Bill 42 (Legislature 5, Session 4)

L5 S4 9438

Alberta — Bills

BILL No. 42 of 1924.

An Act to Regulate the Rights and Priorities of Landlords after a Voluntary Assignment for the Benefit of Creditors. (Assented to , 1924).

WHEREAS, by

section 52 of The Bankruptcy Act of the Dominion of Canada, it is provided that when a receiv ing order or assignment is made against or by any lessee under that Act, the same consequences shall ensue as to the rights and priorities of his landlord as would have ensued under the laws of the Province in which the demised prem ises were situated if the lessee at the time of such receiving order of assignment had been a person entitled to make and had made an abandonment or voluntary assignment of his property for the benefit of his creditors pursuant to the laws of the Province,' and it was further provided in the said

section that nothing in the said Act should be deemed to sus pend, limit or affect the legislative authority of any Province to enact any law for or regulating the rights and priorities of landlords consequent upon any such abandonment or vol untary assignment; and it was further provided by the said

section that nothing in the said Act should 'be deemed to interfere or conflict with the operation of any such Provin cial law heretofore or hereafter enacted insofar as it pro vides for or regulates the rights and priorities of landlords in such an event; And

whereas, there is at present no law of the Province providing for voluntary assignment of property for the benefit of creditors generally; And

whereas, it is advisable that provision should be made for such assignment and for regulating the rights and prior ities of landlords upon such assignment being made;

Now therefore, Hi" Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Alberta, enacts as follows: 1. This Act may be cited as "The Landlord'~ Rights (BMikru]Jtcy) Act, 1924." 2. Any person may make a voluntary assignment of all his property for the general benefit of his creditors.

2 2. Any lessee against or by whom a receiving order 01' assignment is made under The Bankruptcy Act shall be deemed to have made an assignment of all his property for the general benefit of his creditors prior to the date of the said receiVing order or assignment. 3.

As soon as such order or assignment is made then the landlord of such lessee shall thereafter not be entitled to distrain or realize his rent by distress and the trustee in whom the property of the lessee vests under the provisions of The BankrulJtcy Act (hereinafter called "the trustee"), shall pay to the landlord in priority to all other debts, an amount not exceeding in value the distrainable assets of the said lessee, and not exceeding three months' rent accrued due prior to the date of such order or assignment (herein after referred to as "the said date"), and the costs of dis- tress, . if any. . 4.

The said lessee shall be a debtor to the landlord for all surplus' rent in excess of the said three months' rent, which has accrued due at the said date and also for any accelerated rent to which he may be entitled under his lease, not exceeding an amount equal to three months' rent. 5.

Except as aforesaid, the landlord shall not have any right to claim as a debt any money due to him from the lessee for any portion of the unexpired term of his lease,. but the said trustee shall pay to the landlord for the period during which he actually occupies the leased premises from and after the said date a rental calculated on the' basis of the said lease. 6.

The trustee shall be entitled to continue in occupation of the leased premises for so long as he shall. require the premises for the purposes of the trust estate which 'vested in him and any payment to be made to the landlord in re spect of accelerated rent shall be credited against the amount payable by the trustee for the period of his occupation. 7.

The trustee may surrender possession at any time, but if he occupies, for three months or more beyond the said date the landlord shall be entitled to receive three months' notice in writing of the trustee's intention to sur render possession, or three months' rent in lieu thereof~ 8. After the trustee surrenders possession such of the landlord's rights as are based upon actual occupation by the trustee shall cease.

3 9.-

(1) Notwithstanding the legal effect of any provision or stipulation in the lease, the trustee may at any time while he is in occupation of leased premiseR for the purposes of the trust estate and before he has given notice of intention to sUl'l'ender posRession, 01' disclaimed, elect to retain the leased pi'emises for the whole or any portion of the unexpired term, and he may, upon payment to the landlord of all overdue rent, assign the lease to any person who will covenant to observe and perform its terms and agree to conduct upon the demised premises a trade Or business which is not rea sonably of a more objectionable or more hazardous nature than that which was thereon conducted by the lessee, and who on application of the tl'Ustee is approved by a judge of the Supreme Court as a perSOll fit and proper to be put into possession of the leased premises: Provided, however, that before the person to whom the lease is assigned may be permitted to go into occupation, he shall deposit with the landlord a sum equal to six months' rent or supply to him a guarantee bond approved by a judge of the Supreme Court in a penal sum equal to six months' rent, as security to the landlord that such person will observe and perform the terms of the lease and the covenants made by him with respect to his occupation of such premises.

(2) This

section shall only apply to premises leased by a trader and used by him for the purposes of his trade. (i3) In this

section "trader" shall mean a retail merchant or a whqlesale merchant or a commission men:hant or a manufacturer, or any person who, as his ostensible occupa tion, buys and sells goods, wares, or merchandise, ordinarily the subject of trade and commerce. 10.

The trustee shall have the further right at any time before giving notice of intention to surrender possession, and before becoming under obligation to give such notice in case of intention on his part to surrender possession, to disclaim any such lease, and his entry into possession of the leased premises and their occupation by him while required for the purposes of ·the trust estate shall not be deemed to be evi dence of an intention on his part to elect to retain the prem ises, nor affect his right to disclaim or to surrender posses sion pursuant to the provisions of this Act; and if after occupation of the leased premises he elects to retain them and thereafter assigns the lease to a person approved by a judge as by

section 9 hereof provided, the liability of the trustee, whether personal or as trustee, and whether aris ing out of privity of contract or of estate and also all liability of the estate of the lessee shall, subject to the provisions of this Act, be limited and confined to the pay ment of rent for the period of time during which the trustee remains in possession of the leased premises for the purposes of the trust estate.

4 11 .. Where the lessee has, before the said date, demised by way of underlease any premises and the trustee disclaims or elects to assign the lease, a judge of the Supreme Court may, upon the application of such under-lessee, make an order vesting in the under-lessee an' equivalent interest in the property, the subject of the demise to him, to that held by him as under-lessee of the lessee, but subject, except as to rental payable, to the same liabilities and obli gations as ,the lessee was subject to at the said date, per formance to be secured as and pursuant to the same condi tions as is provided by

section 9 hereof in case of an assign ment of lease made by a trustee. 12. The under-lessee shall, in such an event, be required to covenant to pay to the landlord a rental not less than that payable by the under-lessee to the lessee, and if such last mentioned rental was greater than that payable by the lessee to the landlord, the under-lessee shall be required to covenant to pay to the landlord the like greater rental. 13. The provisions of

section 9 hereof shall be read sub ject to the provisions of sections 11 and 12 hereof, so that an under-lessee, if he so desires, may have prior opportunity to acquire the right to the possession, for any unexpired term, of the premises occupied or held by him of the lessee, and further if it seems to a judge of the Supreme Court most desirable in the interest of the lessee's estate and notwith standing the provisions of sections 11 and 12 hereof, a prior opportunity to acquire, pursuant to

section 9 hereof, an assignment of the head lease. 14. This Act is to read as intended not to conflict or in terfere with the operation of any law of the Dominion but merely to provide for, or regulate the rights and prio;ities of landlords in the happening of any of the events provided for by

section 52 of The Bankruptcy Act, hereinbefore re cited. 15. This Act shall have effect from the thirtieth day of June, 1923, save with regard to any payments made 01' trans actions completed prior to the date of the passing of this Act.

No. 42. FOURTH SESSION FIFTH LEGISLATURE 14 GEORGE V 1924 BILL

An Act to Regulate the Rights and Priorities of Landlords after a Voluntary Assignment for the Benefit of Creditors. Received an"d read the First time .................. . Second time ................ . Third time ................. . MR. PEARSON. EDMONTON: J. W. JEFFERY, KINO'S PRINTER A.D. 1924 Title: 1924 (5th, 4th) Bill 42,

An Act to Regulate the Rights and Priorities of Landlords after a Voluntary Assignment for the Benefit of Creditors

Document details

Collection	Alberta — Bills
Citation	L5 S4 9438
Type	bill
Volume / chapter	L5 S4 9438
Language	en
Format	json
Source	PROVINCIAL
Identifier	7320df5a38326aa071fb4549f80ecb3f4d96e2d4

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