Bankruptcy and Insolvency Act

Marginal note:Trust account

• 25 (1) Subject to subsections (1.1) and (1.2), a trustee shall forthwith deposit in a bank all moneys received for an estate in a separate trust account for each estate.

• Marginal note:Other banks must be insured

  (1.1) The trustee may deposit moneys pursuant to subsection (1) in a deposit-taking institution, other than a bank as defined in section 2, only if deposits held by that institution are insured or guaranteed under a provincial or federal enactment that provides depositors with protection against the loss of money on deposit with that institution.

• Marginal note:Foreign moneys

  (1.2) Where moneys referred to in subsection (1) are situated in a country other than Canada, the trustee may, where authorized by the Superintendent, deposit the moneys in a financial institution in that country that is similar to a bank.

• Marginal note:Permission needed for certain acts

  (1.3) The trustee shall not withdraw any money from the trust account of an estate without the permission in writing of the inspectors or, on application, the court, except for the payment of dividends and charges incidental to the administration of the estate.

• Marginal note:Payment by cheque

  (2) All payments made by a trustee under subsection (1) shall be made by cheque drawn on the estate account or in such manner as is specified in directives of the Superintendent.

• Marginal note:Not in private account

  (3) The trustee shall not deposit any sums received by the trustee in the trustee’s official capacity as a trustee in any banking account kept by the trustee for the trustee’s personal use.