Third Session, 45th

General Assembly

55 Elizabeth II,

BILL 27

AN ACT RESPECTING THE ENFORCEMENT

SUPPORT ORDERS

Received

and Read the First Time ...................................................................

Second

Reading ..............................................................................................

Committee ......................................................................................................

Third

Reading .................................................................................................

Royal

Assent ...................................................................................................

HONOURABLE THOMAS

W. MARSHALL , QC

Minister of Justice

and Attorney General

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTE

This Bill would revise the law with

respect to the enforcement of support orders.

A BILL

AN ACT RESPECTING THE ENFORCEMENT OF SUPPORT

ORDERS

Analysis

Short title

PART

INTERPRETATION

Interpretation

Labrador Inuit rights

PART

DIRECTOR TO ENFORCE SUPPORT ORDERS

Director of Support Enforcement

Order registered

Effect of registration

Withdrawal of registration

Withdrawal of support order

Director to pay money to creditor

Subrogation of rights

Access by director to information

Confidentiality

Consumer reporting agencies

Stay of enforcement

PART

III

ENFORCEMENT

Notice of garnishment

Extra-provincial notice

Notification of garnishee

Effect of notice

Garnishment of money owing by Crown

Employee protection

Dispute of garnishment

Default of payment by garnishee

Enforcement against Crown

Withdrawal of garnishment

Dispute by debtor

Exemption from garnishment

Prohibition re: fees

Joint or joint and several accounts

Payment of money received

Priority of garnishment

Attachment of certain benefits

Statement of finances required by

director

Summons

Default hearing

Warrant for arrest

Court order

Realizing on security

Evasion of debtor

PART

OTHER ENFORCEMENT MECHANISMS

Pension entitlement attachment

Pension entitlement may be attached

Notice of the director's intention

Restrictions

Court application

Attachment of pension entitlement

Registered plan attachment

Registered plan may be attached

Notice of the director's intention

Restrictions

Court application

Attachment of registered plan

Corporation with debtor as sole

shareholder

Corporation controlled

Suspension of driving privileges

Big game licences

Further default

Garnishment of lottery prizes

PART

GENERAL

Application of payments

Fee charged by director

Service

Presumption of debtor's ability to pay

Signature of director as evidence

Application to vary support order

Proof of default

Capacity of minor

No limitation period

Debt no defence

Debt of estate

Relief of obligation to pay

Communications not privileged

Witnesses

Enforcement proceedings

No liability

Provision not enforceable

Rights under Act

Right of appeal

Fees and Forms

Regulations

Offence

Transitional

SNL2000 cE-11.1 Amdt.

RSNL1990 cF-2 Amdt.

RSNL1990 cH-3 Amdt.

SNL2002 cI-0.1 Amdt.

SNL2002 cI-19.2 Amdt.

SNL1996 cJ-1.1 Amdt.

RSNL1990 cW-8 Amdt.

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the Support Orders

Enforcement Act, 2006 .

PART I

INTERPRETATION

Interpretation

(1) In

this Act

(a) "court" means the Trial Division,

the Unified Family Court or the Provincial Court ;

(b) "creditor" means

(

i) a person entitled under a support order to

receive money for support on his or her own behalf or on behalf of another

person, or

(ii) the minister responsible for the Income and Employment Support Act where

a subrogation exists under

section 10 to the extent of the subrogation;

(c) "Crown" includes a Crown corporation

and a department, agency, board or other body of the government of the province;

(d) "debtor" means a person required under

a support order to pay money for support;

(e) "director" means the Director of

Support Enforcement appointed under

section 4;

(f) "garnishee" means a person who is alleged

to be indebted to the debtor and to whom the director issues a notice of garnishment;

(g) "minister", unless the context

indicates otherwise, means the minister appointed under the Executive Council Act to administer this

Act;

(h) "notice of garnishment" means a notice

of garnishment as described in

section 15;

(i) "notify" means to provide by ordinary

mail or facsimile transmission;

(j) "persistent arrears" means arrears

in any amount where the arrears are due to the failure to make, in full, the

number of payments under a support order prescribed by the regulations or

accumulated arrears in an amount prescribed by the regulations;

(k) "support" means support, maintenance

or alimony and includes

(

i) an amount payable periodically, whether yearly

or otherwise and whether for an indefinite or limited period or until the

happening of a specified event,

(ii) a lump sum, including instalment payments of a

lump sum,

(iii) expenses in respect of prenatal care and the

birth of a child,

(iv) a charge on property or otherwise as security

for the payment of support, or

(

v) interest or the payment of legal fees, costs

or other expenses arising in relation to support; and

(l) "support order" means a provision in

an order of a court in or outside the province enforceable in the province for

the payment of money as support, and includes a provision for

(

i) a specified property to be transferred to or

in trust for or vested in a party, whether absolutely, for life or for a term

of years,

(ii) all or some of the money payable under the

order to be paid into court or to another appropriate person or agency for the

benefit of a party,

(iii) payment of support or support in respect of a

period before the date of the order,

(iv) payment to the minister responsible for the Income and Employment Support Act of an

amount in reimbursement for a benefit or assistance provided to a party, including

an amount in reimbursement for a benefit or assistance provided before the date

of the order,

(

v) the irrevocable designation by a spouse who

has a policy of life insurance or an interest in a benefit plan of the other

spouse or a child as the beneficiary,

(vi) an order confirming the payment of support,

(vii) payment of expenses in respect of the prenatal

care and birth of a child,

(viii) the securing of payment under the order, by a

charge on property or otherwise, or

(ix) the payment of legal fees or costs or other

expenses arising in relation to support,

and also includes a provision in a domestic

contract that is enforceable under the law of the province and an order for

support under provincial law and the Divorce

Act ( Canada ).

(2) Notwithstanding the definition of court in

subsection (1), in the judicial area set out in the

Schedule to the Unified Family Court Act ,

"court" means the Unified Family Court.

(3) Anything required by this Act to be signed or

done by a person, or referred to in this Act as signed or done by a person, may

be signed or done by a lawyer acting on the person's behalf.

(4) This Act binds the Crown.

Labrador Inuit

rights

3. This

Act and regulations made under this Act shall be read and applied in

conjunction with the Labrador Inuit Land

Claims Agreement Act and, where a provision of this Act or regulations made

under this Act is inconsistent or conflicts with a provision, term or condition

of the Labrador Inuit Land Claims

Agreement Act , the provision, term or condition of the Labrador Inuit Land Claims Agreement Act shall have precedence over

the provision of this Act or a regulation made under this Act.

PART II

DIRECTOR TO ENFORCE SUPPORT ORDERS

Director of

Support Enforcement

(1) There

shall be employed in the manner provided by law a Director of Support

Enforcement who shall administer and enforce this Act under the control and

direction of the minister.

(2) It is the duty of the director to enforce

support orders that are registered with the director in the manner that appears

practicable and the director may, for that purpose, begin, continue and conduct

a proceeding and take steps for the enforcement of an order in the name of the

director for the benefit of a creditor, or of a creditor's child.

(3) An employee of the Department of Justice who

has been designated for the purpose may act for and in the name of the director

and may , on behalf of the director, appear in the Provincial Court .

(4) The director may refuse to enforce more than 3

years of the arrears of support payable under a support order.

(5) The period of 3 years referred to in

subsection (4) begins 3 years before the date on which the order was registered

with the director.

(6) Money paid to the director in respect of a

support order is not attachable under another Act.

(7) The director appointed under this

section may

(

a) for the purpose of determining initial or

ongoing ability to comply with a support order, conduct interviews with a

debtor; or

(

b) initiate enforcement activities based upon the

poor payment history of the debtor.

Order registered

(1) A

support order may be registered with the director by a creditor or debtor in

the manner prescribed by the regulations.

(2) A support order may be registered with the

director by the minister responsible for the Income and Employment Support Act .

(3) A person other than the director shall not

take proceedings to enforce a support order during the time it is registered

with the director.

(4) Nothing in this Act prohibits the director or

a creditor from taking proceedings under another Act to enforce a support

order.

(5) A support order made by a court in the

province other than a provisional order shall

(

a) state in the operative part of the order that

it shall be enforced by the director and amounts owing under the order shall be

paid to the person to whom they are owed through the director unless the order

is withdrawn from the director;

(

b) be registered with the director by the clerk

or registrar of the court that made it, immediately after it is made or issued;

and

(

c) shall be accompanied by an application for

registration as prescribed by the minister.

(6) A creditor may file with the court and the

director a notice that he or she does not wish to have a support order enforced

by the director, and where a creditor files that notice, the creditor may, without

the benefit of the director, pursue enforcement of the support order under the Judgment Enforcement Act or other

applicable statute.

(7) Where a support order is made by the

Provincial Court, the director may file the support order with the Trial

Division, and on being filed, the parts of the support order that relate to

support are considered to be a judgment of the Trial Division.

(8) A support order made by a court outside the

province that is received by the Attorney General or a court for enforcement in

the province shall be registered with the director immediately after it is

received unless the order is accompanied by a written notice signed by the

person seeking to enforce the order stating that he or she does not wish to

have the order enforced by the director.

(9) Where a support order is indexed to the cost

of living, notwithstanding the terms of the order, the director may apply the

formula under subsections 40(8) and (9) of the Family Law Act .

Effect of registration

(1) Where

a support order is registered with the director under this Act

(

a) the director shall take steps that he or she

considers necessary to enforce the support order;

(

b) only the director may, on behalf of a

creditor, begin, continue or discontinue proceedings to enforce a support

order;

(

c) the director may sign all documents with

respect to the enforcement of a support order;

(

d) subject to subsections 4(4) and (5), the

director may enforce arrears under a support order notwithstanding that the

arrears accrued before the date that the order was registered with the

director; and

(

e) for the purpose of this Act, the director

stands in the place of the creditor.

(2) Only that part of a support order that relates

to the payment or security of payment of support shall be enforced under this

Act.

(3) Where the conditions set out in subsection

(4) are satisfied with respect to a support order and the parties to the support

order agree, the director may exercise discretion to enforce a lesser amount of

support in accordance with the table set out in the applicable child support

guidelines.

(4) The conditions referred to in subsection (3)

are

(

a) the support order was made in accordance with

the table set out in the applicable child support guidelines;

(

b) it has been agreed by the parties that the

support obligation under the order has terminated with respect to a child;

(

c) the support obligation under the order still

continues with respect to another child; and

(

d) the order states

(

i) the number of children, and

(ii) the total amount of support determined in

accordance with the table.

Withdrawal of registration

(1) A support order registered with the director may be withdrawn

by a notice in the form prescribed by the minister signed by the person by or

on whose behalf it was registered.

(2) The director may permit a creditor or debtor

to re-register a support order that has been withdrawn.

(3) The director shall give notice of the

registration or withdrawal of a support order to the parties to it.

(4) Where a person who is entitled to support

under a support order has applied and is eligible for, or has received, a

benefit under the Income and Employment

Support Act , the minister responsible for that Act may register the order

with the director whether or not a notice referred to in subsection 5(6) or

(8) has been given, and the order shall not be withdrawn except by, or with the

written consent of, that minister.

(5) Notice under this

section may be effected by

ordinary mail or by facsimile transmission.

(6) The validity of proceedings under this Act is

not affected by the inability of the director, after reasonable effort, to give

notice to a party under subsection (3).

Withdrawal of

support order

8. The

director may withdraw a support order registered with the director

(

a) where it appears to the director that the

creditor is taking steps to enforce the support order, 14 days after the

director mails to the creditor a written notice sent by ordinary mail that he

or she will withdraw the support order;

(

b) on the application of the creditor, except

where the support order was registered by the debtor or the minister responsible

for the Income and Employment Support Act

where subrogation exists under

section 10;

(

c) on the application of

the debtor, except where the support order was registered by the creditor;

(

d) where, in the opinion of the director, the

amount of support is a nominal amount as prescribed by the regulations;

(

e) where the creditor wilfully fails to or

refuses to provide information about the debtor that the director requires to enforce

the support order;

(

f) where the amount of support cannot be

determined;

(

g) where the creditor cannot be located after

reasonable efforts to do so have been made;

(

h) where the debtor is in prison;

(

i) where the debtor is receiving income support;

(

j) where, before the coming into force of this

Act, enforcement of a support order has been stayed by a court for an unspecified

time period;

(

k) where there is doubt or ambiguity on the part

of the director concerning the force, effect or meaning of the support order;

(

l) where the creditor accepts payments directly

from the debtor in relation to the support order.

Director to pay

money to creditor

(1) The

director shall pay to the creditor the money he or she receives in respect of a

registered support order to the extent of the entitlement of the creditor under

that support order.

(2) Notwithstanding subsection (1), where the

director receives money in excess of the amount required to be paid to the

creditor in a payment under the support order, the director may hold that money

in trust for application to the creditor's future entitlement under a support

order.

(3) The director shall keep a record using

accepted accounting and auditing standards, of money received and paid out by

him or her and the person to whom and by whom the money has been paid and any

money held in trust by the director in anticipation of a creditor's future entitlement

under a support order.

(4) Where a creditor's entitlement under a support

order has been satisfied and the director holds excess money in trust under subsection

(2), the director shall return the excess money to the debtor or where, after

reasonable attempts by the director the debtor cannot be located, into the

Consolidated Revenue Fund.

(5) The director shall report his or her activities

under this Act annually to the minister, and the report shall include

(

a) a record of the number of orders registered

for enforcement; and

(

b) an accounting of the receipts and disbursements

of money during the year, including any money held in trust by the director in

anticipation of payout for future support payments.

(6) The director may, on the request of the creditor

or debtor, provide an itemized statement showing the current status of the

account under a support order registered with the director.

(7) The director shall, on the request of the

proper officer of a reciprocating jurisdiction or a court of a reciprocating

jurisdiction under the Interjurisdictional

Support Orders Act , provide a sworn or affirmed itemized statement with

respect to a support order, showing

(

a) the amounts that have become due by the

debtor; and

(

b) the payments made by the director by or on

behalf of the debtor.

Subrogation of

rights

(1) Where

a person is in receipt of benefits under the Income and Employment Support Act , the following rights of that

person with respect to a support order may, with that person's consent, be subrogated

to the Crown as represented by the minister responsible for the Income and Employment Support Act :

(

a) the right to apply for a support order or a

provisional order;

(

b) the right to receive payments under a support

order;

(

c) the right to apply for variation of a support

order; and

(

d) the right to bring proceedings to enforce a

support order.

(2) An official of the Department of Human

Resources, Labour and Employment may appear in the Provincial Court on behalf of the minister responsible for the Income and Employment Support Act or as agent for a person making a

support application where that person is in receipt of benefits under the Income and Employment Support Act .

(3) Where a person is in receipt of benefits under

the Income and Employment Support Act ,

that person's lawyer is authorized to provide information to the minister

responsible for that Act about the person's case to the extent only that it

proves necessary for the administration of that Act.

(4) A subrogation under subsection (1) of the

rights of a person who is in receipt of income and employment support exists

for the period of time that the person is receiving income and employment support.

(5) Where there is subrogation under subsection

(1), the minister responsible for the Income

and Employment Support Act may, notwithstanding the death of the person in

whose favour a support order is made, begin or continue a proceeding under

section 67 or 68.

Access by

director to information

(1) The

director may, for the purpose of enforcing a support order that is registered

with the director, demand and receive from a person, corporation or public

body, including the Crown, information within the knowledge of or shown on a

record in the possession or control of the person, corporation or public body,

relating to the debtor including

(

a) wages, salary or other income;

(

b) income sources;

(

c) location of income sources;

(

d) assets and liabilities;

(

e) location of assets, including account numbers

with financial institutions;

(

f) financial status;

(

g) copies of income tax returns;

(

h) social insurance number;

(

i) location, address and place of employment;

(

j) location, address and place of residence;

(

k) telephone and facsimile number; and

(

l) any other information that the director

considers necessary for the enforcement of the support order.

(2) Information required to be disclosed under

subsection (1) shall be provided within 14 days of the demand for information

being made.

(3) Notwithstanding another Act or law restricting

the disclosure of information, a person, corporation or public body, including

the Crown, that receives a demand under subsection (1) shall provide the

demanded information that is contained in its records.

(4) Where, on application to the Trial Division or

the Unified Family Court, it appears that the director has been refused

information after making a demand under subsection (1), the Trial Division or

the Unified Family Court may order a person, corporation or public body,

including the Crown, to provide the court or the person that the court directs

with information referred to in subsection (1).

(5) This

section applies despite another Act or

regulation and despite a common law rule of confidentiality or privilege.

(6) Where the director has been refused

information after making a demand under subsection (1) and obtains an order

under subsection (4), the court shall award the costs of the application to the

director.

(7) The Attorney General may, on behalf of the

searching for and the release of information under

Part I of the Family Orders and Agreements Enforcement

Assistance Act (Canada).

(8) The director or a person acting on behalf of

the director shall not disclose information obtained under the Family Orders and Agreements Enforcement

Assistance Act ( Canada ) for the enforcement of an order, except to the extent necessary

for the enforcement of the order.

Confidentiality

(1) A

person shall not disclose information received by the director except in

accordance with this Act or the regulations.

(2) Information received by the director under

this Act may be disclosed only

(

a) for the purpose of enforcing a support order

registered with the director;

(

b) on request, to the sheriff for the purpose of

section 18 of the Judgment Enforcement

Act ;

(

c) on request, to an official performing similar

functions in another jurisdiction;

(

d) on the request of

(

i) the minister

responsible for the Income and Employment

Support Act for the purposes of determining eligibility, including

continued eligibility for income or employment support, or

(ii) the minister or his or her designate for the

purpose of the recalculation of child support under the Family Law Act ; and

(

e) where a judge orders it to be disclosed on the

conditions that the court may impose.

(3) Where a judge makes an order under subsection

11(4) or under a similar provision in another Act or

an Act of the Parliament

of Canada , the judge may make an order with respect to the confidentiality to

be maintained in connection with the information released that the judge

considers appropriate.

(4) Notwithstanding another provision of this

section, the director may post a debtor's name and other prescribed information

relating to the debtor on a website on the Internet if,

(

a) the support order is filed with the director;

(

b) the debtor is in persistent arrears under the

support order; and

(

c) the director has been unsuccessful in all

reasonable attempts to locate the debtor.

(5) The sole purpose of posting information under

subsection (4) shall be to assist the director in locating the debtor.

(6) This

section applies, with the necessary

modifications, to any information obtained by the director as a result of the

posting.

Consumer

reporting agencies

(1) Where

a debtor is in persistent arrears under a support order registered with the

director, the director shall notify the debtor that unless the debtor makes an

arrangement satisfactory to the director within 30 days of the notification to

comply with the support order, the director shall report the debtor to a

consumer reporting agency registered under the Consumer Reporting Agencies Act .

(2) Where the conditions prescribed under

subsection (1) are satisfied, the director may disclose the following

information to a consumer reporting agency:

(

a) the name of the debtor in default under a

support order;

(

b) the date of the support order;

(

c) the amount and frequency of the debtor's

obligations under the support order;

(

d) the amount of arrears owing under the support

order at the time of the disclosure; and

(

e) any other information that may be prescribed

by the regulations.

(3) The director shall require a consumer

reporting agency to include information respecting a debtor's obligations under

a support order in its credit report.

(4) Where a support order for which a debtor has

been reported to a consumer reporting agency to be in arrears

(

a) is varied, and the director has had notice of

the variation, the director shall notify the consumer reporting agency of the

variation; or

(

b) and the arrears are later forgiven, the

director shall notify the consumer reporting agency of that fact.

(5) Where a debtor about whom information under

this

section has been disclosed to a consumer reporting agency has satisfied

all obligations under a support order, the director shall notify the consumer

reporting agency of that fact.

Stay of

enforcement

(1) Where a support order is registered with the director, the

debtor may apply to a court for an order suspending any proceeding taken by the

director on any condition the court considers appropriate for a period specified

in the order not to exceed the period referred to in subsection (4) or (5).

(2) An order under subsection (1) may only be made

where the court is satisfied that the debtor is unable for valid reasons to

make the payments required under the support order.

(3) An order under this

section shall be

registered with the director by the clerk or registrar of the court that made

it, immediately after it is made or issued.

(4) An order under subsection (1) suspending

proceedings expires at the end of 3 months from the day it is granted or any

shorter period provided for in the order.

(5) If, within the 3 month period referred to in

subsection (4) or any shorter period specified in the order, the debtor applies

to vary a support order, the court may make an order suspending proceedings for

only one further period of not more than 6 months.

(6) Notwithstanding another provision of this

section, the director may make an application to the court to have a stay

imposed under this

section lifted where the director has a reasonable belief

that the stay should be lifted.

PART III

ENFORCEMENT

Notice of garnishment

(1) An

obligation to pay money under a support order may be enforced by garnishment of

money payable to the debtor by another person.

(2) An obligation to pay under subsection (1) may

include payment of

(

a) arrears;

(

b) a lump sum; or

(

c) future periodic payments.

(3) The director may issue a notice of garnishment

in the prescribed form and provide the notice of garnishment to a person

alleged to be indebted to the debtor.

(4) A notice of garnishment may be amended to

correct errors, and a copy of the amended notice shall be provided to the

person alleged to be indebted to the debtor referred to in subsection (3).

(5) A notice under this

section is effective for

the purposes of the Family Orders and

Agreements Enforcement Assistance Act ( Canada ).

Extra-provincial

notice

16. On

the filing of a notice of garnishment or a document of similar effect that,

(

a) is issued outside the province;

(

b) states that it is issued in respect of

support; and

(

c) is written in or accompanied by a sworn,

the director may issue a notice of

garnishment and notify a garnishee in accordance with

section 15.

Notification of

garnishee

(1) A notice of garnishment provided under

section 15 or 16 is considered to have been received by the garnishee within 10

days of its having been provided to the garnishee under those sections.

(2) On receipt of the notice of garnishment, the

garnishee shall immediately deliver, personally or by ordinary mail, a true

copy of the notice to the debtor.

(3) Failure of the garnishee to comply with

subsection (2) does not make the garnishment ineffective.

Effect of notice

(1) A

notice of garnishment, on being provided to the garnishee, binds money then due

and accruing due from the garnishee to the debtor, in the amount required under

subsection (2).

(2) On receiving a notice of garnishment, the

garnishee shall hold the money then due and accruing due to the debtor an

amount equal to

(

a) the sum specified in the notice arising under

the support order in respect of which the notice was given during the 30 days

immediately preceding the date of notification;

(

b) as each payment becomes due under the support

order, the amount specified in the notice or, where the amount of money due to

the debtor is less than the amount specified in the notice, the total amount

due to the debtor; and

(

c) the full amount due to the debtor by the

garnishee until the lump sum amount specified in the notice is satisfied.

(3) The probable costs of a notice of garnishment

may be included in the amount set out in the notice of garnishment.

(4) The garnishee shall, within 7 days of holding

money under subsection (2), pay to the director the amount so held under the

notice of garnishment.

(5) Where the amount of money paid under

subsection (4) is insufficient to cover the amount then required to fulfil the

obligation under the support order, the amount equal to the difference between

the amount that should have been paid and the amount that was actually paid is,

for the purpose of this section, to be added to and is considered to be a part

of the next payment due under the support order.

(6) Where a support order that is the subject of a

notice of garnishment is varied after the garnishee has been provided with the notice

of garnishment, and the director has been notified of the variation order

(

a) a notice of variation in the form prescribed

by the minister shall be provided to the garnishee by the director; and

(

b) the garnishee shall, on receiving the notice

referred to in paragraph (a), hold money due to the debtor in accordance with

the notice of variation.

Garnishment of

money owing by Crown

(1) Notwithstanding

another Act, the Crown may be named as a garnishee with respect to money due to

a debtor other than payments made under the Income

and Employment Support Act .

(2) The director may notify the Crown by providing

the appropriate deputy minister or, in the case of a board, agency or

commission by serving the chairperson or secretary of the board, agency or commission

with a notification under subsection (1).

(3) Where the garnishee is the Crown, the notice

of garnishment is to indicate, where known, the department, agency or other

body of the province by which the money is payable and shall provide as many

particulars as possible with respect to the money due.

Employee protection

(1) An

employer shall not dismiss, suspend, lay off, penalize, discipline or

discriminate against an employee if the reason for that action is related to the

issuing of a notice of garnishment to the employer.

(2) A fee may not be charged by an employer as

against an employee who is the subject of a notice of garnishment.

(3) Upon the application of an employee who

alleges to have been the subject of a violation of subsection (1), a court may,

if it finds the allegation to be true, make any order in favor of the employee

that it considers just, including an order for reinstatement and an award of

damages.

(4) An employer who dismisses, suspends, lays off,

penalizes, disciplines or discriminates against an employee in respect of whom

a notice of garnishment has been issued while the notice of garnishment is in

effect or within 6 months after it has ceased to have effect shall, if an

application is made under subsection (2), be required to show cause for the

action, in default of which the action shall be considered to have been in violation

of subsection (1).

Dispute of garnishment

(1) Where

the garnishee alleges that

(

a) no money is owing by him or her to the debtor;

(

b) the garnishee has satisfied his or her

obligation to make payments to the debtor and no further payments from the

garnishee to the debtor are accruing due; or

(

c) the garnishee has not received sufficient

information with respect to the debtor to enable the garnishee to make deductions,

he or she shall file with the director a

statement to that effect within 10 days of being provided with the notice of

garnishment or when the obligation to pay the debtor has been satisfied, as the

case may be.

(2) Where a statement is filed by the garnishee

under subsection (1), the court may, on application by the director within 30

days after the date the statement is filed

(

a) summarily determine whether the garnishee is

liable under the notice; or

(

b) order that an issue or question necessary for

the determination of the liability of the garnishee be tried.

(3) A determination of a court under this

section

is a judgment of the court and may be so enforced.

(4) Where a garnishee files a statement under

subsection (1) and the director does not make an application within the period

specified in subsection (2), the garnishee is released from a claim under the

notice of garnishment.

Default of

payment by garnishee

(1) Unless

the garnishee files a statement under subsection 21(1), where the garnishee

does not pay to the director the amount due from the garnishee to the debtor or

the amount required to be paid by the garnishee under a notice of garnishment,

the director is entitled to judgment against the garnishee by filing with the

court the notice of garnishment and an affidavit stating that the garnishee has

not made payments required by this Act and has not filed a statement under subsection

21(1).

(2) A judgment under subsection (1) shall include

the amount of the default under the notice of garnishment, together with the

costs of the application.

(3) Payment made by or execution levied on the

garnishee is a valid discharge to the garnishee against the debtor to the

amount paid or levied, notwithstanding that those proceedings may be set aside

or the judgment or order is later reversed.

Enforcement

against Crown

23. A

notice of judgment under the Judgment

Enforcement Act may not be registered on a judgment against the Crown in

garnishment proceedings under

section 21 or 22.

Withdrawal of

garnishment

24. The

director may provide a notice of withdrawal in the form prescribed by the

minister to a garnishee who has been provided with a notice of garnishment and,

on providing the notice of withdrawal, the garnishee shall cease to hold money

or make payments.

Dispute by debtor

(1) The

debtor may apply to a court for an order setting aside or varying a notice of

garnishment on the basis that money owed under the support order has been paid

or that there is no debt owing by the garnishee to the debtor.

(2) The debtor shall serve a notice of an

application under subsection (1) on the director.

Exemption from

garnishment

(1) On

application by the debtor, a judge may, where satisfied that it would be

grossly unfair and inequitable to do otherwise, make an order specifying the

amount of money that is exempt from garnishment.

(2) The debtor shall serve a notice of an

application under subsection (1) on the director.

Prohibition re:

fees

27. A

garnishee shall not charge a fee in respect of anything required to be done by

the garnishee under this Act.

Joint or joint

and several accounts

(1) A

notice of garnishment issued by the director shall, when provided to a

financial institution, attach 50% of the money credited to a deposit account

held in the financial institution in the name of the debtor together with one

or more other persons as joint or joint and several deposit account holders,

and the financial institution shall pay up to 50% of the money credited to the

deposit account to the director according to the notice of garnishment.

(2) The financial institution shall, within 10

days of being provided with the notice of garnishment, pay the money to the

director and at the same time

(

a) notify the director if the account is held

jointly or jointly and severally in the name of two or more persons; and

(

b) notify the co-holders of the account who are

not named in the notice of garnishment of the garnishment.

(3) Within 30 days after the financial institution

has given notification under subsection (2), a co-holder of the deposit account

may make an application to a court disputing the notice of garnishment claiming

ownership of all or part of the money that the financial institution paid to

the director.

(4) If a financial institution notifies the

director under paragraph (2)(a), the director shall not release the money

received under that subsection until 30 days after the financial institution so

notified the director, and the director may release the money after 30 days

unless a co-holder of the deposit account first provides the director with a

copy of an application under subsection (3) disputing a notice of garnishment.

(5) In a hearing to determine an application under

subsection (3), the money paid to the director shall be presumed to be owned by

the debtor and the court shall order

(

a) that the garnishment be limited to the

debtor's interest in the money that was paid to the director; and

(

b) that all or part of the money that was paid to

the director be returned to the co-holder only if it is satisfied that the co-holder

owns the money.

(6) Upon receipt of a copy of the court's order,

the director shall return to the co-holder any money determined by the court to

belong to the co-holder and may release any remaining money to the debtor.

(7) A co-holder may bring an action against a

debtor in court

(

a) to recover any money owned by the co-holder

that was paid to the director under subsection (1); and

(

b) to recover any interest that the co-holder

would have earned on the money owned by the co-holder that was paid to the

director under subsection (1).

(8) The director and the creditor are not parties

to an action under subsection (7).

(9) In this section, "deposit account" includes

a demand account, time account, savings account, passbook account, chequing

account, current account or other similar accounts at

(

a) a bank listed in

Schedule I or II to the Bank Act ( Canada );

(

b) a loan corporation or a trust corporation as

defined in the Trust and Loan

Corporations Licensing Act ;

(

c) a credit union as defined in the Credit Union Act ; or

(

d) a similar financial institution.

Payment of money

received

(1) Money

received by the director under a notice of garnishment is to be paid

immediately to the creditor to the extent of the creditor's entitlement under

the support order.

(2) Notwithstanding subsection (1), money received

by the director in excess of the amount required to satisfy the notice of

garnishment may be paid to the debtor or the garnishee or may, at the discretion

of the director, be held in trust by the director to satisfy any future

entitlement of the creditor under the support order.

(3) Where the creditor's entitlement under all

support orders has been satisfied and the director holds excess money in trust

under subsection (2), the director shall return the excess money to the debtor

or garnishee, or where, after reasonable attempts by the director the debtor or

garnishee cannot be located, into the Consolidated Revenue Fund.

Priority of

garnishment

(1) A

notice of garnishment provided under this Act has priority over an attachment or

judgment made under

(

a) the Judgment

Enforcement Act ;

(

b) the Judicature

Act ;

(

c) the Small

Claims Act ; and

(

d) all provincial taxation statutes, including

(

i) the Financial

Corporations Capital Tax Act ,

(ii) the Gasoline

Tax Act ,

(iii) the Income

Tax Act , 2000,

(iv) the Mineral

Holdings Impost Act ,

(

v) the Mining and Mineral Rights Tax Act, 2002 ,

(vi) the Retail

Sales Tax Act , and

(vii) the Tobacco

Tax Act ,

against the same money whether made before

or after providing the notice of garnishment.

(2) The priority under subsection (1) is limited

to the arrears which accrued in the 3 years immediately preceding the issuance

of the notice of garnishment and any arrears which have accrued since that

time.

Attachment of

certain benefits

(1) Pension

payments, allowances or benefits that are authorized to be paid under

an Act or

a program under

an Act are garnishable for the purpose of enforcement of

support orders, notwithstanding the provisions of any Act other than this Act.

(2) Garnishment proceedings as set out in this Act

are to be applied under subsection (1).

Statement of finances

required by director

(1) Where

the debtor has defaulted in a payment required under a registered support

order, the director may provide the debtor with a statement of arrears in the

prescribed form and notify the debtor that the debtor is required to file a

statement of finances with the director.

(2) The statement of finances required by

subsection (1) shall be in the form prescribed by the minister and shall be

filed by the debtor with the director not more than 15 days after the debtor is

notified under subsection (1).

(3) The director may extend the period within

which the statement of finances is required to be filed by the debtor with the

director.

(4) Where the debtor intentionally fails to

provide a statement of finances satisfactory to the director or does not

provide the statement of finances satisfactory to the director, the debtor may

be subject to a fee charged by the director under

section 58.

Summons

(1) Where

a debtor defaults in the payment of support under a support order, the director

may, in the case of a support order registered with him or her, obtain from the

court a summons in the prescribed form requiring the debtor to attend a default

hearing.

(2) The summons shall require the debtor to appear

at a default hearing, before the court, at a time and place set out in the

summons

(

a) to show the court why the support order should

not be enforced;

(

b) to be examined on oath or affirmation about

his or her finances, including

(

i) the means or ability the debtor has of

complying with the support order,

(ii) the disposal the debtor has made of property

since the date on which the proceedings were started in which the support order

was made,

(iii) the debts that are owing to or by the debtor,

and

(iv) the debtor's assets, income and financial

obligations generally; and

(

c) to show why the debtor should not be committed

to prison on the ground that he or she has wilfully defaulted in the payment of

support under a support order.

(3) The summons shall be served personally on the

debtor unless the court directs otherwise.

Default hearing

(1) At

a default hearing the court shall inquire into

(

a) the resources of the debtor;

(

b) the debtor's means and ability to comply with

the support order;

(

c) the disposal the debtor has made of property

since the date on which proceedings were started in which the support order was

made;

(

d) the debts that are owing to or by the debtor;

(

e) the circumstances under which the debtor

defaulted in paying under the support order;

(

f) the assets and income of the debtor's spouse

or person financially connected to the debtor when determining a debtor's

ability to pay a support order; and

(

g) other matters the court considers relevant,

and for that purpose may examine on oath

or affirmation the creditor and the debtor and witnesses produced on behalf of

either of them.

(2) At the default hearing, unless the contrary is

shown, the debtor shall be presumed to have the ability to pay the arrears and

to make subsequent payments under the support order, and the statement of arrears

prepared and served by the director shall be presumed to be correct as to

arrears accruing while the support order is registered with the director.

(3) The director may, at any time during a default

hearing, request that the court make an order under subsection (4) or (5) or

both.

(4) The court may, by order, require a person to

file a financial statement and any other relevant documents with the court if

the court is satisfied that the person is financially connected to the debtor.

(5) The court may, by order, add a person as a

party to the hearing if the court

(

a) has made or could make an order under

subsection (4); and

(

b) is satisfied on considering all the circumstances,

including the purpose and effect of the dealings between the person and the

debtor and their benefit or expected benefit to the debtor, that there is some

evidence that the person has sheltered assets or income of the debtor such that

enforcement of the support order against the debtor may be frustrated.

(6) If the court is satisfied that a person who

was made a party to the hearing under subsection (5) sheltered assets or income

of the debtor such that enforcement of the support order against the debtor has

been frustrated, the court may, having regard to all the circumstances,

including the purpose and effect of the dealings and the benefit or expected

benefit from them to the debtor, make an order against the person it may make

against the debtor under

section 36 or 37 to the extent of the value of the

sheltered assets or income and those sections shall, in that case, be read with

the necessary changes as against the person.

Warrant for

arrest

(1) Where

a debtor

(

a) who has been served with a summons under

section 33; or

(

b) who has been bound over to appear under subsection

(2),

does not appear at the time and place

stated and a just excuse is not offered for his or her failure to appear, the

court may issue a warrant for the arrest of the debtor to have him or her

brought before the court.

(2) Where a debtor is brought before the court on

a warrant, the court may bind him or her over to appear at a default hearing

and

(

a) require that the debtor sign an undertaking

requiring his or her appearance where the court is satisfied that the debtor

would appear at a later date; or

(

b) require

(

i) surety on conditions the court considers

appropriate;

(ii) that a sum of money be deposited with the

court sufficient to ensure the appearance of the debtor at the default hearing;

(iii) that the debtor be committed to jail until the

default hearing.

Court order

(1) The

court may, unless it is satisfied that there are no arrears or that the debtor

is unable for valid reasons to pay the arrears or to make subsequent payments

under the support order, order that the debtor

(

a) discharge the arrears by the periodic payments

that the court considers just;

(

b) discharge the arrears in full by a specified

date;

(

c) comply with the support order to the extent of

the debtor's ability to pay, but an order under this paragraph does not affect

the accruing of arrears;

(

d) provide security in the form that the court

directs for the arrears and subsequent payment;

(

e) report periodically to the court, the director

or a person specified in the order;

(

f) provide immediately to the court, the director

or a person specified in the order particulars of a future change of address,

employment or income;

(

g) file those income tax returns that the court

considers necessary;

(

h) be imprisoned continuously or intermittently

for not more than 90 days unless the arrears are sooner paid; and

(

i) where the court determines that the debtor

does not have the ability to pay, order that the debtor make an application to

vary the support order within a specific time period.

(2) The court may vary the order made under

subsection (1) where there is a material change in the debtor's circumstances

since the order was made.

(3) Where the court finds that the debtor is in

wilful default on an order made at a previous default hearing, the court shall

make an order committing the debtor to serve a term of imprisonment for a period

of more than 30 but less than 90 days.

(4) Imprisonment of a debtor under paragraph

(1)(

h) or subsection (3) does not discharge arrears under a support order.

(5) An order for security under paragraph (1)(

d) or a subsequent order of the court may provide for the realization of the

security by seizure, sale or other means, that the court directs.

(6) Proof of service on the debtor of a support

order is not necessary for the purpose of a default hearing.

(7) A default hearing under this

section and a

hearing on an application for variation of the support order in default may be

heard together or separately.

Realizing on security

37. Where

security has been ordered under paragraph 36(1)(d), or under another Act to

ensure payments under a support order and the debtor is in default of his or

her obligations under that support order, the court may, on the application of

the director, direct the realization or forfeiture of the security by seizure,

sale or other means and may make other orders as to costs that it considers

appropriate.

Evasion of debtor

(1) Where

the Trial Division or the Unified Family Court is satisfied, on unilateral

application by the director, that the debtor is hindering or defeating or is

attempting to hinder or defeat the enforcement of a support order by

dissipation, gift or transfer of assets, the Trial Division or the Unified

Family Court may make an order restraining or setting aside a dealing with, or

gift or transfer of, the assets.

(2) Where the Trial Division or the Unified Family

Court is satisfied, on unilateral application by the director, that the debtor

is attempting to hinder or defeat the enforcement of arrears under a support

order by leaving the province, the Trial Division or the Unified Family Court

may issue a warrant for the arrest of the debtor for the purpose of bringing

him or her before the Trial Division or the Unified Family Court under

section

34 to be examined with respect to the debtor's ability to meet the obligations

under the support order.

PART IV

OTHER ENFORCEMENT MECHANISMS

Pension

entitlement attachment

39. In

this

section and in sections 40 to 44,

(a) "administrator" means a person

charged with the administration of a pension plan and includes a financial or

other institution that issues, underwrites or is a depository of

(

i) benefits,

(ii) money which has been transferred to another

plan, to a prescribed RRSP or to any other prescribed retirement plan that is

registered under the Income Tax Act

(Canada), including money transferred before January 1, 1993,

(iii) money earned by the transferred money referred

to in subparagraph (ii);

(b) "pension entitlement" means the

amount of money in a pension plan of a debtor which is available for attachment

under this Act;

(c) "pension plan" means a pension plan to

which the Pensions Benefits Act, 1997 applies but under which neither

the debtor nor the debtor's employer is making contributions and under which

the debtor is not receiving a pension benefit and includes

(

i) benefits,

(ii) money which has been transferred to another

plan, to a prescribed RRSP or to any other prescribed retirement plan that is

registered under the Income Tax Act (Canada),

including money transferred before January 1, 1993, and

(iii) money earned by the transferred money referred

to in subparagraph (ii).

Pension

entitlement may be attached

(1) The

director may enforce a support order by attaching the pension entitlement of a

debtor where

(

a) the debtor is in persistent arrears respecting

an obligation under a support order that is filed with the director;

(

b) in the opinion of the director, all reasonable

steps have been taken to enforce the support order;

(

c) the director has provided the administrator

and the debtor with a notice of the director's intention to attach the pension;

and

(

d) the debtor has not, before the notice of

attachment has been provided to the administrator under

section 44, made arrangements

satisfactory to the director to fulfil the obligation under the support order.

(2) The director may provide the notice referred

to in this

section to the debtor at the most recent address for the debtor in

the director's records.

Notice of the

director's intention

(1) The

notice of the director's intention to attach the debtor's pension entitlement

shall

(

a) direct the administrator to provide the

director and the debtor particulars of the debtor's pension entitlement within

30 days of the receipt of the notice;

(

b) notify the debtor of his or her right to apply

to a court under

section 43 within 30 days of the receipt of the information

referred to in paragraph (

a) for an order that the debtor's pension entitlement

is not to be attached; and

(

c) direct the administrator to notify the debtor

of the costs, income tax implications and pension reductions that would result

from the attachment of the debtor's pension entitlement.

(2) The administrator may provide the information

referred to in paragraph (1)(

a) to the debtor at the most recent address for

the debtor in the administrator's records.

(3) Failure of the administrator to provide the information

referred to in paragraph (1)(

a) does not render the attachment ineffective.

Restrictions

(1) The

director shall not enforce a support order by attaching the pension entitlement

of a debtor where

(

a) the debtor is a member of a pension plan and

(

i) the debtor is required to make contributions

to the plan that the director proposes to attach, or

(ii) the debtor's employer is required by the plan

to make contributions on the debtor's behalf to the plan that the director

proposes to attach; or

(

b) the debtor is receiving a pension benefit

under the pension plan which the director proposes to attach.

(2) Where an administrator is notified of the director's

intention to attach the debtor's pension entitlement, the administrator shall

not pay out any of the debtor's pension entitlement at the direction of the

debtor until 60 days have elapsed from

(

a) if no application is made to the court, the

date that the director received the information referred to in paragraph 41(1)(a);

(

b) if an application is made to the court, the

date that the court orders that the debtor's pension entitlement may be

attached.

(3) Subsection (1) shall only apply to a pension

plan as defined in paragraph 39(c), and shall in no way constrain the ability

of the director to garnish a pension payment, allowance or benefit which is garnishable

under

section 31.

Court application

(1) The

court, on application by the debtor, may order that the debtor's pension

entitlement is not to be attached where the court is satisfied that

(

a) the debtor is not in

persistent arrears respecting an obligation under a support order that is registered

with the director;

(

b) the debtor is a member of a pension plan and

(

i) the debtor is required to make contributions

to the plan that the director proposes to attach, or

(ii) the debtor's employer is required by the plan

to make contributions on the debtor's behalf to the plan that the director

proposes to attach; or

(

c) the debtor is receiving a pension benefit

under the pension plan that the director proposes to attach.

(2) A debtor applying to the court shall serve the

director and the administrator with a notice of the application.

Attachment of

pension entitlement

(1) Where

the director has provided a notice of intention to attach a debtor's pension entitlement

under

section 40 and no application to the court has been made under

section 43,

the director may issue a notice of attachment of the pension entitlement not

more than 60 days from the date the director receives the information required

under

section 41.

(2) Where the director has provided a notice of

intention to attach a debtor's pension entitlement under

section 40 and an

application under

section 43 has been made and

(

a) the court orders that the pension entitlement may

be attached, the director may issue a notice of attachment of the pension entitlement

not more than 60 days from the date of that order; or

(

b) the court orders that

the pension entitlement shall not be attached, the director shall take no

further action under the notice of intention to attach the pension entitlement.

(3) Where the administrator complies with a notice

of attachment under this section, the administrator shall deduct from the

amount standing to the credit of the debtor in the debtor's pension plan

(

a) the total amount of taxes, if any, that are

required to be deducted or withheld as a result of the attachment;

(

b) the cost of complying

with the attachment calculated in the manner prescribed under the regulations;

(

c) the lesser of

(

i) the amount attached, and

(ii) the amount standing to the credit of the

debtor; and

(

d) pay the amount deducted under paragraph (

c) to

the director within 7 days after making the deduction.

(4) Where the director provides a notice of

attachment under subsection (1) or (2), the administrator shall

(

a) immediately deliver, personally or by ordinary

mail, a copy of the notice to the debtor; and

(

b) comply with the notice of attachment within 45

days of receiving the notice.

(5) The administrator may deliver the notice of

attachment to the debtor at the most recent address for the debtor in the

administrator's records.

(6) Failure of the administrator to comply with

paragraph (4)(

a) does not render the attachment ineffective.

(7) Sections 21-23 apply, with the necessary

modifications, to an administrator provided with the director's notice of attachment

of the debtor's pension entitlement.

(8) If an amount has been attached under this

section

(

a) the debtor has no further claim or entitlement

to any pension plan benefit under the pension plan respecting the amount attached;

(

b) the amount standing to the credit of the debtor

is reduced by the amount deducted under paragraph (a); and

(

c) neither the administrator nor the pension plan

is liable to any person by reason of having made payment to the director under

to this Act.

Registered plan

attachment

(1) In

this

section and in sections 46 to 50,

(a) "DPSP" means a deferred profit sharing

plan as defined in

section 147 of the federal Act;

(b) "federal Act" means the Income Tax Act ( Canada );

(c) "registered plan" means a DPSP, an

RRIF or an RRSP;

(d) "RRIF" means a registered retirement

income fund as defined in

section 146.3 of the federal Act;

(e) "RRSP" means a registered retirement

savings plan as defined in

section 146 of the federal Act; and

(f) "trustee" means a person charged

with the administration of a registered plan.

Registered plan may

be attached

46. The

director may enforce a support order by attaching the registered plan of a

debtor where

(

a) the debtor is in persistent arrears under a support

order that is filed with the director;

(

b) in the opinion of the director, all reasonable

steps have been taken to enforce the support order;

(

c) the director has provided the trustee and the

debtor with a notice of the director's intention to attach the registered plan;

and

(

d) the debtor has not, before the notice of

attachment has been provided to the trustee under

section 50, made arrangements

satisfactory to the director to fulfil the obligation under the support order.

Notice of the

director's intention

(1) The

notice of the director's intention to attach the debtor's registered plan shall

(

a) direct the trustee to provide the director and

the debtor particulars of the debtor's registered plan within 30 days of the

receipt of the notice;

(

b) notify the debtor of his or her right to apply

to the court under

section 50 within 30 days of the receipt of the information

referred to in paragraph (

a) for an order that the debtor's registered plan is

not to be attached; and

(

c) direct the trustee to notify the debtor of the

costs, income tax implications and reductions that would result from the attachment

of the debtor's registered plan.

(2) The trustee may provide the information required

under this

section to the debtor at the most recent address for the debtor in

the trustee's records.

(3) Failure of the trustee to provide the

information required under this

section does not render the attachment

ineffective.

Restrictions

48. Where

a trustee is provided with a notice of the director's intention, the trustee

shall not pay out any of the debtor's registered plan at the direction of the

debtor until 60 days have elapsed from

(

a) if no application is made to the court, the

date that the director received the information referred to in paragraph 47(1)(a);

(

b) if an application is made to the court, the

date that the court orders that the debtor's registered plan may be attached.

Court application

(1) The

court, on application by the debtor, may order that the debtor's registered

plan is not to be attached where the court is satisfied that the debtor is not

in persistent arrears respecting an obligation under a support order that is

filed with the director.

(2) A debtor applying to the court shall serve the

director and the trustee with a notice of the application.

Attachment of

registered plan

(1) Where the director has provided a notice of intention to attach a debtor's

registered plan under

section 46 and no application to the court has been made

under

section 49, the director may issue a notice of attachment of the

registered plan not more than 60 days from date the director receives the information

required under

section 47.

(2) Where the director has provided a notice of

intention to attach a debtor's registered plan under

section 46 and an

application under

section 49 has been made and

(

a) the court orders that the registered plan may

be attached, the director may issue a notice of attachment of the registered

plan not more than 60 days from the date of that order; or

(

b) the court orders that the registered plan

shall not be attached, the director shall take no further action under the

notice of intention to attach the registered plan.

(3) Where the trustee complies with a notice of

attachment under this section, the trustee shall deduct from the amount

standing to the credit of the debtor in the debtor's registered plan

(

a) the total amount of taxes, if any, that are

required to be deducted or withheld as a result of the attachment;

(

b) the cost of complying

with the attachment calculated in the manner prescribed under the regulations;

(

c) the lesser of

(

i) the amount attached, and

(ii) the amount standing to the credit of the

debtor; and

(

d) pay the amount deducted under paragraph (

c) to

the director within 7 days after making the deduction.

(4) Where the director provides a notice of

attachment under subsection (1) or (2), the trustee shall

(

a) immediately deliver, personally or by ordinary

mail, a copy of the notice to the debtor; and

(

b) comply with the notice of attachment within 45

days of receiving the notice.

(5) The trustee may deliver the notice of

attachment to the debtor at the most recent address for the debtor in the trustee's

records.

(6) Failure of the trustee to comply with

paragraph (4)(

a) does not render the attachment ineffective.

(7) Sections 21-23 apply, with the necessary

modifications, to a trustee provided with the director's notice of attachment

of the debtor's registered plan.

(8) If an amount has been attached under this

section

(

a) the debtor has no further claim or entitlement

to any registered plan benefit under the registered plan respecting the amount

attached;

(

b) the amount standing to the credit of the

debtor is reduced by the amount deducted under paragraph (a); and

(

c) neither the trustee nor the registered plan is

liable to any person by reason of having made payment to the director under

this Act.

Corporation with

debtor as sole shareholder

(1) In

this section, "corporation" means a corporation in which the debtor

(

a) is the sole shareholder; and

(

b) has the sole beneficial interest in the shares

of the corporation.

(2) A corporation becomes jointly and severally

liable with a debtor for payments required under a support order if

(

a) the debtor is in persistent arrears under a

support order that is filed with the director; and

(

b) the director has served the corporation with a

notice of garnishment respecting the amount owing by the debtor under the

support order.

(3) On becoming jointly and severally liable under

subsection (2)

(

a) the corporation continues to be liable as long

as the debtor continues to be liable for payments required under the support

order;

(

b) any enforcement measure that may be taken with

respect to the debtor may be taken with respect to the corporation; and

(

c) the amount of a payment required under a

support order that is paid by the corporation is a debt owed by the debtor to

the corporation.

(4) Notwithstanding subsection (3), a corporation

is not liable for payments under a support order that come due on or after the date

the director receives written notification from the corporation

(

a) stating that the debtor has ceased to have a

beneficial interest in any shares of the corporation and specifying the date on

which the debtor ceased to have a beneficial interest in the shares of the corporation;

(

b) giving the name and address of the person who

acquired the beneficial interest in the debtor's shares; and

(

c) specifying the nature and amount of the

consideration that the debtor received or will receive for the transfer of the

beneficial interest in the shares.

(5) Where the director disputes the validity of a

notification received under subsection (4), the director may apply to a court

and the court may

(

a) summarily determine whether the corporation is

liable under this section; or

(

b) order that an issue or question necessary for

the determination of the liability of the corporation be tried.

Corporation controlled

(1) In

this

section

(a) "corporation" means a corporation

that is controlled by

(

i) a debtor, or

(ii) a debtor and the immediate family members of

the debtor;

(b) "immediate family member" means a

spouse, former spouse, child, sibling, step-sibling, half-sibling, parent or

step-parent of the debtor or a cohabiting partner with whom the debtor is

living in a conjugal relationship outside of marriage;

(c) "to control", with respect to a

corporation, means to hold, other than by

way of security only, by or for the benefit of a person or a group of persons

not dealing with each other at arm's length, shares in the corporation that, in

an election of the directors of the corporation, carry, in total, sufficient voting

rights, if those rights are exercised, to elect 50% or more of the directors or

to otherwise effectively control the operations and direction of the corporation.

(2) A director may apply to the court for an order

declaring that a corporation is jointly and severally liable with a debtor for

payments required under a support order if

(

a) the debtor is in persistent arrears under a support

order filed with the director; and

(

b) the corporation has been served with a notice

of garnishment respecting the amount owing by the debtor under the support

order.

(3) If, on an application under subsection (2), the

court orders that the corporation is jointly and severally liable with the

debtor for payments required under a support order

(

a) the corporation continues to be liable as long

as the debtor continues to be liable for payments required under the support

order;

(

b) any enforcement measure that may be taken with

respect to the debtor may be taken with respect to the corporation; and

(

c) the amount of a payment required under a

support order that is paid by the corporation is a debt owed by the debtor to

the corporation.

(4) Notwithstanding subsection (3), a corporation

is not liable for payments under a support order that come due on or after the

date the director receives written notification from the corporation

(

a) stating that the debtor has ceased to have a

beneficial interest in any shares of the corporation and specifying the date on

which the debtor ceased to have a beneficial interest in the shares of the

corporation;

(

b) giving the name and address of the person who

acquired the beneficial interest in the debtor's shares; and

(

c) specifying the nature and amount of the

consideration that the debtor received or will receive for the transfer of the

beneficial interest in the shares.

(5) Where the director disputes the validity of a

notification received under subsection (4), the director may apply to a court

and the court may

(

a) summarily determine whether the corporation is

liable under this section; or

(

b) order that an issue or question necessary for

the determination of the liability of the corporation be tried.

Suspension of

driving privileges

(1) In

this section, "driver's licence" means a driver's licence as defined

by and issued under the Highway Traffic

Act and belonging to a class prescribed by the regulations.

(2) The director may direct the Registrar of Motor

Vehicles to suspend, cancel or refuse to renew the driver's licence of a debtor

(

a) the debtor is in default under a support order

filed with the director;

(

b) the debtor is in persistent arrears;

(

c) in the opinion of the director, all reasonable

steps have been taken to enforce the support order; and

(

d) the 30 day period referred to in subsection (3)

has elapsed.

(3) Before directing the Registrar of Motor

Vehicles to take an action under subsection (2), the director shall notify the

debtor that unless the debtor makes an arrangement satisfactory to the director

within 30 days of the notification to comply with the support order, the director

shall direct the Registrar of Motor Vehicles to suspend, cancel or refuse to

renew the driver's licence of the debtor.

(4) If the director is satisfied that a debtor

requires a driver's licence for employment or medical purposes, the director

may direct the Registrar of Motor Vehicles to impose any of the following conditions

on the driver's licence of the debtor, rather than suspending, canceling or

refusing to renew the debtor's driver's licence:

(

a) the debtor shall be authorized to operate a

motor vehicle only for employment or medical purposes; and

(

b) the debtor shall be restricted to operating a

motor vehicle at specific hours and places.

(5) The director shall direct the Registrar of

Motor Vehicles to reinstate a driver's licence suspended or cancelled or to

renew a driver's licence previously refused renewal under this

section where

(

a) the debtor pays all arrears owing under the

support order;

(

b) the debtor is complying with arrangements made

with the director under subsection (3);

(

c) the support order is varied and the debtor is

complying with the terms of the varied order; or

(

d) the support order is withdrawn under section

(6) Subsection (5) applies with the necessary

modifications to revoking conditions imposed on a driver's licence under this

section.

(7) A debtor may apply to a court for an order

(

a) revoking the suspension or cancellation of the

debtor's driver's licence or the refusal to renew the debtor's driver's

licence; or

(

b) revoking the conditions imposed on the

driver's licence of the debtor.

(8) A debtor applying to the court under

subsection (7) shall serve the director and the Registrar of Motor Vehicles with a notice of that application.

(9) The court may make an order under subsection

(7) if the court is satisfied that

(

a) the debtor is not in persistent

arrears;

(

b) a person's health is or would be seriously

threatened if the driver's licence of the debtor were not reinstated; or

(

c) the debtor requires a driver's licence for

employment purposes.

(10) If the court makes an order under paragraph (7)(a),

the court may also order the Registrar of Motor Vehicles to impose any conditions

on the driver's licence of the debtor that may be imposed under subsection (4).

(11) If the debtor is in default under one or more support

orders, the director shall not request that the Registrar of Motor Vehicles reinstate

the debtor's licences unless

(

a) all arrears under all

support orders are paid;

(

b) an arrangement or arrangements have been made,

on terms satisfactory to the director, to pay all arrears under all the support

orders, and the debtor is in compliance with the arrangement or arrangements;

(

c) all arrears under all

support orders are the subject of a court order or orders for payment and the

debtor is in compliance with the court order or orders.

(12) An agreement by the parties to a support order

to avoid or prevent the applicability of this

section to the enforcement of the

support order is void and of no force or effect.

(13) This

section applies to a default under a

support order that occurred before or after the commencement of this section.

Big game licences

(1) In

this

section and

section 55, "licence", when used with respect to a

debtor, means a big game licence issued to the debtor under

Part IV of the Wild Life Regulations and the Wild

Life Act .

(2) The director may request that the minister

responsible for the Wild Life Act suspend or cancel a debtor's licence if

(

a) the debtor is in default under a support order

filed with the director;

(

b) the debtor is in persistent arrears;

(

c) in the opinion of the director, all reasonable

steps have been taken to enforce the support order; and

(

d) the 30 day period referred to in subsection (3)

has elapsed.

(3) Before requesting that the minister

responsible for the Wild Life Act take an action under subsection (2),

the director shall notify the debtor that unless the debtor makes an

arrangement satisfactory to the director within 30 days of the notification to

comply with the support order, the director shall request that the minister

responsible for the Wild Life Act suspend or cancel the debtor's licence.

(4) The director shall request that the minister

responsible for the Wild Life Act reinstate a debtor's licence suspended

or cancelled under this

section where

(

a) the debtor pays all arrears owing under the

support order;

(

b) the debtor is complying with arrangements made

with the director under subsection (3);

(

c) the support order is varied and the debtor is

complying with the terms of the varied order; or

(

d) the support order is withdrawn under section

(5) A debtor may apply to a court for an order revoking

the suspension or cancellation of the debtor's licence.

(6) A debtor applying to the court under

subsection (5) shall serve the director and the minister responsible for the Wild Life Act with a notice of that

application.

(7) The court may make an order under subsection

(5) if the court is satisfied that the debtor is not in persistent arrears.

(8) If the debtor is in default on one or more

other support orders, the director shall not request that the minister responsible

for the Wild Life Act reinstate the debtor's licences unless,

(

a) all arrears under all the support orders are

paid;

(

b) an arrangement or arrangements have been made,

on terms satisfactory to the director, to pay all arrears under all the support

orders, and the debtor is in compliance with the arrangement or arrangements;

(

c) all arrears under all the support orders are

the subject of a court order or orders for payment and the debtor is in compliance

with the court order or orders.

(9) An agreement by the parties to a support order

to avoid or prevent the applicability of this

section to the enforcement of the

support order is void and of no force or effect.

(10) This

section applies to a default under a

support order that occurred before or after the commencement of this section.

Further

default

55. If the director requests that the minister

responsible for the Wild Life Act reinstate a debtor's licence under

this

section and the debtor subsequently defaults within 12 months from the

date of reinstatement the director may request that the minister responsible

for the Wild Life Act cancel the debtor's licence in accordance with

section 54 for the remainder of the season for which the licence was issued.

Garnishment of

lottery prizes

(1) In

this

section

(a) " corporation "

means the Atlantic Lottery Corporation;

(b) " lottery "

means a lottery scheme permitted by virtue of the Criminal Code and conducted

and managed by the Corporation; and

(c) " prize "

means a sum of money or goods payable as a prize in a lottery.

(2) Where a debtor who is in default under a support

order filed with the director is entitled to a prize that the Corporation

values at $1000 or more, the director may garnish that prize to the extent of

the arrears and in the manner prescribed by the regulations.

PART V

GENERAL

Application of

payments

57. Money

paid on account of a support order is to be credited in the following order:

(

a) to the payment most recently due;

(

b) to interest owing on a payment;

(

c) to the principal balance outstanding; and

(

d) to costs prescribed in the regulations and

fees prescribed by the minister.

Fee charged by

director

(1) The director shall not charge a fee to a creditor for services provided to the

creditor under this Act.

(2) The director may, with the approval of the

minister, charge a fee respecting matters arising in the course of enforcing a

support order, including a circumstance where

(

a) a debtor fails to make a payment under a

support order

(

i) by the date required in the order, or

(ii) in accordance with an arrangement made between

the debtor and the director;

(

b) a debtor fails to file a statement of finances

with the director as required under this Act; or

(

c) a debtor or another person on behalf of a

debtor makes a payment to the director under a support order or other amounts

owing under this Act by cheque, pre‑authorized withdrawal or money order

and

(

i) the cheque or withdrawal is dishonoured on the

grounds that no funds or insufficient funds were available, or

(ii) a stop payment order is placed on the cheque,

withdrawal or money order.

(3) A person who pays a fee under subsection

(2) may not be charged with an offence under this Act with respect to the contravention.

Service

(1) A

notice or document required by this Act to be served shall be served in the

manner prescribed in the Rules of the Supreme

Court, 1986 for service of a statement of claim.

(2) Where a proceeding is brought to enforce a

support order, it is not necessary to prove that the debtor was served with the

support order.

Presumption of

debtor's ability to pay

60. In

proceedings brought under this Act, the debtor is presumed to have the ability

to pay the arrears and to make subsequent payments under the support order.

Signature of director

as evidence

(1) A

statement of arrears signed by the director is admissible in evidence as, in

the absence of evidence to the contrary, proof of the arrears without prior

notice to the other party.

(2) A statement signed by the director that a

support order is registered with the director is admissible in evidence as

conclusive proof of the facts contained in the statement.

(3) A document signed by the director with respect

to the enforcement of a support order is admissible in evidence without proof

of the signature or official character of the director.

(4) Where the signature of the director is

required for the purposes of this Act, the signature may be written, engraved,

lithographed or reproduced by another mode of reproducing words in visible

form.

Application to

vary support order

(1) Where

an application is made to a court to vary a support order, the clerk or

registrar of the court shall notify the director of the application.

(2) Where the order is varied, the clerk or

registrar of the court shall file with the director the order of the court that

varies the support order.

Proof of default

63. In

an action brought on default of an obligation under a support order, proof of

the default may be made either by oral or affidavit evidence or by other

evidence that the court may allow.

Capacity of minor

64. A

minor who is a spouse or a parent has the capacity to begin, conduct and defend

a proceeding and initiate and complete steps for enforcement of a support order

without the intervention of a guardian appointed by the court.

No limitation

period

(1) Notwithstanding

the Limitations Act , there is no

limitation on the enforcement of arrears of payments under a support order.

(2) Notwithstanding subsection (1), the director

may, in his or her discretion, choose not to collect arrears of payments under

a support order which came due more than the period of time prescribed in the

regulations before the date of the coming into force of this Act.

(3) Where, before the coming into force of this

Act, arrears under a support order were no longer enforceable under the

previous limitation period, those arrears may not now be enforced due to the

coming into force of this section.

Debt no defence

66. The

fact that a debtor is in debt or has paid debts is not a defence to proceedings

brought to enforce a support order.

Debt of estate

(1) Where

a debtor dies and, at the time of his or her death, the debtor is in default of

payments under a support order, the amount in default is a debt of the estate

of the debtor and recoverable by the director from the estate.

(2) Where the person in whose favour a support

order was made dies, his or her personal representative, the director or the

minister responsible for the Income and

Employment Support Act where a subrogation exists under

section 10 may

recover payments under a support order that are in default at the time of the

death of that person.

Relief of

obligation to pay

68. Where

money is recoverable under

section 67, a judge of the court in which the

support order was made or registered may, on the application of an interested

party, relieve the debtor or, where the debtor has died, the estate of the

debtor, of the obligation to pay, in whole or in part, the amount in default

where the judge is satisfied that

(

a) having regard to the interests of the debtor

or the estate of the debtor, it would be grossly unfair and inequitable not to

do so;

(

b) having regard to the interests of the person

in whose favour the support order was made or his or her estate, it is

justified; and

(

c) having regard to the interests of other

dependants of the debtor, interference with the claim of the estate of the

person in whose favour the support order was made or the claim of the minister

responsible for the Income and Employment

Support Act is justified.

Communications

not privileged

69. Notwithstanding

another Act, rule or law, in proceedings brought under this Act, a person is

compellable to disclose a communication made to that person by his or her

spouse.

Witnesses

(1) A

judge or clerk may issue a subpoena to a witness to be served in the province,

and the person subpoenaed, on being offered the prescribed fee, shall attend as

subpoenaed.

(2) A subpoena issued under subsection (1) may be

served by a person by showing it to the witness and delivering to him or her a

copy of the subpoena, together with the fees.

(3) Where a subpoena referred to in subsection

(1) has been issued by a judge or clerk of the Provincial Court, it has the effect

of a subpoena issued out of the Trial Division and a witness who does not

attend in obedience to a subpoena is liable to contempt proceedings and is

liable in the same manner as if he or she disobeyed a subpoena issued out of

that court.

Enforcement proceedings

(1) Enforcement

proceedings under this Act shall be brought in the court in which the original

support order was obtained where, on the balance of convenience, it is

appropriate to do so, unless some other court is specifically designated by

this Act.

(2) The balance of convenience under subsection

(1) shall favour the debtor.

No liability

72. The

minister, the minister responsible for the Income and Employment Support Act,

the director or a person

acting on behalf of the director is not liable for a loss or damage suffered by

a person because of anything done or omitted to be done in good faith with

respect to the enforcement of a support order.

Provision not enforceable

73. A

provision in an agreement or support order by which a creditor agrees to, or

that requires that a creditor

(

a) withdraw a support order that is registered

with the director under this Act; or

(

b) file with the court that made the support

order or the director a notice stating that the creditor does not wish to have

a support order enforced by the director

is not enforceable.

Rights under Act

74. The

rights conferred by this Act are in addition to and not in substitution for

rights conferred by another Act of the province.

Right of appeal

75 .

(1) An

appeal lies from an order or decision made by a court under this Act within 30

days of the date of the order or decision appealed from

(

a) to the Court of Appeal where the order under

appeal was made by a judge of the Trial Division or the Unified Family Court;

(

b) to the Trial Division where the order under

appeal was made by a Provincial

Court judge.

(2) There is no appeal from an order or decision

of the Trial Division with respect to an appeal from an order or decision of a Provincial Court judge made under paragraph (1)(

b) except by leave of the Court of Appeal.

Fees and Forms

76. The

minister may set fees and prescribe forms for the purpose and administration of

this Act.

Regulations

77. The

Lieutenant-Governor in Council may make regulations

(

a) respecting the manner of registering a support

order by a creditor or debtor;

(

b) prescribing the rules for service of

documents;

(

c) prescribing the time period and amount of

persistent arrears;

(

d) prescribing what is a nominal amount of

support owing under a support order;

(

e) respecting the information that can be

disclosed under

section 12 and the purposes for which it can be disclosed;

(

f) respecting the disclosure of financial

information;

(

g) respecting the

disclosure of additional information to a consumer reporting agency under

subsection 13(2);

(

h) respecting the manner

of calculating the cost of complying with attachment under paragraphs 44(3)(

b) and 50(3)(b);

(

i) prescribing affected

classes of licences issued under the Highway

Traffic Act ;

(

j) respecting the manner

of garnishing lottery prizes under

section 56; and

(

k) generally , to give

effect to the purpose of this Act.

Offence

(1) A

person who

(

a) fails to file a statement of finances in

accordance with this Act;

(

b) knowingly gives false information in a

statement of finances filed with the director or the court;

(

c) fails to comply with a notice of garnishment;

(

d) fails or refuses to provide information to the

director upon request

is guilty of an offence and liable on

summary conviction to a fine of not more than $3,000 or to imprisonment for a

term of not more than 90 days, or to both.

(2) An offence under subsection (1) includes an

offence by a corporation under the provisions of that subsection.

Transitional

79. The

coming into force of this Act shall not affect or invalidate

(

a) enforcement activities under a support order

where those activities had begun before the coming into force of this Act; or

(

b) any order made under the authority of the

previous Act.

SNL2000 cE-11.1

Amdt.

80. Paragraph 3(1)(

a) of the Enforcement of Canadian Judgments Act is amended by deleting the

reference " Support Orders

Enforcement Act " and substituting the reference " Support Orders Enforcement Act, 2006 ".

RSNL1990 cF-2 Amdt.

(1) Section 56 of the Family Law Act is amended by deleting the reference " Support Orders Enforcement Act " and

substituting the reference " Support

Orders Enforcement Act, 2006 ".

(2) Subsection 65(5) of the Act is amended by

deleting the reference " Support

Orders Enforcement Act " and substituting the reference " Support Orders Enforcement Act, 2006 .

RSNL1990 cH-3

Amdt.

82. The Highway

Traffic Act is amended by adding immediately after

section 64 the

following:

Suspension or

cancellation

64.1

(1) Upon receiving direction from the Director of Support Enforcement under

subsection 53(2) or 53(4) of the Support

Orders Enforcement Act, 2006 , the Registrar shall, with respect to the person

named in the direction and in accordance with the direction

(

a) by written order, suspend, cancel or refuse to

renew the person's driver's licence; or

(

b) impose the specified conditions on the person's

driver's licence.

(2) Upon receiving direction from the Director of

Support Enforcement under subsection 53(5) or 53(6) of the Support Orders Enforcement Act, 2006, the Registrar shall, with

respect to the person named in the direction and in accordance with the

direction

(

a) reinstate a driver's licence suspended or

cancelled under this section; or

(

b) revoke conditions imposed on a driver's licence

under this section.

(3) The Registrar shall reinstate a driver's licence

suspended or cancelled, or revoke conditions imposed on a driver's licence in

accordance with an order of a court under subsection 53(9) of the Support Orders Enforcement Act, 2006 .

(4) Notwithstanding subsection (2) or (3), the

Registrar shall not reinstate a driver's licence under this

section unless the

Registrar is satisfied that the person meets all the requirements for the

issuance of a driver's licence.

(5) A person who holds a driver's licence which

has been restricted under this

section and drives a motor vehicle in

contravention of any restriction imposed by the Registrar commits an offence.

SNL2002 cI-0.1 Amdt.

Section 40 of the Income and Employment Support Act is amended by deleting the reference

" Support Orders Enforcement Act "

and substituting the reference " Support

Orders Enforcement Act, 2006" .

SNL2002 cI-19.2

Amdt.

84. Subsection 19(3) of the Interjurisdictional Support Orders Act is amended by deleting the

reference " Support Orders Enforcement

Act " and substituting the reference " Support Orders Enforcement Act, 2006 ".

SNL1996 cJ-1.1

Amdt.

85. (1) Paragraph 2(1)(bb) of the Judgment Enforcement Act is repealed and

the following substituted:

(bb) "judgment" includes an order,

decree, certificate, duty or right that may be enforced as or in the same

manner as a judgment of the court including a judgment made under the Small Claims Act and the Federal Court Act , but does not include

a support order registered with the director under the Support Orders Enforcement Act, 2006 , except as provided in section

(2) Subsection 3(3) of the Act is repealed and the

following substituted:

(3) Notwithstanding subsection (1), where a

support order filed with the director under the Support Orders Enforcement Act, 2006 is in arrears, the director

appointed under that Act may register that support order in accordance with

section 38 and that registered support order, to the extent of the arrears,

shall be considered to be a notice of judgment to which this Act applies and

the director shall be considered a creditor for the purpose of the Act.

(3) Section 3 of the Act is amended by adding

immediately after subsection (3) the following:

(3.1) Notwithstanding paragraph 2(1)(bb) and subsection

(3), where a support order is not filed with the director under the Support Orders Enforcement Act, 2006,

that support order may be registered in accordance with

section 38 and when

registered it shall be considered to be a notice of judgment to which this Act

applies.

(4) Subsection 18(3) of the Act is amended by

deleting the reference " Support

Orders Enforcement Act " and substituting the reference " Support Orders Enforcement Act, 2006 ".

(5) Subsection 121(2) of the Act is amended

(

a) in paragraph (e), by deleting the reference

" Support Orders Enforcement Act "

and substituting the reference " Support

Orders Enforcement Act, 2006 "; and

(

b) in paragraph (f), by deleting the reference

" Support Orders Enforcement Act "

and substituting the reference " Support

Orders Enforcement Act, 2006 ".

RSNL1990 cW-8

Amdt.

Section 10 of the Wild Life Act is amended by adding immediately after subsection

(3) the following:

Suspension or

cancellation

10.1

(1) Upon

receiving a request from the Director of Support Enforcement under subsection

54(2) or

section 55 of the Support Orders

Enforcement Act, 2006 , the minister shall, with respect to the person named

in the request and in accordance with the request by written order, suspend or

cancel the person's licence.

(2) Upon receiving a request from the Director of

Support Enforcement under subsection 54(4) of the Support Orders Enforcement Act, 2006, the minister shall, with

respect to the person named in the request and in accordance with the request,

reinstate a licence suspended or cancelled under this section.

(3) The minister shall reinstate a licence

suspended or cancelled in accordance with an order of a court under subsection

54(7) of the Support Orders Enforcement

Act, 2006 .

(4) Notwithstanding subsection (2) or (3), the

minister shall not reinstate a licence under this

section unless the minister

is satisfied that the person meets all the requirements for the issuance of a

licence.

(5) A person who holds a licence which has been suspended

or cancelled under this

section and who hunts or takes any action in contravention

of this

section commits an offence.

Commencement

87. This Act shall come into force on a day to be

proclaimed by the Lieutenant-Governor in Council.

Earl G. Tucker, Queen's Printer