Marginal note:Proof may be requested
128. (1) Where the trustee has knowledge of property that may be subject to a security, the trustee may, by serving notice in the prescribed form and manner, require any person to file, in the prescribed form and manner, a proof of the security that gives full particulars of the security, including the date on which the security was given and the value at which that person assesses it.
Marginal note:Where reply not received
(1.1) Where the trustee serves a notice pursuant to subsection (1), and the person on whom the notice is served does not file a proof of security within thirty days after the day of service of the notice, the trustee may thereupon, with leave of the court, sell or dispose of any property that was subject to the security, free of that security.
Marginal note:Dividend on balance
(2) A creditor is entitled to receive a dividend in respect only of the balance due to him after deducting the assessed value of his security.
Marginal note:Trustee may redeem security
(3) The trustee may redeem a security on payment to the secured creditor of the debt or the value of the security as assessed, in the proof of security, by the secured creditor.
- R.S., 1985, c. B-3, s. 128;
- 1992, c. 27, s. 51;
- 1999, c. 31, s. 25;
- 2004, c. 25, s. 68(F).
Marginal note:May order security to be sold
129. (1) Where the trustee is dissatisfied with the value at which a security is assessed, the trustee may require that the property the security comprises be offered for sale at such time and on such terms and conditions as may be agreed on between the creditor and the trustee or, in default of such an agreement, as the court may direct.
Marginal note:Sale by public auction
(2) Where a sale under subsection (1) is by public auction the creditor or the trustee on behalf of the estate may bid or purchase.
(3) [Repealed, 1992, c. 27, s. 52]
Marginal note:Costs of sale
(4) The costs and expenses of a sale made under this section are in the discretion of the court.
- R.S., 1985, c. B-3, s. 129;
- 1992, c. 27, s. 52;
- 2004, c. 25, s. 69(F).
Marginal note:Creditor may require trustee to elect to exercise power
130. Notwithstanding subsection 128(3) and section 129, the creditor may, by notice in writing, require the trustee to elect whether he will exercise the power of redeeming the security or requiring it to be realized, and if the trustee does not, within one month after receiving the notice or such further time or times as the court may allow, signify in writing to the creditor his election to exercise the power, he is not entitled to exercise it, and the equity of redemption or any other interest in the property comprised in the security that is vested in the trustee shall vest in the creditor, and the amount of his claim shall be reduced by the amount at which the security has been valued.
- R.S., c. B-3, s. 101.
- Date modified: