Receivership
A receiver is a third party appointed by a court through a court order or by a secured creditor through a letter of appointment to:
- take control of property
- supervise liquidation proceedings
- remit the proceeds according to priorities established by common or statutory law
There are two types of receivers:
- court-appointed receiver
- privately appointed receiver, appointed by a secured creditor
You have to send to your Insolvency Intake Centres a copy of the court order issued letter of appointment or a non-court issued document that meets one of the six regulations set out as follows.
A receiver means a person who:
- under the authority of a debenture, bond or other debt security, of a court order or of an Act of Parliament, or of the legislature of a province, is empowered to operate or manage a business or a property of another person
- is appointed by a trustee under a trust deed for a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security
- is appointed by a bank to act as an agent of the bank in the exercise of the authority of the bank under subsection 426(3) of the Bank Act in respect of property of another person
- is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation, and
- is appointed as a committee, guardian, or curator with authority to manage and care for the affairs and assets of an individual who is not capable of managing those affairs and assets, and includes a person who is appointed to exercise the authority of a creditor under a debenture, bond, or other debt security to operate or manage a business or a property of another person but, where a person is appointed to exercise the authority of a creditor under a debenture, bond, or other debt security to operate or manage a business or a property of another person, does not include that creditor
- is a licensed trustee, for any purpose related to the administration and enforcement of the Bankruptcy and Insolvency Act