Sentences with phrase «pba deemed trust»

The issue has been a murky area of law, he said, given that while the Ontario Pension Benefits Act applies a deemed trust to pension plans, the provision has been given ineffective treatment over the years.

At the same time, the Supreme Court of Canada has said that provincial deemed trusts don't apply in a bankruptcy.

Hatnay noted in Indalex, the appeal court considered the questions of whether the company had breached its fiduciary duty and whether there was a deemed trust in a situation where it had essentially abandoned its pension plan.

In a motion filed at the Ontario Superior Court of Justice — Commercial List on August 11, 2017, the lawyer for Retirees of Sears Canada cited s. 57 (4) of the Pension Benefits Act (PBA) and s. 30 (7) of the Personal Property Security Act (PPSA) to create a deemed trust priority in favour of the beneficiaries of the pension plan over other assets of the employer,

The PBA / PPSA deemed trust priority is critically important for the Sears Canada Plan beneficiaries in the circumstances of Sears Canada's CCAA proceedings and future competing claims of other creditors.

In this case, the PBA creates a provincial deemed trust (s 57 (4)-RRB-.

The definition of «secured creditor» under the CCAA does not appear to encompass beneficiaries of deemed trusts.

The Court had to consider whether the deemed trust arising under section 57 (4) PBA extended to the wind - up deficiencies.

Such a deemed trust would give priority to the Plan Members over the secured creditors pursuant to section 57 (4) of the PBA and section 30.7 of the Personal Property Security Act, RSO 1990, c P - 10 («PPSA»).

Second, the Court found that a deemed trust did arise in favour of the pensioners.

The issue here is that while the priorities of deemed trusts in relation to secured creditors under the BIA might be clearly set out, it is not the case under the CCAA, another federal statute.

Second, what is the type of priority afforded to deemed trusts in relation to secured creditors other than DIP lenders?

It is unclear whether a deemed trust will fall under the claim of a secured creditor.

Finding that, the Court went on to conclude that the provincial deemed trust under the PBA applies in CCAA proceedings, subject to the doctrine of federal paramountcy, because of the Amended Initial Order, and noting that that means that when there is a CCAA liquidation proceeding, the PPSA may determine the priorities rather than the federal scheme under the BIA (Indalex, para 52), since analogous priorities are not set out in the CCAA.

The main issue in this case was the priority of the deemed trusts in relation to the DIP charge.

While the BIA provision clearly lays out the treatment of deemed trusts in favour of the Crown, issues can arise with deemed trusts that arise in favour of parties other than the Crown, such as those arising under pension legislation.

The Ontario PPSA subordinates a security interest in an account or inventory or its proceeds to the interest of a person who is the beneficiary of a deemed trust arising under the PBA (s 30 (7)-RRB-.

Aside from the inapplicability of federal paramountcy, an additional problem is that the provincial PPSAs and pension benefits legislation are not identical in their treatment of deemed trusts in relation to security interests arising under the PPSAs.

There is an exception to this, with regard to statutory deemed trusts for source deductions, such as Canada Pension Plan, Employment Insurance premiums and unremitted income tax (s 67 (3) BIA).

With regard to the deemed trust, the Court was split but it upheld the finding of the Ontario Court of Appeal that a deemed trust had arisen under the Pension Benefits Act, RSP 1990, c P - 8 («PBA») in favour of the pension holders for the wind - up deficiency payments.

However, deemed trusts in favour of the Crown get different treatment.

3) The Act helps to ensure that money intended to finance construction is used for that purpose by imposing a trust on money received by contractors and subcontractors in connection with the construction project — the statutory or deemed trust.

Also, this decision discusses deemed trusts and their priority in relation to DIP lenders.

On this, the SCC held that the DIP charge given under the CCAA had priority over the provincial deemed trust based on the doctrine of paramountcy (Indalex, para 60).

The majority found that the wind - up deficiency contributions are subject to a deemed trust as of the date the pension plan is wound up.

The Court unanimously found that the DIP charge had super priority, which prevailed over the PBA deemed trust.

They asserted that their claim had priority over the DIP lenders because the unfunded pension liabilities created a statutory deemed trust under the PBA; and

However, the SCC overturned the Ontario Court of Appeal in its finding of the priority of the deemed trust, unanimously maintaining that the deemed trust would not be granted super-priority over the DIP lenders.

Read his article, CRA's Super Priority Gains Strength: Federal Crown's deemed trust priority for unremitted GST / HST survives bankruptcy in Canada v. Callidus Capital Corporation, as published by Thomson Reuters» Corporate Tax Centre on Taxnet Pro ™ on August 28, 2017 (PDF)

In sum, and on all of the three arguments (express trust, CAPL 1990 deemed trust, and the right to take in kind) LMP was out of luck and had no claim on the holdback monies.

LMP Resources claimed a share of the hold - back monies (to the extent of its share of production from jointly owned property) on the basis of: (1) an express declaration of trust, (2) a deemed trust under clause 507 of the 1990 CAPL Operating Procedure, and (3) an entitlement to take its share of production in kind.

The jointly owned properties subject to the claim of a deemed trust were all operated by Exall under the terms of the 1990 CAPL Operating Procedure.

«The Superintendent submits that the CCAA judge erred in concluding that no wind up deemed trusts arose during the CCAA Proceeding,» wrote Ontario Court of Appeal Justice Eileen Gillese in setting out one of the key issues in Grant Forest Products Inc. v.

The Supreme Court split on the issues with a majority siding with the pensioners on the deemed trust issue.

A statutory deemed trust under provincial legislation such as the PBA continues to apply in federally ‑ regulated CCAA proceedings, subject to the doctrine of federal paramountcy.

As a result of the application of the doctrine of federal paramountcy, the DIP charge supersedes the deemed trust.

As Benefits Canada explains, the court held that the federal statute took precedence over the provincial statute, ruling that «the deemed trust that gives priority to pension claims under Newfoundland and Labrador's Pension Benefits Act wasn't effective in a liquidation scenario in a [CCAA] proceeding.»

After Wabush had sold its assets, it sought direction from the Quebec Court on whether the deemed trust in respect of the deficits and the outstanding special payments took priority over the claims of other creditors.

Many observers hope it will provide greater clarity on the application of the deemed trust provisions of the Pension Benefits Act and give guidance to companies in similar situations.

The much - anticipated decision of the Quebec Superior Court in the Timminco CCAA matter involving pension plans in Quebec declares pension deemed trusts a priority over secured creditors.

«Section 49 indicated the deemed trust but didn't actually create a valid deemed trust,» says Hobday.

In Ontario and in cases like Indalex and others, the courts in Ontario refer to the Personal Property Security Act that says a deemed trust has priority over secured lenders.

The previous state of the law was that there was no valid deemed trust for anything,» says Hobday.

Hopefully, the Supreme Court of Canada will clarify the scope and application of the PBA deemed trust and provide guidance to organizations and lenders in circumstances similar to Indalex.

The entire amount that an employer is required to contribute to fund a pension plan wind up deficiency under the Ontario Pension Benefits Act is subject to the deemed trust provisions of the PBA and, in the circumstances, the amount subject to the deemed trust should be paid in priority to outstanding secured creditor claims.

Not exact matches

On February 10, a clause was apparently added to a letter outlining the details of the trust stating that «the Trustees shall distribute net income or principal to Donald J. Trump at his request, as the Trustees deem necessary for his maintenance, support or uninsured medical expenses, or as the Trustees otherwise deem appropriate.»

«In Oregon that was deemed to be an important feature from a trust standpoint.»

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To the extent that the activities of the Trust cause it to be deemed a «money transmitter» under the regulations promulgated by FinCEN under the authority of the US Bank Secrecy Act, the Trust may be required to comply with FinCEN regulations, including those that would mandate the Trust to implement anti-money laundering programs, make certain reports to FinCEN and maintain certain records.