Seized Property Disposition Regulations (SOR/94-303)

Short Title

1 These Regulations may be cited as the Seized Property Disposition Regulations.

Interpretation

2 In these Regulations,

Act

Act means the Seized Property Management Act; (Loi)

contract for services

contract for services means a contract for services in respect of any property that is in the possession or under the control of the Minister, whether the property has been forfeited to Her Majesty or not; (marché de services)

contractor

contractor means any person who enters into a contract for services with the Minister, referred to in section 18 of the Act; (entrepreneur)

property

property means property referred to in any of subsections 4(1) to (3) of the Act that is forfeited to Her Majesty. (bien)

Disposition of Property

• 3 (1) Property may be disposed of in any manner including public tender or public auction.

• (2) All property disposed of under these Regulations shall be disposed of on an “as-is/where-is” basis.

• 4 (1) Where property is being disposed of by means of public tender, all tenders shall be in writing and shall be submitted in sealed envelopes marked “tender”.

• (2) The envelopes referred to in subsection (1) shall remain sealed until the designated closing date, after which time the envelopes shall be opened in the presence of at least two persons.

5 The Minister may cancel the sale of any property offered for sale by public auction or public tender where no bid or tender is received, no bid or tender meets the minimum bid or tender set before the sale, or the Minister does not consider any of the bids or tenders acceptable.

6 Where two or more tenders in respect of property are in the same amount, the first tender received shall be given precedence.

7 The Minister shall give notice, in writing, to the person whose bid or tender in respect of property has been verbally or otherwise accepted, setting out the period within which the sale must be completed.

8 Where a person whose bid or tender in respect of property has been accepted does not complete the sale within the period set out in the notice referred to in section 7, the Minister may cancel that sale and accept the next-best acceptable bid or tender.

• 9 (1) The Minister may require a deposit from a person who submits a bid or tender in respect of property to guarantee completion of a sale.

• (2) Where a person whose bid or tender in respect of property has been accepted does not complete the sale within the period set out in the notice referred to in section 7, the person’s deposit in respect of that property shall be forfeited to Her Majesty, deposited in the Consolidated Revenue Fund and credited to the Proceeds Account.

10 Where the Minister disposes of property that is real property, the Minister shall do so in accordance with, in addition to sections 3 to 9 of these Regulations, the Federal Real Property Act, the Federal Real Property Regulations and any other regulations made under that Act on or after May 1, 1994.

11 Where the Minister considers property to be unsuitable for sale or of insufficient value to justify a sale, the Minister may dispose of that property in any other manner including the execution of a release or discharge.

Net Proceeds

• 12 (1) The net proceeds of the disposition of property referred to in paragraph 13(2)(a) of the Act shall be calculated within 60 days after the disposition of the property.

• (2) The amounts to be deducted from the proceeds of the disposition of property for the purposes of calculating the net proceeds are

  • (a) any amount to be paid, in relation to the property, pursuant to paragraph 462.42(6)(b) of the Criminal Code;

  • (b) any amount paid, in relation to the property, as a consequence of an order under subsection 17(4) of the Narcotic Control Act;

  • (c) any expenses incurred by the Minister in respect of the management and disposition of the property; and

  • (d) advances made by the Minister pursuant to paragraph 9(b) of the Act.

Indemnification

• 13 (1) Subject to subsection (3), the indemnification that may be granted pursuant to section 18 of the Act includes any amount that may be paid

  • (a) to settle an action, subject to the prior approval of the amount by the Minister; or

  • (b) to satisfy a judgement.

• (2) Where a contractor has complied with section 14 and the Minister is satisfied that the contractor acted honestly and in good faith and, in the case of any criminal or administrative action or proceeding that is enforced by a monetary penalty, believed on reasonable grounds that the contractor’s conduct was lawful, the Minister shall pay

  • (a) the amount to be paid under the indemnification granted pursuant to section 18 of the Act; and

  • (b) the contractor’s reasonable costs, charges and expenses in connection with a claim in respect of which indemnification has been granted pursuant to section 18 of the Act.

• (3) In no event shall any indemnification apply to any civil, criminal or administrative action or proceeding instituted by Her Majesty in right of Canada.

• 14 (1) A contractor who becomes aware of a possible or actual claim in respect of anything done, or omitted to be done, by the contractor under a contract for services shall, within 15 days after becoming aware of the possible or actual claim, give by registered mail a written notice of the claim, together with any relevant documents, to the Minister at the address specified in the contract for services.

• (2) A contractor who proposes to settle a claim referred to in subsection (1) shall, at least 15 days before accepting any terms of settlement, give by registered mail a written notice of the proposed settlement, together with any relevant documents, to the Minister at the address specified in the contract for services.

Report of Location of Property

15 The Minister shall file the report referred to in subsection 5(2) of the Act identifying the location of property, in the form set out in the schedule, within seven days after changing the location of the property.