Companies’ Creditors Arrangement Act
Marginal note:Statutory Crown securities
18.5 (1) In relation to a proceeding under this Act in respect of a debtor company, a security provided for in federal or provincial legislation for the sole or principal purpose of securing a claim of Her Majesty in right of Canada or a province or a workers' compensation body is valid in relation to claims against the company only if the security is registered before the date of the initial application for an order under section 11 pursuant to any system of registration of securities that is available not only to Her Majesty in right of Canada or a province or a workers' compensation body, but also to any other creditor who holds a security, and that is open to the public for information or the making of searches.
Marginal note:Effect of security
(2) A security referred to in subsection (1) that is registered in accordance with that subsection
(a) is subordinate to securities in respect of which all steps necessary to make them effective against other creditors were taken before that registration; and
(b) is valid only in respect of amounts owing to Her Majesty or a workers' compensation body at the time of that registration, plus any interest subsequently accruing on those amounts.
- 1997, c. 12, s. 125
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