Sentences with phrase «deemed trust»

They moved for a declaration that there were deemed trusts in favour of pension beneficiaries to the extent of the fund deficiencies and for orders for the release and payment of those amounts.

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.

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 Salaried Plan's deficit took priority because the provincial deemed trust provisions were not put before the Court and demonstrated, in fact, to be in conflict with the remedial aspects of the CCAA.

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

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)

«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.

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).

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.

«The first part of this is that s. 49 of Quebec pension legislation called the Supplemental Pension Plans Act creates a valid deemed trust for unpaid pension contributions.

So the priorities are clearly set out under provincial legislation: in a situation involving the PBA and PPSA, the provincial deemed trusts take priority over secured creditors.

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

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.

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 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.

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.

Will secured creditors, other than DIP lenders, also have that priority over provincial deemed trusts in situations outside formal bankruptcy proceedings?

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

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.

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

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.

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

At trial, Campbell J. dismissed the Plan Members» motion, finding that the deemed trust did not apply to the wind up deficiencies.

The Plan Members brought motions in August 2009, for a declaration that a deemed trust in the amount of the unfunded portion of the pension liabilities existed, which would be enforceable against the proceeds of the sale.

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»).

As noted earlier, priorities with regard to deemed trusts under the BIA are not the same as under a CCAA restructuring, which could be problematic.

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

The Samson case has given rise to two interpretations, a narrow one which benefits ordinary unsecured creditors for whom a deemed trust is created (since they are not the Crown), and a broader one which maintains that any deemed trust created by provincial legislation, in favour of the Crown or not, must meet the common law requirements of trust law in order to obtain priority over secured creditors pursuant to the BIA.

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.

If it doesn't capture them, there would be no inconsistency between the two statutes on the priority of deemed trusts, making the doctrine of federal paramountcy inapplicable and potentially leaving the door open to having deemed trusts take priority to DIP financing.

In this case, the deemed trust did not take priority over DIP lenders due to the doctrine of federal paramountcy.

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-.

The Ontario Court of Appeal allowed the appeal and found a deemed trust pursuant to the PBA, with respect to the wind - up deficiencies.

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.

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.

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.

This can be moderated if courts permit claimants to obtain bankruptcy orders after liquidating pursuant to the CCAA, as doing so would trigger the rule in the BIA and annul the deemed trust (see Rod Wood, Bankruptcy and Insolvency Law, p. 415; Re Ivaco Inc., supra).

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.

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.