notice of attachment and the interest of a third person in property to which the attachment order applies shall be determined in accordance with Part III as if the notice of attachment were a notice of judgment.

(2) Notwithstanding subsection (1), a third person who in a transaction that is permitted under an attachment order acquires an interest in property to which the attachment order applies acquires that interest free of the attachment order.

(3) Where, before a notice of attachment ceases to be in force, a notice of judgment has been registered in respect of the same proceedings in which the attachment order was issued, that notice of judgment has the same priority as the notice of attachment.

1996 cJ-1.1 s34

Enforcement proceedings, etc.

35. (1) Enforcement proceedings may be commenced or continued against property that is subject to an attachment order and money realized through those proceedings may be distributed under Part XI without regard to the attaching claimant's claim.

(2) Notwithstanding subsection (1), the court may, where the court considers that it would be just and equitable to do so, order

(a) that enforcement proceedings not be commenced or continued against property that is the subject of an attachment order without the leave of the court until the attachment order terminates;

(b) that money realized through enforcement proceedings against property that is the subject of an attachment order not be distributed until the attachment order terminates; and

(c) that the attachment creditor have the status of an instructing creditor for the purpose of the distribution of the proceeds.

1996 cJ-1.1 s35

Inconsistent actions

36. (1) Where a person knowingly assists or participates in dealing with attached property in a manner that is inconsistent with the terms of the attachment order, the court may order that person to compensate a claimant or creditor who suffers actual loss as a result of that dealing.

(2) The court shall not make an order under subsection (1) against a person only because the person has done something that was necessary to meet a legal duty that

(a) arose before the person acquired knowledge of the attachment order; and

(b) was owed to someone other than the defendant.

(3) This section shall not be construed so that it restricts the power of the court to punish for contempt.

1996 cJ-1.1 s36

PART III
NOTICE OF JUDGMENT

Definitions

37. In this Part

(a) "after-acquired property" means property acquired by a debtor after the relevant notice of judgment is registered in the registry;

(b) "buyer of goods" includes a person who obtains a vested right in goods under a contract to which that person is a party, as a consequence of the goods becoming a fixture or accession to property in which he or she has an interest;

(d) "equipment" means goods that are held by a debtor other than as inventory or consumer goods;

(e) "intangible" means personal property other than goods, a document of title, chattel paper, a security certificate, an instrument, and money;

(f) "inventory" means goods

(i) that are held by a person for sale or lease, or that have been leased by that person,

(ii) that are to be furnished by a person or have been furnished by that person under a contract of service,

(iii) that are raw materials or work in progress, or

(iv) that are materials used or consumed in a business;

(g) "land" means an interest in land and includes

(i) a lease, and

(i.1) except where the context otherwise requires, a fixture, and

(ii) an interest in a right to payment that arises in connection with an interest in or lease of land other than an interest in a right to payment evidenced by an instrument or a security certificate,

but does not include growing crops;

(h) "money" means a medium of exchange authorized by the Parliament of Canada or authorized or adopted by a foreign government as part of its currency;

(i) "new value" means value other than a previous debt or liability;

(j) "ordinary course of business of the seller" includes the supply of goods in the ordinary course of business as part of a contract for services and materials;

(k) "personal property" means goods, a document of title, chattel paper, a security certificate, an instrument, money or an intangible, but does not include land;

(l) "purchase" means taking by sale, lease, discount, assignment, negotiation, mortgage, pledge, lien, issue, reissue, gift or another consensual transaction creating an interest in property;

(m) "purchase money security interest" means a security interest in property to the extent that it secures all or a part of the purchase price of the property;

(n) "purchaser" means a person who takes by purchase;

(o) "seller" includes a person who supplies goods that become a fixture or accession; and

(p) "value" means consideration sufficient to support a simple contract, and includes a previous debt or liability.

1996 cJ-1.1 s37; 1998 cP-7.1 s81

Registration required

38. (1) A person who has a money judgment that is in force may register a notice of that judgment in the registry in accordance with this Act.

(2) The sheriff shall accept as proof of a money judgment a money judgment certified by an officer of the court from which that judgment originated, a certified true copy of that judgment or a facsimile copy of either.

(3) Where a court has awarded a money judgment that includes interest calculated in accordance with the Judgment Interest Act the information contained in that money judgment shall not be registered in a notice of judgment under this section until the ordered interest amount has been calculated and stated on that money judgment and is approved by the court or, where the interest amount is agreed upon between the creditor and the debtor, by an officer of the court.

(4) Except as otherwise provided in this Act a creditor who does not have a notice of judgment shall not

(a) bind the property of a debtor;

(b) initiate an enforcement proceeding; or

(5) A reference to a notice of judgment shall be considered to be a reference to the data entered in the registry to effect a registration of a notice of judgment under this Act.

1996 cJ-1.1 s38; 1997 c3 s3

Effective notice of judgment and enforcement by contempt

39. (1) Except as otherwise provided, a notice of judgment is effective only while the money judgment upon which it is based is in force.

(2) [Rep. by 1998 c22 s9]

1996 cJ-1.1 s39; 1998 c22 s9

Money judgment not in force

40. (1) A money judgment is not in force

(a) if it has been satisfied;

(b) if the period for the enforcement of the judgment has expired in accordance with the Limitations Act, or another Act providing for a limitation period; or

(2) For the purpose of determining whether a money judgment is in force, a person searching the registry shall rely on the information contained in the notice of judgment.

1998 c22 s10

Registration

41. (1) The registration of a notice of judgment is effective from the time that a registration number, date and time is assigned to that registration in the registry.

(1.1) A notice of judgment or a notice of an attachment order may be registered electronically by a user of the registry approved for the purpose by the sheriff using a computer system and a computer network, electronic forms and documents and computer format approved for the purpose by the sheriff.

(1.2) Where a notice of judgment or a notice of an attachment order is registered electronically on the registry by a person referred to in subsection (1.1), the sheriff shall, immediately following electronic registration, send a notice of verification of the registration containing the information referred to in subsection (1), electronically to the user of the registry referred to in subsection (1.1).

(2) The effectiveness of the registration of a notice of judgment is not affected by a defect, irregularity, omission or error in the notice of judgment unless the defect, irregularity, omission or error is seriously misleading.

(3) A registration of a notice of judgment is ineffective if there is a seriously misleading defect, irregularity, omission or error in the name of the debtor.

(4) In order to establish that a defect, irregularity, omission or error is seriously misleading, it is not necessary to prove that anyone was actually misled by it.

(5) A statement verifying the registration of a notice of judgment shall be served on the debtor and the creditor within 30 days after it is registered.

(6) A person who registers a notice of judgment knowing that the judgment is not in force or registers a notice of judgment that contains information that the person knows is incorrect is guilty of an offence.

1996 cJ-1.1 s41; 2001 c24 s1

Amendment, transfer and data removal

42. (1) A notice of judgment may be amended in accordance with this Act and that amendment is effective from the time that it is registered.

(1.1) A statement verifying the registration of an amendment shall be served on the debtor and the creditor within 30 days after it is registered.

(2) If a creditor transfers a money judgment, the notice of judgment may be amended to disclose that transfer.

(3) If the rights of a creditor have been subordinated by the creditor to the interest of another person the notice of judgment may be amended to disclose the subordination.

(4) Data in a registration of a notice of judgment may be removed from the records of the registry in accordance with the regulations.

1996 cJ-1.1 s42; 1998 c22 s11

Registration not constructive notice

43. Registration of a notice of judgment in the registry does not constitute notice or knowledge to a person of the existence of the notice of judgment.

1996 cJ-1.1 s43

Error or omission

44. Where enforcement proceedings have been carried out and there is an error or omission with respect to the registration of the notice of judgment in the registry, the court may, on application by an interested person, make an order validating enforcement proceedings that may have taken place, subject to interests that may have arisen in the period of time between the registration of the notice of judgment in the registry and the correction of the error or omission.

1996 cJ-1.1 s44; 1997 c3 s4

Discharge and amendment

45. (1) A creditor shall

(a) discharge a notice of judgment where the money judgment is no longer in force other than by virtue of paragraph 40(1)(b);

(b) amend a notice of judgment to reflect the terms and conditions of an order to stay enforcement proceedings;

(d) amend an error in a notice of judgment.

(2) Where a creditor fails to comply with subsection (1) within 30 days of the event requiring discharge or amendment of the notice of judgment, the debtor or another person with an interest in the property of the debtor may give a written demand to the creditor to discharge or amend the notice of judgment.

(3) If a creditor fails to comply with a demand under subsection (2) within 15 days after it is given, or fails to give to the person giving the demand an order of the court confirming that the notice of judgment need not be discharged or amended, the person giving the demand may register the discharge or amendment.

(4) The creditor or debtor, or another person with an interest in the property, may apply to the court and the court may order that a notice of judgment in the registry be maintained on a condition and for a period of time or may order that the notice of judgment be amended or discharged.

(4.1) Where the sheriff has reasonable grounds to believe that a money judgment has been satisfied, or for another reason the sheriff is of the opinion that no valid basis exists for maintaining the notice, the sheriff may discharge a notice of that judgment.

(5) A fee or expense shall not be charged by a creditor for compliance with a demand under subsection (2).

1996 cJ-1.1 s46; 1998 c22 s12; 1998 c22 s12; 2001 c24 s2

Property bound

46. (1) A money judgment shall not bind or otherwise affect the debtor's property until registration of a notice of judgment in the registry.

(2) On being registered in the registry, a notice of judgment binds all of the debtor's property.

(3) Subsection (2) applies to after-acquired property of the debtor from the time that the debtor acquires that property.

1996 cJ-1.1 s46

Knowledge of notice of judgment

47. For the purpose of this Part, a person is considered to have knowledge of a notice of judgment if that person has knowledge that the relevant property is subject to a notice of judgment, enforcement proceedings or has been seized.

1996 cJ-1.1 s47

Subordinate interests

48. (1) In this Act, a reference to an interest in property being subordinate to a notice of judgment means subordinate to the rights or interest of the creditor who has registered the notice of judgment.

(2) An interest in property that is subordinate to a notice of judgment is also subordinate to the rights or interest of a representative of creditors, including a trustee in bankruptcy, for the purpose of enforcing rights of the creditor who registered the notice of judgment.

(3) Where an interest in property is subordinate to a notice of judgment,

(a) the property is subject to enforcement proceedings to the same extent that the property would have been if the subordinate interest did not exist; and

(b) a person who acquires the property as a result of enforcement proceedings acquires the property free of the subordinate interest.

(4) An interest in property that is subordinate to a notice of judgment is subordinate to the extent of the amount outstanding on the enforcement debt at the time the enforcement proceedings are taken against the property.

1996 cJ-1.1 s48

Subsequent interests

49. Except as otherwise provided in this or another Act, an interest acquired in property after the property is bound by a notice of judgment is subordinate to the notice of judgment.

1996 cJ-1.1 s49

Notices of judgment and security interests

50. (1) Except as otherwise provided in this Act, a security interest in personal property is subordinate to a notice of judgment that binds the property regardless of whether the security interest attached before or after the personal property became bound by registration of the notice of judgment in the registry.

(2) Subject to subsections 36(5) and (6) of the Personal Property Security Act, a security interest in personal property has priority over a notice of judgment that binds the property if at the time the notice of judgment is registered in the registry

(a) the security interest is perfected or registered in the personal property registry; or

(b) the secured party or a person acting on behalf of the secured party has possession of the personal property under section 25 of the Personal Property Security Act.

(3) A purchase money security interest in personal property has priority over a notice of judgment that bound the personal property before the purchase money security interest was registered or perfected if the security interest was registered or perfected not later than 15 days from the day that

(a) the debtor, or another person at the request of the debtor, obtained possession of the collateral; or

(b) the security interest attached, in the case of personal property other than goods, chattel paper, a security certificate, a document of title, an instrument or money

1998 cP-7.1 s81

Priority status not affected

51. Where

(a) the registration of the notice of judgment has been discharged in error or without authorization; and

(b) the notice of judgment is re-registered not later than 30 days after the lapse or discharge,

the discharge of the notice of judgment does not affect the priority status of the notice of judgment in relation to a competing perfected security interest that immediately prior to the discharge of the notice of judgment had a subordinate priority position, except to the extent that the competing security interest secures advances made or contracted for after the discharge and prior to the re-registration of the notice of judgment.

1998 cP-7.1 s81

Disposition of goods

52. (1) A buyer or lessee of goods sold or leased in the ordinary course of business of the seller or lessor takes free of a notice of judgment that binds the goods.

(2) A buyer or lessee of goods, other than fixtures, that are acquired as consumer goods takes free of a notice of judgment that binds the goods if the buyer or lessee

(a) gives value for the interest acquired; and

(b) buys or leases the goods without knowledge that the goods are bound by the notice of judgment, and

the purchase price of the goods does not exceed $1000 or, in the case of a lease, the market value of the lease does not exceed $1000.

(3) Where serial number goods that are bound by a notice of judgment are not described by serial number in the registration of that notice of judgment in the registry

(a) in the case of consumer goods, a buyer, lessee or secured party who gives value for an interest in the goods acquires the interest free of the notice of judgment; and

(b) in the case of equipment, a buyer, lessee or secured party who gives value for an interest in the goods without knowledge of the notice of judgment acquires the interest free of the notice of judgment

(4) A sale or lease under this section may be for cash, by exchange for other property or on credit, and includes delivering goods or a document of title to goods under a pre-existing contract for sale but does not include a transfer as security for or in total or partial satisfaction of, a money debt or past liability.

1996 cJ-1.1 s52; 1997 c3 s5; 1998 cP-7.1 s81

Fixtures and growing crops

53. (1) Where goods are bound by a notice of judgment and while being bound by the notice of judgment the goods become a fixture, those goods shall continue to be bound by that notice of judgment.

(2) A notice of judgment that binds goods after they become a fixture is subordinate to the interest of a person who has an interest in the land at the time the fixture is bound and who

(a) has not disclaimed an interest in the fixture;

(b) has not entered into an agreement under which a person is entitled to remove the fixture; or

(3) Any question of priorities between a notice of judgment and a security interest in a fixture or growing crop shall be determined in accordance with subsections 37(9) and 38(7) of the Personal Property Security Act.

1996 cJ-1.1 s53; 1998 cP-7.1 s81

Negotiable instruments

54. (1) A holder of money has priority over a notice of judgment that binds the money if that holder

(a) acquired the money without knowledge of the notice of judgment; or

(b) is a holder for value, whether or not the holder has knowledge of the notice of judgment.

(2) A creditor without a notice of judgment who receives an instrument drawn or made by a debtor and delivered in payment of a debt owing to that creditor by that debtor has priority over a notice of judgment that binds the instrument whether or not the creditor has knowledge of the notice of judgment at the time of delivery.

(3) A purchaser of an instrument or security certificate has priority over a notice of judgment that binds the instrument or security certificate if that purchaser

(a) gave value;

(b) acquired it without knowledge of the notice of judgment; and

(4) [Rep. by 2007 cS-13.01 s109]

(5) A holder of a negotiable document of title has priority over a notice of judgment that binds the document of title if that holder

(a) gave value; and

(b) acquired the document of title without knowledge of the notice of judgment.

(6) A purchaser of chattel paper has priority over a notice of judgment that binds the chattel paper if that purchaser

(a) gave new value;

(b) took possession of the chattel paper in the ordinary course of the purchaser's business; and

1996 cJ-1.1 s54; 2007 cS-13.01 s109

Protected purchaser of security

55. A person who is a protected purchaser of a security within the meaning of the Securities Transfer Act has priority over a notice of judgment that binds the security where that person did not have knowledge of the notice of judgment at the time the person obtained control of the security.

2007 cS-13.01 s109

Other rights

56. A transferee of an interest or a right, other than an interest in or a right to land or personal property, bound by a notice of judgment shall have priority over a notice of judgment that binds the right if the transferee gave value and did not have knowledge of the notice of judgment at the time of the transfer.

1998 cP-7.1 s81

Priority of liens

57. Where a person in the ordinary course of business furnishes materials or services with respect to goods that are bound by a notice of judgment, a lien that the person has with respect to the materials or services has priority over the notice of judgment unless the lien is given under an enactment that provides that the lien does not have that priority.

1996 cJ-1.1 s57

Effect of seizure

58. Subject to section 36(6) of the Personal Property Security Act, the position of a person who acquires an interest in personal property that is bound by a notice of judgment is determined by this Part regardless of whether the personal property has been seized.

1998 cP-7.1 s81

Interests in land

59. (1) Where

(a) a person acquires an interest in land before the registration of a notice of judgment; and

(b) based on the records in the registry of deeds, the notice of judgment would otherwise bind the interest,

the interest is subordinate to the notice of judgment unless the person proves that

(c) evidence of the interest was registered in the registry of deeds before the notice of judgment was registered in the registry;

(d) evidence of the interest was registered in the registry of deeds within 90 days of

(i) the creation of the interest, or

(ii) in the case of an interest created by an instrument, the execution of the instrument;

(e) in the case of an interest other than a security interest, the interest was acquired in good faith; or

(f) the creditor had knowledge of the interest at the time the claim on which the money judgment was based arose.

(2) Subsection (1) applies only to interests in land created after the commencement of this Act.

(3) A purchase money security interest in land bound by a notice of judgment has priority over the notice of judgment if evidence of that interest was registered in accordance with paragraph (1)(d).

1996 cJ-1.1 s59

Exceptions to binding

60. (1) A person who acquires an interest in land takes the interest

(a) free of; or

(b) in the case of a security interest, in priority to

a notice of judgment that binds the land if an instrument evidencing that interest is registered in the registry of deeds within 10 days of the registration of the notice of judgment in the registry.

(2) A person who acquires an interest in land takes free of, or in the case of a security interest, in priority to, a notice of judgment that binds the land, if

(a) the person gives value for the interest acquired; and

(b) the person acquires the land without knowledge that the land was bound by the notice of judgment.

(3) For the purpose of subsection (2), a person shall be considered to have knowledge of a notice of judgment if

(a) the notice of judgment would be disclosed in a search of the registry using the name in which the interest was held by the debtor in the registry of deeds; and

(b) it would be reasonable to conclude that the notice of judgment was with respect to the debtor.

1997 c3 s6

Interaction between notices of judgment

61. (1) An interest in property is not subordinate to a notice of judgment by reason only of the fact that the interest is subordinate to another notice of judgment.

(2) This section shall not be construed so that it creates a priority between notices of judgment.

1996 cJ-1.1 s61

Interest subject to sale

62. (1) Subject to subsection 48(3), sections 107 and 165, when property is sold as a result of enforcement proceedings,

(a) the person who buys the property obtains only the interest of the debtor in the property; and

(b) the sale of the property does not adversely affect the rights or interest of another person in the property.

(2) Notwithstanding subsection (1), a buyer at a sale conducted as a result of enforcement proceedings acquires the interest or rights that the debtor could have conveyed, respecting the property that is sold, to a purchaser in circumstances similar to those at the time of that sale.

1996 cJ-1.1 s62

Tracing proceeds

63. (1) When money received as a result of enforcement proceedings with respect to property is distributed, a person who does not assert a claim with respect to that property before that money is distributed shall not trace or otherwise follow the money.

(2) Notwithstanding subsection (1), unless

(a) subsections 48(3) and 107(1) apply to the interest in property;

(b) the interest in property did not survive a sale as a result of enforcement proceeding as provided in section 62; or

a person may apply to the court for an order with respect to the money distributed.

1996 cJ-1.1 s63; 1997 c3 s7

PART IV
INFORMATION REGARDING
ENFORCEMENT

Voluntary questionnaires

64. (1) A creditor may serve a questionnaire on the debtor to be completed and returned to the creditor for the purpose of determining the ability of the debtor to satisfy the claims of the creditor.

(2) A debtor shall return the completed questionnaire to the creditor within 15 days of service.

(3) A creditor shall provide the sheriff with a copy of a questionnaire completed by a debtor at the time he or she issues first instructions to the sheriff.

1998 c22 s13

Sheriff questionnaire

65. (1) A creditor may instruct the sheriff to serve a questionnaire on a person who may be required to submit to an examination under section 66 to be completed and returned to the sheriff for the purpose of determining the ability of the debtor to satisfy the claim of the creditor.

(2) A questionnaire under this Part shall be in the required form.

(3) A person served with a questionnaire under subsection (1) shall return the completed questionnaire to the sheriff within 15 days of service.

1998 c22 s14

Examination

66. (1) A creditor may set a place and time for an examination and may examine a debtor or another person for the purpose of determining the ability of the debtor to satisfy the claims of the creditor.

(2) A creditor shall, in the required form, serve upon the debtor or other person a notification of the place and time of an examination.

(3) A debtor or another person who has been served with a notification of an examination under subsection (2) shall attend that examination at the required time and place.

(4) Notwithstanding subsection (3), the debtor or other person may, in accordance with the regulations and by agreement with the creditor, arrange for a change of place and time for an examination.

(5) The minister may make regulations respecting examinations under subsection (1), including

(a) the persons who may be examined;

(b) the time and place of an examination;

(d) the procedure with respect to the conduct of the examination; and

(e) the consequences of a failure to attend an examination or to answer proper questions.

1996 cJ-1.1 s66; 1998 c22 s15

Sheriff to be given notice

67. (1) A creditor shall, in the required form, notify the sheriff of the time set for an examination under this Part.

(2) A creditor who conducts an examination under this Part and obtains a transcript of the examination shall deliver the transcript to the sheriff.

(3) Where a debtor or other person is examined under this Part, the creditor shall elicit information sufficient to complete a questionnaire appropriate for the circumstances.

(4) The person before whom an examination referred to in subsection (3) was conducted shall

(a) complete a questionnaire based on the information disclosed at the examination;

(b) certify under oath or affirmation that the completed questionnaire accurately reflects the information disclosed; and

(c) deliver the certified questionnaire to the sheriff, the creditor, the debtor and the person examined within 30 days of the examination.

(5) The sheriff shall keep records of the receipt of questionnaires, notices of appointments or orders for examination or transcripts that are required under this Part.

1996 cJ-1.1 s67

Identification of debtor

68. A person shall provide information for the purpose of determining or verifying the identity and location of a debtor.

1996 cJ-1.1 s68

Disclosure

69. The court may, at any time after the issue of a judgment, order a debtor or another person to disclose to a person appointed by the court, information the debtor or other person possesses regarding property in which the debtor has an interest, or which the debtor or another person has disposed of since contracting the debt, or incurring the liability in respect of which the judgment was obtained.

1996 cJ-1.1 s69

PART V
SEIZURE OF PERSONAL PROPERTY

When seizure available

70. (1) For the purpose of enforcement proceedings, all exigible personal property of a debtor is liable to seizure.

(2) Except as otherwise provided in this Act, eligible personal property of a debtor that is to be seized under enforcement proceedings shall be seized and dealt with in accordance with this Part.

(3) Notwithstanding subsections (1) and (2), an obligation is not subject to seizure and shall not be dealt with except in accordance with Part VI.

(4) Notwithstanding subsection (2), where this or another Act sets out a different seizure process in respect of property or a class of property, that property is seized when it is seized under that seizure process.

(5) In this Part, unless the context indicates otherwise, a reference to a seizure means a seizure of personal property.

1996 cJ-1.1 s70; 1998 c22 s16

Instructions to seize

71. A creditor may instruct the sheriff to seize personal property and to deal with seized property in accordance with this Act.

1996 cJ-1.1 s71

Instruction requirements

72. (1) The sheriff shall not attempt to seize personal property unless a creditor has provided

(a) instructions in writing;

(b) a current statement of status;

(c) the information respecting the nature and location of the property to be seized that the sheriff reasonably requires;

(d) a statement that a copy of the instructions was delivered to all other creditors with related notices of judgment; and

(e) other documents or information reasonably required by the sheriff.

(2) The sheriff may terminate enforcement proceedings where the instructing creditor has not provided the information required under subsection (1) within 15 days of a request from the sheriff for that information.

1996 cJ-1.1 s72

Scope of seizure

73. (1) The sheriff may attempt to seize enough of the debtor's exigible personal property to satisfy an amount equal to the sum of

(a) the amount of all enforcement debts on all related notices of judgment; and

(b) the enforcement fees and expenses,

minus the sum of

(c) the realizable value of property remaining under seizure and available to satisfy the claims of creditors with related notices of judgment; and

(d) amounts realized from enforcement proceedings taken against property of the debtor which have not been distributed.

(2) The sheriff may seize personal property in which there are reasonable grounds for believing the debtor has an exigible interest, but shall not seize property that appears to be exempt.

(3) Where, at the time seizure is effected, it is not practicable to

(a) distinguish exempt from exigible property; or

(b) limit the value of the property seized to the amount directed to be seized in accordance with subsection (1),

the sheriff may seize all the property in question until

(d) the part that is in excess of what is required to satisfy the amount directed to be seized under subsection (1),

can be identified and separated from the exigible property at which time the sheriff shall release the exempt or excess property from seizure.

1996 cJ-1.1 s73

Demand on third party

74. (1) Where there are reasonable grounds for believing that exigible personal property of a debtor is in the possession or control of a third party, the sheriff may, and, if instructed by the instructing creditor, shall, serve a demand on the third party requiring the third party to deliver the property to the sheriff or make it available for seizure within 15 days from the day that the demand is served on the third party.

(2) A third party on whom a demand is served under this section shall immediately

(a) deliver the property to the sheriff;

(b) advise the sheriff of the place at which seizure of the property may be effected and take reasonable steps to ensure that the property remains at that place until it is seized; or

(c) where the third party has a right against the debtor to retain the property or does not have possession or control of the property, advise the sheriff that the third party is not required to comply with paragraph (a) or (b) because that third party

(i) has a right against the debtor to retain the property, or

(ii) does not have possession or control of the property.

(3) Where a third party complies with a demand made under this section, the sheriff shall compensate the third party for expenses reasonably incurred by the third party in complying with that demand.

(4) A third party who, without reasonable excuse fails to comply with a demand made under this section, shall compensate the creditors for a pecuniary loss suffered by them as a result of the non-compliance.

(5) Where the sheriff takes possession of property from a third party in respect of whom a demand was made under this section, the third party is discharged of responsibility that the third party may have had to hold the property for, or return it to, the debtor.

(6) This section does not apply to property held by a securities intermediary, as defined in the Securities Transfer Act , if the debtor has a security entitlement, as defined in the Securities Transfer Act , against the securities intermediary with respect to that property.

(7) A demand served on a person under this section shall be accompanied by a notice of claim, a notice of third party interest and instructions in the required form.

1996 cJ-1.1 s74; 2007 cS-13.01 s109

Effecting seizure

75. (1) Personal property that is described in a notice of seizure is seized when the sheriff

(a) while at the place at which the property is located, serves the necessary enforcement documents on

(i) the debtor or an adult member of the debtor's household,

(ii) an adult occupying or working at the location at which the property is located, or

(iii) a person who has possession of or control over the property; or

(b) in the manner prescribed by regulation, attaches to the property documents indicating that the property is seized or posts the notice of seizure in a conspicuous place at the location at which the property is located.

(2) Where the sheriff has seized personal property other than in accordance with subparagraph (1)(a)(i), the sheriff shall serve the enforcement documents on the debtor as soon after seizing that property as is practicable.

(3) Where the sheriff is unable to serve the enforcement documents as required by subsection (2), the sheriff shall begin the proceedings provided for under section 80.

(4) A person is guilty of an offence if that person without lawful authority removes, damages or otherwise interferes with

(a) enforcement documents or identifying documents that are attached to seized property or posted under paragraph (1)(b); or

(b) property that is under seizure.

1996 cJ-1.1 s75; 1998 c22 s17

Entry onto premises

76. For the purpose of carrying out enforcement proceedings

(a) the sheriff may

(i) enter a location or premises of a debtor for the purpose of carrying out the seizure and removing property of the debtor, and

(ii) where the sheriff has reasonable grounds for believing that personal property of a debtor is located at a location or in premises of a person other than the debtor, enter that location or those premises for the purpose of carrying out the seizure and removing personal property of the debtor;

(b) the sheriff may use reasonable force for the purpose of gaining access to a location or premises of a debtor, other than a dwelling place;

(c) notwithstanding paragraphs (a) and (b), in the case of a dwelling place of a debtor or location or premises, including a dwelling place of a person other than a debtor, the sheriff shall not,

(i) where entry to the dwelling place, location or premises is refused, enter the dwelling place, location or premises, or

(ii) use force for the purpose of gaining access to the dwelling place, location or premises,

unless authorized to do so by an order of the court;

(d) where the sheriff has gained lawful entry to a location or premises, he or she may gain entry by any means that are appropriate in the circumstances to

(i) an enclosure or container, or

(ii) an interior room of the premises; and

(e) where the sheriff has used force to gain entry to a location or premises, he or she shall make that location or premises reasonably secure before leaving the location or premises.

1996 cJ-1.1 s76

Seizure valid notwithstanding irregularity

77. (1) A seizure is valid notwithstanding an irregularity in the procedure by which it was carried out.

(2) Notwithstanding subsection (1), the court may order that a seizure be discontinued where it is satisfied that a person has been or is likely to be prejudiced by an irregularity in the procedure by which the seizure was carried out.

1996 cJ-1.1 s77

Custody of seized property

78. (1) The sheriff, at the time of seizure or after carrying out the seizure, may remove for safekeeping the personal property that has been seized.

(2) The sheriff may appoint the debtor or some other person as bailee of the personal property that has been seized if the debtor or other person signs an undertaking

(a) to hold that property for the sheriff; and

(b) to deliver up that property to the sheriff on demand by the sheriff.

(3) A debtor who has possession of or control over personal property that has been seized and has been served with the enforcement documents in respect of that property

(a) holds that property as bailee for the sheriff; and

(b) shall deliver that personal property to the sheriff

(i) when required to do so by the sheriff, and

(ii) at a location specified by the sheriff,

whether or not the debtor has signed an undertaking referred to in subsection (2).

(4) Where a person

(a) has a duty to deliver to the sheriff personal property that has been seized; and

(b) defaults in delivering the personal property to the sheriff within a reasonable time after being required to make that delivery,

that person

(d) shall compensate the creditors with related notices of judgment for a pecuniary loss suffered by them as a result of the non-compliance.

1996 cJ-1.1 s78

Report

79. (1) The sheriff shall, within a reasonable time after seizing or attempting to seize personal property, report that seizure or attempted seizure, in writing, to the instructing creditor.

(2) Where personal property has been seized, the sheriff's report shall include details of that seized property and a reasonable estimate of the value that would be realized from that seized property and available for distribution under Part XI.

(3) The sheriff shall maintain a record of the information to be included in a report under subsection (2).

1996 cJ-1.1 s79

Termination of seizure and notice of claim

80. (1) Where personal property is seized, it remains under seizure until

(a) sold or otherwise disposed of under this Act; or

(b) released from seizure by the sheriff.

(2) Where personal property has been seized and

(a) the sheriff has been unable to serve the debtor as required by subsection 75(2); or

(b) the personal property has been seized for not fewer than 60 days and, in the opinion of the sheriff, it is appropriate that the property be released from seizure,

the sheriff shall give notice of the proposed release to every creditor who, at the time that the notice is given, has a related notice of judgment of his or her intention to release the property from seizure.

(3) A creditor served with a notice under subsection (2) may apply to the court within 15 days of receiving that notice for a continuance of the seizure on the terms and conditions that the court may impose.

(4) Property shall not be released from seizure or returned to the debtor under subsection (2) until

(a) the period for an application to the court has elapsed with no application being made; or

(b) the application is dismissed.

1996 cJ-1.1 s80; 1998 c22 s18

Sale of property, etc.

81. For the purpose of selling seized personal property

(a) the sheriff shall not sell that seized property until instructed to do so by the instructing creditor;

(b) the property shall be sold as soon as is practicable after the instructions to sell are given;

(i) until the period of time for the delivery to the sheriff of a notice of objection or notice of claim with respect to the property has expired, or

(ii) where an effective notice of objection or an effective notice of claim is delivered to the sheriff, until the objection or claim is rejected, withdrawn, or the court authorizes the sale;

(d) the sale may be delayed if in the opinion of the sheriff it is commercially reasonable to do so;

(e) the property may without an order of the court be sold by a method that the sheriff considers to be commercially reasonable;

(f) at least 15 days before the day on which the sale is to take place, notice shall be served upon the instructing creditor and all creditors with related notices of judgment and the debtor of the method of sale being used;

(g) the property may be sold to a creditor by private sale if

(i) not fewer than 15 days before the day of the sale, notice of the terms of the sale is served upon the debtor, and all of the other creditors having related notices of judgment at the time that the notice is given, and

(ii) within the 15 day period the debtor or a creditor with a related notice of judgment has not notified the sheriff, in writing, that he or she objects to the sale;

(h) if the sheriff is notified of an objection to a private sale in accordance with subparagraph (g)(ii), the sheriff shall not sell the property to the creditor by that proposed private sale unless permitted to do so by the court;

(i) notwithstanding paragraphs (a), (b) and (c), the property may be sold or disposed of in an expeditious manner

(i) under order of the court,

(ii) if the property is perishable, depreciating rapidly in value, dangerous, unsanitary or a hazard to health, upon giving every interested person as much notice as is practicable in the circumstances,

(iii) if the property is unique or for a special purpose, the sheriff has received an offer to purchase the property at a reasonable price, it is not probable that another reasonable offer would be received provided, that interested persons have been given as much notice as is practicable in the circumstances, or

(iv) if the property is an instrument or a security;

(j) unless otherwise ordered by the court, the proceeds of that sale in accordance with paragraph (i) shall not be distributed before they could have been, based on the earliest time at which the property could otherwise have been sold; and

(k) where the property cannot be sold for a reasonable price, the property may be sold for the best obtainable price by or with approval of the sheriff

(i) under order of the court, or

(ii) if a reasonable price for the property would not exceed $1000.

1996 cJ-1.1 s81; 1998 c22 s19; 2007 cS-13.01 s109

PART VI
SPECIAL SEIZURE MECHANISMS

Application of Part

82. (1) Except where it would conflict with this Part, Part V applies to seizure proceedings against or dealing with property governed by this Part.

(2) For the purpose of applying the provisions of Part V a reference in this Part to the liquidation of property shall be considered to be a reference to a sale.

1996 cJ-1.1 s82

Cash and instruments

83. For the purpose of seizing and dealing with cash and instruments

(a) seized cash may not be distributed as enforcement proceeds until

(i) the expiration of the time within which the debtor may serve a notice of objection in accordance with subsection 159(1), and

(ii) where a notice of claim has been served on a third party under section 163, the expiration of the period within which the person may deliver a notice of claim to the sheriff;

(b) the seizure of an instrument makes the sheriff the irrevocable agent of the debtor for the purpose of liquidating the instrument;

(i) present the instrument for payment and receive payment on it,

(ii) sue a person liable on the instrument in the name of the debtor,

(iii) take proceedings or an action available to enforce a security for payment of the obligation evidenced by the instrument, and

(iv) negotiate the instrument; and

(d) the sheriff when endorsing an instrument on behalf of the debtor shall do so in a manner that shall exclude recourse against the debtor.

1996 cJ-1.1 s83

Obligations

84. (1) For the purpose of seizing and dealing with a secured obligation, other than a security or an obligation evidenced by an instrument,

(a) seizure of a secured obligation is effected by

(i) identifying the obligation and the security for it in the notice of seizure,

(ii) registering the notice of seizure in the registry appropriate for the property that is the security for the obligation, and

(iii) serving the enforcement documents on the debtor;

(b) if the debtor's security has not been registered in the appropriate registry when the secured obligation is seized, the sheriff may register the security in the registry appropriate for the property that is the security for the obligation;

(c) after seizing a secured obligation, the sheriff may serve a notice of the seizure on the person liable to pay the obligation and after being served with the notice that person shall pay to the sheriff an amount that is or becomes payable in respect of the obligation; and

(d) after serving a notice on the person liable to pay the obligation under paragraph (c) the sheriff, as an alternative to selling the secured obligation under Part V, may collect the obligation through proceedings, including an action or enforcement of the security for the obligation that could otherwise have been taken by the debtor.

(2) For the purpose of seizing and dealing with an obligation, other than a secured obligation, a security or an obligation evidenced by an instrument,

(a) where the sheriff considers it appropriate, he or she may seize an obligation for the purpose of sale;

(b) seizure of an obligation under paragraph (a) is effected by

(i) identifying the obligation in the notice of seizure, and

(ii) serving the enforcement documents on the debtor;

(c) after seizing an obligation, the sheriff may serve notice of the seizure in the required form on the person liable to pay the obligation and after being served with the notice that person shall comply with the directions of the sheriff in the notice; and

(d) upon effecting seizure, the sheriff shall proceed to sell the seized obligation under Part V.

(3) Notwithstanding subsections (1) and (2), an obligation shall not be seized if a garnishee order is in effect with respect to the obligation or if a judgment has been obtained against the garnishee under section 125.

(4) Where an obligation is seized under this Part, and the person liable to pay the obligation is notified of that seizure by the sheriff, a notice of third party interest in the required form shall accompany that notice.

1996 cJ-1.1 s84; 2007 cS-13.01 s109

Products of nature

85. For the purpose of seizing and dealing with agricultural products, products of aquaculture and products of the sea, lakes and rivers,

(a) the sheriff may seize growing crops, products of aquaculture and products of the sea, lakes and rivers;

(b) growing crops and products of aquaculture referred to in paragraph (a) shall not be sold until they have been harvested;

(c) the sheriff has the same rights and duties as the debtor regarding the sale of seized agricultural products, products of aquaculture and products of the sea, lakes and rivers under applicable marketing legislation or a marketing plan;

(d) unless the debtor undertakes to harvest a seized crop or product of aquaculture the sheriff may require the instructing creditor to provide security for the payment of harvesting expenses that may be incurred by the sheriff;

(e) if the instructing creditor does not provide the requested security, the sheriff may release the crop or products of aquaculture from seizure;

(f) expenses incurred by the sheriff in connection with

(i) harvesting, or

(ii) marketing

a seized crop, product of aquaculture or products of the sea, lakes and rivers are a first charge on and payable out of the proceeds of those crops or products in priority to a claim or right in the property including a security interest, lien, charge, encumbrance, mortgage or assignment, whether or not it arises under a statute; and

(g) the benefit of the charge referred to in paragraph (f) extends to a creditor who has paid the harvesting expenses incurred by the sheriff.

1996 cJ-1.1 s85

Fixtures

86. (1) For the purpose of seizing and dealing with fixtures,

(a) a fixture may be seized and sold as personal property

(i) as set out in paragraph (b), or

(ii) as authorized by the court;

(b) a fixture that is bound by a notice of judgment may be seized and sold in accordance with Part V where

(i) the absolute interest in the land to which the fixture is affixed is not beneficially owned by the debtor, and

(ii) the interest in the fixture of a person who has an interest in the land is subordinate to the notice of judgment;

(c) the sheriff shall serve on each person who is indicated by the instructing creditor as evidenced by documents registered in the registry of deeds as having an interest in the land on which the fixture is located a notice containing

(i) a description of the seized fixture and of the land to which it is affixed,

(ii) the amount for which notices of judgment is alleged to have priority over the person's interest in the fixture, and

(iii) a statement that the fixture may be removed and sold unless the amount referred to in paragraph (f) is paid before a specified date that is not less than 15 days after the day that the notice is served;

(d) a person who is entitled to receive a notice under paragraph (c) may apply to the court for an order postponing removal of the fixture from the land or for the determination of an issue relating to the seizure;

(e) if a fixture is seized and removed, a person, other than the debtor who had an interest in the land at the time that the fixture was affixed to the land,

(i) is entitled to reimbursement from the sheriff for damage to that person's interest caused during the removal of the fixture,

but

(ii) is not entitled to reimbursement for diminution in the value of the land caused by the absence of the fixture or the need to replace it; and

(f) a person with an interest in the land to which a fixture is affixed may retain the fixture by paying to the sheriff the lesser of

(i) the amount for which the person's interest in the fixture is subordinate to the notice of judgment, and

(ii) the market value of the fixture.

(2) Where the appropriate payment is made to the sheriff under paragraph (1)(f), the fixture ceases to be bound by a notice of judgment against the debtor.

1996 cJ-1.1 s86

Mobile homes

87. (1) For the purpose of acquiring possession of a seized mobile home,

(a) where

(i) the mobile home is occupied by the debtor or some other person, and

(ii) the occupant fails, on demand, to deliver up possession of the mobile home,

the instructing creditor, on notice to the occupant, may apply to the court for an order directing the occupant to deliver up possession of the mobile home; and

(b) the sheriff may obtain possession of the mobile home as authorized by the order referred to in paragraph (a) if

(i) the occupant has been served with the order, and

(ii) the occupant has failed to deliver up possession of the mobile home as directed by the order.

(2) For the purpose of this section, a mobile home means a vacation trailer, house trailer or portable dwelling unit manufactured wholly or partially for use as living accommodations for one or more persons and capable of being attached to, towed, propelled or transported by a motor vehicle or transported by any means on its chassis or on the chassis of a vehicle, but does not include a unit to which Part VII applies.

1996 cJ-1.1 s87

Partners interest

88. (1) Enforcement proceedings shall not be taken with respect to the joint property of a partnership except on a judgment in the name of the partnership.

(2) Notwithstanding subsection (1), the court may make an order under Part IX including the appointment of a receiver, with respect to the interest of the debtor in the partnership and upon the appointment of a receiver, the debtor shall be considered to have charged his or her interest in the partnership in favour of the receiver.

(3) A notice of judgment registered in the name of a debtor who is a partner shall not bind the joint interest of the partner in partnership property with respect to the dealing by the partnership with that property.

(4) Notwithstanding subsection (3), a notice of judgment binds the debtor's interest in the partnership.

(5) For the purpose of this section, partnership does not include a person carrying on business in a name or style other than that person's legal or proper name.

1996 cJ-1.1 s88

Definitions

89. (1) In sections 90 to 98, "private company" means a corporation other than a distributing corporation within the meaning of the Corporations Act .

(2) In sections 90 to 98, "appropriate person’, "endorsement", "entitlement order", "instruction", "issuer", "securities intermediary" and "security entitlement" have the same meanings as in the Securities Transfer Act .

2007 cS-13.01 s109

Effecting seizure

90. (1) The sheriff may seize the interest of a debtor in a security or a security entitlement in accordance with sections 48 to 52 of the Securities Transfer Act .

(2) Notwithstanding section 49 of the Securities Transfer Act the sheriff may seize the interest of a debtor in a security issued by a private company by serving a notice of seizure on the issuer at the issuer’s chief executive office.

(3) Where a seizure under this section is by notice to an issuer or a securities intermediary, the seizure becomes effective when the issuer or the securities intermediary has had a reasonable opportunity to act on the seizure, having regard to the time and manner of the receipt of the notice.

(4) Where a debtor’s interest in a security or a security entitlement is seized in accordance with this section and that interest is subject to a prior security interest,

(a) the seizure does not affect the prior security interest; and

(b) notwithstanding sections 91 to 97, the ability of the sheriff to deal with the security or security entitlement is limited to those rights and powers that the debtor would have had but for the seizure.

2007 cS-13.01 s109

Powers of sheriff on seizure

91. (1) Where a debtor’s interest in a security or a security entitlement is seized in accordance with section 90, the sheriff is the appropriate person for the purposes of dealing with or disposing of the seized property and, for the duration of the seizure, the debtor is not the appropriate person for the purposes of dealing with or disposing of the seized property.

(2) Upon seizure of a debtor’s interest in a security entitlement under section 90, the sheriff may

(a) do an act or thing that would otherwise have to be done by the debtor; or

(b) execute or endorse a document that would otherwise have to be executed or endorsed by the debtor.

(3) An endorsement, instruction or entitlement order made by the sheriff as the appropriate person under subsection (1) or by a receiver must be accompanied by a certificate of the sheriff or the receiver stating that the endorsement, instruction or entitlement order has been made by the sheriff or the receiver under this Act.

2007 cS-13.01 s109

Duties of private company

92. A private company that has been served with a notice of seizure with respect to a security of which the debtor is the registered holder shall

(a) send to the sheriff documents and allow the sheriff to inspect records that the debtor, as the registered holder of the security, is entitled to receive or inspect;

(b) pay to the sheriff a dividend or other payment in respect of the security that would otherwise be payable by the private company to the debtor; and

(c) comply with a direction given by the sheriff with respect to the seized security where the private company would be required to comply with the direction if that direction was given by the debtor while the security was not under seizure.

2007 cS-13.01 s109

Sheriff may deal with seized property

93. Where the sheriff has seized a debtor’s interest in a security entitlement by serving a notice of seizure on a securities intermediary whose securities intermediary’s jurisdiction within the meaning of the Securities Transfer Act is the province, the following applies:

(a) the sheriff is entitled to receive information or documents relating to the security entitlement that the securities intermediary is required to give to the debtor;

(b) the securities intermediary shall pay to the sheriff a distribution, dividend or other payment in respect of the security entitlement that would otherwise be payable by the securities intermediary to the debtor; and

(c) the sheriff is entitled to give a direction to the securities intermediary with respect to the seized security entitlement that the debtor would otherwise be entitled to give.

2007 cS-13.01 s109

Liability of private company or securities intermediary

94. A private company or securities intermediary who fails to comply with a duty under section 92 or 93 is liable for a pecuniary loss suffered by the creditors as a result of the failure.

2007 cS-13.01 s109

Liquidation of security

95. (1) The sheriff may liquidate a seized security by a means that the nature of the security permits.

(2) A restriction on the transfer of a security issued by a private company shall not apply to the transfer of the security by the sheriff under this Act.

(3) A restriction on the transfer of a security issued by a co-operative, other than a restriction under paragraph 99(1)(g) of the Co-operatives Act applies to the transfer of that security by the sheriff under this Act.

2007 cS-13.01 s109

Liquidation procedure re private company shares

96. (1) This section applies only to shares that are issued by a private company.

(2) Where a private company has been served with a notice of seizure with respect to certain shares, the private company shall inform a person of that service where he or she requests information from the private company regarding the debtor’s ownership of or ability to transfer those shares.

(3) On being instructed to sell seized shares, the sheriff shall serve a notice of the method of sale in the required form on

(a) the private company;

(b) a person who, to the knowledge of the sheriff, would have a preferential right to acquire the shares on a voluntary sale of the shares by the debtor; and

(4) The notice of the method of sale under subsection (3) shall set out the procedure the sheriff intends to follow in selling the shares.

(5) After complying with subsection (3), the sheriff shall not take further steps to sell the shares until 15 days have elapsed from the day that the notice was served under that subsection.

(6) The sheriff shall, in selling shares, use a method of sale that

(a) follows as closely as possible a procedure that the debtor would be required to follow in order to sell the shares; and

(b) provides to the private company and the existing shareholders of the private company a reasonable opportunity to buy or redeem the shares before they are offered for sale to another person.

(7) The sheriff is not required to comply with subsection (6) to the extent that the method of sale referred to in that subsection would prevent the shares from being sold at all or prevent them from being sold within a reasonable time or at a reasonable price.

(8) A person who would otherwise be entitled to acquire or redeem the shares for a predetermined price or at price fixed by reference to a predetermined formula is entitled to buy or redeem the shares from the sheriff for that price unless the court determines that a sale at that price would unfairly prejudice the debtor or the creditor.

(9) Before the shares are sold by the sheriff, a person referred to in subsection (3) may pay to the sheriff an amount sufficient to discharge all related notices of judgment and outstanding sheriff’s fees or charges and the taxable fees and disbursements of the instructing creditor, and on paying that amount to the sheriff that person has a lien on the shares for the amount paid to the sheriff, plus interest.

(10) Interest under subsection (9) shall be calculated in the same manner as for interest under the Judgment Interest Act .

(11) The sheriff or an interested person may apply to the court for an order that it considers appropriate with respect to the method of liquidating seized shares and, notwithstanding subsection (6), including an order

(a) respecting the method of sale, a term of a proposed sale or a proposed method of realising the value of the shares other than through sale;

(b) suspending sale proceedings; or

(c) directing that the private company that issued the shares be liquidated and its proceeds disposed of according to law.

(12) Where the sheriff has sent a notice of an intended sale to the persons mentioned in subsection (3) and an application is not made under subsection (11) before the shares are sold, the method of sale set out in the notice of intended sale shall be considered to have met the requirements of subsection (6).

2007 cS-13.01 s109

Missing security certificate

97. The court on application by the sheriff may require the private company to acknowledge a transfer or other disposition of the security without presentation of the security certificate where

(a) liquidation of the debtor’s interest in a security issued by the private company would ordinarily require presentation of a security certificate to the private company or its transfer agent;

(b) the security certificate appears to have been lost, destroyed or wrongfully taken; and

(c) the instructing creditor has made satisfactory provision for identification of the private company against a liability that the private company may incur in respect of the security certificate.

2007 cS-13.01 s109

Effect of transfer

98. (1) In addition to an agreement to which a transferee is considered under section 245 of the Corporations Act to be a party, a transferee of a security from the sheriff shall be considered to be a party to a shareholders’ agreement with respect to

(a) the management of the affairs of the private company; or

(b) the exercise of voting rights attached to the seized shares,

to which the debtor was a party at the time of the seizure and of which the transferee had knowledge at the time of the transfer if the shareholders’ agreement contains provisions intended to have the effect of precluding the debtor from transferring the security except to a person who agrees to be a party to that shareholders’ agreement.

(2) Notwithstanding subsection (1) and section 245 of the Corporations Act , the court may grant a declaration that the transferee is not bound by a term or provision of an agreement, bylaw or article that discriminates against the transferee because of the transferee acquiring the securities through notice of judgment proceedings.

2007 cS-13.01 s109

Rep. by 2007 cS-13.01 s109

99. [Rep. by 2007 cS-13.01 s109]

2007 cS-13.01 s109

PART VII
LAND

Application of Part

100. In this Part, land does not include an interest in land that secures an obligation or an obligation that is secured by an interest in land.

1996 cJ-1.1 s100

Instructions

101. (1) A creditor may instruct the sheriff to sell the debtor's land.

(2) The instruction to sell the debtor's land under subsection (1) shall be in writing and be accompanied by

(a) a current statement of status;

(b) a statement proposing the method of sale;

(d) a statement that a copy of the instructions and suggested method of sale were served upon all creditors with a related notice of judgment;

(e) a statement indicating a person who appears to be a spouse of the debtor within the meaning of the Family Law Act; and

(f) other documents or information reasonably required by the sheriff to sell the land.

(3) The sheriff may terminate enforcement proceedings where the instructing creditor has not provided the information required under subsection (2) within 15 days of a request from the sheriff for that information.

1996 cJ-1.1 s101

Method of sale

102. The sheriff may sell land by a method of sale that is commercially reasonable.

1996 cJ-1.1 s102

Service of documents and entry on land

103. (1) Before land is sold under this Act, the enforcement documents shall be served on the debtor.

(2) After the enforcement documents have been served under subsection (1), the sheriff may enter upon or gain access to the land for the purpose of conducting an inspection that is reasonably required to effect a sale of the land.

1996 cJ-1.1 s103

Unharvested products

104. Growing crops and unharvested products of aquaculture may be sold as part of a sale of land under this Part if the notice of intention to sell served under section 103 states that they are to be sold along with the land.

1996 cJ-1.1 s104

Waiting period

105. (1) The sheriff shall not, unless otherwise permitted by the court, offer or advertise the land for sale until 60 days have elapsed from the day that section 103 has been complied with.

(2) The sheriff shall not, unless otherwise permitted by the court, conduct a sale of the land or enter into an agreement for the sale of the land until 90 days have elapsed from the day that section 103 has been complied with.

(3) A court may extend the waiting periods provided in subsections (1) and (2).

1996 cJ-1.1 s105

Sale of land

106. (1) Not less than 30 days before offering land for sale a notice of the proposed terms and method of sale, in the required form, shall be served upon the debtor, the instructing creditor, creditors with a related notice of judgment, and other interested persons.

(2) The notice of the proposed terms and method of sale shall set out the proposed minimum price for and terms of sale of the land and shall state that a person who objects to the proposed terms, method of sale or minimum price shall notify the sheriff, in writing, of the objection within 30 days from the day of being served with a notice of the proposed terms and method of sale.

(3) Before serving a notice of the proposed terms and method of sale of land under subsection (1), the sheriff shall obtain a written appraisal of the land by a qualified appraiser, and where there is no qualified appraiser in the area of the land, the sheriff shall obtain a statement of the fair market value of the land from a licensed real estate agent familiar with land values in the area in which the land is located.

(4) Land shall not be sold by the sheriff for less than 75% of the appraised value of the land unless the sheriff or the instructing creditor first obtains approval from the court upon an application after notice has been served upon the debtor, creditors with a related notice of judgment and other interested persons.

(5) If a person served under subsection (1) serves a written notice of an objection on the sheriff within the time referred to in subsection (2), the sheriff shall not sell the land and shall make an application to the court for an order directing the method and terms of sale of the land after serving notice upon the debtor, instructing creditor, creditors with a related notice of judgment and other interested persons.

(6) Notwithstanding subsection (5), where, in the opinion of the sheriff, the objection is frivolous or merely intended to delay or prolong enforcement proceedings, the sheriff may disregard the notice of an objection, shall serve his or her decision upon the person making the objection and that notice is not effective.

(7) Where the sheriff disregards a notice of an objection under subsection (6), the person who made that objection may apply to the court within 15 days of the service of the decision for a determination of the issue.

(8) Where a notice of an objection is not served within the time referred to in subsection (2), the objection is not effective, and where an application is not made within the time referred to in subsection (7), the sheriff may complete the sale of the land in accordance with the proposed terms and method of sale and for a price that equals or exceeds the proposed minimum price.

1996 cJ-1.1 s106

Severance of joint tenancy, etc.

107. (1) Enforcement proceedings against a debtor's interest as a joint tenant of land, whether created at common law or by statute, sever the joint tenancy when the sheriff has entered into an agreement to sell the debtor's interest.

(2) If a notice of judgment is registered against land in which a debtor holds an interest in joint tenancy and the debtor dies, the notice of judgment shall continue to bind the land in an amount equal to the lesser of

(a) the amount owing on the notice of judgment; or

(b) the value that the debtor's interest in the land would have been if the joint tenancy had been severed immediately before the debtor's death.

(3) For the purpose of subsection (2), value shall have the same meaning as in Part X.

1996 cJ-1.1 s107

Transfer of land

108. (1) Upon completion of the sale in accordance with this Act, the sheriff shall execute a deed transferring title to the land to the transferee.

(2) Notwithstanding subsection (1), where an interest in land is sold under a court order made under subsection 106(5), the sheriff shall not transfer the interest until satisfied

(a) that all persons who have a right to appeal that order have given written undertakings not to appeal the order or, if the order has been appealed, not to take a further appeal; or

(b) in the case of the appropriate undertakings not being given under paragraph (a),

(i) that the order is no longer subject to an appeal, or

(ii) if the order has been appealed, that the appeal has been concluded and the order is no longer subject to a further appeal.

1996 cJ-1.1 s108

Small claims judgments

109. (1) Notwithstanding subsection 101(1), a creditor with a money judgment issued under the Small Claims Act shall not instruct the sheriff to sell the debtor's land.

(2) Where land against which a Small Claims Act creditor has a notice of judgment is sold upon the instruction of a creditor with a related notice of judgment, the distributable fund created by that sale of land shall be distributable to the creditor with the Small Claims Act judgment in accordance with Part XI.

1996 cJ-1.1 s109

Labrador Inuit lands exempt

109.1 (1) Notwithstanding subsection 101(1), a creditor with a money judgment shall not instruct the sheriff to sell lands that are Labrador Inuit Lands as defined in the Labrador Inuit Land Claims Agreement Act and the sheriff shall not carry out an enforcement proceeding against those lands.

(2) Subsection (1) does not apply to a statutory lien of the government of the province or of Canada upon Labrador Inuit Lands as defined in the Labrador Inuit Land Claims Agreement Act .

2004 cL-3.1 s43

PART VIII
GARNISHMENT

Definitions

110. (1) In this Part

(a) "current obligation" means an obligation, or a portion of an obligation, that on the day of service of a garnishee order on the garnishee

(i) is payable,

(ii) is payable on demand, or

(iii) is payable on satisfaction of a condition to which subsection 123(1) applies;

(b) "employment earnings" means wages, salary, commissions or remuneration for work by a natural person however computed;

(i) shall arise or become payable in certain circumstances or at a certain time or times under an existing agreement or trust, an issued security, or the will of a deceased person,

(ii) shall arise or become payable in the ordinary course of events from an existing employment relationship,

(iii) is a statutory obligation that is likely to arise or become payable as a result of an event that has occurred, or

(iv) may arise or become payable in respect of an existing cause of action;

(d) "garnished obligation" means an obligation against which a garnishee order has been issued;

(e) "garnishee" means a person on whom a garnishee order is served for the purpose of attaching an obligation that is owed or may become owing by that person to a debtor;

(f) "garnishee order amount" means

(i) the amount for which a garnishee order was originally issued, or

(ii) where the garnishee has been served with a notice of a change in the amount referred to in subparagraph (i), the amount set out in that notice;

(g) "joint entitlement" means an obligation that is or shall be owed to 2 or more persons jointly;

(h) "net pay" means the total employment earnings payable by an employer to a person in a month minus deductions that may be prescribed by regulation;

(i) "obligation" means a legal or equitable duty to pay money;

(j) "pay period" means a period at the end of which a person is entitled to be paid all or a portion of that person's employment earnings for that period;

(k) "security" has the meaning set out in paragraph 89(1)(e); and

(l) "statutory obligation" means an obligation imposed by an Act of Canada or of a province or territory of Canada .

(2) For the purpose of paragraph (1)(c),

(a) a reference to an existing state of affairs or to an event that has taken place refers to a state of affairs or event that is existing or that has taken place when the relevant garnishee order is served on the garnishee; and

(b) a reference to an existing agreement includes an agreement that amends or replaces an agreement that was existing when the relevant garnishee order was served on the garnishee.

1996 cJ-1.1 s110; 1997 c3 s9

General principles re garnishment

111. For the purpose of enforcing a money judgment by means of garnishment,

(a) except as otherwise provided by this or another Act, a current obligation or future obligation is attachable by garnishment;

(b) an obligation is not attachable if it is

(i) evidenced by an instrument,

(ii) a security, but the court may authorize the attachment of the security,

(iii) an obligation of an issuer or intermediary to the debtor with respect to a security which may be seized in accordance with Part VI, and

(iv) an obligation that is seized, subject to a garnishee order, or otherwise subject to enforcement proceedings;

(d) a garnishee order attaches the garnished obligation when the garnishee order and other required documents are served on the garnishee;

(e) an obligation that is owed to a debtor by a person carrying on business as a partnership within the province may be attached if the garnishee order is served on the partnership within the province notwithstanding that one or more members of the partnership do not reside in the province;

(f) except as provided under section 88, where a joint entitlement is owed to a debtor and another person, a garnishee order may be issued against that joint entitlement;

(g) a payment made by a garnishee under this Part or on a judgment granted under section 125 discharges the garnishee, to the extent of the payment, as against the debtor;

(h) a garnishee is entitled to a set-off to which the garnishee would have been entitled in the absence of garnishment proceedings if

(i) the right to the set-off already existed when the garnishee order was served on the garnishee,

(ii) the right to the set-off arose after the garnishee order was served on the garnishee but the set-off arose because of an obligation entered into by the garnishee before service of the garnishee order, or

(iii) it would be inequitable not to allow the set-off; and

(i) money held by the sheriff is not subject to garnishment.

1996 cJ-1.1 s111; 2007 cS-13.01 s109; 2009 c30 s8

Initiating garnishment proceedings

112. (1) A creditor may instruct the sheriff to issue a garnishee order.

(2) The sheriff shall issue a garnishee order only when a creditor has provided

(a) instructions in writing;

(b) a current statement of status;

(d) the information respecting the obligation to be attached that the sheriff reasonably requires;

(e) a statement that a copy of the instructions was delivered to all other creditors with related notices of judgment; and

(f) other information as required by the sheriff.

(4) Instructions to issue a garnishee order delivered to the sheriff shall be accompanied by an affidavit in the required form

(a) stating that to the best of the deponent's belief, the garnishee is under a current obligation or future obligation to the debtor; and

(b) briefly stating the grounds for that belief.

1996 cJ-1.1 s112

Contents of garnishee order

113. A garnishee order shall be in the required form and shall

(a) be issued for the amount of the enforcement debts outstanding on all related notices of judgment against the debtor;

(b) where issued with respect to the debtor's employment earnings, state the income exemption amount determined under section 140;

(d) set out its expiry date.

1996 cJ-1.1 s113

When garnishee order is in effect

114. (1) A garnishee order expires one year from the day on which it was issued.

(2) Notwithstanding subsection (1), where a garnishee order is issued in respect of a deposit account, the garnishee order expires 60 days from the day on which it was issued.

(3) A garnishee order remains in effect until the earliest of the following occurs

(a) the garnishee order expires;

(b) the garnishee pays the garnishee order amount to the sheriff;

(d) the garnishment proceedings are terminated by order of the court; and

(e) the expiration of the judgment upon which the garnishee order is grounded.

(4) A garnishee order may be amended in accordance with the regulations to change the garnishee order amount.

(5) Notwithstanding subsections (1) and (2), a garnishee order may be renewed or replaced in accordance with the regulations.

(6) Notwithstanding subsection (1), the sheriff may extend a garnishee order for an additional period the sheriff considers appropriate.

(7) Subsection (6) is considered to have come into force on June 1, 1998 .

1996 cJ-1.1 s114; 1998 c6 s16

Discretionary exemption

115. Where the source of a garnished future obligation

(a) is property of the debtor; or

(b) is an agreement between the debtor and the garnishee,

the court upon the application of an interested person may exempt from attachment as much of the obligation as is required by the debtor to keep or maintain the property or to perform the agreement.

1996 cJ-1.1 s115

Garnishee's duties

116. (1) Where a garnishee order is served on a garnishee,

(a) the garnishee shall pay to the sheriff the lesser of

(i) the amount payable by the garnishee to the debtor in respect of the attached obligation, or

(ii) the garnishee order amount

within 15 days from

(iii) in the case of a current obligation, the day of being served with the garnishee order, or

(iv) in the case of a future obligation, the day that the future obligation or a portion of it becomes payable; and

(b) the garnishee shall comply with the duties that may be prescribed by regulation.

(2) For the purpose of subparagraph (1)(a)(ii), the garnishee order amount shall be the garnishee order amount stated in the garnishee order or the most recent amendment less payments made by the garnishee to the sheriff since the service of the garnishee order or an amendment to that order.

(3) A garnishee shall be entitled to an amount prescribed by regulation as compensation for carrying out the garnishee's duties.

1996 cJ-1.1 s116

Payment as discharge

117. A payment made by a garnishee to the sheriff which is accompanied by a notice of third party interest discharges the garnishee to the extent of the payment as against a person disclosed in that notice.

1996 cJ-1.1 s117

Garnishee dispute

118. (1) Where a garnishee disputes the paying of money to the sheriff in accordance with the garnishee order, the garnishee shall, in writing, within 15 days from the day of being served with the garnishee order, notify the sheriff of the dispute.

(2) The sheriff shall deliver a copy of a dispute received under subsection (1) to the debtor and all creditors with related notices of judgment.

(3) Notification in accordance with subsection (1) does not affect the operation of the garnishee order.

1996 cJ-1.1 s118

Money not to be distributed

119. Money received under a garnishee order may not be distributed as enforcement proceeds until

(a) the appropriate enforcement documents have been served on the debtor and the expiration of the time within which the debtor may serve a notice of objection in accordance with section 159;

(b) the expiration of the time within which a notice of third party interest is to be returned to the sheriff;

(c) where a notice of claim has been or will be served on a third party in accordance with section 162, the expiration of the period within which the person may deliver a notice of claim to the sheriff; and

(d) the expiration of another period provided in this Act.

1996 cJ-1.1 s119

Money in court

120. (1) Where money is standing to the credit of a debtor in a court, the sheriff may serve a garnishee order on the clerk of that court.

(2) Where a cause of action has been attached, the garnishee may, upon filing the garnishee order and relevant adjustments with the clerk of the court, pay money into court under the Judicature Act and the Rules of the Supreme Court, 1986 .

(3) Where otherwise payable to the debtor, money paid into court under subsection (2) shall be paid out to the sheriff in accordance with the procedures under theJudicature Act and the Rules of the Supreme Court, 1986 .

1996 cJ-1.1 s120

Employment earnings

121. (1) Unless permitted under subsection 147 a garnishee order shall not be issued with respect to the debtor's employment earnings.

(2) For the purpose of garnishing a debtor's employment earnings from the debtor's employer

(a) in a month during which a garnishee order is in effect, the garnishee order attaches the amount by which a debtor's net pay for the month exceeds his or her income exemption amount for the month stated in the garnishee order as determined under section 140;

(b) the employment earnings that are attached by a garnishee order in a month shall, at the end of the debtor's last pay period that ends during the month, be paid by the garnishee to the sheriff;

(c) at the end of a debtor's last pay period for each month during which a garnishee order is in effect, the garnishee shall deliver to the sheriff a statement setting out

(i) the debtor's total employment earnings for the pay periods that ended during the month,

(ii) the number of the debtor's dependents, and

(iii) the particulars of amounts deducted in calculating the debtor's net pay for the month;

(d) a garnishee's compensation for dealing with the garnishee order as permitted under subsection 116(3) shall be included in the calculation of the amount attached by a garnishee order, but may be deducted from the debtor's employment earnings only where the debtor's net pay exceeds the debtor's income exemption amount;

(e) the priority of a garnishee order served on an employer shall be determined in accordance with the provisions of the Support Orders Enforcement Act, 2006 and a garnishee order shall not alter or change the obligation to make the payments required under that garnishee order;

(f) the effect of a support order within the meaning of the Support Orders Enforcement Act, 2006 on the calculation of the surplus income of a debtor shall be determined in accordance with the provisions of Part X of this Act; and

(g) an interruption of less than 30 days in a debtor's employment shall not be taken into account in determining the effect of a garnishee order issued against the debtor's employment earnings.

(3) Paragraphs 114(3)(b) and 116(1)(a) do not apply to a garnishee order issued against employment earnings.

(4) Where a notice of judgment arises from an order for maintenance or support and there is filed with the sheriff a

(a) certified copy of that order;

(b) certified copy of the affidavit of arrears upon which the notice of judgment was issued; and

the sheriff, at the request of the creditor, shall issue a garnishee order in the required form directed to the Crown in right of Canada for the purpose of the Family Orders and Agreements Enforcement Assistance Act ( Canada ) and that garnishee order shall cease to have effect on the expiry of the notice of judgment.

1996 cJ-1.1 s121; 1998 c22 s20; 2006 cS-31.1 s85

Joint entitlement

122. For the purpose of garnishing a joint entitlement in which a debtor has an interest:

(a) on being served with a garnishee order, the garnishee's response to the order shall include the names and addresses of the joint obligees other than the debtor;

(b) after a garnishee has responded to a garnishee order, a copy of the garnishee order and a notice of the garnishee's response shall be served on each joint obligee;

(c) if disclosure of a joint obligee's address would be unlawful or a breach of a legal duty owed by the garnishee to the obligee, paragraphs (a) and (b) shall not apply and the garnishee shall

(i) serve the garnishee order on the obligee, and

(ii) certify in the garnishee's response that the garnishee has done so;

(d) where a joint entitlement is owed to a debtor and another person, it is presumed for the purpose of this Part that an equal portion of the joint entitlement is owed to each joint owner;

(e) notwithstanding paragraph (d), if, on application by a creditor without notice to another person, it appears to the court that the debtor may be beneficially entitled to a larger portion of the joint entitlement than is presumed under that paragraph, the court may require the garnishee to pay the larger portion to the sheriff;

(f) if an amount is received by the sheriff that exceeds the portion of a joint entitlement that is attributed to the debtor under paragraph (d), that amount may not be distributed unless the court is satisfied, on an application on notice to the other obligees, that the debtor is beneficially entitled to the excess amount;

(g) notwithstanding paragraph (d), on the application of an interested person, the court may determine the actual beneficial interest of each joint obligee; and

(h) where money is received by the sheriff in respect of a joint entitlement, that money shall not, unless the court otherwise directs, be distributed until 30 days have expired from the day that the notice is served on all the joint obligees.

1996 cJ-1.1 s122

Deposit accounts

123. (1) For the purpose of determining whether a deposit account obligation is payable, a condition of the account agreement

(a) that the account holder shall apply in person to make or give notice before making a withdrawal; or

(b) that a person making a withdrawal shall present a pass-book or other document to the garnishee,

shall not apply for the purpose of this Part.

(2) A garnishee order that attaches a joint deposit account only attaches the portion of the joint entitlement that is a current obligation.

(3) The court may on application by an interested person make an order necessary to prevent a garnishee from being prejudiced by the operation of this section.

1996 cJ-1.1 s123; 1998 c22 s21

Conditional obligation

124. (1) Where a garnished obligation shall arise or become payable only upon the satisfaction of a condition, the court, if satisfied that doing so shall not prejudice the garnishee, may

(a) direct that the condition not apply or be modified for the purpose of this Part;

(b) require the debtor to satisfy the condition; or

(c) authorize the sheriff or a creditor to do anything for the purpose of satisfying the condition that would otherwise have to be done by or with the authority of the debtor.

(2) An order under this section shall not shorten a period of time that otherwise shall expire before the garnished obligation shall arise or become payable.

1996 cJ-1.1 s124

Enforcement of garnishee's duties

125. (1) Where a garnishee

(a) does not comply with a requirement of this Part, the court may, on the application of a creditor grant the relief that it considers appropriate; or

(b) has failed to pay money to the sheriff in accordance with this Act, a creditor may apply to the court and that court may

(i) grant judgment against the garnishee for the amount of the garnishee order or a lesser amount that the court considers appropriate in the circumstances,

(ii) where the attached obligation is a money judgment, order that the judgment be assigned to a creditor, or

(iii) where the debtor has commenced an action against the garnishee to enforce the obligation, order that the action be assigned to a creditor and that the creditor have conduct of the action.

(2) Where a creditor applies to the court under paragraph (1)(b),

(a) the creditor shall deliver a copy of that application to the sheriff;

(b) subsections 164(2), (3) and (4) shall apply, with the necessary changes, as if the creditor were an instructing creditor and the application were a dispute of a third party claim;

(c) a judgment may be in the name of the applying creditor but the judgment shall be for the benefit of all the creditors who would have shared in a distribution if the money had been paid to the sheriff under this Part;

(d) a creditor who receives money as a result of an application under paragraph (1)(b) shall pay the money to the sheriff; and

(e) section 154 shall apply to the distribution of money received by the sheriff as a result of the application as if the creditor were the instructing creditor and the application were a dispute of a third party claim, with all the necessary changes.

1996 cJ-1.1 s125

PART IX
RECEIVERS AND SPECIAL REMEDIES

Court appointed remedies

126. (1) Notwithstanding a rule of law or equity to the contrary, where exigible property of a debtor cannot be conveniently realized and where the court considers it to be just or convenient, the court on the application of a creditor may

(a) appoint a receiver of the property;

(b) order the debtor or a person in possession or control of the property to deliver the property to the sheriff or to another person named in the order;

(d) make an additional order that the court considers necessary to facilitate realization of the property.

(2) Where a creditor makes an application under paragraph (1)(a), that creditor shall be considered to be the instructing creditor.

(3) Where a creditor makes an application for immediate relief under paragraph (1)(c), he or she may make that application without notice to another party.

(4) A money judgment may be enforced by a contempt order in accordance with Rule 53 of the Rules of the Supreme Court, 1986.

(5) Nothing in this Act limits the jurisdiction of the court to punish for contempt in accordance with Rule 53 of the Rules of the Supreme Court, 1986.

(6) Where money is payable for the benefit of a creditor under a contempt order made by the court, it shall be paid to the sheriff and is considered to be money realized by enforcement proceedings under subsection 150(1).

(7) Where the court appoints a receiver under subsection (1), the court may in the order direct that the order apply to property acquired by the debtor after the order is granted.

1996 cJ-1.1 s126; 1998 c22 s22

Considerations re appointment of receivers

127. In determining whether to appoint a receiver under section 126, the court shall consider

(a) if it would be more practical to realize on the property through other proceedings authorized by this Act;

(b) if the appointment of a receiver would be an effective means of realizing on the property;

(c) the probable cost of the receivership in relation to the probable benefits to be derived by the appointment of a receiver;

(d) if the appointment of a receiver would cause undue hardship or prejudice to the debtor or a third person; and

(e) the likelihood of the notices of judgment against the debtor being satisfied without resorting to the property in question.

1996 cJ-1.1 s127

Receivers

128. (1) A person appointed as a receiver shall agree in writing to act as a receiver in respect of the matter for which the appointment is to be made.

(2) The court may give a receiver those powers that it considers necessary for the realization of the property, including the power to manage or sell the property or bring proceedings in relation to the property.

(3) Unless otherwise ordered by the court, a receiver may take custody and control of the property over which the receiver is appointed.

(4) A receiver other than the sheriff shall

(a) promptly remit to the sheriff money realized through the receivership that is not necessary to meet the anticipated receiver's fees and expenses;

(b) at least every 6 months, deliver to the sheriff financial statements in the required form with respect to the administration of the receivership; and

(c) upon completion of the receivership, deliver to the sheriff a final account of the administration of the receivership in the required form and remit the net amount realized through the receivership.

(5) Unless the court otherwise orders, a receiver shall give security approved by the court to account for property received by the receiver, as receiver, and the receiver shall deal with the property as this Act and the court directs.

(6) Security under subsection (5) shall be paid to the Registrar of the Court.

(7) On the application of an interested person, the court may

(a) remove, replace or discharge a receiver;

(b) give a direction on a matter relating to the duties of a receiver; and

(8) The powers of the court and the duties of a receiver provided in this Part are in addition to other powers or duties provided in the Rules of Supreme Court, 1986 or which the court may otherwise exercise in its jurisdiction over receivers.

1996 cJ-1.1 s128

PART X
EXEMPTIONS

Definitions

129. In this Part

(a) "dependent" means a person for whose maintenance or support a debtor is responsible, or for whose maintenance or support a deceased debtor was responsible at the time of his or her death;

(b) "employment earnings" means employment earnings as defined in paragraph 110(1)(b);

(c) "income" means property of a debtor which he or she has received or has the right to receive which is in the nature of income;

(d) "income exemption amount" means the amount stated in an income exemption certificate;

(e) "income exemption certificate" means a certificate issued under section 140;

(f) "income source" means property of the debtor required to generate income and that individually or collectively is capital in nature;

(g) "instalment order" means an order issued under section 146;

(h) "life insurance" means life insurance as defined in the Life Insurance Act ;

(i) "net income" of a debtor means the amount calculated for a period of time in accordance with this Part which is the sum of

(i) net pay,

(ii) retirement fund income, and

(iii) for all other income, the net income from a source calculated by deducting only expenses that are not in default and an amount that the debtor would be required to pay as taxes under an Act of the Legislature of a province or the Parliament of Canada;

(j) "net pay" means net pay as defined in paragraph 110(1)(h);

(k) "pension plan" means the rights of a person with respect to, or to the benefits under, a pension plan within the meaning of the Pension Benefits Act, 1997 and any other foreign pension plan that is similar in nature to a pension plan registerable under the provisions of the Income Tax Act (Canada);

(l) "policy" means policy as defined in the Life Insurance Act ;

(m) "retirement fund" means the rights of a person under a registered retirement savings plan or registered retirement fund within the meaning of the Income Tax Act ( Canada );

(n) "retirement fund income" means an amount equal to

(i) the total of all money and the value of all property received by the debtor or the sheriff from a retirement fund,

less

(ii) an amount that the debtor would be required to pay as taxes under an Act of the Legislature of a province or the Parliament of Canada on that amount if it were received by the debtor,

but does not include a transfer of a retirement fund to another retirement fund or pension plan;

(o) "surplus income" means the amount by which a debtor's net income for a period exceeds the income exemption amount for that period; and

(p) "value" means the amount that reasonably would be realized as a result of enforcement proceedings.

1996 cJ-1.1 s129; 1997 c3 s10

Non-applicability of Part

130. (1) Unless otherwise expressly provided, this Part does not apply

(a) where the debtor is not a natural person;

(b) to property that the debtor has abandoned; or

(2) Paragraph (1)(c) shall not apply to exempt property to the extent that other exempt property of that type was disposed of to enable the debtor to acquire that exempt property.

1996 cJ-1.1 s130

Exempted property

131. (1) The interest of a debtor in the following property is exempt from enforcement proceedings:

(a) food required by the debtor and his or her dependents during the next 12 months;

(b) necessary clothing of the debtor and his or her dependents that is of a value not exceeding an amount prescribed by the regulations;

(c) household furnishings, utensils, equipment and appliances that are of a value not exceeding an amount prescribed by the regulations;

(d) one motor vehicle of a value not exceeding an amount prescribed by the regulations;

(e) medical and dental aids that are required by the debtor and his or her dependents;

(f) items of sentimental value to the debtor that are of a value not exceeding an amount prescribed by the regulations;

(g) domesticated animals which are kept as pets and not used for a business purpose;

(h) the principal residence of a debtor that is of a value not exceeding an amount prescribed by the regulations;

(i) either

(i) personal property used by and necessary for the debtor to earn income from his or her occupation, trade, business or calling to a value not exceeding an amount prescribed by the regulations,

(ii) where the debtor's primary occupation is farming, personal property, including agricultural products, ordinarily used by and necessary for the debtor to earn income from farming to a value not exceeding an amount prescribed by the regulations,

(iii) where the debtor's primary occupation is fishing, personal property ordinarily used by and necessary for the debtor to earn income from fishing to a value not exceeding an amount prescribed by the regulations, or

(iv) where the debtor's primary occupation is aquaculture, personal property ordinarily used by and necessary for the debtor to earn income from aquaculture to a value not exceeding an amount prescribed by the regulations;

(j) except as otherwise provided by this or another Act, a pension plan; and

(k) property as prescribed by the regulations.

(2) For the purpose of paragraph (1)(h), "principal residence" means the debtor's interest in property whether real or personal which entitles the debtor to occupy a property as his or her ordinary residence.

1996 cJ-1.1 s131

Exemption of registered plans

131.1 (1) In this section

(a) "current obligation or future obligation" means a current obligation or future obligation within the meaning of section 110;

(b) "DPSP" means a deferred profit sharing plan as defined in section 147 of the federal Act;

(d) "plan holder" means

(i) with respect to a DPSP, an employee within the meaning of section 147 of the federal Act,

(ii) with respect to an RRIF, an annuitant as defined in section 146.3 of the federal Act, and

(iii) with respect to an RRSP, an annuitant as defined in section 146 of the federal Act;

(e) "registered plan" means a DPSP, an RRIF or an RRSP;

(f) "RRIF" means a registered retirement income fund as defined in section 146.3 of the federal Act; and

(g) "RRSP" means a registered retirement savings plan as defined in section 146 of the federal Act.

(2) Property in a registered plan, including a current obligation or future obligation under the plan, is exempt from the enforcement process.

(3) An exemption under subsection (2) extends to a direct transfer of property from one registered plan to another registered plan.

(4) This section does not apply to an enforcement process commenced against a registered plan before this section comes into force.

(5) Where a provision of this section is inconsistent or in conflict with a provision of another Act, other than the Support Orders Enforcement Act and the Support Orders Enforcement Act, 2006 , the provision of this section prevails unless the other Act expressly provides that it, or a provision of it, prevails,

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