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The following diagrams illustrate the method: Les cartes ou les planches trop grandes pour dtre reproduites en un seul clich6 sont fiimdes d partir de Tangle supdrieure gauche, de gauche d droite et de haut en bas, en prenant le nombre d'images ndcessaire. Le diagramme suivant illustre la mdthode : 1 2 3 1 2 3 4 5 6 . nl. BANKS AND BANKING THE MERCANTILE LAW OF CANADA. TOQETIIKR Wll'ir THE REVISED STATUTES OF CANADA PvEL\TL\G TO VVVUV\C'V nrnfrvrnv NOTES, BILLS OF EXCHANGE AND /•KoiHS() Y V^^^ ^^'^^M^A T^:^''''^ VVLVDING Ul> (iF'^r OM 'AN,,)i'^Ltk|p^^4^^' xVND OFFENCES RELATING TO COIN \(;F (vI) 'mv ONTARIO STATUTES RELATL\( i T( ) ASS GXAJ ! 'x i " FOR THE BENEFIT OF CHKJ)IT()HS \\i) ' TO FRAUDULENT I'RFFEltlvVCES of' CREDITORS, AND THE CIJEDIT- OR's relii:f act. {The Revised Statutes of Canada were brought into force on hi March, A.D. 1887 by 49 Vict., c. 4, and by Proclamation dated 24th January, A.D. 1887.) J. J. G ORM ULLY, Esq., 0/ the Middle Teuif^lc, "and T^Os^odc H.xLl, iaryiiter^at^l aw. AND R. VICTOR SINCLAIR, Esq., 0/ Osgoodc h\:i:, 'B.:n'ister=j.t--:^iv. Entered according to Act of the Parliament of Canada in the year 1887 l)y I J Gormnlly and R. Victor Sinclair at the Dopartment of aJicu Ifnrl ^ PUrXTKD UV MACLKAN, ROUKR&^'b.. WELLINaiON.HTREET. 18 45 4*3 TABLE OF OASES. A. Alijin V. First National Bank of Xenia .... Alma Spinning Co, In re A thill, In re Athill v. Athill . B. Bailey v. Finch Bank of B.N.A. v. Clarkson . Bank of Hamilton ». Noye . 28, 30 Bank of Liverpool v. Bigelow. Bank of Ontario, /?i re . . 13, Bank of Montreal v. McWhlrter Bank of New South Wales ». Campbell .... Bank of Toronto v. Perkins . Bank ot Toronto v. Wilmot . Bank of U. C. v. Oovert . Bank of U. C. v. Killaly . Bank of V. C. v. Scott . Bank of U. C. v. Widmer Banqiie D'Ho^^ielaga v. Masson Ba,rber's case .... Barrs v. Banl< of Nova Scotia . Bottomlt^v's case . PAGE. 21 7 27 Briton Mtdieial, &o., Associa- tion, Iti re Brooke v Canada Bank of Upper c. Cameron r. Kerr Carver v. Braintee . Caston's case .... Chisliolm's case Church V. Consolidated Bank. City Bank o. Barrow Clark V. Union Fire Insurance Co Cookburn v. Sylvester . Coffee V. Quel ec Bank . Cole & Canada Fire, &c., In re Cole V. North- Western Bank. Coleman, In re Colonial Bank ». Whin ney . Commercial Bank of South Australia, la re . Commercial Bank v. Bank of Upper Canada . Commercial Bank o. Cotton . Cook V. Royal Canadian Bank Copp's case .... 28, 13, 37 27 ,31,32 9 14, 16 24 25 21,23 8 8 24 25 6 92 94 13 9 i8, 107 39, 40 24 24 94 94 38 29 90,91 23,31 28,32 94 29 31, 32 13 ' 87 21, 22 35 14,34 94 PAOE. Dawson v. MoflFatt ... 1 37 Dominion Bank v. Davidson . 27 Dupuy V, Gushing ... 26 E. Early v. Early ... 27 Exchange Bank v. Bjtrnes . 11 Exchange Bank v. M. C. & D. S. Bank .... 39 Exchange Bank v. Regina . 97 Exchange Bank v. Springer . 1 ] Exchange Ba»ik v. Stinson . 101 Findlav's case ... 94 Foley 0. Hill .... .37 Foster v. Bowes ... 30 Fuches 0. Hamilton, &c., Co. 94 G. Garden Gully, itc, Co. v. .McLister 9 Goodwin v. Ilobarts . . 37 Grant v. La Banque Nationals 24 Great Western Ry. Co. v. Hodgson. 28 Grey V. .Johnson .... 38 H. Harben v. Phill ps ... g Heyman v. Flewker . . 29 Hutton V. Federal Bank. . 35 I. Imperial Continental Water Corporation, In re . . 103 Imperial Hy. Hotel Co. Black- pool V. Hampson. . . g Ings u. Bank of P. L. 1. . IQI J. .I:*ckson V. Munster Bank Johnson v. Credit Lyonnaise Jones V. Imperial Bank. K. Kansas Valley National Bank V. Powell .... Keene v. Robarts . 6 29 20,^34, 35 21 38 IV. Kelly'a oast Kingsmill v. Bunk ol Upper Canada .... Kingston, ex parte . L. Lake Superior Native Copper Co., In re .... Llafio V. Morgan M. MeCrao v Molson's Bank Mc|)nnell v. Bank of Upper Canada Macleo v. Pearson . Mason v. Great Western Rv. Co \ Merchants' Bank ot Cauada v. Bnstwick .... Merchants' Bank of Canada D. Moii'att .... Merchants' Bank of Canada V. Smitli .... Merchants' Bank ol' llaUlax V, Gillespie . Milloy V. Kerr. JMoUeuro. Loupert. Molson's Bank v. Brockville Molson's Bank ». Janes. Molson's Bank ii. Kenne. (iilby. Turner's case . Paoe. 21 i», () 97 42 42 3.i 9,11,41) 23, 24 27 27 30 8 20 7 13 17 94 35 31 10 94 Quinlaii v. Gordon. 35 w Wilmot V. Maitland Books referred, to. Angoll & Ames on Corporations. Brice on Ull'-a Vires. Civil Code of Lower Canada. Grant on Banking. Pothier. Robinson &. Joseph's Digests. 28 H' Paoe 21 :.. t; '.17 42 42 8") 9, ll,4ii 23,24 27 27 30 8 20 7 13 17 94 35 31 10 :ib CHAPTER 120, A. D. 1886. An Act respecting Banks and Banking. HER Majesty, by and with the advice and consent of the Senate smd House of Commons of Canada, enacts as follows : — 1. This Act may be cited as " The Bank Act." 4G V., c. 20, s. 1. short lillf. Inloi'in'eta- tion. 3. In this Act, unless the context otherwise requires,— (a) The expression " goods, wares and merchandise " in- and^ereimn- cludes in addition to the things usually understood thereby, '"»''•" timber, deals, boards, staves, sawlogs and other lumber, petroleum, crude oil, and all agricultural produce and other articles of commerce ; It would seem pretty clear that the term " jrooils, wares and merchan dise " above used would certainly comprehend all corporeal movable property. {b) The expression " warehouse receipt " means any re:eipt "warehouse given by any person, firm or corporation for any goods, wares "''"'''p^" or merchandise in his or their actual, visible and continued possession, as bailee or bailees, in good faith, and not as of his or their own property, and includes receipts from any person who is the keeper of any harbor, cove, pond, wharf, yard, warehouse, shed, storehouse, tannery, mill or other place in Canada, for goods, wares or merchandise in the place or in one or more of the places so kept by him, whether such person is engaged in other business or not, and includes also specifications of timber ; This sub-section, defining what a "warehouse receipt" is, was first intro- duced into the Banking Act by 43 Vic , c. 22, s. 7. It is generally supposed that it was parsed to meet the difficulties caused by a series of decisions in Ontario, ending in the cases of The Merchants Bank v. Smith, 8 .S. C. H., .512 (IHS4), and Milloy v. Kerr, 8 8. C. R., 474 (1880). The.se cases had decided that under the section corresponding nearly to section .53 of this Act, the warehouse receipt to be valid must be given by a person exercis- ing the busmess of a warehouseman. Under the law as it at present stands it is supposed that A., a dry goods meichant, could deliver a bale of silk into the possesiiion of B., another dry goods merchant, to be deposited and kept in B.'s store, B. could then issue a valid warehouse receipt to A. for this bale of silk. This is the opinion of Boyd C. in Re Montieth, 10 Ont. K. .529, (1886) where the meaning of this expression '' warehouse receipt" as used herein is much discussed. (c) The expression " bill of lading " includes all receipts "adiag.^ for goods, wares or merchandise, accompanied by an obliga- tion to transport the same from the place where they were received to some other place, whether by land or water, or partly by land and partly by water, and by any mode of carriage whatever ; 2 "Ship or shlpmi'iit. The bank.' A bill of lading is a inpnnrniKlniii siirtiod by masters of ships nokiiow- ledging the rec«'ii)t of merchants' gooils. By tlie English law it is generally suppOHed that a bill of lading proporly so called is confined to maritime adventures. This clause extends its meaning so as to cover receipts for goods to be carrie Vet **■ "^^^ provisions of this Act apply to every bank iiicor- appiifs. ' poratt'd during the session of the Parliament of Canada, held in the forty-third year of Hor Majesty's reign or thereafter, or hereafter, whether this Act is specially mentioned in its Act ol incorporation or not, as well as to all banks, (except where otherwise expressly mentioned) whose charters or Acts of incorporation are hereby continued, but not to any other, unless extended to it under the special provisions hereinafter made. 34 V , c. 5, s. 2 ; — 43 V., c. 22, s. 1. Oiartors continued to 1st .July, IHill. 4.. The charters or Acts of incorporation of the several banks enumerated in the schedule A to this Act and any Acts amending them are hereby continued and shall, sub- ject to the provisions of Ihis Act, as to their incorporation, the amount ot capital stock, the amount ot each share of such stock, and the chief place of business of each respec- tively, remain in force until the first day of July, in the year one thousand eight hundred and ninety-one, subject to the right of any such bank to increase its capital stock in the manner hereinafter provided ; and as to other particulars this Act shall form and be the charter of each of the said banks, until the said first day of July, one thousand eight hvmdred and ninety-one, and the provisions hereof shall apply to each of them respectively : Provided always, that the said charters or Acts of incorporation are only hereby i-or°eHun"^*" coutinued iu force in so far as they or any of them are not forfeited or void under the terms thereof or of this Act or any other Act passed or to be passed in that behalf, by non- performance of the conditions of such charters or Acts of incorporation respectively, or by insolvency or otherwise. 34 v., c. 5, s. 1 ;— 43 V., c. 22, s. 11. As to other IJiuMiculars', CAPITAL STOCK. blatters to be provided for in special Act. \^q 5. The capital stock of every bank hereafter incorporated, amount of each share, the name of the bank, and the place where its chief office is to be situate, shall be declared in the Act of incorporation of every such bank. 34 V., c. 5, 8. 8. ^^onditions 6. No bank hereafter incorporated, unless it is otherwise •ommencing provided by its Act of incorporation, shall issue notes or new banks^ commence the business of banking until five hundred thou- IS jicknow- law it is ontined to s to cover rtaus the v., c. 22, :o which ik i)icor- ada, held lereafter, led in its , (except arters or >t to any ro visions 1. 3 several and any lall, sub- poration, share of h respec- theyear ct to the in the ticulars the said nd eight of shall that hereby are not Act or jy non- A.cts of tier wise. 3orated, and the ieclared v., c. 5, aerwise lotes or d thou- ay sand dollars of capital have been bond fide subscribed and one hundred thousand dollars have been bond fide paid up, nor until it has obtained from the Treasury Board a certifi- cate to that effect : (2.) Such certificate shall be granted by the Treasury .ntliinliy bo' Board when it is proved to the satisfaction of such Board '"^"'"'''• that such amounts of capital have been bond fide subscribed and paid respectively : (3 ) If at least two hundred thousand dollars of the sub- scribed capital of such bank have not been pidd up before it common es business, such further amount as ib required to comjilote the said sum shall be called in and paid up with- in two years thereafter; and it shall not be necessary that more than two hundred thousand dollars of the !-:tock of any bank, whether incorporated before or after the passing of this Act, shall be paid up within any limited period from the date oi its incorporation. 34 V , c. 5, s. 7. A oiitiiiii sum i'> !"■ paid up williiu two years. .\o( more than ^-1300,(XH) ni'cil bu paid up. Incroase of cajiital. 7. The capital stock of the bank may be increased, from time to time, by the shareholders at any annual general meeting, or at any general meeting specially called for that purpose ; and such increase may be agreed on by such pro- portions at a time as the shareholders determine, and shall be decided by the ma-jority of the votes of the shareholders pre- sent at such meeting in person, or represented by proxy. 34 v., c. 5, s. 6. Tills clause is curiously worded. What is the meaning of the words, " such increase may he agreed on by such proportions at a time as the shareholders determine." What was inteniled probably was, that the increased stock should bf made jiayable in such instalments as the shareholders should then deter- mine. As to powers of shareholders see notes to section 9. H. Any of the original unsubscribed capital stock, or the now stock increased stock of the bank, shall, when the directors so auotua. determine, be allotted to the then shareholders of the bank pro raid, and at such rate as is fixed by the directors, but no fraction of a share shall be so allotted ; and any of such allotted stock which is not taken up by the shareholder to whom such allotment has been made, within three months from the time when notice of the allotment was mailed to his address, may be opened for subscription to the public, in such manner and on such terms as the directors prescribe. 34 Y., c. 5, s. t). INTERNAL REGULATIONS. 9. The shareholders in the bank may regulate, by by-law, Ry-'aws may the following matters incident to the management and admmistration of the affairs of the bank, that is to say : — ^The number of the directors, which shall not be less than five Election. Qualli ''ation of director. Proviso : as to banks en commnndite. DlHcounts to directors. Certain by- laws con- tinued. and not more than ten, and the quorum theiocf; thoir quali- fication ; the method of filling up vaeancies in the board of directors whenever the fc,arae occur during each year, and the time and proceeding's for the elet^tion of directors, in case of a failure of any election on the day appointed for it ; the remunerntion of the president, vice-president and other directors; and the dosing of the transfer book during a cer- tain time, not exceeding fifteen days, before the payment of each semi-annual dividend : Tlie sharehoMiirs l)j' thin clause, are given power to regulate by by-law certain HpeciHeil matters only, viz, : (I) Thenuuiberof (lirecte by proxy, (a) but no person but a shareholder shall be permitted to vote or act as such proxy, and no manager, cashier, bank clerk or other subordinate otficer of the bank shall vote either in person or by proxy, or hold a proxy for that purpose : (u) As to proxies see section 14. The ]>resideiit of a hanic is not i)rohibite*iiiires. attorney from the other joint holder or holders, or a majority of them, to represent the said shares, and vote accordingly : (4 ) In all cases when the votes of the shareholders are Baiiot. taken, the voting shall be by ballot. 34 V., c. 5, s. 27. 5 1 . The directors of the bank, or any four of them, — or any !;,',nJ',nu number not less than twenty-five of the shareholders of the i"resi- iiiititor, &c. ' dent, or of a director of the bank, for maladministration or other specihed and apparently just cause, and if a majority of the votes of the shareholders at such meeting are given for such removal, a director to replace him shall be elected >''^w election. or appointed in the manner provided in the by-laws of the bank, or if there are no by-laws providing therefor, then by the shareholders at such meeting ; and if it is the president 6 Board or dircftors. Notice oC election. Hallot pioxies. Who shall directors. Provisions i case of equality of votes. or vice-president who is removed, hi.s office j-liall be lilled up by the directors in the manner provided in case of a vacancy occurrinsf in the office of president or vice-president. 34 V., c. 5, s. 29. As to sliarehoMers iiower see notes to section '.». Thi.s sub-section ^ives the sharetiolders jiower to remove directors for cause. Witliout this statutory power it would appear that a coiu[)any whose Directors are appointed for a detinite period has no power to remove them before the e.Kpiratio.i of that period. Imperial Hy. Hotel Co. Blackpool y. H.amp.son, L. R. 23 Ch. Div. 1 (1882.; Harben y. Phillips, L. R. 23Ch.Div. 14(1SS.3). 12. The stock, property, affairs and concerns of the bank shall be managed by a board of directors (a), the number of whom shall be fixed as herein provided, who shall choose from among themselves a president and vice-president ; the directors shall be natural-born or naturalized subjects of Her Majesty, and shall be elected on such day in each year as is appointed by the charter or by any by-law of the bank, and at such time of the day and at such place where the head office of the bank is situate, as a majority of the directors for the time being appoint ; and public notice shall be given by the directors, by publishing the same for at least four w^eeks in a newspaper published at the place where the said head office is situate, previous to the time of holding such elec- tion ; and the election shall be held and made by such of the shareholders of the bank as have paid all calls made by the directors and as attend for the purpose in person or are represented by proxy (h) : (a) A bond uny be given'up to !)!> cancclletl by the president and direc- tor.; of a banking corporation without their assent IxMug signified under the corporate seal. I'lie Bank of Upper Canada vs. WidnK^r, 2 O. .S. 222 (1829). (6) A director of a company I'rom the time that he becomes aware of breaches ol' trust by his co-directors, incurs liability even though lie did not 'liiectly sanction them, ami may be held personally jaiiswerable for any loss<^s sustained thereby, if he rem:iins passive anil ouiits to take pro- per steps to jn-event surh misconduct, and to institute, if necessary, pro- ceedings against his colleagues in default. Jackso:) vs. The Munster Bank. 1") L. [l h.'^rn, (iS^.).> As to the powers of the shareholders see notes to section 9. As to the powers of the directors to make by laws, calls, &c., see sections 17, 18, V.K 20 and 21, •'■'>. 20. 2',) and 43. As to the quorum of directors, see sections 9 and 16. (2 ) All elections of directors shall be by ballot ; and the said proxies shall be held and voted upon only by share- holders then present : Vide Regina v. The Bank of Upper Canada, • ited in notes to section 10. As to what shareholders are entitled to vote. (See sections 14 and 16.) (3.) The persons, to the number fixed by by-law, as here- inbefore provided, who have the greatest number of votes at any election, shall be directors : ( t.) If it happens at any election that two or more persons have an equal number of votes, and the election or non- election of one or more of such persons as a director or directors depends on such equality, then the directors who have a greater numbor, or the majority of them, shall deter- mine which of the said persons >so having an equal number of votes shall be the director or directors, so as to complete the lull number; and the said directors, so soon as may be after the said election, shall proceed in like manner to elect, ^,!^'i^J°|j\"A:c by ballot, two of their number to be president and vice- president respectively : (5.) If a vacancy occurs in the board of directors, such X'^'^'^r,':'' * vacancy shall be hlled m the manner provid-ed by the by- laws ; but the non-tilling of the vacancy shall not vitiate the acts of a quorum of the remaining directors ; and if the A'acancy so created is in the office of the president or vice- president, the directors, at the first meeting after completion of their number, shall, from among themselves, elect a pre- sident or vice-president, who shall continue in office for the remainder of the year. 34 V., c. 5, s. 30. Sec soinion '.•, wliicli provides that tlio directors shall not be less than live iioi' more than ten. Wlu-ie there is a uiaxiinuiu and minimum number of directors tixed by law, then (hrei^tors eannot act if the nimiber falls below the minimum. Alma .'^pinniu;; Co. L K. 1(5 Chy. J3iv. 681 (ISSO), unless as in this subsection, there is power given to act notwithstanding vacancies, J^cottish Petroleum Co. L H. lio Chy. Div. 431 (1883). I<'5. No shareholder in any bank to which the three sec- ,''iV,.s'caii's tions next preceding apply shall vote, either in person or by h\V/,n.,!'v„'iiViu. proxy, on any question proposed lor the consideration of the shareholders of the bank at any meeting of such share- holders, or in any case in which the votes of the share- holders of the bank are taken, unless he has paid all calls made bv the directors which are then due and payable. 40 v., c. 44, s. 1. 13^. No appointment of a proxy to vote at any meeting of ?,*;!;,",!;",;''' ''^ the shareholders of the bank shall be valid for that purpose, unless it has been made or renewed in writing within the three years next preceding the time ot such meeting. 43 V., c. 22, s. 12, part. *•"». If an election of directors is not made on any day iMoyisionin when it should be made, the corporation shall not lor that o'l oicction. cause be deemed to be dissolved, but an election of directors may take place on any other day in such manner as is pro- vided by the by-laws made by the shareholders in that behalt ; and the directors then in office shall so remain until a new elei-tion is made. 34 V., c. 5, s. 31. M» At all meetings of the directors not less than three Qnwnm.Ae. shall constitute a quorum for the transaction of business; and at such meetings the president, or in his absence the vice-president, or in the absence of both of them, one of the directors present, chosen to act pro tempore, shall preside ; and the president, vice-president or president pro tempore so < asting vote presiding, shall vote as a director, and if there is an equal division on any question, shall also have a casting vote, v., c. 6, s. 32. 34 General powers of directors. Proviso: as to by-laws in loree. Appointment of otllcers, <&c. Security to be given. 17. The directors for the time being, or a majority of them, ma) make by-laws and regulations (not repugnant to the provisions of this Act or the laws of Canada) touching the management and disposition of the stock, property, estate and effects of the bank, and touching the duties and conduct of the officers, clerks and servants employed therein, and all such other matters as appertain to the business of a bank : Provided always, that all by-laws of the bank lawfully made before the fourteenth day ot 7\pril, one thousand eight hun- dred and seventy-one, and now in force, in respect to any matter respecting which the directors may make by-laws under this section (including any by-laws for establishing a guarantee fund for the employees of the bank) shall remain in force until they are repealed or altered by others made under this Act. 34 V., c. 5, s. 3o, part. 18. The directors may appoint as many officers, clerks and servants for carrying on the business of the bank, and with such salaries and allowances, as they consider necessary — and they may also appoint a director or directors for any branch of the bank : (2.) Before permitting any cashier, officer, clerk or servant of the bank to enter upon the duties of his office, the direc- tors shall require him to give bond or other security to the satisfaction of the directors, for the due and faithful perfor- mance of his duties. 34 V., c. 5, s. 33, part. A surety by bon1 Subscription and transfer of stock in t'nlted Kingdom. 19. Books of subscription may be opened, and shares of the capital stock may be made transferable, and the divi- dends accruing thereon may be made payable in the United Kingdom, in like manner as such shares and dividends are respectively made transferable and payable at the head office of the bank ; and for that urpose the directors may, from time to time, determine the proportion of the shares which shall be so transferable in the United Kingdom, and make such rules and regulations, and prescribe such forms and appoint such agents, as they deem necessary 34 V., c. 5, s. IT. 9 30. The shares of the capital stock shall bo paid in by Payment of such instalments, and at such times and places as the '''"'■ directors appoint, and executors, administrators and curators paying the instalments upon the shares of deceased share- holders shall be indemnified for paying the same : Provided p^y^!;",- ^^^ always, that no share shall be held to be lawfully subscribed t'Y".'^.''' 'J" for, unless a sum equal to at least ten per centum on tho'''"""^' amount subscribed for is actually paid at the time of or within thirty days after the time of subscribing. 34 V., c. 5, s. 18 21. The directors may make such calls of money from the rails ou several shareholders for the time being, upon the shares *'''"^'^^'" subscribed for by them, respectively, as they find necessary ; (a) A call was maile by four directorb, one of whom was not legally appointed, it was held that though one of the directors who joined in making the call was not legally appoint"(], the call was valid, three of the directors who made it being duly qualitiinl. and that number being Rufficient under section 16. Bank of Liverpool tjs. Bigelow, •'i 11. ife (J. Ii3li, ^'ova >cotia (li^T"*). The facts on which this tlecision is foundeaid they would sue him for the ;unount. Without any further or other notification than this tiioy passed a resolution confiscating the shares. I'he court decided that the directors having elecleii to sue could not altei' theii' election and proceed to oontiscate the shares without first giv ng the plaintifl a notice of their intention so to ilo. Kobertson v. Banque d'Hochelaga, 4 L, N. 314 (iKSl^. 10 Rceovi'iy by suit. What only iipod be proved. It lias been deokled t'lat where the holder of stock dies intestate and a call is made thereon after his death, adiuiiiistratioii will lie granted to the nominee of the company as a creditor of the estate of the deceased. Tomlinson vs. Ciilby, 54 L.J., 80 (1885). (2.) An action may be brought to recover any money due on any such call ; and it shall not be necessary to set forth the special matter in the declaration, but it shall be suffi- cient to allege that the defendant is holder of one share or more, as the case may be, in the capital stock of the bank, and is indebted to the bank for a call or calls upon such share or shares, in the sum to which the call or calls amount, as the case may be, stating the amount and number of such calls, whereby an action has accrued to the bank to recover the same trom such defendant by virtue of this Act ; and to entitle the directors to recover in such action it shall be sufficient to prove by any one witness (a shareholder being competent) that the defendant, at the time of making any such call, was a shareholder in the number of shares alleged, and to produce the by-law or resolution of the directors making such call, and to prove notice thereof, given in con- formity with such by-law or resolution ; and it shall not be necessary to prove the appointment of the directors or any other matter whatsoever. 34 V., c. 5, s. 34, part. Forl'i'ituiT ^liares loi- iiDii-jjitvm ot'call>. ol (■111 Sale iu .■juci case. Ami transfer. Proviso. 215. Provided always, that if any shareholder refuses or neglects to pay any instalment upon his shares of the capital stock at the time appointed by such call, as aforesaid, svich shareholder shall incur a forfeiture to the use of the bank of a sum of money equal to ten per cent, on the amount of such shares ; and the directors of the bank may, without any previous formality, other than thirty days' public notice of their intention so to do, sell at public auction the said shares, or so many of the said shares as shall, after deducting the reasonable expenses of the sale, yield a sum of money sufficient to pay the unpaid instalments due on the remainder of the said shares and the amount of forfeitures incurred upon the whole (n) ; and the president or vice-president, manager or cashier of the bank, shall execute the transfer to the purchaser ot the shares so sold ; and such transfer, when accepted, shall be fis valid and effectual in law as if the same had been executed by the original holder of the shares thereby transferred ; but the directors, or the shareholders, at a general meeting may, notwithstanding anything in this section contained, remit either in whole or in part, and con- ditionally or unconditionally, any forfeiture incurred by the non-payment of instalments as aforesaid, or the bank may enforce the payment of any call or calls by suit instead of declaring the shares forfeited {h). 81 V., c. 5, s. 35. (a) Under section 2 , i-s I, the directors are apparently empowered to forfeit siiare.^ absolutely in case of nonpayment of calls. Under section 22, ss. 2, they are empowered to sue the shaiehollers for the amount due on tiny call. 11 itate and a ited to the ised. )ney due set forth be suffi- share or le bank, on such amount, ' of such ) recover ; and to shall be er being :ing any 3 alleged, directors 11 in con- il not be ) or any 'fuses or e capital id, such he bank lount of without ic notice he said ducting money mainder ncurred sident, nsfer to r, when if the shares holders, in this nd con- by the ik may tead of ivered to Mors for i! I,ial)ilities. Under section 24, the sharelnlder bj"^ uej^jlect to pay calls incurs a for- feiture to the use of the bank of a sum of money equal to ten per cent, on the amount of his sh.'ires; ami the directors are empowered to sell — at public auction on pivin;: thirty ilays' prior public notice of sale— the said shares or so many ol' them as shall, after deducting reasonable expenses of sale, yieUl sufficient to j^'iy the tuipaid instalments due on the remainder thereof and th'^ amoimt of forfeitures incuried on the whole. Section 23 would, therefore, seem to limit to the extent therein provided the apparently larger right of forfeiture given by section 22. (b) See Robertson vs. La Banque D'Hochelaga (1881), cited in note to section 22. As to forfeiture for nonpayment when Bank is insolvent. (See sect. 74.) ANNUAL STATEMENT. 24. At every annual meeting of the shareholders for the 't;J/'|',','",''h"fore election of directors the out-going directors shall submit a annua! clear and full statement of the affairs of the bank, containing '"" on the one part, — The amount of the capital stock paid in, the amount of notes of the bank in circulation, the net profits made, the balances due to other banks and institutions, and the cash deposited in the bank, — distinguishing deposits bearing- interest from those not bearing interest ; and on the other part, — The amount of the current coin, the gold and silver bul- ^^'"''^• lion, and the Dominion notes in the vaults of the bank, the balances due to the bank from other banks and institutions, the value of the real and other property of the bank, and the amount of debts owing to the bank, — inclitdiug and par- ticularizing the amounts so owing upon bills of exchange, discounted notes, mortgages and other securities, — Exhibiting on the one hand the liabilities of, or the debts wiiai state dite by the bank, and on the other hand, the assets and resources thereof : and the said statement shall also exhibit the rate and amount of the last dividend declared by the directors, the amount of reserved profits at the time of declaring the said dividend, and the amount of debts due to the bank, overdue and not paid, wuth an estimate of the loss which will probably accrue thereon. 34 V., c. 5, s. 30. INSPECTION BY DIRECTORS. ■*•>. The books, correspondence and funds of the bank shall, at all times, be subject to the inspection of the direc- tors, (a), but no shareholder who is not a director shall be allowed to inspect the account of any person dealing with the bank. 34 V., c. 5, s. o7. (a) In an action against the sureties on a bond guaranteeing the honesty of one M. as cashier, a tiefence was pleaded by the sureties of neglect of the by the bank to the Minister of Finance and Receiver General : Provided, that in any case in which the capital has been impaired as afore- said, all Wit profits shall be applied to make good such loss. 34 v., c 5, s. 10. When .1 bnnk liiuls it lias impairod its paid-up cajiital liy losses it is expressly IbrliKlden by the provisoatthe e'ul of the above section to payany ilividenci until such impairment has been made good, i onseqiiently, the bank generally makes application to Parliament to redune its capital so as to enable it to go on paying dividends. Itividciuls n to iiii)jair <'iipitiil. Ciiliital lost to be niailc up. llividoncl linilti'd unless there he a ccr- tiliu reserve. 2S. No division of profits, either by way of dividends or bonus, or both combined, or in any other way, exceeding the rate of eight per cent, per annum, shall be made by the bank, unless, after making the same, it has a rest or reserved fund equal to at least twenty per cent, of its paid-iip capital ; and all bad and doubtful debts shall be deducted before the amount of such rest is calcalated. 34 V., c. 6, s. 11. .Shares ai transfer thereof. 1(1 TR.-VNSFER AND TRANSMISSIO.N OF SHARES. 2!>. The shares of the capital stock shall be peisonal estate, and shall be assignable and transferable at the chief place of business of the bank (a) or at any of its branches which the directors appo'nt for that purpose, and according to such form as the directors prescribe (b) ; bi\t no assign- ment or transfer shall be valid unless it is made and regis- tered and accepted by the person to whom the transfer is made, in a book or books kept by the directors for that pur- pose, nor unless the person making the same has, if required by the bank, previously discharged all his debts or liabilities (c) to the bank which exceed in amount the remaining stock, if any, belonging to such person, valued at the then current 13 rate ; and no fractional part of a share, or less than a whole share, shall be assignable or transierable. 42 V., c. 45, s. 1, jiart. . (a) In re The Rank of Ontario, 44 U. C. Q. B., '.'Al ( 1879). 1 1 (lid not appear in this case tiiat there was a share ivgister in Mon- iifdl. ^>»lt it was deoideil tliat a sale i.i executiou in tlio Province of Que- bec niiglit lie male ntario, it appearing tliat tiy tlie law of the Province of Quebec service of process couiil lie leiaallv ett'eote7 of this Act. it was argued that the dii'cctors had no right to h unper the transier ot shares by such a condition, l)ut l^rd Blackburn said he thought they had. See Colonial Bank vis. Whinney, L. K. 1 1 App. Cas 4^6 (188t)). i may !)(> siiliji'ct sec s»f'tioii (')'), as. 2. I'lider "JS and 'JO Vic, c. X',), s. ;j()(lm|».) 'I'ht* ('on)i)iini"H Ai' entered on tiie re>tist(M' or bo ici!iiviibl»' by the Iu'i.'istrar in the case ot Companies under tliis Aot" it wa^ decided that wIumo the owner ot sliares at dili'erent tinms. maites in favor of each of two persons, an equitable assiynni^nt of such shares, such assi;;ninents raidv accordin-; to their respective dates, and the second Iranst'eree by givin;: noiice of his assif-'nment to the bank before the Hist transferee does bo, does not thereby ^^■^(luire any priority over the tiist transferee because to hold otherwise would be to convert the bank into a trustee ami to bind it with the notice ot a trust. iSoc.iete Generate Ue Pari-, ua'. Walker, L K. II Apji. < ases, 20 (ISS;-)), aflirining S. C. in L. K. 14 (i. B. D., 4J(^. From the opinions expressed by the Lord .histi' es in tlie above case it would f^eem that section ;{7 ot this act would probably receive a similar interj>retation to that placed upon section 'M) of the Companies Act, I8tJ2. Ft will of course be observed that sec^tion .'58 ot this Act evidently coiitem plates the entry of trusts to some extent on the books ol the bank Now if a share stmds on the books of the bank, earmarked with a trust — or if stands on the books, not eo earmaiked. but the bank has notice that such share is aftected by a trust, can the bank allow a transfer ot the 8aiu«, without the concurrence of any one except the person in whose name the share stands? Tliih is a very important question. It would seem that the bank need only see that tlie transfer is executed by the person who is the registered sliareholder But Mr. .Fust ice Lindley in the case cited seems to think that though the bankwouhi not b(^ liable, in certain exceptional cases the directors would, lie uses the follow ng language in his judgment : '' 1 have no doubt that if directors allow a trans- feror to make a transfer which they know to he fraudulent iheij con d lie made liable for the value of the shares transferied ; Iheti would make themselves parties to his fraud. Moieover a retusal by directors or an omii-s on <'/n their part to pay attention to a notice given to them by a per- son having an etiuitable interest in sliares and requiriii(/ the directois not to rei/ister a transfer for such time as may he necessary to allow him time to apply for a proper restraining order, would be prima facie improper. Such conduct on the part ot directors, unless explained, would be strong evidence of fraud on their part. But this is (|uite consistent with holding companies not liound to t»ke notice of e(|uitable iuierests in shares, not tbllowed uj) by proceedings to lestrain a transfer." The Earl ot Selborne in the House of Lords makes this short obsf rvation on this important question : " 1 think that according to the true and proper construction of the Companies Act of 1862, and of the articles of this Com- pany, there was no obligation upon this Company to accept or to preserve any record of notices of equitable intereets or trusts, if actually given or tendeied to them ; and that any such notice, if given, would be absolutely inoptrative to affect the Company with any trust; and if the (Company is not affected by it, 1 do not see how the directors or officers of the Company inchvidually can be. See L. K. 11 App. Cases, p. 30. SH. No person holding stock in the bank as executor, ,^,^dTnwtees administrator, guardian or trustee, of or for any person [J^/^i^.^tfie' named in the books of the bank as being so represented by him, shall be personally subject to any liability as a share- holder, but the estate and funds in his hands shall be liable in like manner and to the same extent as the testator, intes- tate, ward or person interested in such trust fund would be, if living and competent to hold the stock in his own name ; and it the trust is for a living person, such person shall also himself be liable as a shareholder ; but if such tes- Exception. tator, intestate, ward or person so represented, is not so named in the books of the bank, the executor, administrator, guardian or trustee shall be personally liable in respect of 18 such stock, as if he held it in his own name as owner thereof. 43 V., c. "12, s. 2. Ill onlor to oxoiiipt the oxccutor, atlminiHtrator, guardian or tniitee f'loui jiersonal linbility under this section, the iihuk! of the t( «tntor, intea- tatf. \vard or pcrcon liciiclicially int(>r»'st"i| nunt M|)|>oa>' on thu hooks o( the hank. After tlie City of (ilasgow Baiiit faihire the personal liahility of Trustee SliareiioldeiB was brought j)iominently heforc! the public and led, it is believed, to the passing of this clause. See Muir v. Oity of (iiasi/ow Bank, L. R. 4 App., Cm. 437 (1879). OBLIOATIONS AND POWERS OF THE BANK. rarl ()(■ reserve to lir in DoniliiiDii notes. reiiiUty (or not holding due propor- tion ol Iiotninioti notes. Siifiply ol iMiiiiinion notes. Hi). The bank shall always hold, as nearly as practicable, one half of its cash reserves in Dominion notes ,and the proportion o[ such reserves held in Dominion notes shall never be less than forty per cent, thereof ; and every bank holding at any time a less amount of its cash reserves in Dominion notes thnn is prescribed by this section shall incur a penalty of two hundred and fifty dollars for each and every time it appears, by the monthly statement herein- after mentioned or otherwise, that such violation of this sec- tion has occurred : (2.) The Minister of Finance and Receiver General shall make such arrangements as are necessary for insuring the delivery of Dominion notes to any bank, in exchange for an equivalent amount of specie, at the several offices at which Dominion notes are redeemable, in the cities of Toronto, Montreal, Halifax, St. John (N B.), Winnipeg, Charlottetown and Victoria, respectively. 34 V , c. 5, ss. 14 and 16 ;— 43 V, c 22, s. 3;— 46 v., c. 20, s. 4. Amount ai (lenonii na- tion ol'ban notes. id I'enalt banks oxeess circula les on having of tioii. 40. The amount of notes of the bank intended for circu- lation, issued by the bank and outstanding at any time, shall never exceed the amount of its unimpaired paid-up capital : and no such note for a sum less than five dollars, or for any sum which is not a multiple of five dollars shall be issued or reissued by the bank, and all notes for a less sura than five dollars, or which are not such multiple as aforesaid, heretofore issued, shall be called in and cancelled as soon as practicable : (2). If it appears by the monthly statement hereinafter mentioned, made by the bank, that the amount of its notes in circulation has, during the month to which such state- ment relates, exceeded the amount authorized by this section, such bank shall incur a penalty of one hundred dollars, if tlie amount of such excess of circulation is not over twenty thousand dollars,— a penalty of one thousand dollars, if such excess is over twenty thousand and not over one hundred thousand dollars,. — a penalty of five thousand dollars, if such excess is over one hundred thousand dollars, and not over two hundred thousand dollars, — and a penalty of ten thou- sand dollars, if such excess is over two hundred thousand 19 dollars. 34 V., c. 5, s. 8;— 43 V., c. 22, s. 12 part ;— 46 V., c. 20, s. 3. 41. The bank shall always receive in payment its own n.,iiinpii<)n notes ill par at any of its ollicos and whether they are made '" """'"' payable there or not ; but shall not be bound to redeem them in specie or Dominion notes at any place other than that at which they are made payable : As to payment o( Dominion Notes iu Specif, bfto cap. ;}1 of tlio Hevised ytatuled of ('iinada, post. (2). The chief place of business of the bank shall always ''"A'''''; be one of the places at which its notes sball be made payable. luiNinnsi 34 v.. c. 5, s. 9. at lice ol SB. 12. The bank, when making any payxnent, shall, on the I'Hyin.ntHin request of the person to whom the payirient is to be made, J,*','"!,'"''*" pay the same, or such part ttmreof not exceeding sixty dollars as such person requests, in Dominion notes lor one. two, or four dollars each, at the option of the receiver. 43 V., c 22, s. 12, /wr/;— 46 V., c. 20, s. n. i:i. The bonds, obligations and bills obliaatory or of "'•'"^- ""'''s> credit of the bank under its corporate seal and signed by i>.v whom to the president or vice-president and countersigned by a "'*"''""• cashier or assistant cashier, which are made payable to any person shall be assignable by endorsement thereon ; and bills or notes of the bank signed by the president, vice- president, cashier or other officer appointed by the directors of the bank to sign the same, promising the payment of money to any person or to his order, or to the bearer, though not under the corporate seal of the bank, shall be binding and obligatory on it in like manner and with the like force and effect as they would be upon any private person, if issued by him in his private or natural capacity, and shall be assignable in like manner as if they were so issued by a private person in his natural capacity: Provided always, I'loviso: that the directors of the bank may. from time to time, Im'TiIpiumi authorize or depute any cashier, assistant cashier or officer '""'"'"'■ of the bank, or any director other than the president or vice- president, or any cashier, manager or local director of any branch or office of discount and deposit of the bank, to sign the bills of the bank intended for general circulation, and payable to order or to bearer on demand. 34 V., c. 5, s. 55. 44. All bank notes and bills of the bank whereon the ^>*};;!',"['*^y '"' name of any person intrusted or authorized to sign such luachinery. notes or bills on behalf of the bank is impressed by machinery provided for that purpose, by or with the authority of the bank, shall be good and valid to all intents and purposes as if such notes and bills had been subscribed in the proper handwriting of the person intrusted or author- ized by the bank to sign the same respectively, and shall be 20 rovtrtin busliit'ss iiiM not 111' trans acli'il b.\ Ihc biiuU. bank notes and }>ills within the meaning of ail laws and statut(>s whatt'V(>r, and mtiy be described as bank notes or bills in all indielnienls and eivil or criminal ])roc(>eding's whatsoever ;> t V, c. 5, s. 56. i^' The bank shall not, either directly or indirectly, lend money or make advances upon the security, mortgasje or hypothecation of any lands or tenements, or of any ships or other vessels, or uj^on the security or pledge of any share of the capital stock ol the bank, or of any goods, wares or merchandise, except as axithori/ed in this Act; and the bank shall not, either ilirectly or indirectly, deal in the buying and selling" or bartering goods, wares or nuM'chandise, or engage or be engaged in any trade whatsoever, except as a dealer in gold and silver bullion, bills of exciiange, discounting of promissory notes Jind negotiable securities, and in such tnido generally as appertains to the business of banking; and the bank shtill not, either direi-tly or indirectly, purchase or deal in any share of the capital stock of the bank, except when it is necessary to realize upon any such share held by th«> bank as security for any pre-existing and nuitured debt : This section pt'oliiliita bimks IVoiii Iciuliiii; inoiicy upon sceiiiity pt tliat of l>aiikin<;. 'I'lio ohjoct ot'tho soction no (loiilit is, to oompi'l lianks to cairyoii a propci' ami le^itiiiiatc liankiiig luisinoss, niid not to lock up tlioii' inoiu'y by It'iiiiinj; it or invostiiij; it in I'oal estat(', or otlior (ilasso.s of [iiopoity wliicli aie not ca.-ily convt-i tililc into cash. The intoi'i.ictatioM ol this smrtion and lli(> powers of t he liaiik under it, wei(> nnu'li disci. ssed in tlie rt'cont c iso of .lonos vs. Tlie Impciial l^ank, 2.> tir. liCi'.l (I^Tt>), in which an aUcinpi was made to prevent the Imperial tiank (vonx pnrciiasinjj; from the Watei' t'onnnissioncrsof the t'ity <)l' I oronto certiiiu deben/iivfn of' the Vity of Toronto, it was cont(Mided that section <)<•, hy inii)li(Nitioi), pr(>venled the hank from imrchasinj;, as distinguished tioni lending; money npon Municipal Bonds. Mr. .lustice I'roiKtfoot, how- ever, considereil that the dealing in honds was covered hy the words " in .such trade gtMierally aa appertains to the business ot banking,'' at page ii74, he thus sinnniari/.es hia opinion on this section : " The conclusion which seems to me dedui'ihle from the.se Acts, is that " the business of banking consists in dealing in money, the prec^ious metals, " and in bonds and negotiable sccuritieH ; that tins deahng confers the " power of lending on them or of purchasing them, whichever the bank " directors may deem most for the advantage of the corporation ; ami that " whether to buy or lend is a matter of internal nianagenieiit which the " directors may determine." .'•ee further as to what is Banking, Abbott's Dig. Corp. p. .''iCi. It is to he ol)sei ved that by this section banks are jirohibited only from dealing in the buying and selling or barteringof goods, wares or merchandise, it would therefore seem most probable that banks may, owmg to special circumstances, or for reasons which c luld not have been foreseen or anti- cipated, accjuire and sell, or dispose of goods, wares or nuTchandise, and for tliat purpose engage to some extent in business other tiian banking. Thus if a bank were to acrpiire a valid security, say on a mill and a stock of lumber and logs, and afterwards owing to the inability of the debtor to pay his indebtedness, were to duly obtain an absolute title to the property, it seems to iis that the bank could, under such circumstances jiroceed to sell the lumlter and to conv(^rt the saw logs into lumber, if that woulil make them more valuable for sale, and for this purpose to work the mill. This np}>ears to be (he result ot the English and American authorities on the subject. See Sacketts Head Bank u.v. Lewis Hank, 1 1 Barb., -J,J. Brice on Vltra Vires, p. 210. 21 ws and u)t»'s or (H'dhigs ly, lend oatjo or ships or share of art's or ho bank iiiir and • ennago U'alor in nting oi' ih trade and tho ? or deal when it [he hank I'ity ol' real •oin i-ngag- sootinn no e hiiiiking >stinj; it in (UIVIM tilllf iiiidtT it. ■iiil Hank, Imperial lorento it section iniimshed It'oot, how- (litis " in at pajiie ts, is that IS niotals. llttM'H till' tlio bank and that ,hicli the w only I'rom handise, to special n or anti- dise, and hanking. I a stoi'k dehtor to property, lotiofd to nld make nil. This ies on the Brii'o on In "Jul <•.•, loo i' Ills Ikm'ii Ik'M in tli(> Mo'sons Bank \s. l\fnni' (l^^'T'.')- Ml ii wlicHMi Itank wishinij to jjnaianli'i' a pinrhaso of ltooiIs ti'l»';.'i'aplis to t!u' solli'i'.- — '■ 11 yon send to tJii- .M liank, Monlit>al, L'ood ■ to rlic aiuiiin.l nt't — . |iin'<'liascil liy Iv. A' ' 'o. aliMit.luly 1st, sfiuliii!.' us tho I. ills ,i:' ladinj; and docunu'iits in tinit>, wc will ;.' :uan(t"<> lht» colli'i'titin," tlif liank doi's not llicn^liy violali- tlio jtrovisions liy the Itankiii:; Aft. In Kadloi'd r.v. 'I'll." M.'ivjiants' Raid; of Canada, .'{' Int. j;.. l:<> (ISs;;), llu' tarts weio as I'oUows : TIkmijiohI ot the Merehants' Hank at Kiiifiston lepresented to the plaintitl that the detendants had pnichased the l.|l^ine^^ dl' one A. a. luanul'aet'. ler of hoise power niaehines, and were luaiiu aclui'iiij: horse power "lachines ol' .A.'s inaki-, and had tiuMii tor sale, and ihat he it'eoiiiiM''nd d tin in iiii;hly. 'The plaiutill' pniehased ■A nuu'hiiie, and suli>eiiii(iit ly hrouuht an aetion aj^ainst the hank I'or lii-ea>li of waiianty on the sale of this tnachine. It appealed in the i>vi-sed the ojiinicii that tlie iiank, hein;; expressly piohihiled IfOin tmyini; and seilin>{ j,'O0(is, eould not he hound hy any warr.nity, (^xpiess or nnpiied, on their -^ale. It is trii.' thai in this I'ase the hank liad improperly aetiuired the inaehiiios (seetion I'.t only extending; to it>al estat<>), and the doeision may have been based on thatfaet; but, if the mae.liines had bv-en pi\)ptnly ae(iuireil, say, -liy a legiil and v"lid mortt;a^e to the bank, and thereatter by the extini;nishment ot the t .nity of reileinption by rele.sse under see- tuni . U, — surely the bank eoiild then sell and dispose of the inaehiinvs, .and if so, why eould ii'it it itive m. warranty on their sale if that would be the most advantaj^eous course to pnrsiu*. Koran infraction of tlu> provisions of this stH'titni a pi'iially is iin[)OstNl by subsection 2. Now tlio (jnestion arises : Supposiiij^ a bank enters into a fori i.lden transaction, lends inoi.ey on the si>curity of a inort^a^e on real estate, I'.'r example, does the statute merely subjei-t the bank to the paynuMif of the penalty, or does it in aildition thereto make the transac- tion inv.ilid, and the mort^'afje null and void? In the last casti on the sub- ject it has been held that it not only exposes tlie baiiiv to the penalty, Imt also avoids the I laiisactitni. ''this prohibition is a law of public policy in the public interest, and any tiaiisai'tion in violatuni thereof is necessarily null and void. No court can be called on to jiive t'll'ect to any such transai'tion. or to eiilbrce ;'iiy contract or security on which money is lent, (n' advances, as thus pro- hibited, are made," per h'itchie, ('..I , in Hank of Toronto vs I'erkiiis, S S.C'.l:., CIO (1SS3). It lias been decided both here and in the I'lhled .Sfites tliat if a inort- gajie of lands be yiveii to a bank to secure indcbiedness |)reviously iiifinied, and also advances then ma le on the secuiily of s ic!i inortgaj;e, siicii iiioncage is not void in toin, bd constitutes ,i good and \;ihil security to the bank to the extent of the pre-existiiij; indt^btedness it the amount tliereot Can be clearly shewn. Seo the foUowiiii; eases: — Coniiiieicial Hank i\<. Hank ot U. C, 7 (ir. hit) (1S;V.)). Kansas N'alley .National Hk. r,v. I'owell, L' Dill. t.'. C, ,}7I. Allen t\i. Fii.sV Xatiaial Hmk of Xenia, L'.i oliioSt. H., ',I7. .•Vs to tlu> bank dealiii;^ iii its own shares, and as to its lien thereon, .'^ee sections ll'.i, ol, and notes to section .VJ. (2). Every bank which violat(>s tiny provision of this section ''','/,V}.',''^,,','V' shall incur a penalty not exceeding Jive hiindn'd dollars. 31 'i"i'- v., c. .5, 8 40 ; 88 V., c. 17, s. 1 ; 4t) V., c. 20, s. !», part. The penalty imposcHJ by this sub section is cumulative. Tlu' traii-^a. litni it in contravention of section l."> is also void. Hank of Toioiito tw. I'eiki ^ S. (', K. (')(i,{ (|,ss,<), and tlie note to the precedni',' section. IS, liii* The bank may open branches and agencies and ollices iinnicii.s ana of discount and deposit, and may trans'iict business a! any """'"'* place or places in Canada. 3 1 V , e. .j, s. J. 22 Real pstatp for occupa- tion. Mortgages i additional security. 47. The bank may acquire and hold real and immovable property lor its actual use and occupation and the manage- of its business, and may sell or dispose of the same, and acquire other property in its stead for the same purposes. 34 V , c. 5, s. 39. 48. The bank may take, hold and dispose of mortgages and hypotheques upon real or personal property, by way of additional security for debts contracted to the bank in the course of its business ; and the rights, powers and privileges which the bank is hereby declared to have or to have had in respect of real property mortgaged to it, shall be held or possessed by it, in respect of any personal property which is mortgaged or hypothecated to it. 34 V., c. 5, s. 41- Section 45 enacts that the bank shall not, either directly or indirectly, lend money or make advances upon the security or mortgage of lands &c., except as authorized by this Act. The present section is an enabling one authorizing the bank to acquii'e security on real estate, Ac, under the limitations herein imposed. It will be observed that the bank is authorized to take and hold mort- gages upon real estate Ac, only by iray nf additional security \ov ^' debts contracted to the bank, in the course of its business." Supposing a bank agrees to discount a note, can it take security for the debt thereby contracted cotemporaneously with the discount of the note ? Opinions have been expressed that if the bank really advances money on the security of a note or bill (and this is a question of fatt to be determinetl on a coiisi(ieratioii of all the circumstances of each case), it many cotem- por.aneously \vith such advancfl validly take a mortgige as collateral security to .secure repayment thereof. Whenever this is done, however, it will alwiiys be a question of fact whether the money was not really iidvanced on the mortgage and the note created merely to give color and lend the appearance of legality to the transaction. It would, therefore, be extremely d>mgprous for a bank to make an adv.ince on negotiable paper and at the same time take a mortgage as collateral sectuity for rej)ayment thereof. There are nuiiierouH cases on this section. Only three will be ciied at any length, as they reallv appear to contain a full exposition of the prn|.er interpretation of the clause. In tlie Comniercial Mank v-^. Bank of U. (■., 7 fir., 4:^0, decided in ISo'.t Cand in the court below, 7 fir., i'lO) Chief Justice Robinson, at page 430, thus discusses the (juestion nov. under consideration: "It is quite true that whenever the money is advanced, whether it be just before or at the lime of making the mortgage, then there is literallv a debt due (Qy. owing), but not a debt contracted in the course of the business of tlie bank — that is, ot its legitimate and proper business, whicli the lending mone>i upov morlijaije of real property certainly cannot be, tmtil the statutes are repi'ale(l or altered. When it is shewn that the mort- gage in any case was taken by a bank ' as an additional security for ' a deb*^ contracted to it in the course of its business,' then the ilue.->tion occurs whether that can only be taken to mean a debt that had been previously incurred with it in the course of its business, or whether a moitgiige may not be ti'.ken as ailditional security for a debt that had no previous existence, but which the bank were about to allow a party to contract, by advancmg him money at that time, in the proper course of their business; as, for instance, if any merchant had brought to the bank, oti the i21st of May, 18o5, for discount, a bill drawn by Henrv Bull, junior, on Bull Brothers, .and accepted by the latter, could the bank properly have taken a mortgage from either party to the bill, or from the person wiio brought it and got the money, to secure them the money which they advanced upon the bill? That is not this case, and i shall only therefore say, that, as the words of the statute are not against it, 80 I think it might, 2>er/ia}>s, be held that the spirit and intention of the 23 Act are not oppo3ed to it ; and that a mortgage ao taken mi>;lit be upheld, when it appears that the mortgage was really and in truth taken to secure the transaction upon tiie bill, and not that the bill was created for the mere purpose of upholding and giving colour to the mortgage. That woulil be a question of fact, upon which the conclusion that a jury might come to would be in general so uncertain that I dare say the banks will not think it prudent to risk their money on a real security in any such case, where the nature of the transaction might appear to be at all equivocal — so long, I mean, as the present statutes continue in force." In the case of the Royal Canadian Bank vs. Cummer, 1 5 Gr., p. 627 (decided in 1809), the late Chief Justice Spragge (then Vice Chancellor) in his judg- ment said, at {>. 631 : " Take the simple iact of deposit by way of security by tiie debtor of a bank, to a bank, there b"ing a debt, and there being further advances contemplated but not yet made, a deposit for the debt due would be lawful ; but a deposit by way of secrity, against which the bank customer might draw, would be against the law ; and the law upon this j)oint is so well km.wn to bankers that they would hardly be likely to transgress it." In the Bank of Toronto vs. Perkins, 8 S. C. R. 603 (decided in 1883). Chief .Justice Ritchie in his ovinion uses the following language : " I agree with Chief Justice Di>rion that the transfer made to the appellants of a mortgage to secure an advance on a prornit^sory note discounted at the same time that the transfer was made, was on the part of the bank in violation of the Banking Act, a clumsy attempt at evasion of the 34th Vic, ch. 5, sec. 411, which enacts that ' tln^ bank shall not, either directly or indirectly, lend money or make advance? upon the security, mortgage or hypotheca- tion ot any lands and tenement-^.' " Strong, J., in his opinion in the same case uses the following language : " We must therefore take the transaction to have been a mortgage given, not to secure a past debt, but to cover a contemporaneous loan, and there- fore void under the statute." Gwyiine, .1., after citing Chief Justice Robinson's opinion above given in the case of tlie '.'ommerciHl Bank vs. Bank of Upper ' anada, proceeds as follows : " Now, I do not desire ti call in question any part of the opinion of the leiirned Chief Justice as here expressed as to the validity of a mort- gage b(m(i fide given or assigned to a bank by way of collateral security for an advance made by the bank upon regular business paper, or in the ordi- nary course of their business as bankers, cont^urrently with the giving or assigning to tht-m ot a mortgage upon Ian Is as additional security, or to ex{)ress any opinion upon that point, inasnxuoh as silting here as a juror, and having the duty imposed upon me of finding the facts in the case, I have been unable to bring my mind to the comilusion that this is such a case : on the cont'ary, the conviction foimeil in my mind by the facts is tliiit the transaction between Bonnell and the bank, of the I9th .January, isTii, was primarily based upon the security of the mortgages upon real estate assigned to the bank by the deed of that date. I hat the note for $26,()()() recited in that deed had not then been, if over it was, in Iact. dis- counted or agreed to be discounted as an onlinary banking transaction. A note made by one payable to his own order twelve months after date is not ordinary business paper ; that the note did not then constitute any debt due fVo n Bonnell to the bank, that it was not ma'le for the purpose of bein: discounted by them in the oidinary course of their busmess as bankers, but was given existence for the uiere purpose of upholding and giving color to the assignment ot the mortgages, the whole having been assigned, an 1 contrive(i for the purpose of evading the statute, and the niortL'ages were not assigned really and in truth to secure an independent banking transaction on the note Upin the whole, therefore, as I have said, 1 can come to no other conclusion than that the note was given existence for the sole purpose of upholding and giving color to the mort- gage and its transfer, which latter containetl a false recital of a debt due for the purpose of eluding a discovery of the true nature of the trans- action.'' In (jockburn vs. Sylvester, 1 Unt. A. R. 471 (1877), it was held that a debt was not contracted by the principal ll as future ailvances, — the court decided in favor of the Viank, on tbe irrouncl that where there is a doubt the presumption should be that the trnnsac- tion was in conformity with the statute, and so legal, the maxim oeing omnia iire.viminunlcr rile esse acta. As to the construction of mortgages given under this section as a con- tinumg secui'ity to secure an indebtedness where the indebtedness has been changed but not le uoeil in amount, see Cameron vs. Kerr, A Ont. App. R. 3U (1S7S). In this case, alter the mortgage was given the mort- gagor's line of discount was increased, but no separate account of the lia- bilities secure I by the mortgage and the further advances was kept, the proceeds of the discounts and cash deposits being carried to the mort- gagors' credit in one open current account, aga.mst which they drew cheques to retire the notes securei.l by the moitgage as they matured. The mortgagors became insolvent on the 12th August, lS7o, their itidebt- edness in the meantime never having been reduced. Held, aftitming the judgment of Blake, V C, that this mode of keeping the accounts liad not operated as a discharge of the mortgage debt. See also Merchants" Bank vs. Moflatt, 5 Ont. R., 121' (1S84) and 1 1 S.C.R., 46 (1M84). By this section the bank is declared to have the same rights, powers and privileges in respect ot "personiil property mortgageil to it as it pos- sesses in respect of real property mortgaged to it.'" For the powers which the bank has in respect of real property mortgaged to it, see sections 50 and r)l. See also the following'^cases and the cases therein cited on the construc- tion of this section generally : McDonell us. Bank ol Upper Canada, 7 U. C. Q. B 252 (1S50). Bank of Upper Canada us. Killaly, 21 U. C. Q. B. 9 (18iil). Bank of Montreal vs. MoWhirter, 17 U. C. C. P. 513 (IS67). Moison's Bank v.i. McDonald, 2 Ont. A. R. 102 (1S77), affirming S. C. 40U. C. Q. B. 529. Menhants' Bank vs. Bostwick, 3 Ont. A. R. 24 (1S78). Grant vs. I.a Banque Nationale, 9 Ont. R. 41 1 (iSS5), case of pledge of timber limit in Quebec, construction of section 2s of The Quebec Timber Regulations. Purchase of 49. The bank may purchase any lands or real property execution, '^dc. offered lor sale under execution, or in insolvency, or under the order or decree of a court, as belonging to any debtor to the bank, or exposed to sale by the bank under a power of sale given to it for that purpose, in cases in which, under similar circumstances, an individual could so purchase, with- out any restriction as to the value of the lands which it may so purchase, — and may acquire a title thereto as any individ- iial purchasing at sherirt''s sale, or under a power of sale, in like circumstances, could do, — and may take, have, hold and dispose oi the same at pleasure. 34 V., c 6, s. 42 ; — 43 V., c. 22, s. 5. This section apparently enabh s the bank to purchaK^ "lands or real projierty only" olfered for smIc in (Execution or \n insolvency nr under the order or decree of a court as belonging to a debtor of the bank or under a power of sale as in the section mentioned. r,on>idere(l .r.tintreo, 2 )nstruction I inouri'ed." thi- parties ()27 (ISC,9), mended to ; as widl as tti« grouml he ti-Hiisac- iixini being )n as a con- tednoss has >iT, ',i ( 'nt. II the mort- t of the lia- i kept, the ) the mort- tlioy drew ;y matured, heir iiulebt- iitniin(r the its liad not liants" Bank hts, powers it as it pos- jwers which sections 50 ic construe- rmini: S, C. plodge of bee Tiniher property or under debtor to lower of h, under ase, with- ch it may r individ- A' sale, in hold and ;— 43 v., mds or real r under the or under a 25 The case of Kingsniill on The Bank of Upper Canada, I-'! U. C, C. P., 600 (ISC.j), in wliich it wa> deci led that tiio Banlv of Upi)Or Canada could pur- chase personal property under similar circumstances turiUMl on th<^ con struction of that bank's spei;ial ch u'ter, which was worded dilleren'.iy from tliis section. 50. The bank vnav acquire and hold an absolute title in Absolute title , , , •' . ^ ••111 • niay be ac- or to land mortgai^ed to it as security tor a debt due or owing 'luuua. to it, either by obtaining a release of the equity of redemp- tion in the mortgaged property, or by procuring a foreclos- ure, or by other means whereby, as between individuals, an equity ot redemption can, by law, be barred, — and may pur- chase and acquire any prior mortgage or charge on such land : I'rovided always, that uo bank shall hold any real or i'!'>viso: aaie , , , <_ ' . , X L • "• property immovable property howsoever acquired, except such as is soac(iuired. required for its own use, for any period exceeding seven years from the date of the acquisition thereof : See also section .51. Banks are entitled to a de(^ree of foreclosure upon mortgages lield by them as additional security. Bank of Upper Canada vs. Scott, 6 Chy., 4i)i (1S5?S). It wil' be observed that under this section the power of the bank to ac((iiir" an absolute title or to acquire a prior charge is restric^ted to land (meaning here probably " real or immovable property'"). Tho latter part of section 48, however, provides that the bank shall have the same rights, powers and privileges in respect of personal property, mortgage 1 or hypothecated to it, as by the Act it is declared to have over real estate moi tgaged to it. The construction of a statute of a similar character, though not in 'h\pu- tical language, will be found in Bank of Xew South Wales vs. Campbell, L. li. 11, App. Cas., 192. (2.) Every bank which violates any provision of this /.'f,'iJ.l^%[".'' section shall incur a penalty not exceeding five hundred tion. dollars. 34 V., c. 5, s. 46 ;— 43 V., c. 22, s. 6 ;— 46 V., c. 20, s. 9, part. '>!. Nothing in any charter, act or law shall be construed Tuietoiamis as ever having prevented or as preventing the bank from pow^roVsaVe, acquiring and holding an absolute title to and in any such '^"• mortgaged lands, whatever the value thereof may be, or from exercising or acting upon any power of sale contained in any mortgage given to it or held by it, authorizing or enabling it to sell or convey away any lands so mortgaged. 34 v., c^ 5, 8. 44. See also section .'JO. 5.5. Every bank advancing money in aid o( the building of any ship or vessel, shall have the same right ot acquiring and holding security upon such ship or vessel, while build- ing and when completed, either by way of mortgage, hypo- theque, hypothecation, privilege or lieu thereon, orpuichase or trauslei thereof, as individuals have in the jn-ovince wherein such ship or vessel is being buill, and for that pur- pose may avail itself ol all such rights and means ot obtain- ing and enlorcing such security, and shall be subject to all As ti) ad- vances lor building stli[)S. I 26 such obligations, limitations and conditions as are, by the law of such province, conferred or imposed upon individuals making such advances. 35 V., c. 8, s. 1. This would appear to enable the bank to take security for future as well as past advances when made in aid of the building of any ship or vessel. It is no doubt intended to promote and encourage the ship- building industries of the Dominion. Interpreta- tion of "Agent." Warehouse receipts may be taken as collateriil security. 53. In this section the expression " agent " means any person intrusted with the possession of gjods, wares and merchandise, or to whom the same are consigned, or who is possessed of any bill of lading, warehouse, wharfinger's or cove-keeper's receiptor order for the delivery of goods, wares and merchandise, bill of inspection of pot or pearl ashes, or any other document used in the course of business as proof of the possession or control of goods, wares and merchan- dise, or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of such document, to transfer or receive goods, wares and merchandise thereby represented ; and such person shall be deemed the possessor of such goods, wares and merchandise or bill of lading, warehoase, wharfinger's or cove-keeper's receipt or order for the delivery of goods, wares and merchandise, bill of inspection of pot or pearl ashes or other document as afore- said, as well if the same are held by any person for him or subject to his control as if he is in actual possession thereof: 4H V., c. 22, sch. A. This section and the five following ones are generally known as the Wa eliouse Keceipt Clauses of the Banking Act. They were passed no doulvt to enable merchants to obtain advances on their goods until such goods are sold i-'or a short review of all the previous legislation on this subject, see the .judgment of Burton, .1., in Smith vs. ilercliants' Bank, 8 Out. A.R., atpago I'.'. Throusrh the instrumentality of warehouse receipts acquired in the manner prescribed by these sections, the bank is in effect authorizt'fl to make advances or loans on the security of goods, wares and merchandise. The meaning of the words •' Warehouse Kecei{)t,'' and the word^ "goods, wares and merchandise," and of the words "Bill of I a! (18()4), and a less rigid construction had been applied to bills of lailing ill the very same year m the Ontario Court of Api>eal, uWe Royal Canadian Bank vs. Carriithers, 29 IT. C. Q. B , 283 C1870), consequently shortly alter the pronouncing of the decision in appeal in Ontario above cited, the language of the clauses was changed (vide 34 Vic, c 5, s, 4t), et seq.), and substquently doubts having been again raised was again changed (vide 43 Vic, c. "'2, s. 7). It is now believed that the worls used in the I)it'sent .\ct are large enough to enable a bank both under this subsection and under section 54, to ac i|uire title to a warehouse receipt, either directly from tlie waiehousemau, or by way of endorsement from the holder thei eof. See Merchants Bank of Canada vs. Smith,8 S. C. R., 512 (1884) ; S Ont. Aj.p. K., 15 (IS^3) ; 2S Gr.. 629 (1881) It is now declared by this sub-section that the vvarehou^e receipt oi- bill of lading, so ac(^uired shall vest in the bank from the date of the acquisi- tion thereof, all the right and title:— (1) Of the previous holder or owner thereof (thereby implying that th(>re must be a previous holder or owner of the warehouse receipt or bill of lading) ; or, (2) " Of the pemon from whom such goods, wares, or merchandise were received or acquired by the bank, if the wure/iou.ie rtctipt or bill oj' lading is made directly infaoor of the hank, instead of to the previous holder or owner of such goods, wares or merchandise.'^ These latter words in italics were adiled by 43 Vic, c. 22, s. 7 (1880), probably in anticipation of an objection which was after- wards raised in the tlourt of Appeal in (Jntario in Merchants Bank of Canada j; of. '^mith <■! 83), (S Ont. App. R. 15), that even under the wide languHge used in 34 Vic , c. 5, a. 46, it is still necessary that there should be a previous holder or owner of the warehouse receipt or bill of lading before it can be validly transferred to or acquired by the bank 1 he most recent case on the subject is The Dominion Bank vs. Davidson, 1 2 Ont. App. R.. 90 (1886). in which the facts were as follows : — The execution debtors, Chapman <\c Son bought the oats in question from the owners thereof, who shipped them to Toronto consigned to their own order or to the order of 28 Wlii'n pre- vious lioldir is an Bfitnt. Komo hank othor than the pluintifis, seniling the shipping; receipt with a draf'. lor the {; "ice of the oats attaciied to (Jhapm^'n it Son at i'oi'oiito. The latter then tool< tlie «hipjiing ri'C(Upt to the j)laintil> lianit who advanor (1 tlio money tlien'oii to |iay tiio (h'att. r. turnif.L; the shipping reci'.pt to I liapiiiiin it Son t')r the pin'posc of nlraining the oats iVosn the carriers, nftcr takini; from Chnpnian iV Son a rccteipt iti tliese wor 's : " Rt'iteived in trust froni tiie Dominion Baidv IcU ot hulinj; for husluds oats, an I 1 herehy nndertake toseh the [>r()|)orty siieeitiod for!iai.8I ). (ireat Western lly. ( 'o. vs. Hodgson. 44 U. C. Q. B.. l"t) (187«,l). Bank of Hamilton vs. Xoye, 9 Ont, H., OolOSS")). It has been decided that on the le endorsement of a warehouse receipt by the bank, the pledgor is in as of his original title, and that his rights must be considered as if the bank had never intervened. Mason ys. The Great Western Hy. Co , 3 1 U. C. Q. B., 73 (' S7 1 ). (3.) If the previous holder of such warehouse receipt or bill of lading is the agent of the owner of the goods, wares and merchandise meni ioned therein, the bank shall be vested with all the right and title of the owner thereof, subject to his right to have the same retransi'erred to him if the debt, as security for which they are held by the bank, is paid : It will be n iticed that the language use)-evioiis holiler (A' anoh warelinise receipt" is the agent, itc, conse- quently it mav be heid that "an agent" mu>t tran,sfer an existing toare- house receipt to the bank. See on tliii point notes to sub-seotion 2 and 29 ipt VVitll !l Toronto. l)iuik who ' shiiiping ■i IVoui the r 's : — j(l for rtiiid t tlit^ suae kuowle Iji- avehoused eiidoiscd ■-^on when re entitled Ihapnitn <.t no iipiihca- liin & Son, eied there- he agent ot n the ware- eceiptonly larily cover Viorgan, 'So es of corks, only in the 'ever, there ade) not to of a similar (t to deliver ;ion of the m. ich a usage , in which lisciissed. which the li.scussed. houseman )t, with his ses to keep elf and as is en'itleil ntity men- r.s. Smith, 4+ U. C. Q. )• ase receipt his rights ion cs- The iceipt or Is, wares )e vested ibject to [he debt, paid : llill is " if' kc, conse- \liny ware- lion "i and ih. r roniaiks of tlio Ontario Coiu't of Appeal in Merchants' Baidc of Canada Smith. S Out. App. U 1") vlSSa;. jt would seein that an " Agent " conld not give to h bank a valid fpcurily l.y way of warehouse roeeipt on goods in such agent's own possession but hi'longing to his princii)al, even though sucli agent were exercising one of tiie callings niontioneil in section .")4, as he would not be " the owner of the gonds," as reipiiied by that section. i'lii-. .-.ul^section cn>iblt-s an agent in certain cases to create in favor of a iiiink a valid ple.lge on goods belonging to his fu-incipal, even though such ]i\< due may be a wtoni'lul a id imlawful d(>aling with the goods as betuectiori, will Ik* lonnd in sec. 51?, ss. 1. It 's no doubt lounded on the delinition ol Agent given in the Consolidated Statutes of Canada. i^haj>ter A'!, which is itself based on the Hnglish Kactors Acts, 4 (b-o. ;V. c. S.'J, (•) Goo. IV. c. '.t4, and '> »fe l> Vic c. ;5y. The present ilefiiiition o'' Agent is not, how(n'pr, identical with its definition in chapter ;V.t. in some respei'ts the present definition is much wider, especially in regard to tlie possession of documents of title. In the i on- >"lidatcd >tatutcs, chajiter o'.t, the ag»nt must be ^^ cnirxiatcd with^' the jiossession oi goods, or •' eiitriisied wit/i " the ])ossession of the documents of title thereto. By section o^ of this Act it is declared that " Agent " shall mean "any i)erson eH/ri/.s/e*/ with the possession of goods or who is j))ssessed (.'■'not tntruxted toith" the possession) of any docu- ment of title. When this questioii— Who is an agent within the meaning of this sub- .-ection and section .'»;]? — (^omes up befoie the courts for decision, wo think it will be answered that only those jie-soiis who aie agents within the meaning of the Knglish Factors Acts ntiiiig in fact an auctioneer : but it never was the common law, and could not be intended to be enac ed, that, if he carried the furniture to his auction room and there sold it, he could confer any beiter tit'e on the purchaser than if he had as auctioneer acted for some other tenant who committed a similar larceny, as a fraudulent bailee : nor, io come ne«rer to the present case, that a warehouseman or wharfinger, who, as such, is intrusted with the custody of goods, if he happens also to pu'sue the trade of a factor, can give a better title by the sale of the goods than if they had been intrusted to some other warehouseman who employed him to sell.'' See also .lohnson vs. Credit Lyonnais, L R o C. P. D. 32 (1877). We will only mention one more case, City Bank vs. Barrow, L. K. .'i App. Cas. ()()4 (18S0). In this case a tanner in Montreal received from a mer- chant in England hides to be tanned : they were tanne^l, and freight was procured for them, but in the meantime the tanner had obtained from the 'foronto Bank advances, on his own account on bills, and hypothecated the hides to the bankers, a^ security for such advances, engaging to hand over to them the bills of lading if his bills of exohmge were not duly honored. They were not duly honored, and the bankers (who had acted m entire ignorance of the transaction between the merchant and the tanner) claimed to retain the bills of lading and the hides until their demands were satis- tied, 'fhe House of Lords, however, decided that the tanner was not a factor or agent entitled to pledge under any law, Canadian or English, and that the Bank of Toronto acquired no valid lien on the hides, either under the Civil Code, the Consolidated Statutes of Canada, c. .5'.), or the Bank Act. ^m 80 When such security may be acqulreiU Lord Selborne, in the course of his judgment, at pago 67ii, suys: " It is manifest that the operation of those Factors clauses under the Canadian Code (which is the sanio us (/'onsolidatod Statutes of Cannda, c, r>U, in this respect) is the snrat^ as th(i operation of th" Factors Acts in England in a similar case. They are taki-n almost entirely from the English Factors Acts." Agiiiii. at [)aL'e (')7'', lio says: "I do not pro]) >si' to dwi'll longiT upon tliB case, liie Banitcrs Act seems to me tocairy it no larilier. It is true it refers to the Consolidated Statutes and not to the Code ; hut the code is, on tliis jjoint, oidy a repetition of the (Consolidated Statutes, and is a legislative declaration of tlie true meaning of those former statutes which are incorporated in it." Lord Blackhurn, in the course of his Judgment, at page fi?-', savs : " It is sufficient to say, briefly, that the decision in (.'ole vs the .N'orth-VVestern Bank (from which an extr.act is given above i comes to this : that an agent who can pledge or sell must be an agent of th>it class which, like factors, (taking almost the words of Mr. Justice VVilies in the case which has already been referred to of Ileymau vs. Fiewker; have a business which, when tiarried to its legiiimate res dt, would properly end in selling or in receiving payment for goods. 'I'liat woidd be h. kind of class ; factois, and at'ents in the class of factors. If such a person is '"entrusted" and "is entrusted in that capacity" then, in the absence of bad faitli on the part of tlie pledgee, the pledge is good." The meaning of the words " and such person, shall he deemed the pos sessor of goods or documents of title as well if the same were held by any person /'or him or subject to his control as if he is in actual possession thereof^ as used in the concluding part of the definition of agent in section ■'iS, will be foun(i discussed in the case of Portalis vs. Tetley, L. R. 5 Eq. 140 (1867), where it was lield that " a factor by pledging goods in his possession or und^^r his control, as agent, for an amount which did not exhaust their value, had not thereby parted with his control over the goods, so as to preclude himself from making a further pledge for the balance of their value, which should be valid as against the principal under the Factors Acts." (4 ) The bank shall not acquire or hold any warehouse receipt or bill of lading, to secure the payment of any bill, note or debt, unless such bill, note or debt is negotiated (a) or contracted at the time of the acquisition thereof by the bank, — or upon the promise (b) that such warehouse receipt or bill of lading would be transferred to the bank ; but such bill, note or debt may be renewed or the time for the pay- ment thereof extended, without affectint^ such security ; (a.) To neirotiate is to transf^T for valuable consideration, per Richards .J. in Foster vs. Bowes, 2 Ont. P.R. 256 (IS,57). Where a bank holds ware- house receipts to collaterally secure the j^ayment of notes, an (ir. .')l*,t (I87S). Bank of Hamilton vs. Noye, '.I (Jnt. H. 630 (l-HO). (6.) f'ockburn vh. >ylvester, 1 Ont. A. IJ. 471 (1877), overruling /» re Coleman, 3f. U.C.Q.B. .■)64 (IH7')). It was held in the case of Cockburn vs. Sylvester, just referred to, that there is no "debt' contracted within the meaning of tliis section by a drawer to wn accommodation acceptor at the time of the giving of such accommodation acceptance so as to support a concurrent endorsement by sucli draw-r to such accnmtnodation acceptor, of a warehouse receipt, altliough it is qmte pnssible that a debt may arise by reason of the acceptor being subsequently compelled to pay the acceptance. As to the meaning of the words •' debts contracted," see notes to section 4H. (5 ) The bank may, on shipment of any goods, wares and Exchange oi merchandise, for which it holds a warehouse receipt, sur- nietpuor render such receipt and receive a bill of lading in exchange anci'llJe'""^ therefor — or, on the receipt of any goods, wares or merchan- ' *""• dise for which it holds a bill of lading, it may surrender such bill of lading, store such goods, wares and merchan- dise, and take a warehouse receipt therelor, — or may ship them or part of them, and take another bill of lading there- for : This clause was added to the Banking Act in 1880. It declares that the gooils covered by the warehouse receipt may be transported from one place to another without destroying the lien of the bank thereon. It thus facilitates the marketing of the goods. It would seem to us that as soon as the bank had acquired a valid title to a warehouse receipt, under the .\ct it could demand delivery of the goods according to the tenor of the warehouseman's undertaking and having acquired possession of the goods, could ship them or store them as it pleased. (6.) Every bank which violates any provision of this penalty tor section, shall incur a penalty not exceeding five hundred ^°o"nH*'^®°" dollars : (7.) Every one is guilty of a misdemeanor and liable to Andtormak- imprisonment lor a term not exceeding two years, who wil- sutelnent. fully makes any false statement in any such receipt, acknow- ledgments or certificate a« is, in this, section mentioned. 34 v., c. 5, ss. 65, jiart, and 67, p irt ; — 43 V., c. 22, s. 7, part ; — 46 V , c. 20, 5. 9, pari. 54. If any person who grants a warehouse receipt or bill wiieu ware- of lading is engaged in the calling, as his ostensible business, ^""Is^i^otiie of keeper of a yard, cove, wharf or harbor, or of warehouse- man, miller, saw -miller, maltster, manufacturer of timber, wharfinger, master of a vessel, or other carrier by land or by water, or by both, curer or packer of meat, tanner, dealer in wool or purchaser of agricultural produce, and is at the same owner. 32 time the owner of the goods, wares and merchandise men- tioned in such warehouse receipt or bill ol' lading, every such warehouse receipt or bill ot lading, and the right and title of the bank thereto and to the goods, wares and mer- chandise mentioned therein, shall be as valid and ellectual as if such owner, and the person making such warehouse receipt or bill of lading, were different persons. 43 V., c. 22, s. 7. pari. Tliis section etialilos the owner of goods who is enmig*^ L. N. 263 (IS.SI). Merchants Bank of Canada vs. Smith, 8 H. C. K. r)12(l,s84). In this last case the Ontario Court of Appeal held tli^t under .54 Vic., c. 5, s. 4S, as i-ead with s. 4f(, it was necessary for a warehouseman, who was also owner, to issue a warehouse receipt in his own favor, and then trans- fer it to the bank. This was a very literal constiucHioii ot the statute and was not ailof.ted in tiic Supreme Court. The language of the warehouse roceii)ts (ilauses has been still further widened since this case arose, and it may, we think, be now safely stated that a warehouse receiftt maybe validly issued directly to the bank by a per.son engaged in one of the call- ings specified herein, who is also owner of the goods. The Chancellor of Ontario under the present law has recently held that there need be no special indor.-s. Aoye, U (Jnt. R. 631 (lM8.i). Sale (>('n<>()ilv on non-pay- mcnl ol'(lcl)t. As to goods manin'ao- tured from articles V)ledged. 55. In the event ot the non-payment at maturity of any debt secured by a warehouse receipt or bill of lading, the bank may sell the goods, w^ares and merchandise mentioned therein, or so much thereof as will suffice to pay such debt with interest and expenses, returning the overplus, it any, to the person from whom such warehouse receipt or bill of lading, or the goods, wares and merchandise mentioned therein, as the case may be, were acquired; but such power of sale shall be subject to the provisions hereinafter made. 43 v., c. 22, s 7, part. 50. If any miller, maltster, or packer or curer of pork, grants a warehouse receipt for any cereal grains or hogs which are manufactured into Hour or malt, pork, bacon or hams, respectively, while held thereunder, such warehouse receipt shall vest in any .bank which is or becomes the law- ful holder thereof, all the right and title to such manufac- tured article, which such bank acquired, under such ware- house receipt, to the article described in such warehouse receipt, and so manufactured ; and the bank shall continue to hold the same and all such right and title, for the same purposes and upon the same conditions as those upon which it previously held such material. 43 V., c. 22, s. 7, part It was said in the case of Mason vs. Great Western Hy. Co., 31 U.C.Q.B. 73(1871), that where wheat is delivered to a miller and an equivalent quantity of flour delivered in exchange, the Hour should be considered tJie produce of the wheat by the custom of trade. See also on this same point CofTee vs. The Quebec Bank, 20 U.C.C.P. 1 10 (1809) and 5,5:') (1870; : in re Coleman, 36 U.C.Q.B. 5!Sr to and by prcferene*! over the claim of any unpaid vendor. 4:i V., c. 22, 8 7, part. (ft.) "Or into wliinli th<'y have boon ronvovtod." Wli'TO f^ioils covfM'ftd hy (i wanOioiisc^ rotjoipt aro tnaiiufiictiircd or con- vi'itoil into soinotiiiiig clso, this <'iiiu.sH woiihi sc(>ui to rccof^nizo tho ri.L'lit nl tho lioldoi' of tho wiirohoiiHc rocoipt to a lion on huoIi now product, and in that viow oxti^nds tho oporatinn of the previous Hoction. Il would sorin to us that the lion holder woidij liavo l)oen entitled to fo'low th(^ products ot the <^ood^ covered hy his warehou!>o receipt so Iodl; lis he I'ouhi have identilied them quite apart from any soecial loij;islation on the subject. " Ami by preference over the idaiui of any unpaid vi'ndor" — I lio.-o words liave leforence to the |irivileij;e of the unpaiil vendor under sections I'J'JS to '_'l»l((J of tho Civil ('ode of Lower Canada. 58. No sale without the consent in writing of the owner Notieotobo of any timber, boards, deals, staves, sawlogs or other lumber, HjlioofKowis shall be made under this Act until notice of the time and '•''''«*''*• place of such sale has been given by a registered letter, mailed in the post office to the last known address of the pledger thereof, at least thirty days prior to the sale thereof ; and no goods, wares or merchandise, other than timber, boards, deals, staves, sawlogs or other lumber, shall be sold by the bank under this Act without the consent of the owner, until notice of the time and place of sale has been given by a registered letter, mailed in the post office to the last known address of the pledger thereof, at least inn days prior to the sale thereof : It will be observed that the l)ank is ii'quired to give thiity days notice in tho case of timber, boards, deals, ^ta\'•■-, sawlogs or other Iinnber, and only ten days in tiio case of other goofl-, wares and merchandise. (2.) Every such sale of any article mentioned in thissaioby section, without the consent of the owner, shall be made by ',w',ii'e"." ^"^"^ public auction, after a notice thereof by advertisement, stating the time and place thereof, in at least two news- papers published in or nearest to the place where the sale is to be made ; and it such sale is in the Province of Quebec, then at least one of such newspapers shall be a newspaper published in the English language, and one other such newspaper shall be a newspaper published in the French language. 43 V., c. 22, s. 7, part. It will be observed that tho sale must be by public auf^tion and musthe ailvertised as directed. Suppose the l)ank di-i'eiziiidod h. TjS, would the sale bo absolutely void, so as to give no title to a bond fide i)urchaser ot the goods from tlie b<\nk, or would the sale be good, and the bank liable to an action at the suit of the jjledgor of the goods? Now in the first place section ."io, which gives the power to sell, declares that such power shall be subjt^ct to the provisions thereinafter made ; and section !)8, sub-section 1, declares that no sale shall be made unless notice thereof is given as thereby prescribed. It would seem to us, therefore, that the giving of this notics in the manner prescribed is ifuperative, anci th.it the power to sell only arises after this reijuiremeut has been duly fulfilled. 34 As to tlii> ri^iiiniri'iiwiits prosciln'il hy tli'> prosptit siili-sootion. i* will be oliserveil that tin sc iivv. iiic'scril)eJ in alliiiiiittive liinguqgc, and we are inclined to think that tlip rourtu would lio'd that these re(|uitoui''Tits were iliroctory only, and irdisol)eyed would not invalidate the sale, bnt render the bank liable to an action at the suit of the pledgor for the loss, if any, sustained by noiiol'S.>rvance of them. No loan to lie mude on its own Ntnpk, but hank to have a lien on .slo<-k lor overiluiMK't)(s Transfer in CUBC of ^•ull'. 5!>. The ]);)nk slinll not mnke loans or errant discounts (a) on the seonrity of its own stock, l)ut shall have a privileged lion, Cor any debt or liability lor any debt to the bank, on the shares and unpaid dividends of the debtor or person liable, and may decline to allow any transfer of the shares of such debtor or person until such debt is paid ; (b) and, if such debt is not paid when due, the bank may sell such shares, after notice has been ffiven to the holder thereof of the intention of the bank to sell the same, by mailing such notice in the post office to the last known address of such holder, at least thirty days prior to such sale ; and upon such sale being made, the president, vice-president, manager or cashier shall execute a transfer of such shares to the pur- ',l (l»7t'>) See (hant on Hankinj; (ISSJ) \i. '2'.U, where it is laid down that "where a banker discounts a I'ill for a customer, givinj; him credit for the auionnt of the bid and deliit'ng him ^^•ilh the discount, there is a complete pur- chase of the bill l)y the banker in whom the whole property an 1 interest vest as much as in any chattel he jiossesses. A banker discounting a bill, whether for a customer or a stranger, there being no indorsement by the customer or stranger and the bi I !iot biMUg given in payment ot an ante- reilent debt, is a mere purcliaser, and f n the bankruptcy of the aeiieptoi lias no recourse against the jiarty from whom lie foiik it." (b) In the ca'(> of Co(>k on. Koyal Canadian Bank, 20 (Jr., p. 1 (IST.I), it was held under the hiw as it then stood, that the bank had a lien on the stock of any debtor for overdue debts, and could refuse to allow a transfer of such stock until such overdue deb's were paid. At page I'J Vice-Chan- celloi Blake uses the following language: '' 1 am of ojiinioii that astate- nient by the bank of the amount for which stock is held on acco.mt of past line liabilitie-", without anv further representation, or any agreement in respect tbert-of, dees not bind it at a future day to accept such sum where other liabilities incuired at the time the inquiry was made, have mean while matuied and icmain uii] ai 1 Vic, c. .'), have been repealed and new sections (now sections 2'.l. .il and .V,)) substi- tuted theietor, and a clause has been adt\>;e o,?. The Bank of Commerce, 14 >id. 271. Angell \' Amos on Corporations (IS82) sec3. 571-574. (2.) Every bank which violates any provision of this s»^c- 'i''/,Viav.-n- tion shall incur a penalty not exceeding live hundred dollars. ''""• 43 v., c. '22, s. 8, /mr( ;— 46 V., c. 20, s.'9, />art. <»0. Nothing in this Act contained shall prevent the bank f-nvisiona-s . . - Till- 11 1 • i- to c'ollatoral irom acquiring and holding, as collateral security lor any .s.cuiity. advance made by the bank, or debt due to the bank, or for any credit or liability incurred by the bank t*" or on behalf ol any person (ami either at the time ot ♦'- » .ing of such advance, or the contracting of such dclK, oi .le opening of such credit, or the incurring of such liability), IJominion, Provincial, British or foreign public securities, or the stock, bonds or debentures of municipal or other corporations (a), except banks : (o) Banks are enipowerccl by the joint etiect of thi« section ami section 4.'> to purehate debentures. .lones on. I ho Imperial Bank, 2.'i (h\ 2*)'.t (lS7t)). Section .')',) prevents the bank from making advances on its own stock, and this ?eclion pr-' vents it from making advances on the .-tock of other haidvs. Tle^ result is that a bank cannot make a Ivances on its own or any other bank stock. (2.) Such stock, bonds, debentures or securities may in iiowcoiiate- case of defavilt to pay the debt for securing which they were so ma.v'i"vi' ait acquired and held, be dealt with, sold and conveyed in ^*''"'" like manner and subject to the same restrictions as are herein provided in respect of stock of th(> bank on which it has acquired a lien under this Act ; but the right to so deal rroyisiou with and dispose of such stock, bonds, debentures or securi- "JirUMi. ties in manner atoresaid may be wtiivcd or varied by any agreement bitween the lunk and the owner of such stock, bonds, debentures or securities, made at the time at which such debt was incurred. — or. if the time of payment ot such debt has b(>en extended, then by an agreement made at the lime of such extension. 43 V., c. 22, s. 8, part 1. The bank shall not be liable to incur any penalty or fQ^["^l'fy/ forfeiture lor usury ; and may stipulate for, take, reserve or exact any rate of interest or discount not exceeding seven per centum per annum, and may receive and take in advance any such rate, but no higher ratf of interest shall be recover- able by the bank ; and the bank may allow any rate of ^^'/y Kl'*' interest whatever upon money deposited with it. 84 V , iow<;'i.i'y c.5,s. 62. """^- See Commeieiil Hank i\i. ''otton, 17 trc.'M*. 14" (IS(')7). It would appear that il the bank is actually paid interest in excess ot .'■'even per cent., such e.\cess cannot be recovered ba(!k by the person who l)aid the same. .See Quinlan f.v. Gordon, 2U Cir. App. I (ISlil), and llutUjii c,v. Federal Bank, '.) ijnt. I'r. R. "i6S (18s;j). 86 No iustni- iiient to be void oil ttround ot usury. As to iniKi- I'l.'tlt lioMiis. 02. No promissory note, bill of exchange or other negoti- able security, discounted by or indorsed or otherwise assigned to the bank, shall be held to be void, usurious or tainted by usury, as regards such bank or any maker, drawer, acceptor, indorser or indorsee thereof, or other party thereto, or bond tide holder thereof, nor shall any party thereto be subject to any penalty or forfeiture, by reason of any rate of interest taken, stipulated or received by such bank, on or with respect to such promissory note, bill of ex; hange, or other negotiable security, or paid or allowed by any party thereto to another in compensation for, or in consideration of the rate of interest taken or to be taken thereon by such bank ; but no party thereto, other than the bank, shall be entitled to recover or liable to pay more than the lawful rate of inter- est in the province where the suit is brought, nor shall the bank b^ entitled to recover a higher rate than seven per cent. })er annum; and no innocent holder of or party to any pro- missory note, bill of exchange or other negotiable security, shall, m any case, be deprived ot any remedy against any l)arty thereto, or liable to any penalty or forfeiture, by reason of any usury or ollence against the laws of any such pro- vince, respecting interest, committed in respect of such note, bill or negotiable security, without the complicity or consent of such innocent holder or party. 35 V., c. 8, s. 2. Ciillii'lioii I'ec'g. <»;8. The bank may, in discounting at any of its places of })usiness, branches, agencies or offices of discount and deposit, any note, bill or other negotiable security or paper payable at any oher of its own places or seat*? of business, branches, agencies or offices of discount and deposit in Canada receive or retain, in addition to the discount, any amount not exceed- ing ihe following rates per centum, according to the time it has to run, on the amount ol such note, bill or other negoti- able security or paper, to defray the expenses attending the collection thereof, that is to say: Under thirty days, one- eighth of one per cent. ; thirty days or over, but under sixty days, one-fourth of one per cent.; sixty days and over, but under ninety days, three-eighths of one percent.; ninety days and over, one-half of one per cent. 34 V , c. 6, s. 63. f»i. The bank may, in discounting any note, bill or other negotiable security or paper, bona lule paynble at any place in Canada, ditlerent from that at which it isdiscountinl.and other than one of its own places or seatsofbusim^ss, branches, agencies or offices of discount and deposit in Canada, receive and retain in addition to the discount thereon, a sum not exceeding one-half of one per centum on the amount thereof, to defray the exi)ense of agency and charges in collecting the same. 3 1 V., c. 6, s. 6 1. iVp n'^'.^'-i v.'o ''*" ^*''- '^^*^ bank may receive deposits from any person whom- ironi poiM>ns soi^ver, whatever is his age, status or condition in life, and ■ onir.i.i!' whether such person is (qualified by law lo enter into ordi- .ALTrmv 37 ono- !r sixty er, but iiinoty 53. other place (laud anchos, eceive im not tioroof, esting o ordi- nary contracts or not ; and, from time to time, may repay any or all of the principal thereof, and may pay the whole or any part of the interest thereon to such person, without the authority, aid, assistance or intervention of any person or oKicial being required, unless before such repayment the money so deposited in and repaid by the bank is lawfully claimed as the property of some other person, — in which case it may be paid to the depositor with the consent of the claimant, or to the claimant with the consent of the deposi- tor: Provided always, that if the person making any such I'loviso: deposit, could not, under the law of the province where the iimHiMi. deposit is made, deposit and withdraw money in and from a bank without this section, the total amount to be received from such person on deposit shall not, at any time, exceed the sum of five himdred dollars : As to deposit receipts tlie Ontario cases will be found oriltctiid in Hol'- iiisoii and Joseph's Jjigest ut jip. 4.JS-4o'J. 4.)Ul, 4>0.>and jp. ti'.'ot' the supplr- iiient. (2.) The bank shall not bo bound to see to the execution i'.oVumi'io^ci of any trust, whether expressed, implied or constructive, to I.",!,''t"f,j ,',',' which any deposit made under the authority of this section «»ipti .i.ix.si is subject ; and except only in the case of a lawful claim, by some other person before repayment, the receipt of the per- son in whose nanie any such deposit stands, or if it stands in the name of two persons the receipt of one, and if in the names of more than tv.'o persons the receipt of a majority of such persons, shah be a sufficient discharge to all concerned for the payment of any money payable in respect of such deposit, notwithstanding any trust to which such deposit is then subject, and whether or not the bank sought to be charged with such trust (and with whom the deposit has been made), had notice thereof; and the bank shall not be bound to see to the application of the money paid upon such receipt. 536 V., c. i<, ss. 3 and 4. The fiiipstion of trusts to whicii shares may he subject is elealt with in sectiuiio ',il and ;5!S 'I'liis sub section deals witli tlie question of trusts to which deposits may 1)0 ^ul)ject and appears to confer very extraordinary powei's on joint dei)ositois, enablin<; as it does one joint depositoi' to (h'lnv out of llie hank money en .deci.leil that the relation between a banker and hi« customer is tlia* of del)tor and creditor with the obliijation super- added that the banker is bound to repay his debt when called upon i-o to do by the dralt ot his customer, Foley vs. IJill, 2 II. L. C. -S, '.loodwin vs. Knbarts I.. R. 10. Cx. '■>'>\, and ni'iney paid into an account in a man's own name is prima facie his money and a loan by him to the banker which the banker is bound to r(>pay him. When a man op' ns an accoimt ii his own name with the w^rds ''Police account' or " Executor of .lones'' super- added thereto, this is notice to the bankei' that the m >iu^ys st iiusiiects, or even knows that the customer intends to commit a breach of trust, and it is only when the banker makes himself a party to the breach of trust t. g. S8 • by de.si^neilly rea|iinjj some boiipfit. from tlio samo. thnt he retiilt»rs liimself liable to iiiiike re.-stitiition. Lord (,'iiiiiis in (irey I't. lolinson L. R. H E. Sc I. Aj)p. 11, thus sums up tho law, — ■' In onh^r to hold a linker jiistllicd in refusing; to pay ademttnd of his customer, thf custompr hcin;^' im e.\(>cutor, and drawing a checjue as an oxocutor. thnro must, in th^^ 1ir>t }ila<'e, bo some misapplication, some breach oi trust, intended by the executor, and there must in the second place, as was said by Sir .loiui Li'ach, in the well known ease of Keane ;'.■;. Kob.nts 4 Madd. 3.")7, be jimof that Mie bankers are prifj/ to the intent to make tliis misap])lication of the tiust lunds. And to that I think 1 may safely aild, that if it be shewn that anv perxonal benefit to the bankers themselves is desipied or stipulated for, that (ur- eumstancfi, above all others, will most readily establish the fact that the bankeis are ?» /;r/r//?/ with tho breach of trust which is about to be com- milted." And Lord Westiciry in tiie same case savs : " Supposin,!:, there- fore, that the banker becomes incidentally aware that the customer, being in a fiduciary or a repres(>nt)tive capacity, meditiites a breach of tru-^t, and rform his own di-tinct obligation to his customer. P.ut then it Ins been vt-ry well sidtb'd that if an executoi' or a trustee who is indebted to a hanker, or to anothei' jierson, having tlie legal custody of the assets of a trust estate, applies a portion of them m th"^ jiay- ment of his own debt to the individual liavingthat custody, tin? iiidivi■. Conso'idated Haid<, 31 V. C. C. P. Ifi'.) (1880), and Molson's Bank vs. Corporation of Brockvillc, ;i! U. C. C. P. 171 (Lsbd;- Eeturns 1!Y the Bvnk. Montlil.v returns to Govennnriil. (id. Monthly returns shall bo made by tho bank to tho Minister ol' 1^'inance and Keceivor General in the form set forth in schedule B to this Act, and shall 1)^ made up and sent in within the first twenty days of each month, and shall exhibit the condition of the bank on the last juridical day of the month next preceding ; and such monthly returns f^hall be signed by the chief accountant and by the president, or vice-president, or the director (or, if the bank is en commandite, the princi])al partner) then acting as presi- dent, and by tho manager, cashier or other principal officer of the bank at its chief place of business. Pcniiii.vfor (2.) Every bank which neglecls to make up or to send in lip'monuVi'y ^s al'orosaid any monthly return required by this section of lime.""'"'"'' ^hi** Act within the time thereby limited shall incur a penalty of filty dollars for each and every day alter the expiration of the time hereby limited during which the bank neglects so to make up or send in such return ; and the date upon which it appears by the jiost office stamp or mark upon the envelope or wrapper enclosing such return for transmission to the Minister of I'inance and Keceiver General, that the samevv'ns dejiosited in the post office, siiall be taken prima farie, for the purpo.sos of this section, to be the date upon which such return was made up or sent in. 34 v., c. 5, s. 13 ;— 43 V., c, 22, s. 4, part ;— 46 V., c. 20, s. 7. 39 (il. Ill acklilion to thi' returns specilied in thenext pre- spiTiai rp- ieding' section, the Minister of Finance and Kec^.-iver General ["i "Viorf ''^ may cal! for special returns from any particular l)ank, when- ever, in his judo-ment, thesmne are necessary toaliord a full and complete knowledge of its condition. 4') V , c. 22, s. 4, jmr/. (*S. Certified lists of the shareholders (or of the principal or ?;'nidoTi' '''' partners, if the bank is en com niartf lift), with their additions {'oMersio*' '^~ and residences, and the number of shar(>s they respectively NUnistorof hold, and the value at par of the said shares, shall be trans- milted every year to the Minister of Finance and Receiver General, before the day appointed for the opening- of the session of Parliament, and shall be by him laid before Par- liament within iitteen days after the opening of the then next session ; and such transmission shall bi^ made by the delivery of such lists at the Department of Finance, or by registered post-letter, posted at such time that, in the ordi- nary course of the post, it may be delivered at the Depart- ment of Finance before the Jay appointed lor the opening of the session : (£.) Every bank w}'.i<'h neglects to transmit to the i''>viay for -\r- ■ 1 !■ T-i- -in ' /-< 111- liefili'd to Minister of Imiance and Keiciver General the lists men- Hiinsmiisucu tioiied in this section, within the time limited thereby, shall incur a penalty of lilty dollars lor eacsh and every day during which such neglect continues. 4G V., c, 20, s 2. 09. The annual returns recjuired by this Act shall be •^';i';'''' made up to the thirty-lirst day of December, in th(> year next preceding each session of Parliament. 4ij V., c. 20, s 12. Insolvency. 70. In the event of the property and asseis of the bank ijiii.iiityof being insullicient to pay its debts and liabilities, the share- fucascof^"''* holders of the bank shall U\ liable for the deficiency so far as |,'''!;!;"J.fJ'"*'^ that each shareholder shall be so liable to an amount, over and above any amount not paid up on his shares, equal to the amount of such shares (a). 34 V., c. 5, s. 58, parL Ttiis i.s Jsiiowii ill? tlie dmible lialnlity clause ami nniiKMs pvery sliai'i • iioliliM' in ii l):iiili liiil)le, not only fortius uinoiint imipiiiil ujioii iiis shares, liut iil.so I'lir a fiitthi-r auiouiit eciiui! to the iioiuiii.il value of his shares. To ascci't.im who are the sharehnMers thus lialile .se(\ s. 77. (a) A hill will lift in o juitv to enl'oii^'^ the ilouhle liahihty of the share- liolile'.s of an insolvent VianU. T^ut sueh hill must lie on Itehalf of all the civditdis. Biooke c.v. J.'ank of I'ijiht Canaila, fi Cliy. •_'!'.• (l>^0'.lj ; 17 Chy. ;;ui (i>7o). It was ileeided in [^ower Canada tint a savin;:s ha'dv holdin'2 hink shares as jih^iijee is not the owner tiiereof within th^ nitMninL' ol this srrtion, and tiu'i'cfore not suliji'ct to the douhle li^d)ilitv. A liank whose shai es are ti'ansf.rred to a savings bank is presumed to kno.v that they are held by the latter as co'latoral security, inasmuch as under ;{4 V., o ~,h. IS, a savings bank cannot accjuire bank .shares or hold them except as pledgee. The K.xchange iUnk of Canada «.s-. The Mrt- soii r.s". Bancjue li'llocliolaga, 4 L N. .'514 (I.SSI) and notes to section '.'.'2. A bill will lie in e(|uity at the tiiiit of a creditor to enforce the donble liability of the sharehol'Urs ot an insolvent Ijanlv. But tueh bill must bi> on bel.all of all tlu^ creditors. (/>) Brooke vs. Bank of ['ner Canada, 10 Chy. •_'4'.l (IS(i9) ; 17 Chy. MH (1870). (3.) Every director who refuses to make or enforce, or to concur in making or enforcing any call under this section, is guilty of a misdemeanor, and liable to imprisonment for any term not exceeding two years, and shall fvirther be personally responsible for any damagt^s suffered by such detault. 34 V., c. 6, s. 58, part, and ss. G3 and G7, iiail. l'*-. In the event of proceedings being tnk<'n uiub^r any general or special winding-tip Act, in const'quence of the I insolvency ot the bank, the said calls shall be made in th(! manner prescribed for the making of such calls in such| general or specitil winding-up Act. Sf^e ''The Winding; \\\> Act" b'.S.C, cap. lli'.l, sees. 4,S and 4'.), as to malciim of calls, and si'ctions 4'.' to .'').'■), inclusive, of cha[(ter llI'J as to rights ami JiMbilities of contiibutoiies. .^ee also H.S C., < lia|iter 1:29, sections 97 to| 104, inclusive, beiii;i the sections of .-aid Act relating to banks only. 41 my of its es, shall, insolvent icorpora- md other rporation bling the alls men- . to wind specie or liabilities Dceedingvs winding' Lch share- ay all the )r the col- its assets days and o the day umber of such call and pay- er as pay- d the first ?xpiration atlo hv one le I'ovisioii see KobiM't- ction '.'.2. the ildiibln lill must 111' 17 Chy. :'.0I )rce, or to s section, iment for urther be by such //ail. iider any ice of the de in th*^ in such i-^ to making' i'i>;hts ami ctions ',)7 to only. 7 I. Any failure on the part of any shareholder liable to koic. itmo mv any such call to pay the same when due, shall operate as a Inl'nt!"^ forfeiture by such shareholder of all claim in or to any part of the assets of the bank, — such call and any further call thereafter being nevertheless recoverable from him as if no such forfeiture had b(?en incurred. 34 V., c. 5, s. 58, part. 75. Nothing in the live sections next preceding contained r.i ii'iiiiy of 1 11 1 1 1 !■ ■ • 1 1 1 i-1^- 1 !• (Iii('i'ti)rs not shall be construed to alter or dnninish ihe additional lia- iiiminishoa. bilities ot the directors as hereinbefore mentioned and declared. 84 V., c. 5, s. oS, part. As to the ailditional liabiiitii^s of , jxrrt. 79 The payment of the notes issued by the bank and N..iesi * intended for circulation, then outstanding, shall be the first uiTussets"' charge upon the assets of the bank in case of its insolvency. 4;^ Vic, c 2J, s. 12, part. This clause makes the currency rotes of the bank a lirst charge upon its ahsets and gives the holders theieof priority over general creditors. It via.S lirst iiiiroduce (187U). As to frauds by agents, bankers and factors, see R. S. C, cap. 1 04, sections 59 et se. The provisions contained in the second, twenty- seventh, twenty-eighth, thirty-ninth, fortieth, forty-first, forty-second, forty-fourth, forty-filth, forty-seventh, forty-, eighth, forty-ninth, fiftieth, fifty-first, Hity-third, fifty-fourth, fifty-filth, fifty-sixth, fifty-seventh, fitty-eighth, fifty-ninth, sixtieth, sixty-first, sixty-second, sixty-third, sixty-fourth, sixty-fifth, sixty-sixth, sixty-seventh, sixty-eighth, sixty- ninth, seventy-ninth, eightieth eighty-first, eighty-fourth and eighty-fifth sections of this Act shall apply to the Bank of British Columbia. (2.) The chief seat of business of the said bank shall, for the purposes of the several portions of this Act hereby mado applicable to the said bank, be the olfi^ie of the bank at| Victoria, in the Province of British Columbia. 48-49 V., c. 83, ss. \,2,^ and 4. by the laws ol' ot issue I dollars, and any ;alled in ovisions rty-Krst, ^■fourth, y-uinth, y-fourth, 1, sixty- iiirthaud id bank ; Act shall i. 6 ;— 40 I and 12, contained I, eleven, een, eigh- seventy, onty-four, uty-eight, much ol ks en com- Provided, ny of the read and embers ol i the Act Ing or con- f this Act [ovision iu than such 75. twenty- Iforty-first, ! Ith, Forty Ifty-fourth, il'ty-ninth, cty-i'ourth, kh, sixty- iburth and [e Bank of shall, foT reby made ie bank at ■ 49 v., 0.1 45 SCHEDULE "A." BANKS WHOSE CIIARIERS ARE CONTINUED HY IIIIS ACT, 1. The Rank ol' Montreal. 2. The Quebi>c Hank. 3. la Ranque du IVuple. 4. The Consolidated liank. 5. Molson's 15ank. 6. The Rank of Toronto. 7. The Ontario R.mk. 8. The Eastern Townships Bank. il La Banque Nationale. 10. La Banque Jacques Cartier. 11. The Merchants' Bank of Canada. 12. The Union Bank ot Lower Canada. ]8. The Canadian J}ank of Commerce. 14. The Mechanics' Bank. 15. Ihe Dominion Bank. IG. The Merchants' Bank ot Halifax. 17 The Bank of Nova Scotia. !8. The Bank of Yarmouth. r.». The Bank of Liverpool. 20. The Exchange Bank of Canada. ■11. La Banque Villc Marie. 21 The Standard Bank of Canada. 23. The Bank of Hamilton. 24. The Halifax Banking Company. 25. The Maritime Bank of the Dominion of Canada 2ti. The Federal Bank of Canada, 27. La Banque d'Hochelaga. 28. The Stadacona Bank. 29. The Imperial Bank of Canada. 30. The Pictou Bank. 31. La JJanque de St. Hyacinthe. 32. The Bank of Ottawa. 33. The Bank of New Brunswick. ;'>4. The Exchange Bank of Yarmouth. •').'). The Union Bank of Halifax. 3G. Q"'he People's Bank of Halifax. ;;". La Banque de St. .Tean. :.S. The Commercial Bank of Windsor. 43 V, c. 22, Schedule B;— 44 V., c. ;— 48-49 V., c. 84, s. 1. SCHEDULE B. Iveturn of the liabilities and assets of the on day of A.D. 18 Capital authorized $ " subscribed " paid up Amount of rest or reserve fund Kate per cevt. of last dividend declared per cent. 46 LlAHIMTIEH. 1. Notos ill eiivuliitiou ^ 2. Dominion ClovfriuutMit clt'posits payaJile on (Itunand 3. Dominion Government deposits payable after notice or on a lixed day. 4. Deposits held as security lor the execution oi Dominion Gov>'rnmeut contracts and lor insurance companies 5. Provincial Government deposits payable on demand 6. Provint'ial Government deposits payable after notice or on a lixed day 7. Other deposits payable on demand 8. Other deposits jiayabh? after notice or on a lixed day 9. Loans from or deposits made by other banks in Canada, secured 10. Loans from or deposits made by other banks in Canada, unsecured IL Due to other banks in Canada 12. Due to agencies of the bank or to other banks or agencies in foreign countries 13. Due to ag'Miciesof the bank or to other banks or agencies in the United Kingdom 14. Liabilities not included under foregoing ht'ads As^SETS. 1. Specie i 2. Dominion notes , 3. Motes of and checpies on other banks 4. Balances due from other banks in Canada... 5. Balances due from agencies of the bank or from other banks or agencies in foreign countries 6. Balances due from '"ies of the bank or from other ban!' nicies in the United Kingdom.... 7. Dominion G( ^nt debentures or stocks. 8. Provincial, i_ ^a. or foreign or colonial public securities other than Canadian 9. ]^oans to the Government of Canada 10. Loans to Provincial Governments IL Loans, discounts, or advances for which stock, bonds or debentures of municipal or other corporations, or Dominion, Provin- cial, British or foreign or colonial public securities other than Canadian, are held as collateral securities 47 12. Loans, discounts or lulvnni'os on curifnt accounts to municipal C()ri)orations $ 13. Loans, discounts or advances on current accounts to other corporations 14. Loans to or deposits made in other banks, secured lo. Loans to or deposits made in other banks, unset'urtHl It!. Other current loans, discounts, and advances to the public 17. Notes and bills discounted overdue and not specially secured 15. Other overdue debts not specially s(>cured. ... 10. Notes and bills discounted overdue and other overdue debts secured, by mortjrag'e or other deed, on real estate or by deposit of or lion on stock, or by other securities 20. Eoal estate, the property of the bank (other than the bank premises) 21. Mortgages on real estate sold by the bank 22. Bank premises.. 23. Other assets not included under the fore- going lu'ads. $ Affcrregateamountof loans to and lial)i lilies direct or indirect, of directors, firms or partnerships in which they or any of them have any interest i^ Average amount of specie held durinirtf.e month. Average amount of Dominion Notes held during the month I declare that the above return has been prepared under my directions and is correct according to the books of the bank. E. F., Chief Accountant We declare that the foregoing return is made up from the books of the bank, and that to the best of our knowledge and belief it is correct, and shows truly and clearly the linancial position of the bank ; and we further declare that the bank has never, at any time during the period to which the return relates, held less than forty per cent, of its cash reserves in Dominion notes. (Place) this day of A. B., President. C D, Gent rat Manager. 43 Vic, c. 22, s. 4, pari ;— 46 Vic , c. 20, s. 6. 48 CHAPTER 30, A.D. 1886. H' l)eiioiniiiii- lious ill ciir Htaiuliinl ol' value of (lixnailii cm- iviuy. I'liblic ac- • •ouiits, Ac, to Ix; Ui'pt in it. All Act rcspectiiij:; the Curroiicy. ER iSIajesty, l)y and with tho advice and consent of (he k::?enato and House ol' Commons ol' Canada, enacts as follow.s: — 1. The denominations of money in the currency of Canada, shall be dollars, cents and mills, — the cent being one hun- dredth part of a dollar, and the mill one tenth part of a cent. 34 v., c. 4, s. 2. *-i. I'he currenr^y of Canada shall be such, that the British sovereij^n of the weight and fineness now prescribed by the laws of the United Kingdom, shall be equal to and shall pass current for four dollars eighty . 'x cents and two-thirds of a cent of the currency of Canada, and the half sovereign of proportionate weight and like fineness, lor one half the said sum : and all nublic accounts throughout Canada shall be kept in such currency ; and in any statement as to money or money value, in my indictment or legal proceeding, the same shall be stated in such currency ; and in all private accounts and agreements rendered or entered into on or sulisequeut to the first day of July, one thousand eight hundred and seventy- one, all sums mentioned shall be understood to be in such currency, unless some other is clearly expressed, or must, from the circumstances of the case, have been intended by the parties. 84 V., c. 4, s. 3. ii Ivo iJominion note or bank note payable in any other currency than the currency of Canada, shall be issued or re- issued by the Government of Canada, or by any bank, and all such notes issued before the first day of July, one thousand eight hundred and seventy-one, shall be redeemed, or notes payable in the currency of Canada shall be substituted or exchanged for them. 34 V., c. 4, s. 6. 4. Any gold coins which Her Majesty causes to be struck Irn'rana'!"*^'^ for circulation in Canada, of the standard ol iinenoss pre- scribed l)y law for the gold coins of the United Kingdom, and bearing the same proportion in weight to that of the British sovereign, which five dollars bear to four dollars, eighty-six cents and two-thirds of a cent, shall pass current and be a legal tender in Canada for five dollars ; and any multiples or divisions of such coin, which Her Majesty clauses to be struck lor like purposes, shall pass current and be a l(»gal tender in Canada at rates proportionate to their intrinsic value respectively ; and any such coins shall pass by such names as Her Majesty assigns to them in her proclamation declaring them a legal tender, and shall bo subject to the like allowance for remedy as British coin. 34 V.,"c. 4, s. 6. No liaiik notes, Ac, ti) be in any otlicr ciii- renoy. ( Jolil f'oins 49 it of the lacts as Canada, >ue hnn- ►f a cent. e British d by the nd shall ,vo- thirds 'ereign of f the said shall be mouey or , the same > accounts sequent to d seventy- e in such or must, ended by any other ued or re- ik, and all thousand , or notes tituted or be struck JLMiess pre- llvingdom, Lit of th.^ I\r dollars, Iss current and any IV Majesty irrent and le to their I shall pass In in her II shall U coin, '^-l 5 The silver, copper or bronze coins which Her Majesty has heretotbie caused to be struck for circulation in the [Pro- vinces of Quebec, Ontario, and New Brunswick, under the Acts then in force in the said Provinces respi^ctively, shall be current and a legal tender throuifhout Canada, at the rates in the said currency ot Canada assisrued to them respec- tively, by the said Acts, and under the like conditions and ])rovisi()ns : and such other silver, copper or bronze c^ins as Her Majesty causes to be struck for circulation in Canada, shall pass current and be a le^^al tender in (-anada, at the rates assii>-ned to theiri respectively by Ib^r Majesty's Koyal Proclamation,- -such silver coins beiny ol the liiieness now lixed by the laws ot the United Kingdom, and of weights l)earing respectively the same proportion to the value to be assigned to them, which the weights of tlie silver coins of the United Kingdom bear to their nominal value ; and all such silver coins aforesaid, shall be a legal tender to the Mmount of ten dollars, and such copper or bronze coins to the amount of twenty-live cents, in any one payment ; and the holder of the notes of any person to the amount of more than ten dollars, shall not be bound to receive more than that amount in such silver coins in payment of such notes if presented for payment at one time, although any of such notes is for a less sum. 34 V., c;. 4, s. 7. (». No other silver, copper or bronze coins than those which Her Majesty causes to be struck for circulation in Canada, or in some Province thereof, shall be a legal tender in Canada. 34 V., c 4, s. 8 7. Her Majesty may, by Proclam ilion, i'rom time to time, fix the rates at which any foreign ^luld coins of the descrip- tion, date, weight and liiieness, ui.ntioned in such Procla- mation, shall pass current, and be a legal tender in Canada: Provided that iintil it is otlnivvise ordered by any such Proclamation, the gold eagle of the United States of America, coined alter the first day of Jul v. one thousand eight hundred and thirty-lour, and before the lir.-t day of January, one thousand eight hiindred and lifty-two, or after the said last mentioned day, but while the standard of lineni'ss lor gold coins then lixed by the laws of the said United States remains um hanged, and weighing ten pennyweights, eighteen grains, troy weight, shall pass current and be a legal tender in Canada ior ten dollars ; and the gold coins of the said United States being multi])les and halves of the said eagle, and of like date and proportionate weights, shall ]niss current and be a legal tender in Canada for p oportion- ate sums. 34 V., c. 4, s. !». H. The stamj) of the year on any foreign coin made current by this Act, or any I'roclamation issued under it, shall establish jtrimd facie the fact ot its having been coined in that year ; and the stamp of the country on any foreign coin shall establish prima facie the fact ot its l)eingof the coinage of such country. 31 V., c. 4, s. lo. Ccrtnin silver iiii'l fiippor coins .struck by order of licr Majesty to be: ti l«j;al ti'iidcr tlirou'?hoiit Ciiiiiiilu. A moil lit wliicli may bi' ti'iidi^ri'il in one piiy- nii'iii. N'l otliof coiiisor silver or coppiT to lie so. .Vs to t'ort'lgii udld coins. I'iMvlso: lis lo I .S. Ka«le, I'roo o (late, i r)^s shiiU be redeemable in specie on presentation at l)vaueh oifices (Estab- lished or at banks with which arramrements art' made as hereinafter provided at Montreal, Toronto, Halifax. St. John, N.B, Winniper^, Charlottetown and Victoria, and at that one of the said ])laci's at which they are respectively made pay- able. 81 Vic, c. 46, s. S, pari ; — 48 Vic , c. 18, s.' 4. pari '.i. The amount of Dominion notes issued and outstanding \,„„„|,tf)f at any time inay, by Order in Council, Ibunded on a report ixmnnion of the Treasury Hoard, be increased to, but shall not »>xceed twenty million dollars, by amount^^ not exceediim-one million dollars at one time, and not exceeding four million dollars in any one year: I'rovided that the Minister of i'inance and ,„.,„, ,. „ Receiver G-eneral shall always hold, for securing the redemp- !""l'"\'ran-'' tion of such notes issu«Kl and outstanding, an amount in tro'dTsccnn- gold, or in gold and Canada securities guaranteed by the icn'^ri'Iic'iup- " liovernment of the United Kingdom, equal to not less than """" twenty-live percent, of the amount ot such notes. — at least litteen per cent, of the total amount of such notes being so ht?ld in gold ; and provided also, that the said minister shall always hold lor the redemption oi'such notes an amount equal giIai,Vnt'''M'i to the remaining seventy-live per cent, of the total amount ''"'"■"'""'~- thereof, in Dominion debentures issued l>y authority of I'arliament. 43 Vic, c. 13, s. I, pari. ■4. Such notes shall be a legal tender in every part of N<>i<'sto i.ea Canada except at the oifices at which they are respectively made payable : the proceeds thereof shall form part of the Consolidated Ivevenue Fund of Canada, and the expenses lawfully incurred under this Act .shall b»> paid out of the said fund. 43 V , c. 18, s. 5, pari. 5. Debentures of CJanada may be issued and delivered DfiMiumcs to the Minister of Finance and Receiver General for the "?.nv,'n.,i to general purposes of this Act, and to enable him to comply JVmlm'p 'im(i with its requirements, — such debentures being held as afore- iiisposci'of said lor securing the redemption oi Dominion notes, and the purposes or said minister having full power to dispose of them and of ' "^ ^^*' the guaranteed debentures aforesaid, either temporarily or absolutely, in order to raise lunds lor suoli redemption, and for the purpose of procuring the amounts of gold required to ]>eheld by him under this .Act ; but nothing herein contained rroviso. shall be construed to authorize the issue of debentures not otherwise authorized by Parliament, or any increase of the debt of Canada beyond the amount so authorized. 4i V., c. 13, s. -1. 6. If any amount of Dominion notes is issued and out- aux. mi to i>c „, i- / ■ . .... ... .v ■ J lsHiioliiaiUn.fi standing at any tune in excess ot the amount then authorized goiuouiy. as atoresaid, the Minister of F'inance and Receiver GiMieral \^-\\ 62 ■Mini.-tiM- (iT r'iiiiiiici' to publish inniillil.v .•"tatciniiils. <)Hifi'-i or ii'^encii'N lor rfdoiiip'i'Ji' III' 11()t<'s. Itoili'tlip' idll <)!' rruvinciiil noti's. shall hold gold to the full amount of such excess, for the redemption of sxich notes; and any amount of such notes which the public convenience requires may be issued and remain oiitstanding, provided the excess of such amount over that so authorized is represented by an equal amount of gold held by the Minister oi Finance and Keceiver General as aforesaid; and the issue of Dominion notes so repre- sented in lull by gold, shall not be deemed an increase of the public debt ; but except in the case of notes so issued against an equal amount of gold, the total amount of Dominion notes outstanding shall never exceed the amount aulhori/ed under section three ol this Act. 33 V., e. lO, s. 6. 7. The Minister of Finance and Keceiver Geiieral shall l>ublish monthly in the Canada Gazelle, a statement ol the amount ol Dominion notes outstanding on the last day of the jireccdiug nionih, anu of the gold, guaranteed debentures and unguaranteed debentures then held by him for securing the redemi^ion thereof, disliniiuishing the amounts of each so held at each of the cities at which iJominiou notes are redeemable ; and such statements shall be made up from re- turns made to the said minister by the branch offices, bank or banks at which such notes are redeemable. 43 V., c. 13, s. 3. M. The Governor in Counril may, in his discretion, estab- lish branch ollices of the Department of Finance at Montreal, Toronto, Halifax. tSt. John, N.l'.., Winnipeg, C'harlottetown and Victoria, respectively, or any of them, for the redemi)tion of Dominion noles, or may make arrangements with any chartered bank or banks for the redemption thereof, and may allow a Hxed sum per annum for such service at ail or any of the said places; and gold or del)enfures held at any such bran«'h oilice or by any such bank for the redem))tion of Dominion notes, shaft be deemed to be held by tiie Minis- ter of Finance and Keceiver General: I'rovided that any Assistant Keceiver General appointed at any of the said I ities under the " Act respeclitifr Government Savings Banks," shall be an agent for the issue and redemption of such notes, 33 V , c. 10, s 7 ;— 39 V., c. 4 ;— 43 V., c. 13, s. 4, part. U. Provincial notes issued under the Act of the late Pro- vince of Canada, passed in the session held in the twenty- ninth and thirteilh years of Her Majesty's reign, ter ten, shall he held to be notes of the Dominion of Canada, and shall be redeemable in specie on presentation at Montreal, Toronto, Halifax or iSt. John, N.B., and at that one of the said places at which they are respectively made payalile, and shall be (as provided l)y the lastly mentioned Act) a legal tender exc ;pt at the offices at which they are respec- tiv<'ly made payabh;. 31 V.. c. 4(3, s. 8, /mil. 58 Hivnk< mii\ i'sl;|lilislii'(l at CHAPTER 121, A.D. 1886. An Act respecting Government Savings Banks T_T'E]l Majesty, by and with the advice and consent of the 1 1 Senate and House of Commons of Canada, enacts as follows : — INTKKrilElATION. I. In this Act. unless the context otherwise requires, — inKii.ivta- (o). The expression " the Minister " means the Minister of .'."^ji",,,^,,,,. .. Finance and Keceivcr Ueneral : (/>). The expression ''agont" includes Assistant Receiver "Ag.ni.- General. o4 Vic, c. 6, s. 1, part. ESTAHLIi-HMKNT OF SAVINGS BANKS. ii. The Governor in Council may, from time to time, j^ ,'',';.' ^'"/.^'^ appoint at each of the cities of Toronto, Montreal. Halilax, (;rm riii ma^ !St. John, N.H., and at any phu-e within the iVovinces ol rtt'il.'iiaiil''' Briti>h Columbia, Prince Kdward Island and Manitoba, and ••''"''■^' at any place within any Province which shall hereafter form pari of Canada, a person who shall be called an Assistant Keceiver General ; and the Governor in Council may also establish a savings bank at each ot the said cities and at any place in each ol the said l*rovinces, ;> id in any Province which shall herealter form part of Canada, — of which savings banks respectively, the Assistant lici-eiver General appointed for the city or place where the savings banks are respectively established, shall have the management : (2). The Governor in Council may also establish, in any other places in the Provinces of Nova tScotia and New i'''"^'- Jhuuswick, branch savings banks, and may apjwint persons as ai^-ents for the raana;ement thereof. '6-i Vic, c. 6, s. 1, jniri and s. 18, t/art. UKFOSITS AN11 DUTIRS OF OFFICERS. J5. Every agent shall, under regulations from to time made i),.,,„si(s may in that behalf by the Treasury Hoard, with the approval '"■ ivtviv.-.i. " of the Governor in Council, receive deposits of money on account of the Minister, and shall repay the same with interest to the depositor as hereinafter provided : -. 8uch of the collectors of illlri|. Tlieii- (Uilii'v. Soeurily it) hv given. luki'ii. roini i>. oaili, From wlii'iu (loposi's may l)f leci'ivcil and to whom ))iiymi'nts may In' miidi' I'l'ov i'.o : limit in ii (.■L'riiiiii Lusc, lIcpoKifor li nive Ills ad- dress, ,vc. 4. Tlu' GoviM'iior in Council may also apiioint an inspec- tor or inspectors, to inspect, inve->lii>att^ and rejiort upon the business whicli arises in carryinpf out the provisions of this Act, to which inspectors the ajjents appointed to receive deposits and all other persons w ho are (>mi)loyed under this Act shall afford all needful facilities for such inspection and investigation ; and the duties and powers of such inspec- tors shall be such as are assigned to them under the regula- tions made under this Act. 34 V., c. 6, s. 14. *>. Every agent, officer, clerk and servant employed under this Act, who is intrusted with and has the custody ot any moneys or valuable securities, shall, before entering upon the duties of his office or employnu^nt, give such security for the faithful discharge of the same, and for the due account- ing for all such moneys, as is required of him by the Treasury Board ; and shall also titke an cath or afhrmatiou before a justice of tfie peace, fiithfully to perform his said duties ; which oath or affirmation any justice of the peace is henby authorized to administer : 2. Such oath or affirmation shafl be in the form following, or in woids to the same effect, that is to say : — I, A. II., of being duly sworn, swear, (or do solemnly affirm) thnt so long as T am employed in assisting to carry out the provisions of the Ait intituled " An Act rfs/ieciinii- Gtivehiment Savin , f)efore me, A. B., Jus/ice of (he Ppace for the of £4 v., c. ti, s. n (i. Every agent appointed to receive deposits may receive deposits from any person, whatever is his status or con- dition in fife, and whether sucli person is qualified l)y faw to enter into ordinary contracts or not ; and, from time to time, may pay any or ;ill of the principal thereof and tlie whole or any ptrt of the interest thereon to such person, without the authority, aid, assistance or intervention of any person or official being required, notwithstanding any law, usage or custom to the contrary : l\ovided always, that if the person who makes any sucli deposit could not, under tfie laws of the Province where the dt^posit is made, deposit and withdraw money in and from a banlc, in such case the totai amount of deposits to be received from such person shall not exceed the sum of live hundred dollars. 34 V, c. 6, s 7. 7. Every depositor, on making his first deposit, shall declare his name, residence and occupation ; but the per- sons employed in the receipt or payment of such deposits shall not disclose the name of any depositor, or the amount deposited or withdrawn, except to the minister or to such 65 of his ofTicors as are appoiiitod to assij«t in carrying' into oporaHoii the provisions of this Act. 31 V , c *>, s. 3. .H. Kvery such deposit received by such a^ent shall be i),.i,„Mtshow entered by him, at the time, in a book to be kept by him lor !",d'',',Vovoir'* that purpose, and, at the same time, shall b- entered by him in a pass book to be liimislu'd to the depositor ; and the entry in such pass book, attested by the signature or initials of the aijent who n^ceives the deposit, or of his deputy or clerk, shidl be evidence of the claim of such depositor to the repay- ment thereof, with interest thereon, iipon demand made during ollice hours bv such depositor on such agent or his successor in olhce, at th(^ ollice or place wKere such depo.sits are i)ayable, subject to the provisions following, that is to say : — (ii) Every agent shall report to the miiiist(M-. at such times i{.'i"«it lo and in such fjrms as are prescriljed by the regulations under """'^^'^''• this Act, all deposits received by him ; (h) At such times as are ])rescribt'd by the regulations made i',.,ioiiieiii under this Act, but not at less intervals than the beginning uj.l'er'i'.'ctus of each calendar month, the ollicer appointed thereto by the '"'I'^po^it miiiister shall send, by mail, to each depositor, to the address given by him, a notice stating tlie amount deposited by h'm sin.e the statement of the sane kind then last sent to him, if any, and the total amount thi'u at, his credit ; and the amount mentioned in such notice, and no more, shall be the amount for which the Crown shall be liable, iip to the last (lei)osit therein mentioned, unless the depositor, within thirty days alter the receipt of such notice, notifies the min- istei', in such manner as is prescribed by the regulations then in force, that there is some error and what error, in such notice, — in which (^ase the amount shall be ascertained, and the depositor shall be notilied accordinirly. 3f V , c. (.>, s. 2. O. Every agent shall, at such times as aie prescribed by nis">sa^ior the regulations then in lorce, pay in to tht> account of the l.'iym.iit .>:' minister, at such bank as is prescribed by the minister, all ^^'"'"'''-'**'^''*- moneys received on deposit, and he shall pay all moneys which are withdrawn in such manner as ])y the said regu- lations is prescribed ; 2. l*iVery agent shall also, at suih times as are prescribed. i> .aiic.i ac- transmit to the minister, in such lorm as is prescribed by the i',' "nisiied'u) minister, a detailed account of the business ol his olhce "' """"^^^'■' during the time that has elapsed since the transmission of his next preceeding account. 3 I V., c. G, s. 4. H». The interest payable to the pers »ns making such m deposits shall be at such rate, not less than four per ctMitum per aTinum, as the Governor in Council, from time lo time, prescribes; btit such interest shall not be calculated on any stiin less than one dollar, or on any sum other than a dollar or the multiple of a dollar. H4 V., c. (3, s ."). '■rest oil ■ii-.ii.s. 66 Intrrost added yearly to capitiil. omens o I (ioverniin'iit not bouiiil ID t-ue to tni.-ts. Corliiiii pay- ini'iil!^ valid. Dr'p savings banks established under this Act, shall be paid out of the Consolidated Kevenue Fund of Canada. 3 1 V., c. (i, s. 22, part. REGULATIONS. Governor in ^'^ ^^^^ Govcriior ill Couucil may make regulations for coun.il may pivscri1)ing the mode ot keeping, examining, inspecting, make ritrula- *, , . " - _ * =' , _ »' •■ - "'- tion.s for i-t r- lain purposes. Tobebindinj checking and reporting on the accounts of depositors, and of withdrawing deposits and interest, and the issuing of deposit certilicates, and also respecting the payment or trans- mission thereof in case of infancy, death, bankruptcy, mar- riage or other change in the circumstances of any depositor, and f r prescribing how and in what manner any such pay- ment or transmission shall be made, and what declaration, doci^ments or other evidence shall be necessary and sulficient in proof of the same, and also respecting the duties and powers of inspectors appointed under this Act, and all other matters which tht^ Governor in Coumil deems incideii'al to the carrying of this Act into effect : 2. All regulations so made shall be binding on the persons interested in the su})ject matter thereof, to the same extent and as fully, to all intents and purposes, as if such regula- 67 iterest of the all be ivssed, undor of the stands ny one )ersons respect h such sought deposit agent 1 to see pt. 34 ■)U who it ion in (ler the nterest, e agent ccessors further nterest. rm part ud all xpenses under |e Fund ions for )octing, and of ling of trans- y, mar- [)ositor, ;h pay- iratiou, lllicient les and 11 other In'al to |)(!rsons ixtent tions formed part ot this Act : and such regulations, and all iMbii.Mtioiv. amendments thereof, shall he published in such way as the G^overnor in Council directs, and any copy of such regulations published as aforesaid shall be evidence thereof: 8. Copies of all such regulations shall be laid before both {;j;;i',';,':,(;;.J"" Houses of Parliament, by the minister, within fourteen days I'luiinmiMit. after the commencement of the session held next following the making of such regulations. 34 V., c. 0, s. 10 RETURNS. Hi. As soon as possible after the end of each month, the Monii.iy minister shall prepare and insert in the Cnnnaa (gazelle -d Ui>:min\su'v. statement of all moneys received or deposited and withdrawn during the preceding month, and of the toial amount on deposit at the end ot the preceding month, and the rate of interest payable on the same. 31 V., c t), s. 2o. 17. An account ot the expenses incurred, of the amount aci'iihi- i" of deposits received and paid, and of the total amount due I'Mi'iiMnu'iii.' at the clo.-e of the linancial year, to all depositors, under this Act, shall be laid belore both Houses of Parliament by the minister, within ten days after the commencement of the next following session thereof. 34 V., c. 0, s. 22, /xnf. INCRKASE OF PUBlvIC DEHT. IS. II bt H reg ula- If, at the end of any month, by reason of the amount i rovision of d(^posits in the savings banks established under this Act, in'rvasea by and in the Post Office Savings Bank, and the issue and sale y!',',''T'ilmmnir of the live per cent Dominion Stock and any other public ;"iii>'>'i>'"i- security, the issue and sale of wliich is authorized by " The ConsDlit/nfed Revenue and Audit Act" or by any of the said causes, the amount of the public debt authorized by Parlia- ment is exceeded, the minister shall report such excess to the Treasury Board, who shall thereupon direct him to pur- chase, to the extent of such excet-s, debentures of the Dominion of Canada already issued, or debentures of the late Province of Canada, or of either of the Provinces of Nova Scotia or New Brunswick, i.'faces, alters, erases or, in any on^'n,'."s. manner or way whatsoever, changes the effect of the books of account that are kept under the provisions of this Act, or any entry in the said books of account, for any fraudulent purpose,— and every such agent, officer, clerk or servant who secretes, appropriates or embezzles any bond, obligation, bill or note, or any security for money, or any moneys or effects intrusted to him or in his custody or to which he has obtained access, as such agent, officer, clerk or servant, to 58 whoinsooviT the said property lieloiij^.s. is t^uilty ol' ft'lony and liable to imprisonment for life. 34 V., c. H, s. I'J, fiarl.. vunisiimpiii ~^^- Kvery person who, with intent to delVaud, lalsely illiipiypn - pretends to be the owner of any deposit made under this i.Tiuiuii (o !»■ ^^.\^ oj. of fhy interest upon such deposit, or of any part of owners ui ' . . ' i i • i •hposits. such deposit or interest, and who is not sneh owner, and who demands or claims from the aijcnt with whom such deposit has been made, or from any other person employed under this Act, the payment of such deposit or interest, or of any portion thereof, as the case may be, and whether he does or does not thereby obtain any such deposit or interest, or any part thereof, is guilty of a misdemeanor and shall bo punishable accordinf^ly. 34 V., c. >i, s. 13, jmrl. !!il. The capital represented by deposits in the savinpfs banks in Nova t^cotia and New Brunswick, in deposit accounts as to which there have been no deposits or with- drawals since the first day of July, one thousand eight hundred and sixty-seven, shall not be charged against those* Provinces respectively as part of the debt with wihich they entered the Union, but all such accounts shall be transferred to a suspense ledger, and if any deposit or withdrawal is made in any such account, it shall be removed from the suspense ledger, and the capital represented by such account and the interest accrued since the first day of July, one. thousand eight hundred and sixty-seven, shall be charged against Nova Scotia or New Brunswick, as the case mav be, 34 v., c. M, s. n Ak io (•(.'I'tftiii <|p|>()sils ill .V.S. and N.H CHAPTER 122, A.D. 1886. All Act rer<[)ectiiig certain Savings Banks iu the Pn)- viiices of Ontario and Quebec. Iiiti'iin'otii lion. •' The liank. riiartcrs m tinned siiliji! to cortiiln coiidiliiins. HER Majesty, by and with the advice and consent of thi> Senate and House of Commons of Canada, enacts as | follows : — 1. In this Act. unless the context otherwise requires, fhe| expression " the bank " means any savings bank to which | this Act applies. ClURTKEJS CONTINUEL;. ~. The charters of the several savings banks to whi<'h| rt charters were granted by the G-overnor General in accord- ance with the Act passed by the Parliament of Canada inj the thirty-fourth year of Her Majesty's reign, chapter seven,! — to all of which this Act applies, — are hereby continued and shall remain in force until the first day of July, in thel year one thousand eight hundred and ninety-one, except in I )r Ct'lony 12, /mr/. I, falsely uler this y part of iKT, and om such raployocl terest, or aether he interest, shall be saviiifrs I deposit or with- nd eight inst those lich they iinsferred Jrawal is from the h account July, one. 3 charged c may be, tlio Pro- sent of the , enacts as I quires, the to which to which] in accord- Canada in I pter seven, continued! uly, in the! , except iul slinr. Proxy. 69 so far as they or any of iheni arc or IxMomt- forffited or void under the terms theri'of, or of this Act, or of any other Acts heretofore or herealti'r passe.l relating t>> the said savings banks, l)y non-perforirianee ol" the conditions of sudi charters res])ectively, or by insolvency or otherwise. 44 V., c. 8, s-y. 1 (ind .5. INTKIJNAIi RE(JULATI<)NS. J?. Public notice shall be given by the din^ctors of the ^''!^lT„?,i bank of the holding ol annual or other meetings, t)y publish- ing the same for at least four weeks in a newspaper at the l)lace where the head olhce of the bank is situate ; and if such head olhce is in the l'rovinct» of Quebec, su( h notice shall be given both in the Knglish and French languages. 4 J v., c. ^, s H. 4. The qualification of a director shall be the holding '^f !,VHiI!|','.'^nV,"" twenty-five shares of stork; and the directors sh;ill ]>e I>i 'lii MiorH. elected annually at a gtMieial meeting of the shareholders, and shall be eligibh^ ibr re election : 2. Each shareholder shall, on every occasion on which X',','.'.'.!'"" the votes of the shareholders are taken, have one vote for each share held by him lor at least three months before the time ol voting : 8. iShareholders may vote by proxy, --but no per?on but a shareholder .shall vole or act as such proxy . 4. No cashier, bank clerk or other officer of the l)ank shall otiir.r i,.>i to vote eitht>r in person or by proxy, or hold a proxy for that purpose : 5. Every director of the bank who becomes openly and J,'i^'omin!,' notoriously insolvent, or assigns his estate and effects for 'f»^"ivtni, ac the benefit of his creditors, or absents himself, without the consent of the board, for twelve consecutive months from the meetings of the direct(n"s, or is convicted of any felony, shall thereupon, iff n fart >, cease to be a director, and the vacancy so created shall forthv/ith be filled up m the manner provided by the charter. 34 V., c. 7, ss. 7 mid 27. ♦>, No failure to elect directors of the bank shall operate laiimv to any dissolution of *.he corporation; but in case of such 't'.'.'r'jj i','',w"" failure to elect, the required eh^ction shall be made as soon r<-intH«it'd. thereafter as possible, at a special meeting of the share- holders, — which the directors are hereby authorized to call lor that purpose ; and until such subsequent election takes place, the oflicial a»'ts of the directors holding office shall be valid. 84 V., c. 7, s 2(3. CALliS. CJ. The directors may call up the stock subscribed lor and Ciiiisou remaining unpaid, by calls not exceeding five jier cent., made at intervals of not less than three months, whenever it is, in their opinion, necessary or expedient to make siich calls ; and all stock when paid up shall be invested in the manner hereinafter provided as to the investment of moneys deposited with the bank : Provided that the limitation of provuo. 60 Rccovorx ()(' callH h.v ac- tion 1111(1 pKlOf la hlUll tlihf. Iiial)llil> (i( Bliuri'lioldcrs in Cilse of mil nulii r. Amount anil cnf<>ri<'nuui. First rail. Eflecl of tail- lire to pay. Lialiiiily of director fail- ing to make, (juch cull. the amount of any call, or of tho intervals at which calls may ))»; made, shall not apply to th»^ cast) of delicionry of th«' fluids ol the bank to mi»t>t the claims of depositors and other liabilities hereinalter provided for. 34 V., c 7, s. !• ;-- 36 V , c 72, 8. 1, imrt. 1 . The amount of every such call, if not paid when due, may bt^ recovered with intfrest by the directors, in (he name of the bank, in any court havinif jurisdiction to tht> amount ; and ill any action for the recovery thereof, it shall be sulR- cient to allege and prove the charter, and that the call.s WH^re madt; under thi.s Act, aiul that the defendant is the holder of a sharvi or shares in respect of which tht^ amount is due, without alle' or proving any other matter or thinu' what.sotner ; and the evidence of any officer ot the bank, coo'iiizant ot any fact required to be |)roved, shall l)ei suUi- cient proof thereof ; and any copy of the charter, purportiui? to be eertilied as a true cupy thereof by the Seeretary of kStatt! of Canada, shall be deemed authentic and shall be Itrimd t'lrh- evidence of the charier and of the contents there f. 84 V., c. 7, s. Kl LT.\BILITV (tV SH \KK1I0LDEU.S. S. The shareholders of the bank shall, in tlie event of its funds m money and assets immediately (Convertible into money becoming insulTicient to satisfy its debts and liabili- ties, be liable for the deficiency, .so far as that each share- holder shall be liable to an amount equal to the amount, if any, not paid up, of his shanks, and no more : and the direc- tors may and shall make calls on the stock not paid up to the full amount not paid up or to such less amount as they deem necessary to pay all such claims and other liabilities, without waiting for the collection of any debts due to the bank, or the sale of any ol its assets or property : "^ I 2. Such calls shall be made at intervals of thirty days, and upon notice to be given thirty days at least i)rior to th'^ day on which the call is payable : 8. Xo such call shall exceed twenty per ctmt. on each share, and payment thereof may be enforcetl in the manner hereinbefore provided as to calls on unpaid-up stock : 4. The first of such calls shall be made within ten days after such sulU- Lhe calls it is till' amount latter or ho bank, be sulli- irporlinu,- rotary of shall ha contents ont ol' its iible into id liabili- ch sharo- Imovint, it the diroc- up to th<; as thoy abilities, ne to the rty days, ior to th'' on each t^ manner k: tell days e to such |eiture by the assets Lherealtor no such [rce, or to jiection, is [sponsible lult: and to wind up the affairs of the bank, in case of its ins(»lv«.«ncy, ishall have tjio powers of the directors with respect to such calls. :14 v., c. 7, s. 1 ! ««'/ H. 1_, pari. O. Persions who, haviny been shareholders in the bank, ',n;!,'."t,','![„sf»r jiavt^ only transierrod their shares or any of them to others in a <-.Tiniii or r(>iristerod the transl'er thereol, within one niontii Iji'loro '' ' tilt' comniencemenl of ttie iailure of the bank to meet the (laims of its depositors on dematid, shill be liable to calls on such shares under the next preceding' section, as if they had not transterrod thcnn, saving' their recourse at^ainst those to whom they were translerred 31 V., c 7, s. 12, piirf. DIVIDKND. 10. The directors of the bank shall make hall-yearly iMvii. -nils dividends of so much oi tlu^ i)rolits of the bank as to the iVi'.'.mVi- ' " iiKijority oi them seems advisable, and as is not inconsis- teni with the provisions of this Act, and they shull 'ulations ninde as prescribed by the charter; :uul the transferee shall have the ri«.?hts and shall be subject to the liabilities of the original holder : 2. No share shall be divided, — and if any share is held by i.>iiii h.diiers jfeveral persons jointly, one of them shall be appointed by '"" ''"^''''*" letter ol attorney by the others to vote thereon, to receive dividends and to do all things that require to be done in ivspect thereof; and such letter of attorney shall be lodged with the bank. 84 V., c 7, s. lo. I-. If the interest in an)' deposit or share in the bank j''i.'>";'j^'\[.-'^''^'^; becomes transmitted in consequence ol the death or a.-posus insolvency of any depositor or shareholder, or in consequence I'lumio n.iii.s jot the marriage of a female depositor or shareholder, or by '''■ any other lawful means than by a transfer upon the books lot the bank, or by deed served upon the bank, such trans- mission shall be authenticated by a declaration in writing, —which declaration shall distinctly state the manner in pi^'ii'i^n 11 11 1 11 • , 1 1 '" ^"<''' '' which and the person to whom such deposit or share has been transmitted, and shall be, by such person, made and sigiuul : and every such declaration shall be, by the person making and signing the same, sworn to before a judge or [jastice of a court oi record or chief magistrate of a city, Itnwn, borough or other place, or before a notary public, jwhere the same is made and signed ; and every such decla- Iralion, so signed and sworn to, shall be left with the Imanager or other officer or agent of the bank, who shall jthereupon enter the name of the person, so entitled to such Vi'posit, or share under such transmission, as [)roprietor oa lOll ISO. 62 IIOW iMlllllll- ticiil ■(! clsr- wherc lliiiii ill II Hi ilisli Iiosscssion. ^ iirtlKM- cvi- cloiici' may lie re ol u deceased depositor or share- holder, the probate of the will, or, if it is notarial, an authen- tic copy thereof, or the letters of administration or atit of tutorship, or curatorship, or authentic certiKcates of l)irth, as the case may bis shall, together with such declaration, be l)roduced and left with the manager or other oilictT or agent ot the bank, who shall thereupon enter the name of the person entitled under such transmission in the books of the bank. 3t v., c. 7, s. 2l». DKPOSITS AiNU I.O.XNS. 14. The bank may n'ceive deposits of money tor the beueiit JMlsitsaiVupoy ot persons depositing the same, and may invest the same as iuieit,-.i. hereiualter provided, and may accumulate the revenues and profits derived from the investment of so much thereof as is not required to meet ordinary d»»mands by the deposi- tors and, out of such accumulation, may allow anc pay to the depositors thereof such rate of interest on such deposits as is, from time to time, lixed by the Governor in 'Jouncil, not being more than live per cent, per annum. 34 V., c. ', s. IJ ;— 44 V , c. «, s. 2. TraiiMiiissiuu l)y mail v.fzv. my 111 IllUllt. liank may rt'i^t'ivc ill ransmis- u^ of any I deposit livideiid this and perfect made in e British i. l']very depositor, on makinj; his first diMio.it<>rto bank, shall disclose and declare his name, residence ([wality Unu ii.iiiic^>. and occupation 84 V., c. 7, s. 1;'). !6. The bank may receive deposits from any person. Di>p<>«it« i-.y ^vhatever is his status or condition of life, and whether such '" '"""*•" ^• ptMson is qualified by law to enter into ordinarv contracts or not ; and the bank may pay the principal or tiny part thereof, and the whole or any part of the interest thereon, to such l)erson, without the authority, aid, assistance or intervention of any person or olficial bein«^ required: Provided always, provis... that it the |)erson making any deposit in the bank is not, by the laws of the Province where the bank is established, authorized so to do, the total amount of depusits made by such person shall not exceed the sum of two thousand dol- lars. ^-'4 V , c. 7, s. 10. 17. Any i)ayment of interest or dividend, or of the whole cnain pay- or any part of any deposit, made in good faith to any i)erson faMiVt.-i'iur"^' who appears priniu farie to be entitled to such interest, dividend or deposit, by the production of a declaration in writing and of the documents herein mentioned in support thereof, shall be valid ; and the discharge of such person shall be sufficient, and shall discharge the bank from all or any further claim by any person lor such interest, dividend or deposit. 84 V., c. 7, s. «1. IS. The bank shall always hold at least twenty i).r cent. Ani..miM..iM of the moneys deposited with it in Dominion securities, or iiominion deposits in chartered banks, on call i'G V., c. 72, s. 1, part. '*'*'"" "^'•''•' '" ii). The bank may. sul)i(M«t to the jjvovisions in the next i„v,.stiii.ni ])receding section contained, invest any moneys deposited ""'^■i""'"''- therewith in any stock or public securities of Canada, or of any . The })ank may also loan such moneys, upon the per- Lonimou .sonal security of iinlividuals, or to any corporate bodies, if seomiuo. collateral securities ot the nature mentioned in the next preceding se«'iion, or British or lori'ign public securities, or stock of some chartered bank in Canada, or stock in any in- corporated building s< ciety, or bonds or debentures, or stock of any incorporated institution or company, are taken in addition to such pi'rsonal or corporate security, with authority to sell such securities if the loan is not paid. 34 V , c 7, s IH, part ; — :>♦> V , c. 72, s. 1, part. 21. The l)ank shall not make any loan, directly or N'>|"'i"« "i' indirectly, upon the security of real property, or with anv '"' '""'"' ^ rt'feriMue to the security of real property ; but nothing' iierein * ontained shall i)revent the l)ank from taking security upon real property in addition lo such collateral securities, subsequently to the making of the loan and subsidiary to 64 on colliitcial seriiritv Kiirlhi r prci- visioii III lax "f noii-iia,\- nionf. IIkw lar li.iiik i. KnibiT.iiiint — — • If the bank makes any loan under the two sections 7,^,fJ'//'n,X"'' wt'xt preceding, upon personal securities wiih collateral security, other than real property, for the repayment thereof, and if the repayment is not made within thirty days alter such loan becomes due or payable, the bank may sell the collateral security, alter notice to the borrf«v er or person depositing such collateral security, by addrf ,ng and mail- ing, to his last known place of residence, a letter containing such notice : 2 JSuch sale may be so made, whatever is the nature of such collateral securities, whether consisting of stocks, bonds, debentures or negotiable paper ; and the president or vice- president, manager, cashier or other otficer of the bank, thereunto authorized by the directors, may transfer and convey any security so sold to the purchaser, in whom the ]>roperty in such (security shall become vested by such con- veyance or transfer, but without any warranty from the bank, or from any officer thereof : o, The liank shall only be bound to accoiint to the person indebted to it in the amount of such loan, lor the actual net proceeds of the sale of such collateral securities, after d* ic- tioii of all costs nnd charges thereon : 4. Noihing herein contained shall prevent the hank from collecting or realizing such debt, or any balance due thereon, out of such collateral securities, in any way which has been agreed on with the borrower depositing the same, or in any other lawful way that the directors deem for the interest of the bank. 34 V., c. 7, s. 19. 21$. The bank may purchase any lands or real property oHercd for sale under execution at the suit of the bank, or exposed to sale by the bank under a power of sale given to it for that purpose, in cases in which, under similar circum- stances, an individual could so purchase, without any restriction as to the value of the lands which it may so purchase, and may acquire a title thereto as any individual purchasing at sheriff's sale or under a power of sale, in like circumstances, could do, and may take, have, hold and dis- jiose of the sam(> at pleasure. 34 V., c 7, s. 20. 21. 1 he bank may acquire and hold an absolute title in or to land mortgaged to it as security lor a debt due or owing to it, either by obtaining a release of the equity of redemption in the mortgaged property, or by procuring a foreclosure, or by other means whereby, as between indi- viduals, an equity of redtmption can, by law, be barred, or may purchase and acquire any prior mortgage or charge on such land. 34 V., c 7, s 21. 25. Nothing in any Act or law shall be construed as having prevented or as preventing the bank from acquiring and holding an absolute title to and in any such mortgaged lands, whatever the value thereof may be, or from exercising I'lircliasi' or (ircipuriy mofliia'^i )li(' liaiik, d, or Msmg 65 or acting upon any power of sale contained in any mortgage given to it or held by it, authorizing or enabling it to sell or convey away any lands so mortgaged. 34 V , c. 7, .*s. 24. i^G. Nothing herein contained shall prevent the bank from Jll'inn'^*'^" depositing money in any of the chartered biuiks carrying on {".lln^t^'^^/"'^ the general business of banking in the same place as the bank ; and siich money shall be so deposited on call, and shall be subject to withdrawal at any time without notice, and either with or without interest. 84 V , c. 7, s. 24, (GENERAL PROVISIONS, — 7. The directors of the bank shall continue to distribute nistnbutioa 10 charitable institutions yearly, as hereto'ore, the interest inrm'uuons.'' accruing on the amounts invested for that purpose : 2. The principal of the Poor fund of the City and District i-^.r tun.j at Savings Bank of Montreal, which has been ascertained and ''^•"""''"'• settled at one hundred and eighty thousand dollars, shall continue invested and shall be held by the said bank in debentures of the cities of Toronto, Ottawa, Kingston, St. Catharines and Hull, and of the town of Bowmanville, — with power to change the investment of the same or of any part thereof, from time to time, with the approval and per- mission of the Treasury Board, but not otherwise : 3. The principal of the ('harity fund of La Caisse uErnn- cii.iiiiy rand omie de Notre Dame de Quebec, which has been ascertained ''"^"'" "^^'^• and settled at eighty-three thousand dollars, shall continue invested and shall be held by the said bank in debentures of the city of Quebec, — with jiower to change the invest- ment of the same or of any p:»rt thereof, from time to time with the approval and permission of the Treasury Board, hat not otherwise. 34 V., c 7, s. 25, part i—M V., c. 7i', ss. 3 and 4, liH, The V)ank shall not issue any bank note, or note in- tendt>d to cireulate as money or as a substitute' for money, or be deenu'd a bank within the meaning of " The Bank Actr 34 v., c 7, 8. C5. 29. The bank shall not l)e bound to see to the execution itanu not of any trust, whether expressed, implied or constructive, to t',',' t mlis. **'^^ which any deposit or share therein is sul)ject ; and the receipt of ihe pc^rson in whose name any such deposit or share stands in the books of the bank, or if it stands in the name ot more persons than one, the receipt of one of the persons shall be a sntlicient discharge to the bank for such deposit or share, interest or dividend thereon, or lor any other sum ot money payaV)le in respect of surh dei)osit or share, unless express notice to the contrary has been given to the bank, or such deposit is made upon express con- ditions as to the person or persojis to whom suih deposit shall be paid.- in which case siu:h deposit shall be governed by such conditions, notwithstnuding any trust to whi«tes ii( case may be, and whether he does or does not thereby obtain any part of sut^Ji deposit or inttMvst, is ffuilfy of a misdemeanor, and shall be puni!shiil)le accordingly 34 V., c, 7, s. •> , pnii. II such f all of to the lall be d shall ial day returns or the Evnacfer, el" place azelte : le sche- riodical except mrt lister of liament u, certi- id resi- ly hold nployed 5, alters, |)ges the sions ot for any servant, igation, loney or h he has vant, to felony, onment tained, shall ajesty, or any other falsely ll r this is not bank person Iposit or Ibe, and 1 of such ^hall be 67 5il. The makincr of any wilfully lul^e or docoptive state- Antifoi- mnu- ment m any account, return, report or other document stauintiiMn respecting the atfairs of the bank is, unless it amounts to a ^'If '"■'^''"" ' higher offence, a misdemeanor; and every one who is a president, vice-president, director, auditor, cashier, or other ollicer of the bank, and who i)repare8, signs, approves or concurs in such statement, return, report or document, or uses the same with intent to deceive or mislead any person, tjhall be held to have wilfully made such false statement, and shall further be responsible for all damages sustained by such person in consequence thereot. 3i V.. c. 7, s. 34. schedhlk. Return of the amount of liabilities and assets of the (name o1 the bank) on the day of 18 Capital Stock, $ Capital paid up, !| LIABILIIIES. 1. Dominion Crovernment deposits, payable on demand 2. Provincial Government deposits, i)ayable on demand 3. Other deposits, payable on demand 4. iJominion Government depo.sits, payable alter notice or on a fixed day 5. Provincial Government deposits, payable after nolice or on a fixed day t). Other deposits, payable after notice or on a fixed day 7. Special Poor Fund or Charity Fund Trust 8. Liabilities not included under the foregoing beads ASSETS. 1. Dominion securities 2. Provincial or municipal securities 3. Loans for which Dominion or Provincial securi- ties are held as collateral security 4. Loans for which bank stocks are held as colla- teral security, , f), Jjoans for which other sto(;ks, bonds or deben- tures, as authori>:ed by law, are held as col- lateral security 6. Cash in hand or in deposit on call in chartered banks 7. Special l^oor Fund or Charity Fund invest- ments 8. Investments in bank stock made previous to the incorporation ol the bank !♦. Other assets, not included under the foregoing heads ,.. I cts. 68 We declare that the ♦bregoing return is made up from the books of the bank, and that it is correct, to the best of our knowledge and belief. (Place) this day of 36 V , c. 72, s. 2, jxirl. 18 A. B., President, $^t. C. I)., (;<^s/^/rr, ^V''- CHAPTER 123, A.D. 1886. An Act respecting Bills of Exclumge and Promissory Notes. <)ii wlijit iliiy> liillsaiul Holes .•«lia!l iiiMliirc When la^l ilay of;.'riicr i- a iioii- iurUlical (lay. N'i)ii-iiiriilii-al Uitys. KImwIhk tlian ill • ilH-'liir. HER Majesty, by and with the advice and consent of the Senate and House ot Commons of Canada, enacts as follows : — I. Every bill of exchange or promissory note which is made payable at a month, or months, from and after the date thereof, shall become due and payable on the f^ame numbered day of the month in which it is made payable as the day on which it is dated,— unless there is no such day in the month in which it is made payable, in which case it shall become due and payable on the last day of that month, — with the addition, in all cases, of the days of afrace allowed by law. :J5 V., c 10. s. 1. ii. Whenever the last day of grace, in respect of the pay- ment of a bill of exchange or a promissory note, falls on a legal holiday or non-juridical day in the Proyince where any such bill or note is payable, then the day next following not being a legal holiday or non-juridical day in such Province shall be the last day grace as to such bill or note. 35 V., c. 8, s 8, pari .•—42 V., c. 47, s 4. J*. In all matters relating to bills of exchange and pro- missory notes, the following and no other shall be observed as legal holidays or non-juridical days, that is to say : — ('/) In all the Provinces of Canada, t^xcept the Province of r^uebec — Sundays ; New Year's Day ; Good Friday ; Easter Monday ; Christmas Day ; The birthday (or the day lixed by proclamation for the celebration of the birthday) of the reiirning tSoyereiou ; The first day of July (iJominion Day), and if that dny i.s a Sunday, tht'n the second day ot July :i,s tlie same holiday ; rom the t of our iiLssory it of the lacts as hich is iter the le f^ame yable as I day in case it month, allowed 10 pay- lls on a lere any in. Notice of the protest or dishonor of any bill of exchange wiiaiiicii... or promissory note payable in Canada shall be sutnciently .n^ii-.iK.ishaii given, if it is addressed, in due time, to anv party to such " '" """ ' bill or note entitled to such notice, at the place at w^hich such bill or note is dated, unless any such party has, under his signature, on such bill or note, designated another place, —and in such latter case such notice shall be sulficiently given if addressed to him, in due time, at such other place ; and such notices so addressed shall be sufficient, although the pfice ol residence of such party is other than either of such before mentioned places. 37 V., c. 47, s 1. a. No damages shall be recoverable in any ai-tion, suit or Damau'^oii ,. , ° , . , . i- /^ J lulls im.viibh' i>roceediiig. brouoht in any Province oi Canada, upon any iiicaiiii.iuur 1 11 1 1 1 i 1 • NtnvioiiiKl- )»Hi ot exchange drawn upon any person at any place m land. Canada or in the Island of Newfoundland, against any party thereto, except for the amount for which such bill of exchange is drawn, and for such further amounts as arise from the noting and protest of such bill ot exchange, and intert'st then'on, and exihange and re-exchange thereon: 2 No damages shall be recoverable in any action, suit or p,J\'.|^",'',''.'|'^,'^ l^roceeding, brought in any Province of Cnnada, upon any bill of exchange drawn upon any person at any place not l)i'ing in Canada or in the Island of Newfoundland, against any party thereto, except for the amount lor which such ))ill of exchange is drawn, and for two and one half per cent, thereon, and for such further amounts as arise from the noting ind protest of such bill of exchange, and interest thereon, and exchange and re-exchange thereon, 38 V, c. !!•, ss. 1 and 2. wlnTc, I TO Prolrst r)f non-iurcrptt'd or unpiilu hills or iiDlrs In Nova .Scdtla. Ami in Tiim r ];artial interest, limited geographically or otherwise, in a patent right, is guilty of a misdemeanor, and liable to imprisonment for any term not exc(»eding one year, or to such line, not exceedinur two hundred dollars, as the court thinks tit. 47 V., c. 3S, s. 3 l»>. Sections sixteen to tw^enty-six, ])oth inclusive, api)ly to the Province of Ontario only. 16. If any person accepts a bill of exchange, payable at a bank, or at any other particular place, without further expression in his acceptance, or makes a promissory note payable at a bank, or at any particular place, without further expression in that respect, such acceptance and such promise shall be deemed and taken to be a general acceptance and a general promise respectively : 2. If the acceptor expresses, in his acceptance, that he accepts the bill payable at a })ank. or at any other i)articular place only and not otherwise or el.sewhere. or if the mak(M- of a promissory note expresses in the body of the nol(> that he promises to pay at a bank, or at any other particular plac(^ only and not otherwise or elsewhere, then such accept- ance or promise shall be deemed and taken to be a qualified acceptance or promise, and the accej^tor or maker shall not be liable to pay the bill or note, unless payment has been first duly demanded at such bank or other place. C. S. U. C, c. 42, ss. 5 nji'l 6. 17. No bill of exchange or promissory note, although given for a usurious consideration, or upon a usurious con- tract, shall be void in the hands of an indorsee (or if a note transferable by dt'livery, in the hands of a person w^ho acquired the same as bearer), for valuabl«' consideration, unless such indorsee or bearer had. at the time of discounting or paying such consideration for the same, actual knowltHlu'e that such bill of exchanire or promissory note was originally irivfMi for a usurious consid(>ration or upon a usurious con- tract. C. S U. C, c 42. s. H IH. No bill of exchancre shall bi» presented for acceptance on any non-juridical day. C. S. U C, c. 42, s. VJ. 'I'liiiisriTi'i- to taki' iiislru- inrrit .-iuhji-rt to nsjlil <)l ilcrciici.. I'liialiy for nlliTitiu such iiislnniii'iil iiiark.-rl. |*ii>vi.sii)n.s a|>|>l<'°i>l>l<° to Otitarin, acc'l-liiiii'O Mill) proiiiiNO. (jiui itii'il uii'I pniiiiiHO. ISi'l i>r iidIo iMit \(i;(l lor ii^'ir.v ill ci.T- Imlii casi's. Xo prosont- iiii'iit on nnn^ jiii'iiilculclayit^ 72 UnmHKcs and ltil4'r('Ht alluwfd in (••■rtaln chkck ui>on2 UiHhunorcil BOtCH. ITkw rati' e. and shall regulate the sum to f>e paid accordingly. C. 8. II. C, c 4::, s. 12. iJI. Kvcry bill, draft and order drawn by any person in the Province of*. 'ntario on any person in either ot the Pro- vinces of Ontario or Quebec, and every promissory note made or negotiatated in the I'rovince of Ontario, if protested for non-payment, shall f)e subject to interest from the date cf the ])rotest. or if interest is therein expressed as payable from a particular p<.'riod, then from such p(»riod to the time of ])ayment ; and in case of protest, the expense of noting and protesting, and the postages thereby incurred, shall be 78 allowod and paid to the holdor, over and above the said interest. C. S. U. C, c 42, s 18. --*. Every protest ot inland or foreign bills of exchange or i)romis6ory notes, for dishonor, either by non-acceptance or non-payment, may be mide on the day of such dishonor, at any time after non-acceptance, or in case of non-payment, at any time after the hour of three o'clock in the afternoon. C. S. U. C, c. 42, s. 15. -li. A notice of such protest shall be sent to each of the parties to the bill or note, and such notice shall be deemed to have been dnly served, ibr all purposes, upon the person to whom the same is addressed, if it is deposited in the l)Ost office nearest to the place of making presentment of such bill or note, at any time during the day whereon such protest has been made, or the next judicial day then follow- ing. C. 8. U. C , c 42, s. 16. '■ii. Every such protest and notice maybe according to the forms set forth in schedule A to this Act, or to the like effect. C. S. XT. C. c 4:^ s. 21, part. 25. The fees to be taken by notaries public, for the ser- vices hereinafter m(nitioned, sh.ill be as follow, and no more, that is to say : for the protest of any bill, dratt, note or order, fifty cents ; for every notice, twenty-five cents; and lor postage, the amount actually expended. C. S. U. C, c. 42, s 22 ;— C. 8. C , c. 57, s 1 !iO. The Act of the I'arliament of Great Britain, passed in the filteenth year of the reii^n of King George the Third, intituled " il/i Acf to rest/ o in (lie negulialion of Promiasor// Notes and In/and Bills o) J'Jxrliunge, under a limiled sum, vntliin thai /Kirt ostages pre-paid upon notices dejwsited at any post office, may be claimed from the holder of the bill or note by the notary or justice of the peace performing such duties, and shall be recovered from such i)arties thereto as are liable for the payment of the same. C. kS L. C, c 01, s. -1. As to j);ot«'»t< bi'iiii: prhiin fitcie. evilence in Quebec. Se<»C. S. C, c. 57, ss. (i, et neq ;— (J. S. L S.. c. (4, s. II, iiml llio Civil Code Articles 'I'A)'), 2320 Protest, may 1)1! niiide oit (lay of ilislioiiur. IIllW IKlllcC iirpnitrsi may be Ncrvo'.l. Kiii'iii i>f pnili'Hl iiiKl riKlice. NotaryN (>^e» 111 Ontiirlo. Cfi'taiii .SliltlltCS resfx'cllni; siiiid! noil's in)t ill forci' ill <»iit!irii>. I'rovisioii,'< appllcaLilt' 10 Ciuebec. Notary'.s feos In i-iiii'lico. 1\ FonnH In tjiii'l I'cnaliy if \in(|iiulllii'il JitTHon ll(>l< H or protrNis blllis or iioleN. ■I , ^m 9W. The sovcral notini^s, protests, notices thereof, and services of notices hereinbefore mentioned, shall be in the forms set forth in the said schedule (1 8. L. C , c. 64, s. 22. •iO. Every person who represents himself to be a notary for or justice of the peace in the Province of Quebec, and who acts as such in and about the protesting of a bill or note, or in and about the notini^ of a bill, not beinj? such notary for or justice in the Province of Quebec, is guilty of a misdemeanor, and lial)le to imprisonment fur a term not exceeding six months. C S. L. C , c. G4, s. 23. SCHKDULK A. On this day of , in the year one thovisand eight hundred and , at the request of , holder of the bill of exchange hereunto an- nexed, I, , a notary public for the Provin<'e of Ontario duly appointed, did exhibit the said bill unio , at , being the place where the same is payable, and speaking to him, did demand payment of the said bill ; to which demand lie answered ; Wherefore, I, the said notary, at the request aforesaid, have protested, and do hereby solemnly protest, as well against all the parties to the said bill as against all other persons whom it may concern, for all interest, damages, costs, charges, expenses and other losses sutlered or to be suffered for wat)t of payment of the said bill. And afterwards, on the day and year mentioned in the margin, I, the said notary piiblic, did serve due notice, according to law, of the said presentment, non-payment and protest of the said bill, upon the several parties thereto, by depositing, in Her Majesty's post office at , being thi". nearest post office to the place of the said presentment, letters containing such notices, one of which letters was addressed to each of the said parties, severally ; the super- scription and address of which letters are respectively copied below, as follows, that is to say : (Here insert the dirertions of the letters.) In testimony whereof. I have hereunto set my hind and aftixed my seal of oflice, the day and year first above written. (SiiftKiiure) L. 8 VOHM OF NOTK'E TO P.VUTIKS. To Mr. {'late.) Sir, Take notice that a bill of ex(ihang-e, datml on the day of , for the sum of ^ (nr £ ) , drawn by , on and accepted by , payable (three mnntha) after the date thereof, at the bank of , in (Toronto), and indorsed by A.B., C D.. E.F., &c, was this day presented bv me for pay- ment at the said bank, and that payment thereof was refused, an pa thi day , oil dato 5iid by r pay- fused, 76 and that , Iht? holder of (lie said l)ill. looks to you for l>aynient th«>reof. Also, tako noti»t> that the sMrne l)ill was this day jirotestod by me for nonp.tyment. Your obedient servant, A. B.. Notary Public. TIk; iihdvt" forms iniy l)i' cliiinui'd Id miII prnd nih i"i>r luni-acct-plaiicr or non- piiyincnl ol' bills, or iioii-pii.viiiL'iitor iioti'M. O W. U. ("..c. I-', « 21, /Kn7, SCHEDULE B. TARIFF OK FEES AND (•HAR(tFS IN THE PROVIN<'E OK QUEHEO. For presenting and notini^ for non-arcoptance any bill of exchange, and keeping the pame on record $1 00 Copy of the same when required by the holder 60 P'or noting and protesting for non-payment any bill of exchange or promissory note, draft or order, and putting the sam«? on record 1 00 For making and furnishing the holder of any bill or note with duplicate copy of any protest ibr non- acceptance or non-payment, with certificate of ser- A'ico and copy of notice served iipon the drawer and indorsers 50 For every notice, including the service and recording copy of the same, to an indorser or drawer, in addi- tion to the postages actual'.v paid 50 C. S. C, c. 57, s. 2;— C. S. L. C., c. t4, sch. Form A. NOTINd FOR NON-ACCEPTaXCK. (Co/ty of Bill and Indorseiiien/s.) On the 18 , the above bill was, by me, at the request of , presented ibr acceptance to E.F., the drawee, personally {nr, at his residence, olfice or usual place of business in the city (town or village) of .) and I received for answer, " " ; The said bill is therefore noted for non-acieptance. A. 15., Ant. Pub. 18 Due notice of the above was by me served upon j ,," ,. ' +1. i drawer, ) ,, ,, i r ^^'^ I in/• his wile, ,. 1, ,. jc\iii 1 i acceptance / his clerk, or his servan , iVe.). did demand . * ' I payment \ thereof; unto which demand \ ^ answered, " ." I she ) AVhe.efore I, the said notary, at the request aforesaid, have protested, and by these presents do j)rotest a<^.iinst the acceptor, drawer and indorsers (or, drawer and indorsers) of the said bill, and other pu'-ties th«Meto or therein concerned, lor all exchanj^e, re-exchanGfe, and all costs, dam.iii'es and interest, present and to <'oni(>, ibr want of \ acceptance / ,. ,, • , , •,, \ * . o the snid l)ill. ( payment \ All of which I attest by my signature. (rrot<'ste«l in duplic.ite.) A. r.. yoi. Pub. loHM C. raOTKST FOR NON-ACCIilMA.VCE OR FOR NON-PAYMfc; nT OF A HILL PAYAKLK AT A STATFD PLAOK. (Ciipf/ ot Bill (uiil InUorftenienfs.) Cbi this di\y of , in the year 18 , I, A. li , Jiotary public for the Province of (Quebec, dvvcUinj^ at , in the Province of Quebec, at the rMjuest of , did exhibit the original bill of exchanL:«', whereof a true copy is above written, unto K. F., 4, { drawee 1.1,, i • the , „ . . [ thereol, at , being ( acceptor \ ' 'ft the stated place when- the s.iid bill is payabl«\ ;ind there, , • . Ill 1 \ acceptance / ,. .. • ■, speakinL"" to , did demand { ' , oi the said * I payment \ bill ; unto which demand he answered, " .'" Wherefore I, the saitl notary, at the request aforesaid, have protested, ntul by these pn^siMits do protest against the accejttnr. drawer .md indor^ers {or drawer and indorsers) Oj' the said bill, and all otliT parties thereto or therein con 77 (.ernod, for all oxchango, re-oxchangv, and all costs, daraa^os and interi'st, prestMit and to eom(», tor want ot { ' . J ' ( paymont ) of the said hill. All vvhicli I attest by my signature. (Trotostt'd in dui>lieato.) A. 13 , lYof. Pah. Form D. i'uotest koil non-payment of a hi ij. noted, hut not imiotkstki) 1<'0k non-\c(.'ertance. // t!ie fiio/fsl is made bi/ the same nofart/ who noted /lie bill, it should immediatelif follow the art of noting and nietnornndum of service thereof, bei^inttinii- irith the trords ' and afterwards, on, &c.," coulinvin}!; as in the la^t fireredinfi; Joriii, but intro- durifiir between t'le words "did exhibit," the word •' asrain ; " and, in a puren'hesh, between the words " written " and •unto," 'the uords ( ' and whieh bill was by me duly noted for non- acceptance on the day of last") But if the protest is not piade bt/ the same notarij, then it should follow u ro/)i/ of the orif^inal bill and indorsements and noting mnrhed on the bill — and then in the protest in/rodurr, in a pan nihesis between the words " written " and " unto," the words ("and which l)ill was on the day of hiet, by , public notary for the Province of (Juebee, noted for non-accei»tancc, as appears by his note thcri>of marked on the said bill.") Form F. PHOTKST KOR N0N-1»A^ M ENT OK A NOTE PAVAUI.E (!K\EKAM-Y. {Cop// (d yo/e a>romisor, personally (o , at bis residenc*', olhrc or usual [ihu'e of I'Usiness, in ), and speak- ing' to himself (or his wife, his clerk, or his scrviint, tkr.), ( albrcsaid, have protested, and by these pn'sents do protest against thu l)romisor and indorscrs ol the said note, and all other !»:'rlies thereto or therein concerned, lor all cost", danumes and in- ten»st, present and to conu', for want ot paymeiii <>[ die said U(»le. 78 All which I attest hy my signature. (Protostt'd in duplicate.) A. ji., Not. Pub. FuRM F. riiOTEST vow NON-PAYMENT OF A NOTE PAYAlJIiE AT A STATED PLACE. [Copy of Note and Indorsements.) On this day of , in the year 18 , I, A. B,, notary public for the Province of Quebec, dwelling at , in the Province of Quebec, at the request ot , did exhibit the original promissory note, whereof a true copy is above written, unto , the promisor, at , being the stated place where the said note is payable, and there, speaking to , did demand payment oi the said note, unto which demand, he answered, " ." Wherefore I, the said notary, at the request aforesaid, have . protested, and by these presents do protest against the promisor and indorsers of the said note, and all other parties thereto or therein concerned, for all costs, damages anJ interest, present and to come, lor want of payment ot tlh* said note. All which I attest by my signature. (Protested in duplicate ) A. B., Not. Pub. FuKM G. N<»rAlUAL NOTK E OF A NOTINO, OR OF A PROTEST VOK NON- At'CEPTANOE, Oil OF A PROTEST FOR NON PAYMENT OF A BILL. (Place and date of Noting or of Protest.) 1st. To P. Q. [the drawer.) at Sir, Your bill ol exchange for $ , dated at the , upon E F., in favor of C. D , payable h'^ » 1 ^^'^^ *^^® ^^y* "* ^^*' request of noted / I . _ > me tor ' . ( protested ) ^ { non-payment. A. B., Not. Pub (Place and date of Noting or of Protest.) 2nd. To C. D. (indnrser), or F. G.) at after duly days 79 Sir, Mr. P. Q.'s hill of exchange for # , dated at the , upon K. F., in your favor {or in lavor of C. D.), payable days after i ^* , ' and by you indorsed, was this day, at the request of , duly \ noted ) . j.^j. \ non-acc.eptanee. \ ( protested \ ^ I non-payment. \ A. R. Not. Fuh. Form II. NOTARIAL NOTICE OF PROTEST FOR NON-PAYMENr OF A NOTE. {Place and dale of Protesl.) To at Sir. Mr. P. Q.'s promissory note for $ , dated at ( days ) , the , payable < months > after date to f on 1 Iff ! ^^ order, and indorsed by you, was this day, at the request of , duly protested by me for non- payment. A. 13., Not. Pub. F'ouM I. NOTARIAL SERVICE OF NOTICE oF A PROTEST FOR NON- ACOEPTANl'K OR NON-PAYMENT OF A HILL, OR OF NON- PAYMENT OF A NOTE {lo bt. subjoined In the Protect.) And afterwards, I, the aforesaid proteHtinp notary public, did serve due notice in the form prescribed by law, of the jorego.ng pro- | non-acceptance j ^ ^ j bill j ^ test lor ( non-payment \ \ note \ "^ici/jr protested upon { ^ g;; j the j f^mi,, j l>ers<,aally, on the day of (or, at his residence , offi.v, or usual place of business in, , on the day of ; or, by depositing such notice, direrttui to the said \ ^j"^ ' I at in this city (town or village), on the , and prepaying the postage thereon) In testimony whereof, I have, on the last mentioned day lud year, at aforesaid, signed these presents. A B , No'. Pub. , in Her Majesty's post office day of 80 Form J, PROTKST 15Y A .MISTICB OF TIIK I'KACIE (WHKRP: THERE IS NO NOTARY) FOR NON-ACCEFTAiNOE OF A HILL, OR NON-PAY- MENT OP A HILL OR NOTE. (Copy at Bill or Note and Inrlorsemenfs ) On this day of , in the year 18 , 1, N. ()., one ol' Her Majesty's justioes of the peace for the district cf , in the Province of Quebec, dwelling at (or near the villaf^-(> of ), in the said district, (there being no practisiag notary public resident at or near the said village, or anij other lei^al cause), did, at the request of and in presence of , a house- holder in the said district, well known unto me, exhibit the original | , | whereof a true copy is above I drawer ) written unto P Q, the | acceptor [ thereof, personally {or, ( promisor ) at his residence, olfice or usual place of business in ) and speaking to himself (his wife, his clerk or his servant, ike), did demand | *^^*^ ^ \^^ f thereof, unto ' ( payment \ ' . which demand i he / answered, I she ) Wherefore 1, the said justice of the peace, at the request aforesaid, have protested, and by these presents do protest ( drawer and indorsers ) against the < promisor and indorsers > of the said ( acceptor, drawer and indorsers ) I . and all other parties thereto and therein con- I note I ^ ccrned, for all exchange, re-exchange, and all costs, damages and interest, present and to come, for want of ! acceptance [ ^^ ^^^ ^^.^^ | bill, j ( payment ) ( note. ) All which is by these presents attested by the signature of the said (llie wiineas) and by my hand and seal. (Protected in duplicate.) {Signature of the wi//>fss.) (Signature and xeal of the J. P.) C. S. L. C, c. 4, sell. 81 CHAPTER 126, A.D. 1886. All Act respecting returns by certain persons and cor- porations receiving moneys on deposit at interest. HER Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows : — JJJJ^l. Every person, corporation or institution, except char- J'^.^piy,''^'''"" tered banks, receiving money in small sums, on deposit at savings on interest as savings, shall be bound to make such returns as uj mliko ""'" to such deposits, and the investment thereof, as the Governor """'^'"''*'^- in Council, from time to time, requires, and to register with the Minister of Finance and Receiver General, and notify in such manner as the Governor in Council directs, the name of the institution, and that ol the officer or person on whom process may be served in any suit or proceeding ; and every .u'rauiVy '"^ wilful refusal or neglect to obey any such Order in Council shall be a misdemeanor. 34 V., c 6, s 24. CHAPTER 127, A.D. 1886. An Act respecting Interest. HER Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows ; — 1. Except as otherwise provided by this or by any other vnyptrson Act of the Parliament of Canada, any person may stipulate nmyuJfn'(M.,i tor, allow and exact, on any fontraet or agreement whatso- ilHy laVt'ol ever, any rate of interest or discount which is agreed upon, '"t'lest. C. S C, c. 58, s, 3;-38 v., c. 18, s. I. '-i. "Whenever interest is payable by the agreement of «ix P'i<<>iit. parties or by law, and no rate is fixed by such agreement or uni. u'u'mf by law, th(i rate of interest shall be six per centum per v'sion.""' annum. C. S. C. c. 58, s. 8 ;— 36 V , c. 71, s. 1. INTEREST ON MONEYS SECURED ON MORTdAGE ii. Whenever any iirincipal money or interest secured bv N"i"t.resir..- mortirage oi real estate is, by the same, made i)ayable on the nriauiciiMs sinking lund plan, or on any plan under which the pay- lllLrtlW- ments of principal money and interest are blended, or on r","a'iVi'Matr- g nicnt. 82 No rate re<'ovorablt! beyonil that shown liiMuch Hlat«'inent. No tliii' lillowcil on payinonts in iirrcar. Proviso; as to interest on arrears of intt-n-Ht. Overcliaiu'i' may he re- covered baek. No I'urlher Intei'esi pay- able alter ii\. years on eertain con- iliMons. Applieatliin of tlve sections next jireceil- int!. < inturio and tini'bec. any plan which involves an allowance of interest on stipu- lated repayments, no interest whatever shall be chargeable, payable or recoverable, on any part of the principal money advanced, unless the mortgage contains a statemt^nt showing the amount of such principal monoy and the raf*^ of interest chargeable thereon, calculated yearly or half-yearly, not in advance. 48 V.. c 42, s. 1. 4. Whenever the rate of interest shown in such statement is less than the rate of interest which would be chargeable by virtue of any other provision, calculation or stipulation in the mortgage, no greater rate of interest shall be charge- able, payable or recoverable, oa the principal money advanced, than the rate shown in such statement. 43 V , c. 42, s. 2. ^. No fine or pt^ialty or rate of interest shall be stipulated for, taken, reserved or exacted on any arrear of principal or interest secured by mortgage of real estate, which has the effect of increasing the charge on any such arrear beyond the rate of interest payable on principal money not in arrear ; but nothing in this section contained shall have the effect of prohibiting a contract for the payment of interest on arrears of interest or principal at any rate not greater than the rate payable on principal money not in arrear. 43 V., c. 42, s. 3. G. If any sum is paid on account of any interest, fine or penalty not chargeable, payable or recoverable under the three sections next pre»'eding, such sums may be recovered back, or deducted from any other interest, fine or penalty chargeable, payable or recoverable on the principal. 43 V.. c. 42^ s. 4. 7. Whenever any principal money or interest secured by mortgage of real estate is not, under the terms of tht> mort- gage, payable till a time more than five years after the date of the mortgage, then, if, at any time after the expiration of such five years, any person liable to pay or entitled to redeem the mortgage tenders or pays to the person entitled to receive the money the amount due for principal money and interest to the time of payment, as calculated under the four sections next preceding, together with three months' further interest in lieu of notice, no further interest shall be chargeable, payable or recoverable at any time thereafter on the principal money or interest due under the mortgaae. 43 v., c. 42, s. 5. N. The provisions of the five sections next preceding shall only apply to moneys secured by mortgage on real estate executed after the Hrst day of July, in the year one thousand eight hundred and eighty. 43 V., c. 4'J, s 6. ONTARIO AND QUEBEC. 9. The two sectionr next following apply to the Provinces of Ontario and Queb I slipu- geahle, money lowing intovpst not in Lteraent Tijeable (Illation charge- nionev 43 v., c. pulated 3ipal or has the beyond I arrear ; lie effect erest on than 43 v., er , fine or ider the covered p«Mialtv 43 V', iired by e mort- Ithe date ation of it led to entitled money kder the months' I shall be lereafter lortgage. in g shall II estate lousand rovinces 88 lO Act or Contracts void if fore- pro- Except as otherwise provided by this or any other No uiKiier 1 * .. ^ ■' . •',• f. rate than six law, no corporation or company or association or ixr .int. to be persons, not being a bank, authorized by law beiore the '.orpomtion/ sixteenth day of August, one thousand eight hundr. d and fifty-oiyht, to lend or borrow money, shall, upon any con- tract, take directly or indirectly, for loan of any moneys, wares, merchandise or other commodities whatsoever, above the value of six dollars for the ndvance or forbearance of one hundred dollars for a year, and so after that rate for a greater or less sum or value, or for a longer or shorter time : 2. Provided that any insurance company, incorporated by Proviso; as Acl of the legislature of the late Province of Canada, or of ins'ifmnce either of the late Provinces oi Upper or ot Lower Canada, or «>"'P'^""'''- by charter from Her Majesty, or by an Act of the Parliament of the United Kingdom, and any corporation constituted for religious, charitable or educational purposes, in the Provinces of Ontario or Quebec, authorized by law to lend or borrow money, may stipulate for, allow and exact, on any contract or agreement whatsoever, any rate of interest or discount which is agreed upon, not exceeding eight per centum per annum. C. S. C, c. 58, ss. 6 and 9, part ; — C. S. U. C, c. 43, s. 4, part :-2S V. (Can.), c. 34;— 3tj V., c 70. • 1. All bonds, bills, promissory notes, contracts and assur ances whatsoever made or executed in violation of the provi- ^Hlf^^ sions of the section next preceding, whereupon or whereby ^^j^'i^'tyif*" a greater interest is reserved and taken than authorized by this or any other Act or law, shall be void ; and every cor- poration, company and association of persons, not being a bank, authorized to lend or borrow money as aforesaid, which, directly or indirectly, takes, accepts and receives a higher rate of interest, shall incur a penalty equal to treble the value p< nuity. of the moneys, wares, merchandise, or other commodities lent or bargained for ; 2. Such penalty may be recovered by action in any court netovc ry of competent jurisdiction, and one moiety thereof shall belong pofiauy! ' to Her Majesty for the public uses of Canada, and the other moiety to the person who sues for th'^ same. C. S. C, c. 58, s. 9, part ; — C. S. U. C, c. 43, s 4, part. NOVA SCOTIA. 1:.^. The five sections next following apply to the Province Nova.scotia. of Nova Scotia, but shall not extend to any hypothecation or agreement in writing entered into for money advanced upon the bottom of a ship or vessel, her cargo or freight. R. S. N. S (2nd S.), c 82, s. 3 ;— 36 V., c. 71, s. 4. BJt. Any person may stipulate and agree in writing for sov.ii pei- any rate of interest not exceeding seven per centum per supuuiefifor. annum, for the loan or forbearance of money to be secured on real estate or chattels real ; and any person may stipulate Ami ten per .. p • • J 1. c • \ , ceijt. In cer- in writing for or may receive m advance any rate ot interest tainousos. not exceeding ten per centum per annum, whenever the security for the payment of the money consists only of per- aiid on of 84 KxceSKivr liitorcRt to I 'leduuti'il. As to con- tracts entered Into previous to23r olunta! y damage which is committed by him. 22 V. N.B.), c. 21, - tJ. PRINCE KDVVARD iHf.XND. lis. The following provisions apply to the Province of Prince Hdvvard Island. ijy. No person shall recover, in any court, more than six per centum per annum interest on any account, contract or agreement, unless it appears to the court that a higher rate of interest was agreed to in writing between the parties 31 V (P.E.I..,.'. 8, s. 2. !tO. Nothing herein shall prejudice or affect the rights or remedies of any person, or diminish or alter the liability's of any persoii, in re.spect of any act done previously to the fifteenth day ol April, in the yt\ir one thousand eight hun- dred and seventy, and if interest was payable at that date upon any contract, express or implied, for the payment of the legal or current rate of interest or upon any debt or sum of money by any rule of law, the same shall be rei overable as if the provisions of the next preceding section had not been enacted. 31 V. (P.K I ), c. 8, ss. 3 and 4. Kxrt's.s|vc ititiTi'.st tn lie 'st may be n ,iivered. < 'eriain riglits ana lliiblirtieH mil alleeted. CHAPTER 129, A.D. 1886. :i Short litli Interpreta- tiou. " Coinpniiy." " Insurance (•ompany." "TradiuK company.' "Court." An Act reHju'ctiiiK Insolvent Banks, TiiHurance Com- panies. Loan Companies, Bnilding Societies and 'I'nuling Corporations. HEll Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as I'ollovvs : — SHORT TITLE. 1 . This Act may be cited as " The Winding Up Act:' INTKRPRETATION. 2. In this Act, unless the context otherwise requires, — (a) The expression " company " includes any corporation subject to the provisions of this Act ; (b) The expression " insurance company " means a com- pany carrying on, either as a mutual or a stock company, the business of insurance, whether life, fire, marine, ocean or inland marine, accident, guarantee or otherwise ; (.'•) The exjiression "trading company" means any com- pany, except a railway or telegraph company, carrying on business similar to that carried on by apothecaries, auction- eers, bankers, brokers, brickmakers, builders, carpenters, carriers, cattle or sheep salesmen, coach proprietors, dyers, fullers, keepers of inns, taverns, hotels, saloons or coffee houses, lime burners, livery stable keepers, market gardeners, millers, miners, packers, printers, quarrymen, share- brokers, shipow-ners, shipwrights, stock-brokers, stock-jobbers, vic- tuallers, warehousemen, wharlinger.*, persons using the trade of merchandise by way ot bargaining, exchange, bar- tering, commission, consignm"nt or otherwise, in gross or by retail, or by persons who, either tor themselves, or as agents or factors for others, seek their living by buying and selling or buying and letting for hire goods or commodities, or by the manufacture, workmanship or the conversion of goods or commodities or trees ; (ft) The expr»»ssion " court " means, in the Province of Ontario, the High Court ol Justice for Ontario; in the Pro- vince of Quebec, the Superior Court for Lower Canada ; in the Province of Nova Scotia, the Supreme Court ; in the Province of New Brunswick, the Supreme Court ; in the Province of Prince Edward Island, the Supreme Court ; in the Province of British Columbia, the Supreme Court ; in the fVovince of Manitoba, Her Majesty's Court of Queen's Bench lor Manitoba; in the North- West Territories, the Supreme Court of the North- West Territories ; and in the District of Keewatiii, such court or magistrate or other 87 judicial authority as is dcsiicrnattvl, from timo to time, by proclamation of the (rovcmor in Council, published in the Canada Gazelle ; ( ) The expression "Olli-ial (Inzetle" means ih^. Canada \\^^^^^-l'^\. (iazelle and the (ia/etie published under the authority of the Government of the Province, where the proceedings for the windini^ up of the business of the company are carried on, or used as the olhcial means of communication between the Lieutenant Governor and the people, and il no such Gazette is published, then it means any newspaper published in the Province, which is designated by the court for pub- lishinji- the notices required by this Act ; (/) The expression ' contributory " means a person liable ','*,,"""""'"■ to contribute to the assets of a company under this A«'t; it also, in all proceedings for dett'rmining the persons who are to be deemed contributories and in all proceedings prior to the find determination of such persons, includes any person lUeged to be a contributory ; {g) The expression " winding-uj) order " means an order |^,.Y'',';,""k-"1' granted by the court under this Act to wind up the business of the company, and includes any order granted by the court to bring within the provisions of this Act any com- pany in liquidation or in process of being wound up. 4o V , c. 23, ss. 3, 4, 5, 6, 8 and 13, pa>t : 49 V , c. 25. s. 14. APPLICATION OF ACT. 1$. This Act applies to incorporated banks, savings banks, v^.niication incorporated insurance companies, loan companies having '" ^^' borrowing powers, building societies having a capital stock, and incorporated trading companies, doing business in Canada, wheresoever incorporated ; and >eu Morchant.s' Bank of lliilila.\ r. (iiUcspip, 10 .^. C. R., ;'.I2 (l.SS'>). The Act has. liowever, liecn cxjiressly extciuleil to foreign coi'poiation.s. rhis case was deciileil under the hiw as it stood firior to the pa.s.sing ol 47 v., c. ;;'.», s. I. See also, In re Coiumeicial Bank oi'.^outh .Viistialia, L K. ;53Ch. Div. 174. (a) Which are insolvent ; or — \b Which are in liquidation or in process of being wound up, and on petition by any of their shareholders or creditors, assignees or liquidators, ask to be brought under the pro- visions of this Act : 2. This Act does not api)ly to railway or telegraph com- < «'>tiiin panics or to building societies which have not a capital . xcopted. stock. 47 v., c 89, s. 1. 4. The provisions of sections eight to ninety-six, both ;);'X'Sn"" inclusive, are. in the case of a bank other than a savings siitions. bank, subject to the provisions contained in sections ninety- seven to one hundred and four, both inclusive ; and, in the case of an insurance company, the provisions of sections eight to ninety-six, both inclusive, are subject to the pro- visions contained in sections one hundred and five to one hundred and twenty-three, both inclusive. 46 V , c, 23, s. 2. IMAGE EVALUATION TEST TARGET (MT-3) /. ^ ^^ ///A / Vu (/. 1.0 I.I 1.25 !f:i^ IIIIIM 1: 1^ 1 2.0 1.4 1.8 1.6 V] <^ /a ^l. \Sm^, - 4k. '^ ^^^ ^O. y iV iV ■n>^ :\ \ ^ ^7'«^ ;\ rv .^<> R>^ £P< 88 When a company shall bodooni- ecl Insolvent. When a com- pany shall IjL' deemed unable to pay its debts. When wind- ing up fommenccs. Application to court for winding-up order. WHEN COMPAN"y DEEMED INSOLVENT. 5. A company is deemed insolvent — (a) If it is unable to pay its debts as they become due. In re Briton Meilical, &c., Association, 1 i Ont. Kep., 478 (1886). \h) If it calls a meeting of its creditors for the purpose of compounding with them ; (r;) If it exhibits a statement showing its inability to, meet its liabilities ; {(l) If it has otherwise acknowledged its insolvency ; (e) If it assigns, removes or disposes of, or attempts or is about to assign, remove or dispose of, any of its property, with intent to defraud, defeat or delay its creditors, or any of them ; (0 If, with such intent, it has procured its money, goods, chattels, lands or property to be seized, levied on or taken, under or by any process or execution ; (g) If it has made any general conveyance or assignment of its property for the benefit of its creditors, or if, Iteing unable to meet its liabilities in full, it makes any sale or conveyance of the whole or the main part of its stock in trade or assets, without the consent of its creditors, or with- out satisfying their claims ; (A) If it permits any execution issued against it, under which any of its goods, chattels, land or property are seized, levied upon or taken in execution, to remain unsatisfied till within four days of the time fixed by the sheriff or proper officer for the sale thereof, or for fifteen days after such seizure. 45 V., c. 23, s. 9. 6. A company is deemed to be unable to pay its debts as they become due. whenever a creditor, to whom the com- pany is indebted in a sum exceeding two hundred dollars then due, has served on the company, in the manner in which process may legally be served on it in the place where service is made, a demai.d in writing, requiring the company to pay the sum so due, and the company has, for ninety days, in the case of a bank, and for sixty days in all other cases, next succeeding the service of the demand, neglected to pay such sum, or to secure or compound for the same to the satisfaction of the creditor. 45 V., c. 28, ss. 10 and 11. In rs Biiton Modical, &c., Association, 11 Ont. Rep., 478 (18S(3). PROCEEDINGS FOR WINDING-UP ORDER, 7. The winding up of the business of a company shall be deemed to commence at the time of the service of the notice of presentation of the petition for winding up. 45 V., c 23, s. 12 S. "When a company becomes insolvent, a creditor for the sum of at least two hundred dollars may, after four days' notice of the application to the company, apply by petition to the court in the Province where the head office of the 89 coinpiitiy ami its o(11miss I'ower or ,, .. •,!•, f ,11 • court f)n tlio the petition with or without costs, may adjourn the hearing aiipiiiation. conditionally or unconditionally, or may make any interim or other order that it deems just. 45 V., c. :^3, s. 14. 10. If the company opposes the application, on the ground /',po'".s''"^ that it has not become insolvent within the meaning of this apjiiicaiion. Act, or that its suspension or default was only temporary, and was not caused by any deficiency in its assets, and shows reasonable cause for believing that such opposition is well founded, the court, in its discretion, may, from time to time, J^aiouni'uii' adjourn the proceedings upon such application for a time procewmms not exceeding six months from Xho. date of the application ; imiuiry. and may order an accountant, or other person, to inquire into the affairs of the company, and to report thereon within a period not exceeding thirty days from the date of such order. 45 V., c. 23, s. 15. 11. Upon the service on the company of an order made i>uty<.i under the next preceding section, for an inquiry into the affairs of the company, the president, directors, officers and employees of the company and every other person shall respectively exhibit to the accountant or other person nain<'d for the purpose of making such inquiry, the books of account of the company and all inventories, papers and vouchors referring to the business of the company or of any per.^^oii therewith, which are in his or their possession, custody or control, respectively; and they shall also respectively give all such information as is required by such accountant or other person as aforesaid, in order to form a just estimate of the affairs of the company ; and any refusal on the part of pu„i the president, directors, officers or employees of the company ^'ivo\'in'roV to give such information, shall be a contempt of the court, ">""• and shall be punishable by fine or imprisonment, or by both, in the discretion of the court. 45 V., c. 23, s. 16. IJJ. Upon receiving the report of the accountant or person poweroitiu ordered to inquire into the affairs of the company, and after repmMjn' hearing such shareholders or creditors of the company as ""i"''.^- desire to be heard thereon, the court may either refuse the application or make the winding-up order. 45 V., c. 28, s 17. l-i. The court may, upon the application of the company, or of any creditor or contributory, at any time alter the presentation of a petition for a winding-up order and before ''*<"'» ">^''' making the order, restrain further proceedings in any action, suit or proceeding against the company, upon such terms as the court thinks fit." 45 V., c. 23, s. 18. 14. Any shareholdc^r, creditor, assignee, receiver or liqui- -Vs to datoroi any company which was m iKiuidation or in process iijiuidaiionon of being wound up on the seventeentli day of May, one ''"' ^'"*'"'^" eight hundred and eighty-two, may apply, by nt to 111 11- Actions iiKiiitist com- pany may lie thousand 00 liiqllldutor ill sucl) casi'. t 'oinpmi.x l<> CfilSI' business. tiansrcr of siiari's void. Corporal i> state con- tiuiicd. Alter wiiid- insr-iip order, aetions against com- pany stayed. Kxecutiniis. . The company, from the time of the making of the windiug-iip order, shall cease to carry on its business, except in so far as is, in the opinion of the liquidator, required for the beneficial winding up thereof: 2 All transfers of shares, except tiansfers made to or with the sanction of the liquidators, under the avithority of the court, and every alteration in the status of the members of the company, afier the commencement of such winding up, shall be void; but the corporate state and all the corporate powers of ^he company, notwithstanding it is otherwise provided by the Act. charter or instrument of incorporation, shall continue until the affairs of the company are wound up. 45 v., c. 23, s 10. 10. When the winding-up order is made, no suit, action or other ])roceeding shall be proceeded with or commenced against the company, except with the leave of the court and subject to such terms as the court imposes. 45 V., c. 23, s. 20. h'e Lake .*^iii)er;oi' Native Coppor Coy. (L<1.), 9 Ont. Kep. 277 (188")). 17 Every attachment, sequestration, distress or execution put in force against the estate or effects of the company after the making of the winding-up order .shall be void 4o V., c. 23, s. 21. i^i. 1 he court may, upon thi? application of any creditor or contriltutory, at any time alter the winding-up order is made, and upon proof, to the satisfaction of the court, that all proceedings in relation to the winding-up ought to be stayed, make an order staying the same, either altogether or for a limitt>d time, on such terms and subject to such condi- tions as it deems fit 45 V"., c. 2;i, s. 22. li). The court may, as to it seems Just, as to all matters relating to the winding-up, have regard to the wishes of the creditors, contributories, shareholders or members, as proved to it by any suffi ient evidence, and may, if it thinks it expe- dient, direct meetings of the creditors, contributories, share- holders or members to be summoned, held and conducted in such manner as the court c^ ts, for the purpose of ascer- taining their wishes, and may appoint a person to act as chair- man of any such meeting, and to report the result of such meeting to the court : 91 2 In the case of creditors, regard shall be had to the amount of the debt due to each creditor, and in the case of shareholders or members, to the number of votes conferred on each share- holder or member by Liw or by the regulations of the com- pany ; and the court may prescribe the mode of preliminary proof of creditors' claims for the purpose of the meeting. 45 v., c 23, s. 23. I.IQUIDATORS. 20. The court, in making the winding-up order, may appoint a liquidator or more than one liquidator of the estate and effects of the company ; but no such liquidator shall be appointed unless a previous notice is given to the creditors, contributories, shareholde's or members, in the manner and form prescribed by the court. 45 V , c. 23, s. 24 ; — 47 V., c. 39, s. 4. Re Clark v. Uvion Fii'e In^;. Co. 10 Ont. Rep, 4S9 (1SS,5), But this sec- tion read '• The cr.irt must aj)i)oint, itc.,'' when this case was decided. 3 1 . An incorporated company may be appointed liquidator to the goods and effects of a company under this Act ; and if an incorporated company is so appointed, it may act through one or more of its principal officers designated by the court. 45 v., c. 23, s. 25. 42. The court may, if it thinks fit, after the appointment of one or more liquidators, appoint additional liquidators. 45 v., c. 28, s. 26. 2-i». If more than one liquidator is appointed, the court may declare whether any act to be done by a liquidaior is to be done by all or any one or more of the lic^uidatois. 45 V,, c. 23, s. 27. '-tl. I he court may also determine what security shall be given by a liquidator on his appointment. 45 V , c. 23, s. 28. 25. If at any time there is no liquidator, all the property of the company shall be deemed to be in the custody of the court. 45 v., c. 2H, s 29. 26. The court may, at any time after the presentation of the petition and before the first appointment of a liquidator, appoint provisionally a liquidator of the estate and effects of the company. 45 V.. c. 23, s. ;'0. 27. A liquidator may resign or may be removed by the court on due cause shown, and every vacancy in the office of liquidator shall be filled by the court 45 V . c. 23, s. 31. 2?*. The liquidator shall be paid such salary or remunera- tion, by way of percentage or otherwise, as the court directs, upon such notice to the creditors, contributories, shareholders or members, as the court orders ; and if there is more than one liquidator, the remuneration shall be distributed amongst them in such proportions as the court directs. 45 V., c. 23, s. 32. 29. In all proceedings connected with the company a liquidator shall be describi>d as the "liquidator of the {name As to amount of claim and number of votes oti shares. Court may re(iuiri3 proof. 1,111 uiilator to be appointed. An in( orpor- aieil company may l)e appointed liquidaior. AdiJitional li(|uidators. liuorum. Sei'urity. irno liipiidator. Provisional liijuidator. Ttesignation or removal. Rrmunera- tion. Hescriptioii. 92 Dulitsiifior a|ipoinliii(iit, I'owcrs. Suits Business of company. Sale of property. General acts Provinfi in bankruptcy, Ac. DrawiiiR or cndorsinuc hills, &(•., and raislnir (iindK. (Jeneral powers. When sollei- lor may Im' appolnli'd. of I umpany),''' and not by his individual name only. 45 V.. c. 28, s. 33. P.an(|ue D'Hochelaga v. Masson 7 L. N. 359 Sc Mont. L. R, 62 (I8S4). •50. The liquidator, upon his appointment, shall take into his custody or under his control, all the property, effects and choses in action to which the company is or appears to be entitled; and he shall perform such duties in reference to winding up the business of the company as are imposed by the court or by this Act. 45 V., c 2.^, s 34. SI. The liquidator may, with the approval of the court, and upon such previous notice to the creditors, contribu- tories, shareholders or members, as the court orders — (rt) Bring- or defend any action, suit or prosecution or other Jegal proceeding, civil or criminal, in his own name as liquidator or in the name or on behalf of the company, as the case may be ; {b) Carry on the business of the company as far as is necessary to the beneficial winding up of the same ; ((■) Sell the real and personal and heritable and movable property, effects and choses in action of the company, by public auction or private contract, and transfer the whole thereof to any person or company, or sell the same in parcels ; (d) Do all acts, and execute, in the name and on behalf of the ('ompany, all deeds, receipts and other documents, and for that purpose use, when necessary, the seal of the com- pany ; (e) Prove, rank, claim and draw dividends in the matter of the bankruptcy, insolvency or sequestration ot any con- tributory, for any balance against the estate of such con- tributory, and take and receive dividends in respect ol such balance in the matter of the bankruptcy, insolvency or sequestration as a separate debt due from such bankrupt or insolvent and ratably with the other separate creditors: ( f) Draw, accept, make and indorse any bill of exchange or promissory note in the name and on behalf of the com- pany ; raise upon the security of the assets of the company, from time to time, any requisite sum or sums of money ; and the drawing, accepting, making or indorsing of every such bill of exchange or promissory note, as aforesaid, on behalf of the company, shall have the same effect, with respect to the liability of such company, as if such bill or note had been drawn, accepted, made or indorsed by or on behalf of such company in the course of the carrying on of its business ; (g") Do and execute all such other things as are necessary for winding up the affairs of the company and distributing its assi'ts. 45 V., c. 23. s. 35. Pacaml v. Fovrnier 10 Q. L. R. '>i, S. C. (1883.) Jl'i The liquidator may, with the approval of the court, appoint a solicitor or law agent to assist him in the per- formance of his duties. 45 V , c. 1:3, s 36. 93 J»'i. The liquidator may, with tho approval of the court, compromise all calls and liabilities to calls, debts and liabil- ities capable of resulting in debts, and all claims, whether present or future, certain or contingent, ascertained or sounding only in damages, subsisting or supposed to subsist between the company and any contributory or other debtor or person apprehending liability to the company, and all questions in any way relating to or affecting the assets of the company or the winding up of the company upon the receipt of such sums, payable at such times, and generally upon such terms, as are agreed upon ; and may take any security for the discharge of such debts or liabilities, and give a complete discharge in respect of all or any such calls, debts or liabilities. 45 V., c. 23, s. 37. S*-l. U pon the appointment of the liquidator, all the powers of the directors shall cease, except in so far as the court or the liquidator sanctions the continuance of such powers. 45 v., c. 23, s. 38 Jio. The liquidator shall deposit at interest in some chartered bank or post office savings bank or other Govern- ment savings bank desigiuited by the court, all sums of money which he has in his hands belonging to the com- pany, whenever and so often as such sums amount to one hundred dollars. 45 V., c. 23, s. 39. ii(i. Such deposits shall not be made in the name of the liquidator individually, on pain of dismissal ; but a separate account shall be kept for the company of the moneys belong- ing to the companv in the name of the liquidator as such liquidator. 45 V., c 23, s 40. 37. At every meeting of the contributories. creditors, shareholders or members, the liquidator shall prodtice a bank pass book, showing the amount of the deposits made for the company, the dates at which such deposits were made, the amount withdrawn and dates of such with- drawal — of which production mention shall be made in the minutes of such meeting ; and thu absence of sttch mention shall be prima Jacie evidence that such pass book was not produced at the meeting. 45 V., c. 28, s. 41. JiS. The liqtiidator shall also produce such pass book whenever ordered so to do by the court, and on his refusal so to do, he may be treated as being in contempt of court. 45 v., c. 23, s. 42. M}. The liquidator shall be subject to the summary Juris- diction of the court in the same manner and to the same extent as the ordinary officers of the court are subject to its jurisdiction ; and the performance of his duties may be com- pelled, and all remedies sought or demanded lor enibrcing any claim for a debt, privilege, mortgage, lien or right of]^ro- perty upon, in or to any effects or property in the hands, possession or custody of a liquidator, may be obtained by an order of the court on summary petition, and not by any action, suit, attachment, seizure or other proceeding of any kind Dclits, !<;(•., (Ilir III till" (^fiinpany may be oompromist'd. I'owiTs or (llrcclorts U> cease. Moneys to bo deposited in bank. A sejiiiiati' lU^po.-il necoiint to be kei)t. P.ajik book to be iH-oduced ill nieetinu. And on oi(l;r ol'couil. l.ii{iiidatoi' Mlliject to MiMiDiary jurisdicliim i>l<-ourl. Hcinedies ai'ainst estate olilaiiied l)y suinniai'\ ui'di'i' and not !'>• >uil, \f. 94 Balance on han ^ up order, make an order on any contributory for the time oiVoiMpa'ny'' being settled on the list of contributories, directing payment '"^^''*'^' to be made, in manner in the said order mentioned, of any moneys due from him or from the estate of the person whom he represents, to the company, exclusive of any moneys which he or the estate of the person whom he represents is liable to contribute by virtue of any call made in pursuance of this Act 45 V, c. 23, s. 52. 4f>, The court may, at any time after making a winding- ^vhoncaiis up order, and either betore or alter it has ascertained <>n com ribu- the sulficiency of the assets of the company, make calls on and order payment thereof by all or any of the contribu- tories for the time being settled on the list of contributories, to the extent of their liability, for payment of all or any sums it deems necessary to satisfy the debts and liabilities of the company, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the con- tributories amongst themselves ; and the court may, in making a call, take into consideration the probability that some ot the contributories upon whom the same is made may partly or wholly fail to pay their respective portions of tones 96 I'roviso. Moneys miiy !)(> ordciotl lo tobi' puiil into conrt. Di.Htriliiilion of suiiJllis. roiitrihnloiv oiotHciiil al)out to ali- sooiiil, iVc, may l)f arri'sti'cl. Ami liis papers, Ac. inav 1)U si'i/.iMl. liooks, Av.. of oomiiaiiy tol)^ /iriwi'i I'm- if evidence as liBfwi't'n con- tfibiitoi'ii's. Court may nl- lowinspccfion by creditors, *c., of coni- pany's tiooks. f'erson en- titled to vole to do so per- sonally or l>y \vi'ittenpro-\y. What (Iclits rna.\' lie pr(jvo(l at^ainst lln- • ■oinpany. tho same : Provided however, that no call shall compel payment ot a debt before the maturity thereof, and that the extent ot the liability of any contributory shall not be in- creased by anything in this section contained. 45 V., c 23, s. 50, jiarl, and s. 53. 50. The court may order any contributory, purchaser or other person from whom money is due lo the company, to pay the same into some chartered bank or post office sav- ings bank or other Government savings bank, to the account of the court instead of to the liquidator ; and such order may be enforced in the same manner as if it had directed payment to the liquidator. 45 V., c. 23, s. 54. 51. The court shall adjust the rights of the contributories among themselves, and distribute, among the persons entitled thereto, any surplus that remains. 45 V., c 23, s. 55. 52. The court may, at any time before or after it has made a winding-up order, upon proof being given that there is reasonable cause for believing that any contributory or any past or present director, manager, officer or employee of the company is about to quit Canada or otherwise abscond, or to remove or conceal any of his goods or chattels, for the purpose of evading payment of calls, or for avoiding exami- nation in respect ot the affairs of the company, cause such person to be arrested, and his books, papers, moneys, securities for monys, goods and chattels to be seized, and him and them to be safely kept until such time as the court orders. 45 V., c. 23, s. 56. 5J5. If the business of a company is being wound up under this Act, all books of the company and ot the liqui- dators shall, as between the contributories of the company, be prima facie evidence of the truth of all matters purporting to be therein recorded. 45 V., c. 23, s 67. 54. After a winding-up order has been made, the court may make such order for the inspection, by the creditors, shareholders, members or contributories of the company, of its books and papers, as the court thinks just ; and any books and papers in the possession of the company may be inspected in conformity with the order of the court, but not further or otherwise. 45 V., c, 23, s. 58. 55. No contributory, creditor, shareholder, or member shall vote at any meeting unless present personally or repre- sented by some person acting under a written authority, filed with the chairman or liquidator, to act as such representative at the meeting, or generally. 45 V., c. 23, s. 59. creditors' claims. 50. When the business of a company is being wound up under this Act, all debts payable on a contingency, and all claims against the company, present or future, certain or contingent, ascertained or sounding only in damages, shall be admissible to proof against the company, — a just estimate being made, as far as is possible, of the value of all such 97 compel that the jt be iu- T., c 23, haser or pany, to ice sav- account 3h order directed butories persons 23, s. 55. er it has lat there •utory or )loyee of abscond, 5, for the f exami- use such moneys, zed, and he court ound up he liqui- ompany, porting- le court reditors, pany, of and any may be but not member or repre- ■ity, filed lentative ound up and all ertain or es, shall estimate all such debts or claims as are subjt'ct to any ^onimgency or sound only in damages, or which, for some other reason, do not bear a certain value. 2. Clerks and other persons in or having been in the employment of the Company in or about its business or trade, shall be collocated in the dividend sheet by special privilege over other creditors, for any arrears of salary or wages due and unpaid to them at the time of the making of the winding-up order, not exceeding the arrears which have accrued to them during the three months next previous to the date of such order. 45 V"., c. 23, s. 60, part ; — 49 V., c. 46, 8. 1. 57. The law of set-off, as administered by the courts, whether of law or equity, shall apply to all claims upon the estate of the company, and to all proceedings for the re- covery of debts due or accruing due to the company at the commencement of the winding up, in the same manner and to the same extent as if the business of the company was not being wound up under this Act. 45 V., c. 23, s. 60, part. 58. The property of the company shall be applied in satisfaction of its liabilities and the charges incurred in winding up its aflfairs ; and unless it is otherwise provided by law or by the Act, chaitcr or instrument of incorporation, any property or assets remaining shall be distributed amongst the members or shareholders, according to their rights and interests in th*^^ company. 45 V., c. 23, s. 61. See The Queen v. The Bank of Ni>oa Scotia, 11 S. C. R. 1, (1885) in which it was decided that the (^lown clMiming as a simple contract croditor lias a priority over other creditors of an equal degree. See also the K.rchange Rank of Canadax . TheQiicen. I.. R.. App.Cas., 157, (1885) in which it was decided that the Crown is hound by the two ('odes of Lower Canada and can claim no piioi'ity over other ordinary creditors. 59. The court may fix a certain day or certain days on or within which creditors of the company and other , who have claims thereon may send in their claims. 45 V., c. 23, s. 62. CiO. When the liquidator has given such notices of the said day as are ordered by the cmrt, the liquidator may, at the expiration of the time named in the said notices or the last of the said notices, for sending in such claims, distribute the assets of the conipany, or any part thereof, amongst the persons entitled thereto, having regard to the claims of which the liquidator then has notice ; and the liquidator shall not be liable to any person of whose claim the liqui- dator had not notice at the time of distributing the said assets, or a part thereof, as the case may be, lor the assets or any part thereof so distributed. 45 V., c. 23, s. 63. (il The liquidator may, with the approval of the coujrir, make such compromise or other arrangement as the U<|ui- dator deems expedient with creditors or persons claiming to be creditors, or persons having or alleging themselves to have any claim, present or future, certain or contingent, ascertained or sounding only in damages, against the com.'^ Privilege of clHlruH of clcrk.s and employees 111 lowed to a certain extent. Law of set-off to apply. Distribution or property of company. Wlii-ii credit- ors must send In claims. After expira- tion of lime for sondinsr in olaiin.x, assets may be ili.stiibuted. CrtxUf ors naay Ihj ponipro- mlKetl with. 98 liulyolcredU- ui'K linltUnK ■ecurlty. Security by negotiable iuKti'umeuts. If the security Is a mortgage on real pro- perty or a ship. If there are subse(iuent claims. \i\Vy nt liiiuiilalor if a spi'urod c|aiin is flltd. pany, or whereby the company may be rendered liable. 45 v., c. 23, s. i'A G-?. If a creditor holds security upon the eshitt* of thr company, he shall specify the nature and amount of such security in his claim, and shall therein, on his oath, put ;i specified value thereon ; and the liquidator, under the authority of the court, may either consent to the retention of the property and effects constituting such security or on which it attaches, by the creditor, at such specified value, or he may require from such creditor an assignment and delivery of such security, property and effects, at suclt specified value, lo be i)aid by him out of the estate so soon as he has realized such security, together with interest on such value from the date of filing the claim till payment ; and in case of such retention the difference between the value at which the sec^urity is retained and this amount ol' the claim of such creditor shall be the amount for which he may rank as aforesaid ; and if a creditor holds a claim based upon negotiable instruments upon which the company is only indirectly or secondarily liable, and which is not mature or exigible, such creditor shall be considered to hold security within the meaning of this section, and shall put a value on the liability of the person primarily liable thereon as being his security for the payment thereof; but after the maturity of such liability and its non-payment, he shall be entitled to amend and revalue his claim. 45 V., c. 2'S, s. (15. CiJJ. If the security consists of a mortgage upon ships or shipping, or upon real property, or of a registered judgment or an execution binding real property and excepted from the operation of section sixty-six of this Act, the property mortgaged or bound shall only be assigned and delivered to the creditor, subject to all previous mortgages, judgments, executions, hypothecs and liens ihereon, holding rank and priority before his claim, and upon his assuming and binding himself to pay all such previous mortgages, judgments, exe- cutions, hypothecs and liens, and upon his securing the estate of the company to the satisfaition of the liquidator against any claim by reason of such previous mortgages, judgments, executions, hypothecs and liens ; and if there are mortgages, judgments, executions, hypothecs or liens thereon, subsequent to those of such creditor, he shall only obtain the property by consent of the subsequently secured creditors, or upon their filing their claims specifying their security thereon as of no value, or upon his paying them the value by them placed thereon, or upon his securing the estate of the company to the satisfaction of the liquidator against any claim by reason of such subsequent mortgages, judgments, executions hypothecs and liens. 45 V., c. 23, s. 66. fif. TTpnn n pocnred claim being filed, with a valuation of the security, the liquitintor shall procure the authority of the court to consent to the retention of the security by the creditor, or shall require from him an assignment and delivery thereof. 46 V., c. 23, s. 61. 99 [)lo. 45 () of th.' sucii ii, put ;i der thi" etentioii ty or oil V'alue, or ent and at such so soon erest on aymenl ; kreen the aouui of ^rhich he ira based npany is )t mature I security t a value lereou as after the I) shall be 23, s. n5. ships or udgmeul C>5. In the preparation of the dividend sheet, due regard Hiink,Aei"n shall b(^ had to (ht^ rank a:ul privilege of every creditor, but Hhcou'" no dividend shall be allotted or paid to any creditor holding security upon the estate of the company for his claim until the amount for which he may rank as a creditor upon the estate, as to dividends theretrora, is established, as herein provided. 45 V., c 23, s. 08. 66 No lien or privilege upon either the real or personal NoUouby property of the company shall bt^ created lor the amount of ixecution.'*"^ any judgment debt, or ot the interest thereon, by the issue or delivery to the sherili' of any writ of execution, or by levying upon or seizing under such writ the effects or estate of the company ; nor shall any lien, claim or privilege be created upon the real or personal property of the company, or upon any debts due or accruing or becoming due to the company, by the iiliiig or registering of any mouiorial or miuute of judgment, or by the issue or making of any attachment or garnishee order or other process or proceeding, if before the payment over to the plaintiff of the moneys actually levied, paid or received under such writ, memorial, minute, attachment, garnishee order or other process or proceeding, the winding up of the business of the compa^iy has commenced ; but this section shall not affect any lien or Thisprovisiou privilege for costs, which the plaintiff possesses under the lion lor'costsf law of the Province in which such writ, attachment, garnishee order or other process or proceeding was issued, 45 V , c 23, 8. 69, part. 67. Any creditor or contributory or shareholder or member ciaiinor may object to any claim filed with the liquidator, or to any bL^lbjc'cio'du^ dividend declared : 2 If a claim or a dividend is objected to, the objections obiocuonsto shall be filed in writing with the liquidator, together with evidence of the previous service of a copy thereof on the claimant : 3. The claimant shall have six days to answer the objec- tions, or such further ti ue as the court allows, and the con- testant shall have three days to reply, or such further time us the court allows : 4. Upon the completion of the issues upon the objections, uaytobe Ih'^ liquidator shall transmit to the court all necessary Huarifig. pap.'i's relating to the contestation, and the court shall then, on the application of either party, fix a day for taking evid- ence upon the contestation, and hearing and determining the same : 0. rhe court may make such order as seems proper in costs.j respect to the payment of the costs of the contestation by either party, or out of the estate of the company : 6 If, after a claim or dividend has been duly objected to, ii'<'iaiin(uiti the claimant does not answer the objections, the court may, aiisw"r on the application of the contestant, make an order barring "'^i'^"'^'""''' the claim or correcting the dividend, or may make such other order in roierence thereto as appears right ; be llled in writing. Answers and replies. 100 Sccni'lly I'or costs. (Jrutiiltmis (•(nilrutits.Ac to bv void. Ton tracts Injiirinif or ol)striiciliig iMvUitors. When con- tracts wltli consideration sliiill bo void- lib Ic. As to con- trnctH niiule ill Iriiiid or lo obstruct or dilay crodttors. s 'curtttes given l),v com- puny for piiy- ineiit, wlien ti> bi; void. 7. The court may or ler tln^ person ohjoctino- lo a claim or dividend to jjivc security for the costs oi" the contestation within a limited time, and may, in default, dismiss the con- testation or stay proceedings thereon, ujion such terms as the court thinks just. 45 Y., c. 23, s. 70. FRAUnUTiENT PREFERENCES. OS. All gratiiitoxis contracts, or conveyances or contracts ' without consideration, or with a merely nominal considera- tion, respecting either real or personal jn'operty, made by a company in res])ect to which a winding-up order under this Act is afterwards made, with or to any person whatsoever (whether such person is its creditor or not), within three months next ]nvceding the commencement ot the winding- up or at any time afterwards,- -and till contracts by which creditors are injured, obstructed or delayed, made by a com- pany unable to meet its engagements and in respect to which a winding-up order under this .let is aftt'rwards made, with a person knov>ing such inability or having probable cause for believing such inability to exist, or after such inability is public and notorioxis whether such p.-rson is its creditor or not shall be iiresumed to be made with intent to defraud its creditors. 46 V , c. 23, s. 71. 6tt. A contract or conveyance for consideration, respecting either real or personal property, by which creditors are in jured or obstructed, made by a company unable to meet its en- gagements wnth a person ignorant of such inability, whether such person is its creditor or not, and before such inability has become public and notorious, but within thirty days next before the commencement of the winding-up of the business of such company under this .Act, or at any time afterwards, is voidable, and may be set aside by any court of competent jurisdiction, upon such terms as to the protec- tion of su'h person from actual loss or liability by reason of such contract, as the lourt orders. 4;') V , c. l3, s. 7 - 7<>. All contracts or conveyances made and acts done by a company, respecting either real or personal property, with intent iVaudulently to impeJe, obstruct or delay its creditors in their remedies against it, or with intent to defraud its creditors or any of them,--and so made, done and intimded with the knowledge of the person contracting or acting with the company, whether such person is its creditor or not, — and which have the ettect ot impeding, obstructing or delay- ing the creditors of their remedies, or of injuring them, or any of them, shall be null and void. 45 V., c. 23, s 73 7i. If any sale, deposit, pledge or transfer is made ot any property, real or personal, by a company in contemplation of insolvency under this Act, by way of security for payment to any creditor,— or if any property, real or personal, movable or immovable, goods, ettects or valuable security, are given by way of payment by such company to any creditor, whereby such creditor obtains or will obtain an unjust preference over the other creditors, such sale, deposit, pledge, transfer or pa^- 101 claim or toslation tho Con- or ins as 'ontracts ►iisidora- do by a ider this at soever in three irinding- y which y a com- o whicli de, with lie can so il)ility is 'ditor or I'raud its specting s are in et its i'n- wlielher nability ty days ^ of the ny time y court protec- eation ol' one by ty, with reditors aud its itended ng with r not, — r delay- lem, or 73 '■ ot any itiou ol' ayment novable e given /hereby ice over or pay* I'rovUo. ment shall be null and void ; and the subject thereof may be recovennl back tor the benefit of the estate by the liquidator, in any court of C'»inpetciit jurisdiction; and il the same is made within thirty days next before the commeneeinent of the vviiulini>--up under this Act, or at any time aitcrwards, it shall be iu-i>sumed to have been so made in contemplation of insolvency, la V., c. i*;?, s. 74 7-. l*]vcrv payment made within thirty days next before enymentsby the commencement ol the wnulmg-np under this Act l)y a wu .n loi..' company unable to intH't its ennMiit'ineiits in full, to a p(>vson knowinii" such inability, or haviny- probable cause for believ- ing the same to exisi, shall l)t> void, and the amount paid may be recovered back by the li(iuidator by suit or action in any court of competent jurisdiction: but if any valual)le si'cunty is given up in consideration of such i)ayineiit, such security or the value thereof shall l)e restored to the creditor upon the return of such payment. 45 V., c. 28, s. 7,"). E.Yi'lijingc Biiiik of Caiuula v. Stiiisoii, S Out. Uop. 067 (188")). 7''i. A\ hen a debt due or owinu' by the company has been vstoaoiitaoi- ,.,.,. Ill • I'ompiiiiy translerred within the time and under the civcumstances in ii,iiisi.'no.i the next preceding section mentioned, or at any time after- u,r\os. wards, to a contributory who knows or has probable cause for believing tlu' com])any to be unable to meet its engage- ments, or in contemplation of its insolvency under this Act, for the pur})ose of enabling f-uch eontribu'ory to set up, by way of compiMisation or set-olf, the debt so transferred, such debt shall not be set up by way of compensation or set-oil against the claim upon such contributory. 4;") V., c. 23, s. 76. Iiifis V. Bank of P. E. !., Supreme Court, 2'2nd June, 188"). APl'EAIiS. 71. Any person dissatisfied with an order or decision of Appeals, the court or a single judge in any proceeding under this Act may, by leave of a judge of the court, ai)peal therefrom, if the question to be raised on the appeal involves future rights, or if the order or decision is likely to affect other cases of a similar nature in the winding up proceedings, or if the amount involved in the appeal exceeds live hundred dollars: 2. Such appeal shall lie, — In Ontario, to the Court of Appeal for Ontario ; In (Quebec, to the Court of Queen's Bench; In any of the other rrovinces and in the North- West Ter- ritories, to the full court : 3. in tlu> iJistrict of Keewatin any person dissatisfied with inKeowatin. an order or decision of the court or a sinigle judge, in auy proceeding under this Act may, by leave of a judge of the ^Supreme (\)urt of Canada, appeal therefrom to the Supreme Court of (-anada : 4. All api)eals shall be regulated, as far as possible, accord- piaotieo. ing to the practice in other cases of the court appealed to : 102 Security on appi'iil ; uiid time for, limited. If not pro- ceeded witli appeal in ay be Ulsmissi'd. Further appeal to Supreme Court. How the powers of the Court may be exercised. In Ontario. Orders of Court to be deemed Judgments, How to be executed. Attachment and garnlsh- mont how effected. Witness.' attendance how secured. but no such appeal shall he entertained unless the appellant has, within fourteen days from the renderins? of the order or decision, or within such further time as the court appealed from allows, taken proceedinjys therein to peift^ct his appeal, nor unless, within the snid time, he has made a deposit or given sufficient security, according to the practice of the court that he will duly prosecute the said appeal and pay such damages and costs as may be awarded to the resjiondent. 45 v., c 23, s. 7S. },art, and s. 79 ;— 49 V., c. 25, s. Iti 1^. If the party appellant does not proceed with his appeal, according to the law or the rules of practice, as the case may be, the court appealed to on the application of the respondent, may dismiss the appeal, with or without costs. 45 v., c 23, s 80. 70. An appeal shall lie to the Supreme Court of Canada, by leave of a judge of the said Supreme Court, from the judgment of the Court of Appeal for Ontario, the Court of Queen's Bench in Quebec, or the full court in any of the other Provinces, or in the North-AVest Territories, as the case may be, if the amount in the appeal exceeds two thousand dollars. 45 V , c. 28, s. 7H, part. PROCEDURE. 77. The powers conferred by this Act upon the court may, subject to the appeal in this Act provided for, be exer- cised by a single judge thereof ; and such powers may be exercised in chambers, either during term or in vacation : 2. In the Province of Ontario such powers may, subject to an appeal according to the ordinary practice of the coxirt, be exercised by the master, referee or other officer who, under the practice or procedure of the court, presides in chambers, or by the master in ordinary, or by any local master or referee. 45 V., c. 23, s 77 ;— 47 V.. c. 39, s 5. 78. Every order of the court or a judge for the payment of money or costs, charges or expenses made under this Act, shall be deemed a judgment of the court, and shall bind the lands, and may be enforced against the person or goods and chattels, lands and tenements of the person ordered to pay, in the same manner in which judgments or decrees of any superior court obtained in any suit may bind lands or be enforced in the Province where the court enforcing the same is situate. 46 V., c. 28, s 1 79. Debts due to any person against whom such order for the payment of money, costs or expenses has been obtained, may be attached and garnisheed in the same manner as debts due to a judgment debtor may be attached and garnisheed by a judgment creditor in any Province where the attachment and garnishment of debts is allowed by law. 46 V., c 23, s 2. HO. In any action, suit, proceeding or contestation under this Act, the court may order the issue of a writ of subpcena ad testificandum or of subpwna duces tecum, commanding the 108 attendance, as a witness, of any person who is within Canada. 45 v., c 23, s. 81. SI. The court may, after it has made a winding-up order, summon before it or before any person named by it any officer of the company or person known or suspected to have in his possession any of the estate or effects of the company, or supposed to be indebted to the company, or any person whom the court deems capable of givinjr infor- mation concerniufr the trade, dealings, estate or effects of the company ; and the court may require any such officer or person to produce any book, paper, deed, writing- or other document in his custody or power relating to the company : In re Imperial Continontal Water Corporation, L. R. 3'3 Chy. Div. 314. 2. If any person so summoned, after being tendered a reasonable sum for his expenses, refusers, M'ithout a lawful excuse, to attend at the time ai)pointed, the court may cause such person to be appreliended and brought up for exami- nation ; but in cases in which any person claims any lien on papers, deeds, writings or documents produced by him, such production shall be without prejudice to such lien, and the court shall have jurisdiction in the winding up, to determine all questions relating to such lien. • 4 J V., c. 23, s. 82. 82. The court or the person so named may examine, upon oath, either by word of mouth or upon written interroga- tories, any person appearing or brought up in manner aforesaid, concerning the affairs, dealings, estate or effe(^ts of the company, and may reduce to writing the answers of any sucli person, and require him to subscribe the same ; and if such person, without lawful excuse, refuses to answer the questions put to him, he shall be liable to be punished as for comtempt of court. 4i V., c. 23, s. 83. S». Wfien. in the course of the winding up of the busi- ness of a company under this Act, it appears that any past or present director, manager, liquidator, ireceiver, employee or officer of such company has misapplied or retained in his own hands, or become liable or accountable for any moneys of the company, or been guilty of any misfeasance or breach of trust in relation to the company, the court may, on the application of any liquidator, or of any creditor or contri- butory of the company, notwithstanding that the offence is one for which the offender is criminally liable, ex- amine into the conduct of such director, manager, liquidator, receiver, officer or employee, and compel him to repay any moneys so misapplied or retained, or for which he has become liable or accountable, together with interest, at such rate as the court thinks just, or to contribute such sums of money to the assets of the company, by way of (compensation in respect of sucii misapplication, retention, misfeasance or breach of trust, as the court thinks fit. 45 V., c. 23, s. 84 ; —47 v., c. 39, s. 6. Persons hav Inp Infnrmn- tion may be uxaminod. If pnrson sum" moned refusef to attend. Proviso : as to question of Hon on papers. Examination to be ou oath. Refusal to answer, to bo contempt. Officer of ooinpany, Ac, mis-applying money, may bo compelled to repay. 104 ary to one aiiotlior. Orderof one oniirt may be I'tll'iici'd hy another. Rules of pro- cedure and as to anu'ud- ments tu apply. ^ncuiuouns ^*' '^^^ courts of the various Provinces, and the judges tobeauxiii- of the Said courts respectively, shall be auxilliary to one another for the i)urpo)-es of this Act ; and the winding- up of the business of the company or any matter or proceeding' relating thereto may be tvaiisi'erred from one court to another with the concurrence, or by the order or orders, of the two courts, or by an order of the Supreme Court of Canada. 45 v., c. 23, s «6 S5. When any order made by one court is required to be enforced by another court, an office copy of the order so made, certified by the clerk or other proper officer of the court which made the same, and under the seal of such court, shall be produced to the proper officer of the couvt required to enforce the same, and the production of such copy shall be sufficient evidence of such order having been made ; and thereupon such last mentioned court shall take swh. steps in the matter as are requisite for enforcing such order, in the same manner as if it was the order of the court en- forcing the same. 45 V., c. 23, s. 87. Hfi. The rules of procedure, for the time being, as to amendments of pleadings and proceedings in the court, shall apply, as far as practicable to all pleadings and proceedings under this Act ; and any court before which such proceedings are being carried on shall have full power and authority to apply the appropriate rules as to amendments of the pro- ceedings. 45 v., c 23, s. 8«, part. ^jj^roccoding 87, No pleading or proceeding shall be void bv irie(?uiP!ity. reason of any irregularity or del'ault which may be amended or disregarded under the rules and practice of the court 45 v., c. 23, s. 88, mrf.. Beforewi.om 8S Every affidavit, affirmation or declaration required to affidavits , j j .i • • r j.v inaybeiuade. be sworn or made under the provisions or lor the purposes of this Act, or to be used in the court in any proceeding under this Act, may be sworn or made in Canada before a liquidator, judge, ^jotary public, commissioner for taking affidavits or justice of the peace ; and out of Canada, before any judge of a court record, any commissioner for taking- affidavits to be used in any court in Canada, any notary public, the chief municipal officer of any town or city, any British consul or vice-consul, or any person authorized by or under any Statute of Canada, or of any Province, to take affidavits 45 V., c 2:^, s 89. 89. All courts, judges, justices, commissioners and per- sons acting judicially shall take judicial notice of the seal, or stamp or signature, as the case may be, of any such court, judge, notary public, commissioner, justice, chief municipal officer, consul, vice-consul, liquidator or other person attached, appended or subscribed to any sui^h affidavit, affirmation or declaration, or to any other document to be ttsed for the purposes of this Act. 45 V'., c. 23, s 90. 90. Any powers by this Act conferred on the court are in addition to, and not in restriction of, any other powers .ludlcial notice of Si-ilIS, &c. Powers coii- farred «n pourt by tliiN and the judi^es illiary to one winding- up of or proceeding- >urt to .-mother *rs, of the two Canada. 45 required to be the order so ■ olBcer of the ! seal of such r of the couvt 1 of such copy 2: been mad(» ; all take sm-h g such order, the court en- heing-, as to e court, shall I proceedings 1 proceedings authority to ts of the pro- e void bv be amended of the court I required to the purposes r proceeding- ada before a for taking- nada, before T for takiug- any notary or city, any thorized by ice, to take rs and per- of the seal, such court, f municipal unattached, irmation or sed for the le court are her powers 106 subsisting either at law or in equity, of instituting pro- Act are in ceedings against any contributory, or the estate of any con- uu/oth"/° tribntory, or against any debtor of the comi)any, for the ,'?,7,7;,','''**'''''^''" recovery of any call or other sums due from such contribu- tory or debtor, or his estate ; and such proceedings may be instituted accordingly. 45 V . c. '. 3, s. '.•2. 91. All costs, charges and expenses properly incurred in costs imyaiiio the winding up of a company, including the remuneration of the liquidator, shall be payable out of the assets of the company, in priority to all other claims. 45 V., c. i!3, s. 9H. 92 In Ontario, the judges of ihe High Court of Justice ; makTn'i's' in Quebec, the judges of the Court of Queen's Hench ; and in the other Provinces the judges of the court, or a majority of the judges in each case, of whom the chief justice shall be one, from time to time may make and frame and settle the forms, rules and rejiulations to be followed and observed in proceedings under this Act, and may make rules as to the costs, fees and charges which shall or may be had, taken or paid in all such cases by or to attorneys, solicitors or counsel, and by or to officers of courts, whether for the officers or for the Crown, and by or to sheriffs, or other persons, or for any service performed or work done under this Act. 45 V., c. 23, s 9*7. OS. Until such forms, rules and regulations are made, the ^^J'^^ '""[p'^ various forms and procedures, including the tariff of costs, pivsint pioo(;- fees and charges in cases under this Act, unless otherwise "" '" "^''p'^'* specially provided, shall, as nearly as may be, be the same as those of the court in other cases. 45 V ., c. 23, s. 98. UNCLAIMED DIVIDENDS. 94. All dividends deposited in a bank and remaining jl"f,l^ '"?''*/ unclaimed at the time of the final winding up of the busi- bepaiato ness of the company, shall be left for three years in the bank Gonenu! where they are deposited, subject to the claim of the person entitled thereto, and if still unclaimed, shall then be paid over by such bank, with interest accrued thereon, to the .Minister of Finance and Receiver G-eneral, and, if afterwards duly claimed, shall be paid over to the persons entitled thereto. 45 V., c 23, s. 91. OFFENCES. 95. Every person who, with intent to defraud or deceive Any poison any person, destroys, mutilates, alters or falsifies any book, kc'^.bwks?' paper, writing or security, or makes or is privy to the puny «u?itlv making of any false or fraudulent entry in. any register, .'u./neanor. book of account or other document belonging to the company, the business of which is being wound up under this Act, is guilty of a misdemeanor and liable to imprisonment in the penitentiary for any term not less than two years, or to imprisonment in any gaol or place of confinement for any term less than two years, with or without hard labor. 45 v., c. 23, * 85. 106 Court may direct crim- inal proceed- ings atfatnst offlcers 1)1' the compiiny guilty of ulfences. Provisions applicable to banks. Trovl'-ion as to wliKJing-ui) order in case oi'banU. Chairman oC mct'ilnKs of sbareholUuis anil of cri'diloi'K. Scale of votes. Chairman to report result of vote. Appointment of ll(|Ui(lators, If liquklators have not been nominated. Reservation of dividends in respeet tfi outstandinu; notes. 96. "When a winding-up order is made, if it appears in the course of such winding up that any past or present director, manager, officer or m(>mber of the company is guilty of any offence in relation to the company for which he is criminally liable thi^ court may. on the application of any person interested in such winding up, or of its own motion, direct the liquidator to institute and conduct a prost^cution or prosecutions for such offence, and may order the costs and expenses to be paid out of the assets of Ihe company 45 V., c 23, s. 95. PROVISIONS APPLICAHT.E TO RANKS, 97. The provisions of sections ninety-eight to one hundred and four, both inclusive, apply to banks only, not including savings banks. 45 V., c. 23, sub-tiile. 9o. In the case of a bank, the application for a winding- up crder shall be made by a creditor for a sura of not less than one thousand dollars, and the court shall, before making the order, direct a meeting of the shareholders ol the bank and a meeting of the creditors of the bank to be summoned, held, and conducted as the court dirci'ts, for the purpose of ascertaining their resp ■active wishes as to the appointment of liquidators. 17 V., c. 39, s T,part. 99. The court may appoint ;i person to act as chairman of the meeting of shareholders, and in default of such appoint- ment, the president of the bank, or other person who usually presides at a meeting of shareholders, shall preside ; the court may also appoint a person to act as chairman of the meeting of creditors, and in default of such appoint men l, the creditors shall appoint a chairman. 47 V., c. 3it, s. 7, part JiOO. In taking a vote at such meeting of shareholders, regard shall be had to the number of vote'- conferred by law or by the regulations of the bank on each bhareholder present or represented at such meeting ; and in the case of creditors, regard shall be had to the amount of the del)t due to each creditor. 47 V , c ;]9, s. 7, part lOI. The chairman of each meeting shall report the result thereof to the court, and if a winding-up order is made, the court shall appoint three liquidators, to be selected in its discretion, after such hearing of the parties as it deems expedient, from among the per-ons nominated by the ma- jorities and minorities of the shareholders and creditors at such meetings respectively. 47 V., c 3!i, s. 7, part. 30'.i. If no one has been so nominated, the three liqui- dators shall be chosen by the conrt, and if less than three have been nominated, the requisite additional liquidator or liquidators shall be chosen by the court. 45 V., c. 23, s. 103. IOJ$, The liquidators shall ascertain as nearly as possible the amount of notes of the bank intended for circulation and actually outstanding, and shall reserve, until the expiration of at least two years after the date of the winding-up order, or until the last dividend, if that is not made until after the e5 Sil ci ai 107 ipears m ■ present ipany is )!• which cation of its own )nduct a ay order ts of tlie hiindrtMl icluding vindiiig- not less * makinir ;he bank nmoned, rpose of )intment irmaii of iippoint- )iisu;illy ide : tho 1 of the ntnionL, 3i», .«. 7, holders, by law pres(.'n t 'editors, to each e result de, the 1 in its deems the ma- il ors at ? liqui- three lator or s. 103. lossible ion and »iration ) Older, ter the expiration of the said time, dividends on such part of the said amount in respect of which claims are not filed ; and if claims are not filed and dividends apiditHl for in resjiect of any part of the said airount before th(^ period herein limited, the dividends so reserved shall form the last or pail of the last dividend. 4") V, c 13, s. 101. 104, Publication in the Canada Gazette and in the ofiicial ^yhat issuni- -^ PIT-.. c> r-i 1 1 • ciont ll<>ll(•l■ Gfa2«f//e 01 each Province ot (^anada, and m two newspapers tohouuis..! issued at or nearest the |)lae'j where the head office of a bank ° is situate, of notice of any proceeding of which, under this Act. creditors should be notified, shall be sufficient notice to holders of bank notes in circulation ; and if the head office in Q,iiot)oc. is situated in the Province of Quebec, one of the newspapers in which publication is to be made shall be a newspaper published in English and the other a newspaper published in French. 45 V., c. 23, s 105. PROVrSIONS APPLICABLE TO LIFE INSURANCE COMPANIES. H)'"*. The provisions of sections one hundred and six to one hundred and fourteen, both inclusive, apply only to life insurance companies, and to insurance companies doing life and other insurance, in so far as relates to the life insurance business of such companies. A'^ V, c. £3. sub-title. 106. Except in the cases provided for in the thirty-second and thirty-third sections of " The Inaurance Act,'' a company shall be liable to be dealt with in the manner herein pre- scribed for the case of insolvency, whenever its license has expired or been withdrawn, under the said Act, and has not been renewed within thirty days after such expiry or withdrawal 40 V., c. 42, s. 15, pari. I07 In case of the insolvency of any company, the deposits of such company held by the Minister of Finance and Keceiver General, and the assets held by the trustees under " The Insurance Art," shall be applied pro raid towards the discharge of all claims of policy holders in Canada duly authenticated against such company. 40 V., c. 42, s. 16, /m»7;— 45 V , c. 23. s 107. Re Briton Medical, &c., Life Assoniation. 12 Ont. Rep. 441 (1886). I OK. Upon the insolvency of any such company and the making of a winding-up order under this Act, the policy holders in Canada shall be entitled to claim for the full net values of their seA'eral polici(\s at the time of the winding-up order (including bonus additions and profits accrued), less any amount previously advanced by the company on the security ot the policy ; and such claims shall rank with judgments obtained and claims matured on Canadian policies, in the distribution of the at^sets : 2. The liquidator may require the superintendent of insurance to value, or procure to be valued under his super- vision, the policies before mentioned, basing such valuation on the mortality table of tiie Institute of Actuaries of Great Britain and on a rate of interest at four and one half per Provisions api)Hcable to life Insuraiiuc com)iiinit!s. Uonii)an,v whose license Is withdrawn, Ac, lial)le as for in- solvcnpy. Application of deposits and ofasscts hL'Ulhy trustei's in case of Insolvency. Rights of policy holdeis. Vai nation of ])()licies — on Miiat basis. 108 Exception. ( 'ost of \ iiluatiou. Sale of KPciirltios on completion or selioilule by iissliinees. Dist libation of proceeds. If the assets iJo not covei' the elalms. Pfoviso : as to policy holders insured on ilie mutual prineiiml. Ajiplication of forogoins? proviso as to companies incorporated elsewhere than in Canada. nentum per annum, — except in the case of bonus additions or other profits accrued or declared before the twenty-eighth day of April, one thousand eight hundred and seventy seven, and then valued on the basis of a rate of interest otlier than that above mentioned, which, in any such valuation, shall continue to be valued on such other basis ; and the expenses of such valuation, at a rate of three cents for each policy or bonus addition so valued, shall be retained by the Minister of Finance and Receiver General from the fcecurities luild by hini : 3. Upon the completion by the liquidator of the statement to be prepared byhim'jf all judgments against the company upon policies in Canada, and of all claims upon policies matured or outstanding as afonisaid, the court shall cause the securities held by the Mini.4,er of Finance and Recoivt^r General for such company, and the assets held by the trustees provided in " The Insurance Act,'' or any pari of them, to be sold or realized in such manner and after such notice and formalities as the court appoints : 4 The proceeds thereof, after paying expenses incurred, shall, except in so far as they have been applied, under this Act, to effect a re-insurance of policies, be distributed /> o ratd amongst the claimants according to such statement, and if the said proceeds are not sufficient to cover in full all claims recorded in the statement, such policy holders shall not be barred from any recourse they have, either in law or equity, against the company issuing the policy or against any shareholder or director thereof, other than for a share in the distribution of the proceeds above mentioned, or in any distribution of the general property and assets of the company, other than the deposit and the assets vested in trustees : 5. Provided always, that in all cases of distribution of the proceeds of the deposit in the hands of the Minister ol' Finance and Receiver General, and the assets vested iu the trustees as provided for in this section, if it appears from the charter. Act of incorporation or articles of association of the company, and from the conditions of the policy, that any Canadian policy holder claiming a share in such distribution has been insured on the " mutual " principle — then such policy holder shall be entitled only to claim a share in the distribution as aforesaid, at the same rate as all other holders of policies under the same conditions are entitled to claim in the distribution of the total assets of the company, whether they are holders of Canadian policies or otherwise ; but this proviso shall only apply in respect to those companies char- tered, incorporated or associated together in a country (other than Canada) under the laws of which the holder of a Canadian policy issued by any such company is entitled to claim a share in the distribution in such country at the same rate as all other holders of policies, under the same conditions, are entitled to claim in the distribution of the 109 additions ity-eighth ity seven, >tlier than ion, shall expenses policy or ! Minister itios htilil !fat(^nieiit conipauy I policies all cause Recei V(>r i by the y part ot' fter such incurred, nder this »uted 1)0 aent. and II full all ers shall in law or r against ' a share id, or in s of the ested in ution of nister of iu the from the n of the that any ribution len such in the holders claim in whether but this es char- y (other or of a itled to at the le same I of the total assets of the company, and to enjov all the rights and privileges as policy holders whicii are enjoyed by the policy holders who are natives of or naturalized in such country. 40 v., c. 42, s. 16, part.—^b V., c. -J'., s \i)^, part. 109. Whenever the comi)any or the liquidator, or the holder of the policy or couu-act of insurance exercises any right, which it or he has, to cancel the policy or contract, the holder shall be entitled to claim as a creditor for the sum which, under the terras of the ])olicy or contract, is due to him upon such cancellation. 45 V., c 23, s 108, part. 110. The liquidator shall, without the filing of any claim, notice or evidence, or the taking of any action by any pt^rson, make a statement of all the persons appearing, by the books and records of the officers of the company, to be creditors or claimants under the two sections next preceding, and of the amounts due to each such person thereunder, and every such person shall be collocated and ranked as and be entitled to the rights of a creditor or claimant for such amount, with- out filing any claim, notice or evidence, or taking any action ; but any such collocation may be contested by any person interested, and any person who is not collocated or who is dissatisfied with the amount lor which he is collocated, may file his own claim : 2. A copy of such statement, certified by the liquidator, shall forthwith, after the making of such statement, be filed in the office of the Superintendent of Insurance at Ottawa ; and notice of such filing shall forthwith be given by the liquidator by notice in the Canada Gazette and in the official Gazette of each Province of Canada, and in two newspapers issued at or nearest the place where the head office in Canada of the company is situate ; and the liquidator shall also, lurtluvith, send by mail, prepaid, a notice of such filing to each creditor named in the statement, addressed to the addresses in Canada of such creditors, as far as the same are known, and in the case of foreign creditors, addressed to the addresses of their representatives or agents in Canada, as far as the same are known. 45 V., c. 2;^, s. 109 lil. The holder of a po!i a' or contract cf life insurance, upon which a claim accrues after 1 he date of the winding-up order and before the expiration of thirty days after the filing, in the office of the superintendent of insurance, 'A the statement referred to in tho next preceding section, shall be entitled to claim as a creditor for the full net amount of such claim — less any amount previously advanced by the company on the security of the policy or contract ; and the said statement and the dividend sheet shall, if necessary, be amended accordingly : 2. No claim which accrues after the expiration of the thirty days above mentioned, shall rank upon the estate unless and until there is sufficient to pay all creditors in full. 45 v., c 23, 8. 110. If the pc)lic>- 18 ctmcellod. Sla(ciiiin( or cicililors to he preniircil h.v theli<|iii(liiloi', and ccrtuiii ohiims col- located willi- out proof. Proviso: or coatCHtatioii. Copy of Stat p- iiieiit to he tiled with .siiporintend- eiit, iiiul notice tliorcof given. As to claims accruiii;; after the wiiulinj;- up ordiT, but within m days thereof. Claims acciiringaftc.'f :i() days. 110 linurivii(!t' In iiiiDllu'i' company. /'lovlso. Report to insurance. What is sum {•itint, notice to certain policy noltlers. ii tiie iioidur 112. If, belorc the oxpiration of the thirty clay.s herein- oi^A-mh'iVucBs before mentioned, the holder of a policy or contract of life luacHepi insurance, on which a claim has not accrued, signiiies, in writin*^, to the liquidator, his willingness to at-cept an insurance in some other ( ompany for the amount which can be secured by the dividend on his claim to which such holder is or may become entitled, the liquidator may, with the sanction of the court, effect for such holder an insurance to the avnount alovesnid in another company or companies, approved of by the sup(>iintendent of insurance, and may apply to that purpose the dividend on his claim to which such holder is or may become entitled : but such insurance shall be effected only as pari oi a general scheme for the assumption, by some other company or compauies, of the whole or part of the outstanding risks and liabilities of the insolvent company. 45 V., c. lio, s. 111. liJJ. If the company is licensed under " The Insuraure tM?oi-"'"'"*" ^^'''•" t^^' liquidator shall report to the superintendent of insurance once in every six months, or oftener as the super- intendent requires, on the condition of the affairs of the company, with such further particulars as the superintendent requires. 45 V., c. 2-1, s 112. lit. rublication in the Canada Haz tte and in the official Gazi ttv of each Province of Canada, and in two newspapers issued at or nearest the place where the head olfice in Canada of an insurance company is situate, of notice of any proceed- ing of which, under this Act, ci-editors should be notified, shall be sufficient notice to holders of policies or contracts of insurance in respect of which no notice of claim has been received. 45 V., c. 23, s. 106. PROVISIONS APPLICABLE TO 1N.SURANCE COMPANIES OTHER THAN LIFE 1NSURA.NCK COMPANIES. 115. The following provisions of this Act, apply only to insurance companies other than life insurance compauies, and to insurance compauies doing life and other insurance, in so far as relates to the insurance business of such com- panies which is not lile insurance business. 15 V., c. 23, sub-title. 11^. Any company shall be deemed insolvent upon its failure to pay any undisputed claim arising, or loss insured against, in Canada, upon any policy held in Canada, lor the space of sixty days after becoming due, or, if disputed, after final judgment and tender of a legal valid discharge, —and (in either case) alter notice thereof to the Minister of Finance and Receiver General 2. Provided, that in any case w^hen a claim for loss is, by the terms of the policy, payable on proof of such loss, with- out any stipulated delay, the notice to the Minister ot Finance and Receiver General under this section shall not be given until alter the lapse of sixty days from the time when the claim becomes due. 38 V , c. 20, s. 1(3, />ar^.jj Provisions appliciible to lusuranee companies oilier tiian life. Wiieii a com- pany sliail bu deemed insolvent. Proviso: It payment ot any loss is to be on proof. •.s hurciii- act of life ^nilies, in iccept ail ivhich can [liuh sucli aay, with insurance orapauics, and may to whicJi iusuranco le for the es, of the Lies of the Insurance endent of the su per- ils of the •intendent the orticial liws papers ill Canada y procoed- ■ notified, ^ntracts of has been ES OTHEll ly only to mpauios, nsurance, ueh com- v., c. 23, upon its ;s insured a, lor the Lted, after "g'e, —and Finance Dss is, by )ss, wi(h- nister ot shall not the lime rl.i 111 117. Any deposit held l)y I he Ministi'r of Finance and Ai.|'Ut'.iiinn^^^ Receiyer General lor jiolicy holders, shall be applied pro mid by'iticoivcr towards the. payment ol all claims duly authenticated against ' '''"'"' ' such company, upon or in respect of policies issued to policy holders in Cauiula. :5K V , c. -20, s, 16. part ;— 46 V., c. 23, s, 1 1 4. part. IIH. Holders ol policies or contracts of insurance on ;),^J^.'|,V,'.'i,'"''r which no claim has accrued at the time the winding-up order ;^Il'.',.'",,Ii'J^i is made, shall be cntitkd to claim as creditors, for a part of iii'iioiwimi- .1 ■ -1 i.- 1. i. J.1- • 1 i" J.U • lii'-i-iip order. the premium paid, proportionat<' to the period ol their policies or contracts resjMictively unexpired at the date of the winding-up order ; and such return or unearned pre mium shall rank with judgments obtained and claims accrued, in the distribution of the assets : 2. Upon the completion of the statement to b<» prepared saic oi by the liquidator under this Act, the court shall cause the *"'""'■'"''''• securities held by the Minister of Finance and Keceiver Q-en- eral for such company, or any part of them, to be sold in such manner and after such notice and tbrinalities as the court appoints ; and the proceeds thereof, alter paying expenses incurred, shall (except in so far as they have been Anpiic^iuioii applied uud r this Act to atlect a reinsurance of the policies) " '""'-"^'"• be distributed //a; raid amongst the claimants according to such statement ; and, if the proceeds are not sufficient to coyer in full all claims recorded in the statement, such policy holders shall not be barred Irom any recourse they haye either at law or in equity against the company issuing the policy, other than that for a share in the distribution of the proceeds ol the securities held lor such company by thti Minister of Finance and Receiyer General : 3. Wheneyerthe company or the liquidator, or the holder As.t<>fan<;ei- oi the policy or contract ol insurance, exercises any right pou.y. which it or he has to cancel the policy or contract, the holder shall be entitled to claim as a creditor for the sum which, under the terms of the pnlicy or contract, is due to him upon such cancellation 38 V., c. 20, s. Vl^part; — 45 V., c. 23, s. 115, part. 119. The liquidator shall, without the filing of any claim, be'Vumil-'by" notice or eyidence, or the t:iking oi' any action by any per- nquiJiitoia. son, make a statement ol all the persons appearing, by the b.juks and records of the officers of the company, to be credi- tors or claimants under the next preceding section, and of the amounts due to each such person thereunder ; and eyery such person shall be collocated and ranked as and shall be entitled to the rights of a creditor or claimant for such amount, without filing any claim, notice or eyidence, or taking any action ; but any such collocation may be con- proviso, tested by any person interested, and any person not collocat- ed or dissatisfied with the amount lor which he is collocated, may file his own claim : 112 Claims Jiuci'ulngiinci Ihirty days. Copy (.1 hi) 2. A copy of such stutcinont, certiliod by the liquidator NiipeiYiiii'nd- shall, forthwith after the makiug of such statement, be tiled msiiranof. in the office of the suixTJiitendent of insurance, at Ottawa, and notice of such liiini;' shall be forthwith given by the liquidator by notice in the Cnnaila (Hazefffi, and in the omcial Gazette of each Province of Canada, and in two newspapers issued at or nearest the place where the head N..iiit!i«(iuh offi*'^- ill Canadii of thi' - ompany is situate; and the liqui- (iKiiitnr. dator shall also forthwith send by mail, prepaid, a notice of such filing to each creditor named in the statement, address- ed to the addresses in Canada of such creditors, sis far as the same are known—and in the case of foreign creditors, addressed to the addresses of their representatives or agents in Canada, as tar as tht^ same are known 45 V., c. 23, s. IIH. iiiicitiiiii liJO. The holder of a policy or contract of insurance, uiewrmiing- othcr than life insurance, upon which a claim accrues aftc^r wi'ihVn;f('('ittys ^^^ ^^^tc of the winding-up order, and before the expiration sta'tcraont ^^ thirty days after the filing, in the office of the superinten- dent of insurance, of the statement referred to in the next preceding section, shall be entitled to claim, as a creditor, for the full net amount of such claim ; and the said Rtate- ment and the dividend sheet shall, if necessary, be amended accordingly : 2. No claim which accrues after the expiration of the thirty days hereinbefore mentioned, shall rank upon the estate, unless and until there is sufficient to pay all creditors in full, 45 V., c. 23, s 117. An.intri- Vil . liefore the expiration of the thirty days above men- maiuMbi'''^ '^' tioned, the liquidator may, with the sanction of the court, ofiisks'&c!' arrange with any incorporated insurance company ap- proved of for such purpose by the superintiuident of in- surance, for the re-insurance by such company, of the out- standing risks of the insolvent company, and for tfie assumption by such company of the whole or any part of h'an'slfor of*' ^^® othcr liabilities of the insolvent company ; and in case a.ssot8insuch of such arrangement the liquidator may pay or transler to such company, such of the assets of the insolvent company as may be agreed on as the consideration for such re-insur- ance or assumption, and in such case the arrangement for re-insurance shall be in lieu of the claim for unearned premium : Provided always, that any remaining assets of the insolvent company shall be retained by the liquidator as a security to the creditors for the payment of their claims, and shall, if necessary, be so applied, and shall not be relumed to the company, except on the order of the court after the satisfaction of such claims 45 V., c. 2 ^, s. 118. 122. if the company is licensed under " The lmuve men- he court, my ap- at of in- the out- for the y part of in case ansl'er to company re-insur- meat for mearned assets of quidator of their hall not r of the c. 2 \ 8. nsu'ance itendent r, as the attairs ol CHAPTER 145, A.D. 1886. An Act respecting Accessories. HEH Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows : — FELONIES. 1. Every one who becomes an accessory before the fact to any felony, whether the same is a felony at common law, or by virtue of any Act, may be indicted, tried, convicted and punisht'd in all respects as if he were a principal felon. 31 v., c. 69, s. 9, part, and c 72, s 1 ;— 32-83 V., c 20, s. 8, part, and c. 21, s 107, part. '". Every one who counsels, procures or commands any other person to commit any felony, whether the same is a felony at common law, or by virtue ol any Act, is guilty of felony, and may be indicted, and couvi<,'li'd either as an accessory before the fact to the principal felony, together with the principal felon, or after the conviction of the prin- cipal felon, — or may be indicted and convicted of a substan- tive felony, w^hether the principal felon has or has not been convicted, or is or is not amenable to justice, — and may thereupon be punished in the same manner as any accessory before the fact to the same felony, if convicted as an acces- sory, may be punished 31 V , c 2, s 2. "i». In every felony, every principal in the second degree shall be punishable in the same manner as the principal in the first degree is punishable 31 V., c. 69, s. 9, part, and c. 72, s. 3 ; -32-33 V., c. 21, s. 107, par(. i. Every one who becomes an accessory after the fact to any felony, whether the same is a felony at common law or by virtue of any Act, may be indicted and convicted, eitner as an accessory after the tact to the principal felony, together with the principal felon, or after the conviction of the prin- cipal felon, or may be indicted and convicted of a substantive 8 Acoossorlus l)fi'oro I ho fact lo irloiiy pun- iHliaidc as priv.'.-ipul.s. Punishment 'il"|) Tson counselling, Ac , tlK^ conitMltllng 1)1' a felony. I'uiiishtni'nt of iirinclpal in si'concl clegr 10. Acci;ssoiioK after the fact nia,\ bo In- (liclid a,s such Of as substan- Live felons. 114 Puiiislimoiit of iiccossorios after the I'lU'i ProsoiMtlon of accessory RfttM' iirliiei- pal OtVlMUllT felony, wholhor tho principal folon has ov has not boon con- viotod, ov is or is not auicnahlo (o Justici>, ami may Mumv- upon ho punislu'd in liko manner as an accessory alter the i'act to the same felony, if convicted as an accessory, may be pnnished. 31 V., c. 12, s. 4 ;- 3-J-33 Y , c. 20. s. 8, parL ' tl. Every accessory after the fact to any felony (t>xcept wheji it is otherwise specially enacted), wluMlirr the same is a felony at common law. or by virtne ()f any Act, shall ho liable to imprisonment for laiy term less ihan two years. 31 v., c. ij\\ s. 9, part, ami c. 72, s. 5, part ;— 32-33 Y , c. 19. s. 57, jHirt. C>. If any principal ollender is, in any wise, convicted of any felony, any accessory, either before or after the fat t. may convictoii, Ac. be proceeded against in the same manner asif smh principal felon had been attainted thereof notwithstandind, indicted and punished as a principal olicnder. 31 V., c, 72, s. :— 3-J-33 V , c. 19. s. 57, part, and c. 21, s. 107, }tart ; — 3;") V , c. 32, s 13 ; — 40 v., c. 82, s 1. part. OFFFXOES PUNIPHAHLE ON SUMMARY CONVICTION. S EviM'y one who aids, abets, counsels or procures the commission of any otfence i)unishable ou summary convic- tion, I'ither for every tinu> of its commission, or lor the lirsl and second time only, or for the lirst time only, shall, on conviction, be liable for every lirst, second or subsequent oHtMice, of aiding', abetting, coiinselling or procuring, to the same Ibrfeiture and punishment to which a inMson guilty of a lirst. second or subseijuent ollence as a ]n-incipal oti'eiuler, is liable. 32-3 > V., c ::1, s. 108, and c, 22, s. 70, an I c. 81, s. 15, part ; — 3S V., c 31, s 5, part. Al>cttors ill intsiU'iiicaii- ors jninisli- ablo as prlucliiaU. Abettors ill otT'ciici's puiilsUabli' summarily puiilslialilc as principals. 115 : boon oou- uay tlu'iv- J IlfttT \\w vy, may l)o 11 y (t'xcopt T tho same •t, t^hall 1)1' two yoars. 3 V . 0. 19, >nvi('tecl ot t> liii i, may h principal ; such priu- cred be love upon cou- 'oukl have v., c. 72, s. rocxiivs tho uc is a mis- I't, is uuilty id punished 53 V . c. 19. s 13;— 40 rrioN. •ocnrcs the y convic- 01- the lirst , shall, on ul)sei|uent linu', to the lU iruilty ot 1 1 ittlender, an I c. 81, siuii-t illlo. ' Uocnincnt n tilK' lo, Miuia." CHAPTER 164. A. D., 1886. An Act respecting Larceny and similar Oironces. HER Majesty, by and with the advice and consent of the Senate and House ot Commons ol Canada, enacts as follows : — SHOUT TITLE. 8. This Act may be cited as ' The Larceny Act.''' INTEIIPKETATION. ti. In this Act. unless the context otherwise requires : — no,'.' '""'"*" ((t) The expression "document of title to jioods " in- •• uiH-um.i eludes any bill of ladinij, India warrant, do^'k warrant, «>tiiii.>to warehouse-keepers i-eviilicate, warrant or order lor the delivery or transfer of any goods or valual)le thing', bought and sold note, or any other document used in the ordinary course ot business as proof ot the possession or control of goods, authorizing or purporting to authorize, either by iu«lorsement or by delivery, the possessor of such document to transfer or receive any goods thereby represented or therein mentioned or referred to; [b) The expression '' dc umont of title to lands ' includes any deed, map, paper or i)archment. written or printed, or partly written and partly printed, being or containing evidence of the title, or any part of the title, to any real property, or to any interest in any real pioperty, or any notarial or registrar's copy theri'of, or auy duplicate instru- ment, memorial, certilicate or document authorized or reqniri'd by any law in force in ;iny part ot Canada, re- specting registration of titles, and relating to s;^cli title; (<•) The expression '" trustee" ui.mus a trustc on some "''^''"'^'^''^•'» express trust created by some detvl. will or instrument in writing, or a trustee of personal i)roperty .reatcd by parol, and includ.'s the heir or personal repi(>M>ntative of auy such uusiee, and very other person upon ov to whom the duly of such trust has devolvcvl or come, and also an executor and administraior, and an ollirial manager, assignee, liquidator or othtM like ollicer acting under any Ai;t relating to joint stock companies, b.-nkruptcy or insol- vency, and any person whu is, l)y the law of the Pro- vince of Quebec, an " atlminis/rd/rin- \'' and the expression " trust," includes whatever is by that law an " adinini&lra- f.ion ;" ((/) The expression " valuable security '" ineludes any order, exchequer accjuittaine or other security whatsoevir, entitling or evidencing the; title of any person or body corporate to any share or interest in any public stock or fund, whether of Canada or of any I'roviuce thereof, " Viilnnlilo socurlly.'' 116 or of the United Kingdom, or of Groat Britain or Ireland, or of any British colony or possession, or of any foreign state, or in any fund of any body cor- porate, company or society, whether within Canada or the United Kingdom, or any British colony or possession, or in any foreign state or country, or to any deposit in any savings bank or other bank, and also in- cludes any debenture, deed, bond, bill, note, warrant, order or other security whatsoever, for money or for payment of money, whether of Canada or of any Province thereof, or of the United Kingdom, or of any British colony or posses- sion, or of any foreign state, and any document of title to lands or goods as hereinbefore defined, and any stamp or writing which secures or evidences title to or interest in any chattel personal, or any release, receipt, discharge or other instrument evidencing payment of money, or the delivery of any chattel personal ; and every such valuable security shall, where value is material, be deemed to be of value equal to that of such unsatisfied money, chattel per- sonal, share, interest or deposit, for the securing or payment of which, or deliv»ny or transfer or sale of which, or for the entitling or evidencing title to which, such valuable security is applicable, or to that of such money or chattel personal, the payment or delivery ol which is evidenced by such valuable security ; 'Property." (e) The expression "property" includes every descrip- tion of real and personal property, money, debts and legacies, and all deeds and instruments relating to or evidencing the title or right to any property, or giving a right to recover or receive any money or goods, — and also not only such property as was originally in the possession or under the control of any person, but also any property into or for which the same has been converted or exchanged, and anything acquired by such conversion or exchange, whether immedintc^ly or otherwi'^e,- and also any postal card, postage stamp or other stamp issued or prepared for issue by the authority of the Parliament of Canada, or of the Legislature ot any Province ot Canada for the payment of any fee, rate or duty whatsoever, and whether still in the possession of the Crown, or u " any person or corporation, or of any officer or agent of the id, entitling him by law so to do, unless such sale, transfer or other dis- posal extends to a greater number or part of such securities or effects than are requisite for satisfying such lien, claim or demand. 32-33 V., c. 21, s 16. 61. Every one who, being a banker, merchant, broker, attorney or agent, and being intrusted, either solely or jointly with any other person, with the property of any other person for safe custody, — with intent to defraud, sells, negotiates, transfers, pledges or in any other manner con- verts or appropriates the same, or part thereof, to or for his own use or benefit, or the use or benefit of any person other than the person by whom he was so intrusted, is guilty of a misdemeanor, and liable to seven years' imprisonment. 32-38 V,c. 21, s. :7. (*'*. Every one who, being intrusted, either solely or jointly with any other per^^on, with any power of attorney, for the sale or transfer of any property, — fraudulently sells or transfers, or otherwise converts the same or any part thereof to his own use or benefit, or the use or benefit of any person other than the person by whom he was so intrusted, is guilty of a misdemeanor, and liable to seven years' imprisonment. S2-bS V., c. '.'.1, s. 78. 55. Every one who, being a factor, or agnnt intrusted, either solely or jointly with any other person, for the purpose of sale or otherwise, with the poss(^ssion of any goods, or of any document of title to goods, — contrary to or without the authority of his principal in that behalf, for his own use or benefit, or the use or benefit of any person other than the 119 ;rary to the y or power iio^otiates, is own use 'r than the chattel or thereof, or hich such ven years' to agents it whatso- 3rsonal, in I'tffagee in r any such merchant, ly money ion or by tenor and ne if this erring, or lif^ posses- entitling other dis- securities claim or :, broker, solely or r of any ud, sells, ner con- T for his ion other g'uilty of ionment. olely or ittorney, tly sells uy part meiit of was so seven trusted, [>urpose Is, or of lout the 1 use or lan the person by whom he was so intrusted, and in violation of good faith, makes any consignment, deposit, transfer or delivery of any goods or document of title so intrusted to him as in this section before mentioned, as and by way of a pledge, lien or security ior any money or valuable security borrowed or received by such factor or agent at or before the time of making such consignment, deposit, transfer or delivery, or intended to be thereafter borrowed or received, — or contrary to or without such authority, for his own use or benefit, or the use or benefit of any person other than the person by whom he was so intrusted, and in violation of good faith, accepts any advance of any money or valuable security on the faith of any contract or agreement to consign, deposit, transfer or deliver any such good:? or document of title, is guilty of a misdemeanor, and liable to seven years' imprisonment: 2. Every one who knowingly and wilfully acts and assists in making any such consignment, deposit, transfer or delivery, or in accepting or procuring sach advance as afore- said, is guilty of a misdemeanor, and liable to the same punishment : 3. No such factor or agent shall be liable to any prose- cution for consigning, depositing, transferring or deliver- ing any such goods or documents of title, if the same are not mar.e a setairity for or subject to the payment of any greater sum of money than the amount which, at the time of such consignment, deposit, transfer or delivery, was justly due and owing to such agent from his principal, together with the amount of any bill of exchange drawn by or on account of such principal and accepted by such factor or agent. 32-33 V , c. 21, s. 79. • 64. Any factor or agent intrusted, as aforesaid, and pos- sessed of any such docum*^nt of title, whether derived im- mediately from the owner of such goods or obtained by reason of such fac tor or agent having been intrusted with the possession of the goods, or of any other document of title thereto, shall be deemed to have boen intrusted with the possession of the goods represented by such document of title ; and every contract pledging or giving a lien upon such document of title as aforesaid, shall be dei^med to be a pledge of and lien upon the goods to which the same re- lates ; and such factor or agent shall be d(^emed to be pos- sessed of such goods ar document, whether the same are in his actual custody or held by any other person subject to his control, or for him, or on his behalt; and whenever any loan or advance is bond Jlde made to any factor or agent intrusted with and in possession of any such goods or document of title, on the faith of any contract or agreement in writing to consign, deposit, transfer or deliver such goods or document of title, and such goods or document of title is or are actually received by the person making such loan or advance, without notice that such factor or agent Persons wilfully assisting. Exception wlien the pledge floes not exceed the amount of tlielr lien. When agent .shall be deemed to be intrusted with the goods. What shall be deemed a pledge. What shall be di>omed possession. What shall be deemed a loan or advance on such goods. 120 Whnt shall be (Icciiicd II conlnicl. What sliall I).' ilocim'dfiii advance. Possession to be evldeiic j of iiiti'uslini;. Trustees frauduk'Utly dtsposiii}; of properly. No proseeu- tioii witlioiit sanction of the Attorney General. Wlien civil proceed I n(;s Iinve been taken. T>i rectors, Ac, of any body corporate or public com- pany fraudu- lenily appro- priating property. Or fraudu- lently k<'0|)- Inu false acci units or books. was not authorized to make such pledjre or security, every such loan or advance shall be deemed to he a loan or ad- vance on the security of such goods or document of title, within the meaning of the next preceding section, though such goods or document of title are not actually re- ceived by the person making such loan or advance till a period subsequent thereto ; and any contract or agreement, whether made direct with such factor or agent or with any clerk or other person on his behalf, shall be deemed a contract or agreement with such factor or agent ; and any payment made, whether by money or bill of exchange, or other negotiable security, shall be deemed to be an advance within the meaning of the next preceding section ; and a factor or agent in possession, as aforesaid, of sach goods or document, shall be taken, for the purpose of the next pre- ceding section, to have been intrusted therewith by the owner thereof, unless the contrary is shown in evidence, 32-83 v., c. 21, s. 80. 05. Every one who, being a trustee of any property for the use or benefit, either in whole or in part, of some other person, or for any public or charitable purpose, with in- tent to defraud, converts or appropriates the same, or any part thereof, to or for his own use or benefit or the use or benefit of any person other than such person as aforesaid, or for any purpose other than such public or charitable purpose as aforesaid, or otherwise dispo.ses of or destroys such property or any part thereof, is guilty of a misdemea- nor, and liable to seven years' imprisonment : 2 No proceeding or prosecution for any offence mentioned in this section shall be commenced without the sanction of the Attorney G-eneral or Solicitor G-eneral for the Province in which the same is to be instituted : 8. When any civil proceeding has been taken against any person to whom the provisions of this section apply, no person who has taken such civil proceeding shall commence any prosecution under this section without the sanction of the court or judge before whom such civil proceeding has been had or is pending. 32-58 V,, c. 21, s. 81. 06. Every one who. being a director, member, manager or officer of any body corporate or company, fraudulently takes or applies, for his own use or benefit, or for any use or purpose othtn- than the use or purpose of such body corporate or company, any of the property of suth body corporate or company, is guilty of a misdemeanor, and liable to seven years' imprisonment 32-33 V , c. 21, s. 82 07. Every one who, being a director, member, manager or officer of any body corporate or company, as such re- ceives or possesses himself of any of the property of such body corporate or company, otherwise than in p lyment of a just debt or demand, and, with intent to defraud, omits to make or to cause or direct to be made a full and true 121 irity, every loan or ad- (»nt of title, ou, though ;tually re- rance till a agreement, t or with ?. deemed a : ; and any [change, or m advance ion ; and a h goods or 3 next pre- th by the evidence. ■operty for some other ', with in- me, or any the nse or aforesaid, charitable r destroys nisdemea- aentioned notion of Province ainst any apply, no ommence nction of ding has manager dulently any use r^^h body h body or, and c. 21. s. manager such re- of such ment of I, omits rid true entry thereof in the books and accounts of such body cor- porate or company, is guilty of a misdemeanor, and liable to seven years' imprisonment. 82-:^B V., c 21, s. 83 6H. Every one who, being a director, manager, officer or member of auv })ody corporate or company, with iiiteut to defraud, destroys, alters, mutilates or falsifies any book, paper, writing or valuable security belonging to the body corporate or company, or makes or concurs in the making of any false entry, or omits or concurs in omitting any material particular in any l)ook of account or document, is guilty of a misdemeanor and liable to seven years' im- prisonment. ',\2-"'< v., c. 21, s. 84. (>*). Every one who, being a director, manager, officer or member of any body corporate or company, makes, circu- lates or publishes, or concurs in making, circulating or publishing any written statement or account which he knows to be false in any material particular, with intent to deceive or defraud any member, shareholder or creditor of such body corporate or company, or with intent to induce any person to become a shareholder or partner therein, or to intrust or advance any property to such body (U)rporate or company, or to enter into any security for the benefit thereof, is guilty of a misdemeanor, and liable to seven years' imprisonment. B"2- 3 V., c. 21, s. 85. 70. Every one who, being an officer or member of any unincorporated body or society, associated together for any lawful purpose, fraudulently takes or applies to his own use or benefit, or for any use or purpose other than the use or purpose of such body or society, the whole < r any portion of the funds, moneys or other pro; erty of the society, and continues to withhold such property after due demand has been made for the restoration and payment of the same by some one or more of the members or officers duly appointed by and on behalf of the body or society, is guilty of a misde- meanor, and liable to three years' imprisonment. C. f^. C, c. 71, s 8 ;— R. 8. B. C, c. Itl^, s. 9. 71 Nothing in any of the twelve sections next preceding shall enable or entitle any person to refuse to make a full and complete discovery by answer to any bill in equity, or to answer any qu«;stion or inierrogatory in any civil pro- ceeding in any court, or upon the hearing of any matter in bankruptcy or insolvency ; and no person shall be liable to be convicted of any of the misdemeanors in the said sections mentioned by any evidence whatsoever, in respect of any act done by him, if, at any time previously to his being charged with such offence, he has first disclosed such act on oath, in consequence of any compulsory pro- cess of any court of law or equity, in any action, suit or proceeding bond fi'/e instituted by any party aggrii^ved, or if he has first disclosed the same in any compulsory ex- amination or deposition before any court, upon thi; hearing of any matter in bankruptcy or insolvency. ;i2 Si V., c, 21, 8. 86. Or wilfully dcstvovlngor liil.sifylnK books or piiper.s, Ac. Or tVaiidu- leiilly pul)- liNliiii^ false sLiiti'Micnts or aecomit.s. Embfiz/.lo- ment by offlcers, Ac, ofiiniiicorpor- atfil societies. No person to be exomiit from answiM- iiis; (|ii('8tloiis ill liny court ; but no persna iniilfinsi a dis- closure in any <-onipulsory proceeding to be liulile to prosecution. m No romedy at law or In e(|ult,v to ')(• aflrt'cted. Keepers of wurohouses, *c., giving false receipts. Using false receipts. Punishment. Owners sell- UiK alter advance by consignees. Persons wilfully iissistlnsi;, Punlslinient. 7^ N'othiiiff in tho thirteeen sections next preceding-, nor any prococrlin^". conviction or judi^ment li:id or taken thereon aoaiiist any person under any of the said sections shall pi-Mvcnt, lossen or impeach any remedy at law or in equity, which any person agj^rieved by any offence asfainst any of the paid sections would have had if this Act had not been passed ; but no conviction of any such offender shall be received evidence in any action or suit ao;ainst him ; and nothing; in the said sections contained shall aifect or prejudice any agreement entered into, or security given by any trustee, having for its object tho restoration or pay- ment of any trust property misappropriated. 82-;^3 V., c. 21, s. 87. 7J<. Every one who, — (a) Being the keeper of any warehouse, or a forwarder, miller, master of a vessel, wharfinger, keeper of a cove, yard, harbor or other place for storing timber, deals, staves, boards or lumber, curer or packer of pork, or dealer in wool, carrier, factor, agent or other person, or a clerk or other person in his employ, knowingly and wilfully gives to any pcrs'^n a writing purporting to be a receipt for or an nciknowledgment of any goods or other property as having beiMi received into his warehouse, vessel, cove, wharf or other place, or in any such place about which he is em- ployed, or ill any other manner received by him, or by the person in or about whose business he is employed, before the goods or other property named in such receipt, acknow- ledgment or writing have been actually delivered to or received by him as aforesaid, with intent to mislead, deceive, injure or defraud any person whomsoever, although such person is then unknown to him, or — (/») Knowingly and wilfully accepts, transmits or uses any such false receipt or acknowledgment or writing, — Is guilty of a misdemeanor, and liable to three years' im- prisonment. 32-33 v., c. 21, s. 88 ;— 34 V., c, .5, s. 64. 74. Every one who, — (a) Having, in his name, shipped or delivered to the keeper of any warehouse, or to any other factor, agent or carrier, to be shipped or carried, any merchandise, upon whic.h the consignee has advanced any money or given any valuable security, afterwards with intent to deceive, defraud or in- jure such consignee, in violation of good faith, and without the consent of such consignee, makes any disposition of such merchandise different from and inconsistent with the agree- ment made in that behalf between him and such consignee at the time of or before such money was so advanced, or such negotiable security so given, or — (6) Knowingly and wilfully acts and assists in making such disposition for the purpose of deceiving, defrauding or injuring such consignee, — Is guilty of a misdemeanor, and liable to three years' imprisonment : 128 codirif^, nor or taken id sections t law or in ice aj]fainst ict had not ^Mlder shall linst him ; dl aiiect or y given by on or pay- 32-H3 v., forwarder, of a cove, als, staves, er in wool, k or other J gives to for or an as having ^ wharf or hi he is em- 1, or by the yed, before t, acknow- '^ered to or A, deceive, oug'h such ts or uses years' 64. ira- y ;he keeper or carrier, whii;h the aluable and or in- without Dn of such the agree- eonsignee vanced, or u making auding or reo years' 2. No person shall be subject to prosecution under this No prosecu- tion ic section who, before making such disposition of the merchan- n.iviinccHare dise aforesaid, pays or tenders amount of any advance made s. 89. 75. Every one who, — {a) Wilfully makes any lalse to the thereon. the 82-33 V, consignee full ^"^"'• •21, MaklnK falMO , , . . , stiilcuHnits ill statement in any receipt, nuviptR lor certificate or acknowledgment for grain, timber or olher '''"' "'*'' goods or property, which can be used for any of the purposes mentioned in " The Bank Acf'' or — (h) Having given, or after any clerk or person in his ,'|"/'|p'',','',',',\'',''^^' employ has, to bis knowledge, given, as having been IvtuininK received by him in any mill, warehouse, vessel, cove or wiX! receipt, othei- place, any such receipt, certificate or acknowledgment ''"''''''• tor any such grain, timber or other goods or property, — or having obtained any such receipt, certificate or acknowledg- ment, and after having indorsed or assigned it to any bank or person, — afterwards, and without the consent of the holder or indorsee, in writing, or the production and delivery of the receipt, certificate or acknowledgment, wilfully alienates or parts with, or does not deliver to such holder or indorsee of such receipt, certificate or acknowledgment, the grain, timber, goods or other property therein mentioned, — Is guilty of a misdemeanor, and liable to three years' imprisonment. 32-83 V., c. 21, s. 90, part ;—M V., c. 5, s. 65. ?(». If any misdemeanor mentioned in any of the three sections next preceding is committed by the doing of any- P^'t'ip thing in the name of any firm, company or co-partnership of persons, the person by whom such thing is actually done, or who connives at the doing thereof, is guilty of the misde- meanor and not any other person. 32-33 V., c. 21, s. 91 ; — 34 v., c. 6, s. 06. Punishment. As to IPl'S. CHAPTER 165, A. D. 1886. An Act respecting Forgery. TRANSFERS OF STOCK, ETC. W. Every one who, with intent to defraud, forges or alters, Koreins; or offers, utters, disposes of or puts off", knowing the same to siotu/Ac. be forged or altered, any transfer of any share or intei st of or in any stock, annuity or other public fund which now is or hereafter may be transferable in any of the books of the Dominion of Canada, or of any Province of Canada, or of any bank at which the same is transferable, or of or in the capital stock of any body corporate, company or society, which now is or hereafter maybe established by charter, or by, under or 124 Kor.'lii'.' pnw'i' i>r attoi-iioy I'crsonatini; tllC OWIIIT ol i; •!■{ tin slock. Ac. and iiMiisieniiitr '•!• rccelvintr, or I'luloHvoi 1 'llvlii-iiiN by virtue of any Act of Parliament of tho United Kingdom or of Canada, or by any Act of the Legislature of any Tro- vince of (\\nada ,- or forges or alters, or otFers, utt(>rs, dis- poses of (ir puts otl" knowing the same to be forged or altered, any i)o\vt»r ot attorney or other authority to transfer any share or interest of or in any such stock, annuity, public fund or capital stock, or any claim for a grant of land from the Crown in Canada, or ibr any scrip or other payment or allowance in lieu of any such grant of land, or to receive any dividend or money payable in respect of any such share or interest,— or demands or endeavors to have nny such share or interest transferred, or to receive any dividend or money payable in respect thereof, or any such grant of land, or scrip or payment or allowance in lieu thereof as aforesaid, by virtue of any such forged or altered power of attorney or other authority, knowing the same to be forged or altered, is guilty of felony, and liable to imprisonment for life. 32- 33 v., c. 19, s. 5. O. Every one who falsely and deceitfully personates any owner of any share, or interest of or in any stock, annuity or other public fund, which now is or hereafter may be transferi'ble in any of the books of the Dominion of Canada, H'^' to ti-ansior or of any Province of Canada, or of any bank at which the same is transferable, or any owner of any share or interest of or in the capital stock of any body corporate, company or society wlii .h now is or hereafter may be established by charter, or by, under or by virtue of any Act of Parliament of the United Kingdom or of Canada, or by any Act of the Legislature of any Province of Canada, or of any claim for a grant of land from the Crown in Canada, or for any scrip or other payment or allowance in lieu of such grant of land, or any owner of any dividend or money payable in respect of any such share or interest as aforesaid, — and thereby transfers or endeavors to transfer any share or interest belonging to any such owner, or thereby receives or endeavors to receive any money du«' to any such owner, or to obtain any such grant of land, or such scrip or allowance in lieu thereof as aforesaid, as if such offender were the true and lawful owner, is guilty of felony, and liable to imprison- ment tor life. 82-33 v., c 19, s. G. 10. hvery one who forges any name, handwriting or sig- nature purporting to be the name, handwriting or signature of a witness attesting the execution of any power of attorney or other authority to transfer any share or interest of or in any such stock, annuity, public fund or capital stock, or grant of land or scrip or allowance in lieu thereof, as in either of the two sections next preceding mentioned, or to receive any dividend or money payable in respect of any such share or interest, — or offers, utters, disposes of or puts off any such power of attorney or other authority, with any such forged name, handwriting or siijjnature thereon, know- ing the same to be forged, is guilty of felony, and liable to seven years' imprisonment. 32-33 V., c. 19, s. 7. I'orging lit test at Ion to power of iiltoriicy for iraii.sfer of stouk, &f. ■ tod Kini^dom ' of atiy I'ro- , utters, dis- rod or altered, transfer any luity, public of land IVoui ' payment or receive any uch share or y such share tid or money land, or scrip a fores aid, by attorney or d or altered, for life. 32- rsonates any )ck, annuity fter may be n of Canada, it which the i or interest company or ;ablished by [' Parliament y Act of the r claim for a any scrip or ant of land, 3 in respect md thereby or interest receives or 1 owner, or r allowance re the true imprison- ting- or sig- 3r signature of attorney est of or in 1 stock, or ireof, as in oned, or to )ect of any of or puts , with any 3on, know- d liable to 125 BANK NOTES. ^H Every one who, with intent to defraud, forges or K(.i«iiii; i.iuui alters, or offers, utters, disposes of or puts oil, knowing the I'lniB.""'"' same to be forged or altered, any note or bill of exchange of any body corporate, company or person carrying on the business of bankers, commonly called a bank note, a bank bill of exchange or bank post bill, or any indorsement on or assignment of any })ank note, bank bill of exchange or bank post bill, is guilty of felony, and liable to imprison- ment for life. 32-8o V., c. 19, s. 15. ■ 9. Every one who, without lawful authority or excuses PurciiasinK - ■" - ...... . . . •/ . ' or reoelvititf or having or has in his custody or possession Souls'! '"'^"'^ or blllw. Milking or hiivlng moiiUls for making paper with words iiK(?d for Dominion notes, l)a!il£ notes, dec. the proof whereof shall lie on him, purchases or receives or haying from any other person any forged bank note, bank bill of exchange or bank post bill, or blank bank note, blank bank bill of exchange or blank bank post bill, knowing the same to be forged, is guilty of felony, and liable to fourteen years' imprisonment. 1.2-33 v., c. 19, s. 16. MAKING PAPER AND ENGRAVING PL.\TES FOR BANK NOTES, ETC. 20. Every one who, without lawful authority or excuse, the proof whereof shall lie on him, makes or uses, or know- ingly has in his custody or possession, any frame, mould or instrument for the making of paper used for Dominion or Provinstan(!e of the ]>ai)er upon which the same is written or printed, or shall prevent any person from making, using or selling anypajier having waving or curved lines, or any other devices in the nature of v^'ater marks visible in the substance of the paper, not ln'iug bar lines or laying wire lines, provided the same are not so contrived us to form the groundwork or texture of the paper, or to resemble the waving or curved, laying wire lines or })ar lines, or the water-marks of the paper usikI for Dominion notes or I'rovincial notes or bank notes, as aforesaid. i'l-Si V., c. 19, s. li<. *2'i. E\ery one who, without lawful authority or excuse, th*' proof wliereof shall lie on him, engraves or in anywise makes upon any plate whatsoever, or upon any wood, stone or other material, any promissory note or part of a promissory note, purporting to be a JJominion or f'rovincial note, or bank note, or to be a blank Dominion oi' I rovincial note, or bank note, or to be a part of any Dominion or Provincial note, or bank note, as aforesaid, or any name, word or char- acter resembling, or apparently intended to resemble, any subscription to any such Dominion or Provincial note, or bank note, as aforesaid, — or uses any such plate, wood, stone or other material, or any other instniment or device for the making or printing of any such note, or part of such note, — or knowingly has in his custody or possession any such plate, wood, stone or other material, or any such instru- ment or device, — or knowingly offers, utters, disposes of or puts oft, or. has in his custody or possession any paper upon which any blank Dominion or Provincial note, or bank note, or part ol any such note, or any name, word or character resembling, or apparently intended to resemble, any sucti subscription, is made or printed, is guilty of felony and liablo to fourteen years" imprisonment. 31 V., c 46, s. 14; — 32-33 v., c. 19, s. 19. '■iii. Every one who, without law ful authority or excuse, the proof whereof shall lie on him, engraves or in anywise makes upon any plate whatsoever, or upon any wood, stone or other material, any word, namber, figure, device, char- acter or ornament, the impression taken from which resem- bles, or is apparently intended to resemble any part of a Dominion or Provincial note, or bank note, or uses or know- ingly has in his custody or possession any such plate, wood, stone or other material, or any other instrument or device for the impressing or making upon any paper or any other material, any word, number, figure, character or ornament, which resembles, or is appareiitly intended to resemble any 127 ■teen years' 1 contained of exchange xpressed in t thereof in lance of the I'd, or shall '^ any paper vices in the »f the papei', id the same or texture ved, laying paper ustsd k notes, as r or excuse, ill anywise A'ood, stone promissory ial note, oi' •ial note, or Provincial )rJ or char- I'lnble, any ial note, or vood, stone ice for the ich note, — any such ich instru- >oses of or )aper upon bank note, character any such and liable 4 ;— 32-33 or excuse, 1 anyAvis^' ood, stone ice, ehar- ch resem- part of a or know- Ue, wood, or device any other )rnament, mble any part of any such note as aforesaid or knowingly offers, utters, disposes of or ])Ut8 olf, or has in his custody or possession any paper or other material upon which there is an impression of any such matter as aforesaid, is guilty of felony, and liable to fourteen years' imprisonment. 32-83 V., c. 19, s, 20. 151. Every one who, without lawful authority or excuse, the proof whereof shall lie on him, makes or uses any I'rame, mould or instrument for the manufacture of paper, with the name or lirra of any bank or body corporate, company or person carrying on the business of bankers, appearing visi- ble in the substance of the paper, or knowingly has in his custody or possession any such frame, mould or instrument, — or makes, uses, sells, or exposes for sale, utters or disposes of, or knowingly has in his custody or possession any paper, in th' substance of which the name or firm of any such bank, body corporate, company or jierson appears visible, or, by any art or contrivance causes the name or firm of any such bank, body corporate, company or person to appear visible in the substance of the paper upon which the same is written or printed, is guilty of felony, and liable to four- teen years' imprisonment. 32-33 V , c. 19, s. 21. 2»>. Every one who forges or alters, or offers, utters, dis- poses of or puts off, knowing the same to be forged or altered, any bill of exchange, promissory note, undertaking or order for payment of money, in whatsoever language or languages the same is expressed, and whether the same is or is not under seal, purporting to be the bill, note, undertaking or order of any foreign prince or state, or of any minister or officer in the service of any foreign prince or state, or of any body corporate or body of the like nature, constituted or recognized by any foreign prince or state, or ot any person or company of persons resident in any country not under the dominion of Her Majesty, — and every one who, without law- ful authority or excuse, the proof whereof shall lie on him, engraves, or in anywise makes upon any plate whatsoever, or upon any wood, stone or other material, any bill of ex- change, promissory note, undertaking or order for payment of money, or any part of any bill oi' exchange, i)romissory note, undertaking or order for payment of money, in w'hat- soever language the same is expressed, and whether the same is or is not, or is or is not intended to be under seal, pur- porting to be the bill, note, undertaking or order, or part of the bill, note, undertaking or order of any foreign prince or state, or of any minister or officer in the service of any foreign prince or state, or of any body corporate or body of the like nature, constituted or recognized by any foreign prince or state, or of any person or company of persons resident in any country not under the dominion of Her Majesty, — or uses or knowingly has in his custody or possession any plate, stone, wood or other material, upon which any such foreign bill, note, undertaking or order, or ntfcrliikj or liiivinu' liny piijicM' on which imy snch word, .vc. Is lni|>i't's.s(jU. Miiklnn or hiivlii'.' iiioiiUl lor ni.uOnK (111 per wllh th« niinic of any Imnk, or inakini; or hiivln^' 8ui'h paper. Korfiliig rorei!.'n hills and uttering the same. Engraving pi ales for I'oroitin hills or not(>.«, or iisUifi or havinit such plates. 128 TTtteilng papt'i' oil which an; fmrt of such )111 or note is printed. ForginK bills oi'oxcliaiigo or promissory iiolcs. ForglnK orders, receipts, *c. for monpy, goods, Ac. Milking or accepting any 1)111, Ac, hy procuration without law- ful authority, or uttorlug such bill. Oblitoraling orosslnu on clie, disposes of or puts off, knowing the same to be forged or altered, any bill of exchange, or any acceptance, indorsement or assignment of any bill of exchange, or any promissory note for the payment of money, or any indorsement on or assignment of any such promissory note, is guilty of felony, and liable to imprisonment for life. 82- 83 v., c. 19, s 26. 3!>. Kvery one who, with intent to defraud, forges or alters, or offers, utters, disposes of or puts off, knowing the same to be forged or altered, any undertaking, warrant, order, authority or request for thi? payment of money or for the delivery or transfer of any goods or chattels, or of any note, bill or other security for the payment of money, or for procuring or giving crtKlit, or any indorsement on or assign- ment of any such undertaking, warrant, order, authority or request, or any accountable receii)t, acquittance or receipt for money or lor goods, or for any note, bill or other security for the paymvMit of money, or any indorsement on or assign- ment of any such accountable receipt, or any account, book or thing, written or printed or otherwise made capable of being- read, is guilty of felony, and liable to imprisonment for life. 32-83 V., c. 19, s 26 ISO Every one who, with intent to defraud, draws, makes, signs, accepts or indorses any bill of exchange or promissory note, or any undertaking, warrant, order, authority or request for the payment of money, or for the delivery or transter of goods or chattels, or of any bill, note or other security for money, by ])rocuration or otherwise, for, in the name, or on the account of liiiy other person, without lawful authority or excuse, — or offers, utters, disposes of or puts off any such bill, note, undertaking, warrant, order, authority or request, so drawn, made, signed accepted or indorsed, by procuration or otherwise, without lawful authority or excuse, knowing the same to have been s'> diawn, made, signed, accepted or indorsed, as aforesaid, is guilty of felony, and liable to four- teen years' imprisonment 32-3 "> V., c. 19, s 27. J5 i . Whenever any clieque or draft on any banker is crosseii with the name of a banker, or with two transverse lines witli the words " and company," or any abbreviation thereof, every one who, with intent to defraud, obliterates, adds to or alters any such crossing, or offers, utters, disposes of or puts off any cheque or draft whereon any such obliteration, addition or alteration has b«?en made, knowing the same to have been made, is guilty of felony, and liable to imprison- ment for life. 32-33 V., c, 19, s. 28. 129 ugly offers, )dy or pos- Lch I'oreigu I, is guilty tneut. 32- Forges or owing the ^e, or any f exchange, ij, or any ssory note, r life. 82- forges or owing the , warrant, 3ney or for or of any ney, or for or assign - ithority or or receipt ar security I or assign- nut, hook capable of risonment vs, makes, )roraissory or request transler ol' curity for Line, or on authority ' any such >r request, 'ocuration knowing jcepted or e to four- is crossed ines with thereol', adds to 3ses of or iteration, .' same to mprison- Cont'i'tislons REVISED STATUTES OF ONTARIO. CHAPTER 118. All Act respecting the Fiaudiilent Preference of Credi- toi's by persons in insolvent circninstaiices. Confessions of judgment, cognovits, tScc, in fraud of creJi- tors to be void, s. 1. HER Majesty, by and witti the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows : — 1. In case any person, being at the time in insolvent cir- or wiirrantii cumstances, or unable to pay his debts in full, or knowing jn'^'monu himself to be on the eve of insolvency, voluntarily or by fnsoi"ve'nt«to collusion with a creditor or creditors, gives a confession of llefa^c'red). Judgment, cognovit actionem or warrant of attornev to con- onopr,.fur-'^* less judgment with intent, in giving such con''e> novit actionem or warrant of attorney to coTr'-o.' ...gment, voTj. to defeat or delay his creditors wholly or in part or with intent thereby to give one or more ol the creditors of any such person a preference over his other creditors, or over any one or more of such creditors, every such confession, (Ognovit actionem or warrant of attorney to confess judg- ment, shall be deemed and taken to be null and void as against the creditors of the party giving the same, and shall be invalid and inettectual to support any judgment or writ of execution. C. S. U. C. c. 2U, s. 17. By 4S \'ict., c. 2') (which was brought, into force on the 1st September, ISSf),) the second section of this ehaptei' wis repealed and that Act was suli-jtitutiHl therefo;-. See post. CQcr- eiice over the c othor to bfi 48 VICT., CHAPTER 23 (ONT). An Act respecting Assignments lor the bjuelit of Creditors. W II ERE IS great difiiculty is experienoel in determining cases arising under the present law relating to the transfer of property by persons in insolvent circumstances, or on the eve of insolvency, and it is desirable to remedy the same ; Therefore Her Majesty, by and with the advice and con- sent of the Legislative Assembly of the I'rovince of Ontario, enacts as follows : — D 'rciitii'j'.o. 130 R.S. 0.,p. 11^, 8. 2, and 47 V. «•. 10, s .i repealed. Ciifl, trans- fers, Af>., made hov&ft'h Rales, &c , protected 1. Section 2 oi llio Act resiiec/in^ /he Ffaudnienl Prefer- enre of CrfdUnrn by persovx in insolvent ciraimalavcen, chapter IIH of iho Revised iStatutes, and section 3 of the A'huinisimlion of Jnsfire Ad, 'i8S4, are hereby repealed, and the Ibllowinji" sections siibstituted therefor. -. l*'vt>ry li'ift, conveyance, assignment or transfer, delivery i)y i'liKoi'venis, ovcr or pavint'iit of any ffoods, chattels or effects, or of any orprcjudi.o bills, bouds, notes, securities, or of any shares, dividends, bt^voi'd!^"' '" premiums or bonus in any l)ank, company or corporation, or of any other property, real or personal, made by any person at atim*^ when hf is in insolvent circumstances, or is unable to pay his drbts in full, or knows that he is on the eve of insolvency, with intent to defeat, delay, or prejudice his creditors, or to give to any one or more of them a preference over his other creditors, or over any one, or more of them or which has such ellcct, shall, as against them, be utterly void ASfiisnnionfN <*$. (1) Xothiug in the i)receding sertion shall apply to any credUor.s^iiud assignment niado lo the sherill'of the county in which the debtor resid^^s or c;irries on business, or to another assignee with the con:>ent of the creditors as hereinafter provided, for the ])urpobe oi' paying ratably and proportionately and with- out preference or priority all the creditors of the debtor their just debts; nor to any bnna Jide sale or payment made in the ordinal y course ol trade or calling to innocc^nt purchasers or parties; nor to any payment oi money to a creditor unless an assignment lor the general ]>iMii'lit of creditors is made within one month alter the payment, nor to Viuy bona fide gilt, conveyanc<'. assiginneut. tr;uist'er or delivery over of any goods, securities or property ot any kind, as above men- tioned, which is made in consideration of any i)iesent actual bond nle pLiyinent in money, or })y way of security, for any present actual bond fidr advance oi money, or which is made in consideration of any present actual bond fide sale or delivery of goods or other property ; Provided that the money pnid, or the goods or othi r [noperty sold or delivered, bear a iair and reasonable relative value to the consideration therefor (2) Nothing herein contained is to affect any Act respect- ing wages passed during the present session, or to prevent a debtor providing for payment of wages due by him in accordance with the provisions of any such Act. " iSor thall anything herein contained affect any payment of money to a creditor, where such creditor by reason or on account of such payment, has lost or been depri^^ed of, or has in good faith given up, any valid security which he held for the payment of the debt so paid, unless the value of the security is restored to the creditor " Auded by 41) Vicl . c. 2., s. 1. " Nor shall anything herein contained invalidate a security given to a creditor for a pre-existing debt where by reason or on account of the giving of the security, an advance in Certain assii^iimcnis tol)c valid. 131 ulent Prefer- ■iraimdance:\ ion 3 of the iby repealed. sfer, delivery its, or ol" any s, dividends, )rporation, or y any person , or is unable n the eve of prejudice his a preference ore of them, I, })e utterly apply to any n which the ther assignee provided, for ely and with- ; debtor their lent made in nt purchasers •editor unless itors is made any b'hid fide very over of s above men- (vsent actual irity, for any ich is made I'ule sale or d that the or delivered, onsideration Act respect- ir to prevent by him in iny payment reason or on Mil ed of, or which he the value of by 4f^ Vict , ite a security e by reason advance iu money is made to the d»»btor l)y the creditor, in the bond fule belief that th(» advance will enable the debtor to continue his trade or business, and to pay his debts in full." Added by 49 Vicl., c. 26, s 1. (3). In case a payment of money is made to a creditor under the circumstances mentioned in the second section, and within one month before the execution of an assignment for the general benefit of creditors under this Act, the same shall be void as against the assignment, but not as against I>er&ons claiming in any other way. (4). The debtor may in the first place with the consent ot a majority of his creditors having claims of $100 and up- wards computed according to the provisions of section 18, make a general assignment for the beneht ot his creditors, to some person other than the Sheriff". 4. Every assignment made under this Act, for the general Form of benefit ol creditors shall be valid and sufficient if it is in forgonen" the words following, that is to say, all my personal proi)erty cro!f/tm"f which may be seized and sold under execution and all my real estate, credits and effects, or if it is in words to the like effect ; and an assignment so expressed shall vest in the assignee all the real and personal estate, rights, property, credits and effects, whether vested or coniingent belonging at the time of the assignment to the assignor, except such as are by law exempt from seizure, or sale under execution, subject, however, as regards lands, to the proA'isioiis ol the registry law as to the registration of the assignment. 5. If any assignor or assignors execittiiig an assignment now (Claims under this Act tor the general benefit of his or their creditors i^'"" '" '"^"'^• owes or owe. debts both individually and as a member of a <'.o-partnership, or as a member of two ditierent co partner- ships, the claims shall rank iirst upon the estate by which the debts they repr-'sent were contracted, and r-hall only rank upon the other after all the creditors of that other have been paid in full. 0. A majority in number and value ot the creditors who Appo ntin.nt ave proved claims to the amount ol |100 or upwards, may at their discretion substitute for the sheriff a person residing in the county in v^'hich the debtor resided, or carried oil business at the time of the assignment. An assignee may also be removed, and another assignee may be substituted, or an additional assignee may be appointed by a Judge of the High Court, or of the County Court where the assign- ment is registered. 7.(1) Save as provided in the next sub-section the Rights oi assignee shall have an exclusive right of suing for the "*^'*^'"''*'- recission of agreements, deeds and instruments or other trans- actions made or entered into in fraud of creditors, or made or entered into in violation of the Art respecting the fraud- ulenl preference of creiiiiors by persotis in insolvent circum- stances, or of this Act. 132 Rectjveiy i proceeds where pro- jierty sDld. (2). If at any time any creditor desires to cause any pro- ceeding- to he taken which, in his opinion, would bo lor the benefit ol the estate, and the trustee under the authority of the creditors or inspectors, refuses or neglects to take such proceeding, after being duly required so to do, such creditor shall have the right to obtain an order of the Judge authoriz- ing him to take such proceedings in the name of the trustee, but at his own exi)ense and risk, upon such terms and con- ditions as to indemnity to the assignee, as the Judge may preserihe, and thereupon any benefit derived from tuch pro- ceedings shall belong exclusively to the creditor instituting the same for his benefit, but if, before such order is granted, the assignee shall signify to the Judge, his readiness to institute su'-h proceedings for th'» benefit of the creditors, the order shall prescribe the time within which he shall do so, and in that c.^se the advantage derived from such proceed- ing, if instituted within such time, shall appertain to the estate ?*. If the jierson to whom any such gift, conveyance, assignment, transfer, delivery or payment as in section 2 of this Act is mentioned has been made shall have sold or dis- posed of the property which was the subject of such gift, conveyance, assignment, trunster, delivery or payment, or any part thereof, the moiu^ys or other proceeds realized therelor. may be seized or recovered in any actions under the last preceding sections as fnlly and eflectually as the property if still remaining in the possession or control of such person could have been seized or recovered. Assi-jMiiuiiis «> An assignment for the general benefit of creditors j.iecedenee of uudcr this Act shall take precedence of all judgments and of "nd^exl'en^ all cxccul ious uot completely executed by payment, " sub* ^^om. j^,^,^ jq ^i^y jjgjj^ if any, of an execution creditor for his costs where there is but one execution in the Sheriff's hands, or to the lien, if any of the creditor for his costs who has the first execution in the sheriff's hands." Added by 49 Vict.^ c. 25, s. 2. 10. No advantage shall be taken or gained by any credi- tor of any mistake, defect or imperfection in any assignment under this Act for the general beneht of creditors if the same can be amended or corrtc'ed, and if there be any mistake, defect or imperfection therein the same shall bo amended by any Judge of the High Court of Justice, or of the County Court aforesaid, on application of any creditor of the assignor, or of the assignee, on such notice being given to other parties concerned as the Judge shall think reason- able, and such amendment, when made, shall have relation back to the date of the said assignment 1 1. The assignee shall receive such remuneration as shall be voted to him by the creditors at any meeting called for the purpose after the first dividend sheet has been prepared, or by the Inspectors, in case of the creditors failing to pro- vide therelor, subject to the review of the County Convt of Aiiiciulnii'iii olassiffiiiiKiit 'i\- I'oiirt. lioii (>) .isslifnce. ^ any pro- bo lor tho thority of take such ti creditor authoriz- le trustee, and con- adge may such pro- istituting 5 granted, idiness to creditors, '; shall do 1 proceed- ain to the iveyance, ction 2 of >ld or dis- such gift, ymeut, or realized )ns under lly as the pontrol of creditors s and of " sub. lis costs hands, or the lirst 7., c. iio, 'y redi- ignnient rs i f t he Ix' any hall be ce, or of editor of ^g given reason- relation as shall lied lor re pared, to pro* 'onrt of 183 the County in which the assignmrnit is registered or the Judge thereof, if complained of by the assignee or any of the creditors. I«. (1) No assignment made for the general benefit of .^"S?/;',, ",'.,,, ,^, creditors under this Act shall be within the operation of the ['/j^iJ'"}" Kevised Statutes of Ontario, chapter 111), intituled An Act resin r ting Miirtgagts and Sales o/ Persunat Profurly: but a notice of the assignment shall, as soon as conveniently may be, be published " at least once " in the Onlario Gazffte and in one newspaper at the least, having a general circulation in the county in which the property assigned is situate "not less than twice.' At within five days from the execution thereol be regifctered, registcr.Mi. (together with an atlidavit of a witness thereto of the due execution of such assignment or ol the due execution of the assignment of which the copy tiled purports to be a copy/, in the olHce of the cleik of the County Court of the county or union of the counties where the assignor, if a resident in Ontario, resides at the time of the execution thereof, or if he is not a resident tiien in the olfice of the clerk of the County Court of the county or union of counties where the per- sonal property so assigned is or where the principal i)art then'iU' (in case the same includes property in more counties than one) is at the time of the execution of the assignment ; and such clerks shall lile all such instrinnents presented to thi'Ui respectively for that purpose, and shall endorse there- on the time of receiving the same in their respective olfices, and the same shall be ke])t there for the inspection of all persons interested therein. The said clerks respectively shall number and ente. such assignments, and be entitled to the same fees for services in the same manner as if snch assignments had been registered under the Act res/iecting Moifgno'ca tind S'des of Personal Projierly, (•'>). " In provisional judicial districts, and territorial dis- tricts, nnd in the temporary judicial district of Nipissing, the counterpart or copy of the assignment shall be fil(>d in the same olfice and within the same time respectively, as mortgages and other instruments are directed to be fyled in such districts, under the provisions of sections 17, IS and 19, ot The Act resficcting Mortgages and iSa/es of Personal Properly, and the clerk shall perform the same duties and have the same fees as clerks acting under sub-section 2 of the said section 12." Added by 40 >?r/. c 25, .<. 8. fJi. (1.) If the said notice is not published in the regular iNnaiiy nu numl>er of the Ontario Gazette, and of such new^spapors as jlubiiciViuu. afore.vaid, which shall respectively be issued first after five days from th«i execution ot the assignment by the assignor, or if the assignment is not registered as aforesaid within live days from the execution thereof, the assignor shall be liable to a penalty ot twenty-five dollars for each and every day which shall pass after the issue of the number 1?4 ('ompulliiif: publictilinn and regNtrii. tlon. ANsignineni not invali- elor(» a Judge of the High Court, or of the County Couri of the county in which the assignment ought to be published or registered; one-half ot the penalty shall go to the i>arty suing, and the other half for the benefit of the estate of the assignor. ii. \n case the assignment be not reaistered, and notice thereof published, an applicntion may be made by any one interested in the assignment to a Judge of the High Court, or of the County Court aforesaid, to compel the publication and registration thereof; and the judge shall make his order on that behalf, and with or without costs, or upon the pay- ment of costs by such person as he may in his discretion direct to pay the same. 1*>. The omission to publish or register as aforesaid, or any irregularity in the publication or registration, shall not invalidate the assignment. iii. it shall be the duty of the assignee to immediately inform himself, by reference to the debtor and his records of account, of the names and residences of the debtor's credi- tors, and within five days from the date ol assignment to convene a meeting of the creditors for the appointment of inspectors and the giving of directions with reference to the disposal of the estate, by mailing pre-paid and registered to every creditor known to him, a circular calling a meeting of creditors to be held in his office or other convenient place to be named in the notices not later than twelve days after the mailing of such notice, and by advertisement in the Onfari'i Gazfffe ; and all other meetings to l)e held shall be called in like manner. 17. At any meeting of creditors the creditors may vote in person, or by proxy authorized in writing, but no creditor whose vote is disputed shall be entitled to vote until he has filed with the assignee an affidavit in proof of his claim stating the amount and nature thereof. iH. (I.) Subject to the provisions of section ♦>, all (|ues- tions discussed at meetings of creditors shall be decided by the raajoiity of votes, and for such purpose the votes of creditors shall be calculated as follow\s : For every claim of or over $100, and not exceeding $200 I vote. For every claim of or over I1200, and not exceeding $500 2 votes. 135 to i)eii;\lty expiration n by tho y I'or tv\ch on of live or of live ovinu' tho iii'ueo. y hot'oiv a 111 of tho blished or tho ]xiity ate oi' tho nd notico y any one ffh C'ourt, ubliciition ; his order I tho jxiy- discrt'tion )rosaid. or shall not mediately records of Dv's credi- nment to it men t of ice to the istered to leetinu^ of n\t place lays after it in the . shall be ,y vole in > croilitor il ho has his claim all (|Uos- 'cidod by votes of 1 vote. 2 votes. For every claim of or over yaOO, and not exeeoding $1,000, 3 votes. For every additional !j!l,000 or fraction thereof 1 vote. (2.) Ts'o person shall bo entitled to vote on a claim acquired alter tho assignment unless the entire claim is accjuirt'd, but this shall not apply to po-sons acquiring notes, bills or other securities upon which they are liable. (3.) In case of a tie the assignee, or if there are two assignees, then the assignee appointed by the creditors, or by the Judge, if none has been appointed by tho creditors, shall havt^ the casting vote. (4) Every creditor in his proof of claim shall state Avhethor he holds any set-urity for his claim or any part thereof; and if such security is on the estate of tho debtor, or on the estate of a third party for whom such debtor is only secondarily liable, he shall put a spocilied value thereon and the assignee ur.der the authority ot tho creditors may either consent to the right of tho debtor to rank for tho claim after deducting such valuation, or he may require, I'rom the creditor an assignment of tho security at an advance often per cent, upon the specified value to bo paid out of the estate as soon as tho assignee has realized such security ; and in such case the dilfereiico between tho value at which the security is retained and tho amount of the gross claim of the creditor shall bo tho amount for which he shall rank and vote in respect ot the e-tate. (5 ) It a creditor holds a claim based upon negotiable instruments upon which the debtor is only indirectly or 'secondarily liable, and which is not mature or exigible, such creditor shall be considered to hold secuiity within tho meaning of this section, and shall put a value on tho liabil- -•ty of the party primarily liable thereon as being his security for the paymont thereof; but after tho maturity of -uch liability and its non-payment, ho shall be entited to imoiid and revalue his claim 10. (1.) Every iierson claiming to be ontitk'd to rank on Pi-wfof the t'state assigned shall furnish to the assigni^o particulars of his claim proved by alTidavit and such vouchors as the nature of the case admits of. {'I.) A person whoso claim has not accrued due shall nevertheless be entitled to prove under the assignment and vote at meetings of creditors, but in ascertaining tho amount of any such claim a deduction for interest shall bo made lor the time which has to run until tho claim boi^omes due. liO. The law of sot-oU shall apply to all claims made ^"'^ ""• against tho estate, and also to all suits instituted by the assignee for the recovery of debts due to the assignor, in the same manner and to the same extent as if the assignor were plaintilfor defendant, as th*' case may be, except in so far as any <'laim for set-oil shall bo affected by tho provisions of this or any other Act respecting frauds or traudulent pre- ereuces. 136 AfllllHVltS Test in aaaii^Dec. Acnonuts ii bo pn>pai<'i by Hssijiiiir Noretor ; and after the expiry of eight days from the day of mailing such notice, abstract and dividend sheet as aioresaid, dividends on all claims not objected to within that period shall be paid 43 VICT., CHAPTER 10 (ONT). All Act to abolish priority of and uinongst E.xecutioa Creditors. ilBliort title. 'iliis Act was l- shall be no priority between or among creditors by execu- "''•'''•''""^• tion from superior or county courts. Wliero thoie is a fiiiKi in court bclon;.;ing to the dchtor, execution credi- tors obtaining stop orders in re.spect tliereof do not by reason of the stop orders rain any pi'ioiily otlif^r thansucli as thoy had as execution creditors. See Duvvson v. i-otlat II Unt. Kej). 484 (1886) 5, In case a sheriff levies any money upon an execution su. lui, mi,., against the property of a debtor, he shall forthwith enter in noVh^tiu'ivor. a book to })e kept in his office, open to public inspection without charge, a notice stating that such levy has been made, and the amount thereof; and sucli money shall there- after be distributed, ratably, amongst all execution creditors, and other creditors whose writs, or certificates given under this Act, were in the sheriff's hands at the time of such levy, or who shall deliver thtrr writs or certificates to the said sherill within one calendar month from the entry of sU';h notice ; sul)jtct, however, to the provisions hereinafter contained as to the retention of dividends in the case of con- tested claims, and as to the payment of the cjsts ot the cnditor unde'- whose writ the amount was made ; (2.) The said notice shall state the day upon which it was Forino! entered, and may be in Form A, given in the schedule here- """'''"• lo; (3.) In case the sheriff" shall, subsequently to the entry of ,1'J"^;,^'^';.'""^ ' ' such notice, but within the said month, levy any further jiuiisoquont amount Ironi the property of a debtor, the same shall be dealt '^^'' ' wiih as if such amount had been levied prior to the entry of the said notice, but if after such month any further amount is levied a new notice shall be entered ; and the distribution to be made of tln^ amount so levied and of any further amount levied within a month of the (Mitry ot such last mentioned notice, snail be governed l)y the entry of such hist mentiont>(l notice in accordance with ttie f"oregoing pro- visions of this section; and so on from time to time. O. No creditor shall be entitled to share in the distribu- ^^1,""",",^"''^^ tion of money levi*'d out of the property of a debtor unless iiistrii-uiicu. either by the delivery of a writ of execution, or otherwise 138 Trni-icilliiirs whom dcliMir exi'cuMons lo renutin iin- HattBflol. Mljtluvil by '.•roililor. Service mi debtor. Notici! by ilobtor of solicitor on wliom ftiaiiii.s may !)<' scrv'.'il. Sorvlcc on solicitor. under Ihi.s Act. such croditov hits t'>stal)lishf(l a cli>iin ;i<>;iinst such debtor cither alone or jointly with some other person or persons. 7. If a debtor permits an execution issued ay-^iinst him under which any of his cjoods or chiitlels are seized by a sherilf, to remain unsitlislietl in th ' sherilTs h.inds till within two days of the time lixed by the shcM'ilf lor the sale thereof, or ior twenty days alter sueh seizure, or allows an exetiutiou against his Innds to remain unsatislied lor nine numths alter it is placed in the sht'rilFs hands, the lollowinu' proceedings may be taken by other creditors in respect of debts wiiich are overdue, in lieu ot their obtaining judgments and execu- tions against the debtor in the ordinary wny ; (1.) An alUdavit ol the debt and the particulars thereof may be made in duplicate by the creditor, or by one of the creditors in case of a joint debt, or by his or their clerk or some otht^r person on behalf of the creditor or cred tors, and cognizant of the facts ; which alUdavit may be to the ellect ot form H in the schedule to this Act ; prior to or simultaneously with the lirst liling with the clerk of the County Court of an affidavit made under this sub-section, there shall be filed with the said clerk the certilicate of the Sheritf, or an affi- davit, showing that such proceedings have been had against the debtor as entitle the creditor to proceed under this Act ; (2.) The claimant is to serve on the debtor one of the said duplicates, and a notice stating that the claimant intends to lile the other duplicate aiftdavit wath the clerk of the County Court by reason of there being in the ."^herill's hands a writ of execution agiiinst the goods and chattels (or lands) of the debtor, and that the claimant intends to call on the sheriff to levy the said debt of the property of the said debtor under the authority of this Act ; which notice is to contain the other particulars, and may be in the form C, give.i in the schedule to this Act ; the said notice may be either attached to the affidavit served, or endorsed thereon ; where the affidavit is to be seTved out of Ontario the judgo shall limit the time at which the npxt step may be taken by the claimant as hereinafter provided ; (3.) An execution debtor may give notice in writing to the sheriff that any claims to be served upon him may be served upon any solicitor in the Province, whose name and address shall be given, or by mailing the sain.' to an address stated in such notice ; the sheriif shall thereu|)on enter such notice in the said book, and so long as any execution, which was in the sheritl's hands at the time such notice was given shall remain in his hands, shall repeat such entry imme- diately below any '"Notice A" given in respect of such execution, unless puch notice be revoked in writing, in which case the entry or (entries thereof shall be marked '■ revoked" ; (4.) So long as the said notice remain unrevoked as afore- said, any affidavit of claim and accompanying notice under I against r porsoii inst him wd l)y a II within i ihtTl'ol', xecutioii ths after ictH'diugs ts wiiich id oxecu- s thereof no of the clerk or tors, and i eliect ot aneously Court of 1 be filed ►r an afli- d against this Act ; [' the said titends to e County Is a writ s) of the le sheriff or under itain the .1 in the attached lere the ill limit by the iling to 1 may be ame and address iter such n, which as given imme- of such iting, in marked as afore- e under 189 rhis Act. may be serviM upon such solii-itor in accordmce with this Act, where a solicitor is nam»'d, or if mailing is rcijuired, then by mailing the same, enclosed in an envelope, prepaid and registered, to the address given in such notice, and such service shall have the same eilect, and nny he lollowed by the like proceedings as i)er6onal service ; (5) In case the notice "C" served on a (lel)tor do'-s not state pome p]ac(; in or within three miles ol the county town of the county in wliich liie proceedings are being taken, at which service may be made upon the claimant, or does not give the name and address of some solicitor in the ]'rovince who may be served in the claimant's behalf, service of any notice, paper or document requiring service may be made upon the claimant by ni'iiling tlie snne, prepaid and registered, enclosed in an envelope address-d to the claimant at such county town : (6 ) The claimant is to file with the clerk ol the County Court of the county, the sheriff of wliich has the execution, one of the said duplicate affidavits of claim, and a copy ot the said notice, with an ailidavit of due service; which affidavit of service may be in the Form " D"; (7.) The copy of ailidavit and ihe notice shall, where practicable, be personally served upon the debtor; but if it be made apjiear to a judge that the claimant is unable to effect prompt peisonal service, the judge may make such order for substituted or other service, or may appoint some act to be done which shall be deemed sufficient in lieu of service, as may seem Just ; (8.) If the claim is not disputed in manner hereafttT men- tioned, the said County Court clerk — alter ten days from the day of personal service!, or service under sub-section four, or Avithin the time mentioned in the order (as the case may be), on application and the filing with him of proof of personal service upon the di'btor of an affidavit and notice in accord- ance with this Act, or proof of compliance with a judge's order in that behalf, or upon th(> deliMinination ot the dis- pute in favor of the claimant, either in whole or in jxirt — shall deliver to the creditor, or any one on his behalf, a certi- ficate to the effect of I'^orm "E," in the schedule hereto ; and in case the claim is only disputed as to a part, the creditor may elect, by a writing fih-d with the clerk, to abandon such part and obtain a certihcate as to the residue ; (9.) This certificate is to be delivered to the sherilf. and thereby from the time of such delivery the claimant shall be deemed to be an execution creditor within the meaning of this Act, and to be entitled to share with creditors who have in the sheriff's hands executions ag.iinst either lands or iioods whatevt^r money is made under such executions, as if he had delivered to the sherifl an execution against lands or goods, or both, as the case may be, and such certificate is in like manner to bind the lands and goods of the debtor; subject however to the debt being afterwards dispirted as hereinafter provided for ; StTvico on clulinuiil. Am lavitsto 1)() tilt'd with clerk of County Court. Mo.|i' of Orlitioatn to bo given to creilitor or wlirre claim not cllsputcj. KtTcctof certificate. 140 CVrllllciio an UXl-CIIIIOII wllhtii It S.o. O. 51. Atlilrf'SH for 8t!rvl<'t' to III" ciidorHcil on flTtlfirlili'. Oil riMi i|ii of Cf'rllrlcalt; Hhcrlll'di maki liuili.r levy, otaiin. Aflliliivit (if tjcliloi. Kilint; :iii.l horvici i<( uHiilavit. Croditor ilis- putiim >la 111. Timo lor alliduvil. (10 ) A (u>rti(iciitt' undtT this Act shall hf (UmmirhI to ho ;in rxocution within r to tbt> ; and so od alter 1 di'blor, liat pur- le has a las such li^o mav ve upon the per- him of 10 time nal ser- 1 cither idorsed miles leediugs hou the Ice who : hereof, service, re -pa id to the I'or that effect, is not limaiit ; Irms or I, and a before ' 18) In ease of a claim heiny disputed by a creditor after a certificate has l)een placed in the sherill's liands, the shtM-ill", unless tlu' judge otherwise orders, shall proceed and levy as if KUih contestation had not been made, and tin; sherill' shall, until the determination of the contestation, retain in the bank the amount which would be apportionable fo such claim if valid, and he shall, as soon alter the exi)iry of the said month as practicable, distribute the residue of the money made amongst those entitled ; I U*) The claimant whose claim is di,«puted may apply to a judge for an order allowing his claim and determining the the amount ; and in case he does not make such application within eight days of his receiving notice of the contestation (or within such further time, if any, as the judgt^ upon th«> delays being reasonably accounted for may allow), he shall be taken to have abandoned his claim ; if the disputant is a creditor and there is reason to beli«'ve that the contestation is not being carried on in good faith, any other creditor may apply for an order permitting him to intervene in the con- test ; (20.) The judge may determine any questions in dispute in a summary manner, or may direct action or issue, in any court or county, lor the trial thereof, and may make such order as to the costs of the proceedings as may be just ; (21«) When^ there is a dispute as to material facts, and the sum in controversy appears to be over lour hundred dollars, exclusive of costs, the judge shall direct the trial to be in one of the vSuperror Courts, and mav name the county in which the trial is to take ])lace, subject to any order which the Superior Court or a .judge thereof may see lit to make in that behalf In case an issue is directed it shall be tried in all respects as if it had been a suit in tlie court in which it was ordered to be tried ; (22.) The same proceedings may be had for the examina- tion of parties or others, either before or at the trial, as may be taken in an ordinary action, and such proceedings may also be taken prior to the application to the judge, and as a foundation therefor ; ('J3.) A creditor who has recovered a judgment in a Divi- sion Coiirt against the debfor may serve upon the sheriff a memorandum of the amount of his judgment and of the costs to which he is entitled, under the hand of the clerk and the seal of the Division Court; and such memorandum so served shall have the same effect for the purposes of thus Act as if the creditor had delivered to the sheriff a writ of execution directed to the said sheriff from a County Court ; (24.) Where a creditor has taken in one county, the pre- s ribed proceedings in respect of his claim, and desires to establish his claim lor the purposes of this Act in another county also, he may do so by obtaining from the said County Court Clerk another certificate (Form '• E"), and delivering )he same to the sherifl of such other <.'ountv, and the IiNlrlliiilion lp,\ sliorlirin IMS,' iif cmi- ti'slutloii. to cnfordij I'iiilm. Modi' III" (Iclcriiiininct (lui'stlons ill Uispulo. W'liiTu Kiiin ill (ll.sputc \h oviT : m. K.xdininfilion ol' iiiirtic-i. I'ro(V'.!Cfon(l county. 142 "Writ* niav bo Hued out into any county. I)«'clsion in one count> blDtliiiK in othcr!$. Clerk <. I County (V)urt to keep book of relorence. Kfieii .'1 entry. Index to liook of Reference. Copy ^^l entry C'vUlence. Orftntiny tin e to debtor. Vreccdini; Hub-sectioii not to apply in certain cases. delivery of isiu'li certilicatt^ to such shoiiil yhall have tlu' Kame etl'ect lor iho purposes oi' this Act in the county in which the same takes place, irom the day ol such delivery, as if a new notice and alFidavit of claim had been served ior such county and other proceedings had in respect thereof under the previous provisions ot this Act; (■2.\>.) A i-reditor, entitled to a certificate from the County Court Clerk, may, if he chooises, sue out a writ or writs of execution into any county in the same manner as on an ordiiuny judiiuient ; (20.) Jn case a claim is contested in one county, the deci- sion in such county shall, as l)et\veen the parties to it, deter- mine the amount of the claim for the purposes of this Act in all other counties in which the claim is 'iled, and the certi- licate of the clerk ot th'e County Court of the county in which the contest has taken place, of the result thereof, shall be primd Ui-ie proof of such decision. Such certificate shall, upon payment of a fee of iifty cents, be granted to any party to the proceedings who applies therefor ; (27 ) The clerk of tht> County Court shall keep a book in which before granting a certiiicate or issuing an execaition for a claim, he shall enter the lollowii ^ particulars with reference to every claim in respect of whu^h he gives a certi- ficate under this Act ; (a.) The name of every claimant, and of evi^ry debtor; (6 ) The date of entry of judgment ; ((• ) Thi^ amount of debt, exclusive of costs ; {d.) The amount of costs; (e.) If the proceedings have been set aside, this fact, and shortly, th.' reason therefor; (2i ) Such entry shall (subject to the provisions of this Att) be an award of judtrment lor the said debt and costs, and shall have the same eftect as an entry of judgment for non-appearance to a specially endorsed writ The clerk shall index the entries in said book alphabetically under the name of every debtor ; (29.) In case the original papers happen to be lost or des- troyed, a copy of the entry in such book shall be evidence of all matters therein set forth and expressed; (30.) With respect to claims, the judge before or after a certificate is issued by the clerk under this Act, or delivered to the sheriff, may, on the application of the debtor, and notice to a claimant, give to the debtor further time to pay the claim wheie the judge is of opinion that this can be done without injustice to the creditor, or may give to the debtor further time on terms which in the opinion of the judge may be just. '] here may be successive orders for thi^ purpose, but no claim shall be delayed by such orders lor more than three months in all ; (31.) The preceding sub-section is not to apply to credi- tors who have obtained judgment in the ordinary way ; and the orders for time are not to prejudice executions obtained by such credifois on such judgment ; il have till' comity in h delivery, served lor ect theveof the County or writs of r as on an V, tlie deci- to it, deter- this Act in d the certi- county in lereof, shall licate shall, o any party p a book 111 11 execution sulars with ives a cert'- dehlor ; lis I'act, and lions ol" thio t and costs, dement for 'rhe clerk y under the » lost or des- )e evidence re or after a or delivered d'd)tor, and time to pay ;his can be {rive to the nion of the iers for thif h orders for )ly to credi- y vvay ; and tns obtained 143 (32.) In case 1 he d^'btor. wilhoul aiiv S'lle bv (lif slu'iill, i'a.vuuut i,y ])ays the lull auionnt owmir in respect oi the executions and sai.-, claims in the sheriff's hands at the time of such payment, and no other claim has been served on the debtor, or in case all executions and claims in the sheriff's- hands are with- drawn, and any claims served are paid or withdrawn, no notice shall be entered as rcijuircd by the iifth section of this Act, and no further ])roceedings shall be taken under this Act a<^ainst the debtor by virtue of the executions having been in the sherili 's hands ; (33.) Save as aforesoid after a certificate has been filed •"■"c' »f (*xi)irv or with the sherill, the witlidrawal or expiry of the writ or wuhririvwai writs, upon which the pvoceedmus are tbunded, or any stay " ^'^' ''■ upon such writ or writs, or the satisfaction of the plaintiff's claim thereon, or the setting of such writ or writs aside, or the return thereof, shall not atleet the proceedings to be taken under this Act, and (>xci'i)t so far as the action taken in regard to such writ may aliect the amount to be levied, the sheriff shall i>roceed and levy upon the goods or lands of the del)tor, or both, as he would have proceeded had such writ or writs remained in his hands in full force to ))e executed, and may also tiike the like proceedings as he would have been entitled to take had such writ or writs been a writ or writs of 1 ettflilioui ci/mnais ; (34.) "When tlie name or address of a solieit'T is given for «^'';vi<'' "i service and the place of al>ode or oilice of such solicitor is hkoih. not in or within three miles ot the county town where the proceedings are carried on, service may be made upon hira by serving his agent in T oroiUo ; (35.) " If either before or after the rceipt by the sheriff of an Kxecution against the goods or lands of a debtor, a writ of attachuient luider the act n's))ectiMg absconding debtors is placed in the hands of the sheriff before he distributes the Estate of the debtor, the sherill shall realize the Estate of the debtor, as provided by the Absconding Debtors' Act, but the same when so realized shall l)e distributed under the provisions of this Act." Added by 49 V , c. 10, .s- 3tj. Siili-soctiou ;>;") was arl(l<">l to this act in constM^iicnoe of tlio decision in Macfie v. renrson, S (»iit., l!o|i. 7 t") (;SS,"(), wIhtc it whs lu-M tli:it piocepd- iiijjs having been taken umler the Ah-condintr Debtors Act, prior to the slieritl" l)ein.ii ref|Uireil to act under this act, the nionovs rrah/t'd were Bnt)j-ct to the provisions of tlie At(.scondinf; Pebtord Act, and must be distriljutid theivunder. H. The clerk shall ascertain and state in his said certifi- co-sisor cate, the amount of costs to which the claimant is entitled as against the debtor, suefi costs shall be the following; (1.) Kor serving the affidavit of claim, to be allowed upon the superior court scale in the case of claims over four hundred dollars, and on the county court scale in the case of claims exceeding two hundred dollars and not exceeding ibur hundred dollars, or on the division court scale in the case of claims of two hundred dollars and under ; I4i ViiiiU in t'i):irt ■''o 1)C' paid tip >hi'ri(l. SlicritV riiny ohtain ^ooi'ls ill hands 1)1' ailill. J'cnaUy. (2 ) If the ciaim does not exceed two hundred dollars no greater fees are to be allowed for service of the claim and notice and mileage in respect thereof, than wouni be allow- able to the division court bailiff for the service of a division court summons and mileane in respect Ihereol, if the (-laira had been sued in the i)roper division court ; (3 ) The fees paid to the County Court Clerk under this Act are also to be allowed, which fees shall be the same as he is allowed lor like proceedings in the County Court, unless the claim appears to be within the jurisdiction of the Division Court, in which case his fees shall be those allowed for like proceedings in the Division Court ; (4 ) Where there is no contest the sum of five dollars for lees of a solicitor (if employed), unless the amount of the claim is within the jurisdiction of the iJi vision Court, in which case the sum ol two dollars only is to be allowed ; (5.) In case of a contest, such additional costs (if any) as the judge may allow, and which costs shall be taxed accord- ing to the scale of the Superior Courts, County Courts, or Division Courts, according as the amount in dispute is with- in the jurisdiction of one or other of these courts ; (6.) The costs of obtaining an order for substituted service, or other simil ir order and of such service, or the costs of and incidental to service out of the province, in cither case to be taxed by the clerk of the court, and stated i:i his certi- ficate aforesaid ; if the claim is within the jurisdiction of the l-'ivision Court, only such a sum to be allowed for costs as would have been incurred in obtaining a judgment in the Division Court. 8. («.) " Where there is in any court a fund belonging to an execution debtor, or to which he is entitled, the same, or a sulDcient part thereof to meet the claims in the sheriff's hands, may, on the application of the sheriff or any party interested, be paid over the sheriff, and the same shall be deemed to be money levied under execution within the meaning of this Act." Added by ^^d Vict, c. 10, s 87. t>. If the sheriff does not find sufficient property of a debtor leviable under executions and claims in his hands '"■t to pay the same in full, and the sheriff finds any goods anJ chattels in the hands of a bailiff of a Division Court under a writ of execution or attachment against the debtor, the sheriff shall demand and obtain such goods and chattels from the bailiff, who shall forthwith deliver the same to the sheriff, with a copy of every writ of execution in his hands against the debtor, and a memorandum showing the amount to be levied thereunder, including the bailiff's fees so far as proceedings have been taken be him, and showing tae daie upon whicii each writ was received by him. (2 ) In case the bailiff fails to deliver any of such goods, he shall pay a penalty of double the value of the property retained, such double value to be recovered by the sheriff 145 :1 dollars no a claim and i<( be allow- t a division it" the <'laitn ; under this he same as anty Court, ction of the 3se allowed ; dollars for )unt of the I Court, in llowed ; (if any) as xed accord- Courts, or ate is with- 1 led service, the costs of cither case :i his certi- 'tion of the or costs as ent in the longing- to le same, or le sheriff's any parly e shall be ithin the rly of a his hands »'oods and rt under a ibtor, the d chattels me to the his hands e amount s so far as tQc dale ih goods, property le sherilf H Mode of ;i|)p()rti(>ning nioiii'y wlicre ;iiui>iint iiisiifTlciont to • cluims In licvyliii? inlorcsl aiul costs of riinuwins certiflc'iito. from the bailiff with costs of suit, and to be by the sheriff accounted for as part of the estate of the ddbtor ; (3.) The sheriff shall distribute the proceeds of such pro- Distiiinuion. perty amongst the creditors of the debtor under the pro- visions of this Act, and the division court execution creditors shall be entitled, without further proof, to stand in the same position as execution creditors whose writs are in the sheriff's hands. 10. "Where the amount levied by the sheriff is not suffi- cient to pay the execution debts and other claims, with costs, in full, the money shall be applied to the payment ratably of such debts and costs of the creditors, after retain- p'^j ing the sheriff's fees, " and after payment in full of the taxed costs and the costs of the execution to the creditor at whose instance and under whose execution the seizure and levy were made." Added by \%th Vict., c. 16, s 35. This section was am 'mled hy 49th Vict., c. 16. probably in consequence of the decision of the Court of .Vppeal in Porteous v. My^rs, II ( )nt A{)p., Rep. cS5 (1HS5,) in which case it was held that tlie creditor under whose execution an amount, in the hiinds of the sherill' fni- distribution iin-ler this Act, was lovieil, and which was insufficient to pay all claimB in lull was not entitled to piioiity of payment of the costs of obtaining judgment and execution. 11. The sheriff, if so directed by an endorsement upon the certificate, shall, in addition to the amounts named in the certificate, levy interest thereon from the date of the cer- tificate, or the date named in that behalf in the certificate, and also the sura of one dollar and thirty-five cents for every renewal of the certificate ; and where such renewal is made upon the application of a solicitor, he shall levy the sum of one dollar and twenty-five cents for his costs on the renewal. S2. Where money is to be distribute I by a sheriff under 'touJuHr,,, this Act, the sheriff shall not be entitled to poundage as °' upon separate writs or claims, but only upon the net pro- ceeds of the estate distributable by him, and at the same rate as if the whole amount had been payable upon one writ. I J*. Where money is made upon any writ, the same shall .■^[['IJIiv "'iVt''^ be taken for the purposes of the sheriff's return and other- i')i');<';'«iiKi- wise, to l)e made upon all the writs or certificates entitled ••'na'ii'w'its^*' to the benefit thereof, and the sheriff" shall, upon payment i,',!n,'iii'' '" being made to the per.son entitled upon such writ or certili- "^^'■''"'• cate, endorst! thereon a memorandum of the amount so paid, but he shall not, except on the request of the party issuing the writ, or by direction of the court out of which the same issues, or of a judge having the authority of a judge of such court, return the writ until the same has been fully satis- ^"""'"• fied, or unless the same has expired by effluxion of time, in which case the sheiiff shall, notwithstanding such expiry, make a formal return of the amount made thereon ; (2.) A certificate issued under this Act shall remain in Time coiim- force for one year, from the date thereof, and no longer, r.'.m'aia in unless renewed, but such certificate may from time to time ^'^^'^^* 10 146 Compelling jiayiimiil by blieriir. Stdlnncnt to lie kopt in Klioiitfs odico tri ending •Us- bution. bo renewed in the same manner as a writ of lin-i farina, but notwithstanding the expiry of a writ or certilicate prior to the terminntion of the month during which a notice of money having been made is under this Act required to be l)0sted, the said writ and certilicate shall, as to any money levied during such month, be deeraed to be in fall force and efiect ; (3 ) The like proceedings may betaken to compel payment by the sheriff ol any money payable in respect to any execu- tion or other claim as can now be had to compel the return by the sheriff of a writ of execution. 1 "i. The sheriff shall, pending the distribution of moneys levied, keep, in the said book mentioned in section five, in his office, a statement according to form " F " in the schedule hereto, shewing, in respect of any debtor of whose property money has been levied, the following particulars : — (a.) The amounts levied and the dates of levy ; [h.) Each execution, certificate, or order in his hands at the time of entering the notice " A " required by section five, or subsequently received during the month, the amount thereof for debt and costs, and the date of receipt, and such state- ment shall be amended from time to time as an additional amount is levied, or a new execution, certificate or order is received. 15. The sheriff shall at all times answer gratuitously any reasonable question which he may be asked orally in respect to the estate of the debtor by any creditor, or any one acting on behalf of a creditor, and shall facilitate the obtaining by any such creditor or person full information as to the value of the estate in his county, and the probable dividend to be realized therefrom in his county, or any other information in connection with the estate which the creditor may reason- ably desire to obtain. 16. "Where the money levied is insufficient to pay all claims in full, and the time has come for distributing the fevuTl'nsum- money levied, the sheriff may forthwith distribute the same c[i''j«^^'^o "itet as directed by this Act ; or he may ffrst prepare for exami^ nation by the debtor and his creditors a list of the creditors entitled to share in the distribul ion of the amount levied, with the amount due to each for principal, interest and costs; such list to be arranged so as amongst other things to shew the amount going to each creditor under the pro- visions of this Act, and the total amount to be distributed ; and the sheriff' may deliver or send (prepaid and registered^ by post, to each creditor or his solicitor or attorney, a copy of the list, with the several particulars aforesaid ; and in such case the further proceedings may be as follows ; (1 ) If within eight days after all the said copies have been delivered or posted, or within any further time the judge may allow, no objection is made as provided by this Act, the sheriff shall make distribution forthwith agreeably to such list ; ' SlicriirtoKive inl'ormatloii us to estate of debtor. Distribution by slieriir wliore 147 'i farina, but ?ate prior to a notice of luirod to be any money 11 force aud lel payment ' any exetsu- l the return I of moneys ion five, in he schedule se property ands at the tion five, or unt thereof such state- additional or order is tously any '' in respect one acting aining by the value iend to be I formation ay reason- o pay all luting the the same "or exami' creditors nt levied, erest and or things the pro- tributed ; igistered) a copy f , and in >ies have time the i by this greeably (2 ) In case any objection is made as provided by this Acf, the sheriff shall forthwith distribute such an amount of the money made, and to such i)orsons ixiri passu, as may not interfere with the effect of the objection in case the same should be allowed ; {■i.) The sheriff may disregard objections which are frivo- lous or raanii'estly insufficient to interfere with the distri- bution proposed, and distribute as if such objections had not been made ; (4 ) Any person prejudiced by the proposed scheme of distribution, may contest the same in manner following, viz., by giving a notice in writing to the sheriff, stating therein distinctly his objection to the scheme 'or any part thereof) and the grounds of objection, and by, at the same time, delivering to the sheriff an affidavit of previous service of a copy of the notice on the debtor and the creditors interested in resisting the objection, unless the judge shall by order have dispensed with such service, or on affidavit of such service as the judge shall have sanctioned ; (5.) The contesiant shall, within eight days thereafter, apply (upon notice) to the judge for an order adjudicating upon the maiter i)i dispute ; and otherwise the contestation shall be taken to be abandoned. The notice may be in the Ibrm G in the schedule hereto ; (6 ) The judge may determine any questions in dispute in a siimmary manner, or may direct an issue or action for the trial thereof, either by jury or otherwise, and in any court or county, and may make such order as to the costs of the pro- ceedings as may be just. This sub-section is subject to the same provisions as are set forth in the lineteenth sub- section of section seven of this Act ; (7 ) In the event of a claimant under a contestation being held not entitled, or only entitled to part of his claim, the money retained pending the contestation, or the portion as to which the claimant shall have failed, shall be distributed among the execution creditors and other creditors who would have been entitled thereto, as the same would have been distributed had the claim in respect thereof not been made 17. In case several creditors are interested in any contes- directions b: 1 1 11 V Judgotoav by old tation, cither ibr or against the same, the judg'» shall have uimecc^^saiy aiathority to give, and shall give, such directions for saving uluis'.^''" the expense of an unne(;essary number of parties and trials, and ol unnecessary proceedings, as may be just, and he shall direct by whom and in what proportions any costs incurred in the contestation, or any proceedings thereunder, shall be paid ; and whether any and what costs shall be paid out of the money levied. 1>H. The judge mi, , if he sees fit, direct the sheriff to levy Direction by for an amount sufficient to cover a claim which is in dispute, iiu.^Hr'vviiore or part thereof, or in case it appears to the judge that it is p,',Vod.**''"*' improbable that the defendant has other sufficient property, 148 Ucclslons to be l)iiicliiii; on nil <'ri'iliturs. Sheriirto deposit moneys In bank. Attnc.li'.iig ordoi's by slierlllcir creditors. Ynay ordor the sheriff to rotuin in his hands durinj* the con- testation the share which, if the claim is sustained, will be apportionable to it, or may make an order combining the orders above authorized, or such similar order as may be just ; (2 ) An order to levy under this section shall clothe the sherifl with the snme authority as he would possess under writs of execution, duly issued against the debtor, direct- ing the said sht^riffto levy the like amount out of the goods, chattels, lands and tenements of the deblor. 19 The decision of a county court judge or the court of ai>peal under this Act, shall bind all creditors, unless it appears that the decision was obtained by fraud or collusion by the parties to the contestation. -O. In case a sheriff has money in his hands, which, by reason of the provisions of this Act, or othervv'ise, he cannot immediately pay over to the execution creditors, or other claimants under this Act, he shall deposit the money when- ever the same amounts to one hundred dollars, in some in- corporated bank designated for this purpose from time to time by order of the Lieutenant-Governor in Council, or where there is no such bank, then in some incorporated bank in which public momy of the Province is then being deposited : such deposit to be made in the name of the sheriff, not generally, but to a special account in his name as ''Trustee lor the creditors of " (the debtor.) 2f. Where there are in the sheriff^s hands several execu- tions and claims, and there are not, or do not appear to be, sufficient lands or goods, as the case may be, to pay all, with his own fees, he may apply for an order attaching any debt owing to the execution debtor by any person resident in the county of such sheriff, whether such debt is owing by such person alone or jointly wnth any other person, resident or not resident in such county, and to procure such attachment the sheriff may take the same proceedings as a creditor ; and in euch case any w^rit of execution, or other writ in the course of the proceedings, may be directed to him in the same manner as if the attachment were by a creditor ; and what comes to the sheriffs hands in respect of the debts attached, he shall distribute in the same manner as if he had realized the same fro u property seizable by him under execution ; (2.) In case the sheriff does not take such proceedings, any person entitled to distribution may take the same for the common benefit of himself and all other persons entitled to distribution as aforesaid, and the person owing the attached, debt shall pay the same to the sheriff; (3.) Any judgment creditor who attaches a debt shall be deemed to do so far ihe common benefit of himself and all creditors entitled under this Act ; payment of such debt shall be made to the sheriff, who in making distribution shall apportion to such judgment creditor a share pro raid, according to the amount owing upon his judgment, of the 149 iiff the con- ed, will be bining the as may be i clotho the ssess under itor, diroct- f the goods, he court of . unless it •r collusion which, by he cannot rs, or other ney when- n some in- tm time to !!ouncil, or corporated then beiug me of the I his name lie debtor.) ral execu- 3ear to be, T all, with any debt tmt in the ? by such sident or tachment itor ; and it in the the same and what attached, i realized ution ; 'ceedings, ne for the ititled to attached shall be If and all uch debt tribution pro ratd, it, of the whole amount to be distributed under the provisions of this Act, but such share not exceed the amount recovered by such garnishee proceedings unless the judgment creditor has placed a writ in the sherifl''s hands ; (4.) Money garnished and paid into the sheriff's hands shall be deemed to be money levied under execution, within the meaning of this \ct, except that, unless the garnishee proceedings are taken by him, the sheriff shall only be entitled to charge poundage on such moneys at the rate of one and a quarter per cent. (^.) "The provisions of subsections Sand 4 of this section shall also apply, as neirly as may be, to any person who attaches a debt in the Division Court before judgment, and to money so attached." (6.) " In case a garnishee, under an order of the court, pays to the garnishor, or in case a garnishee, without notice that the sheriff is entitled, pays the amount of his indebted- ness into court and the same is paid out to the garnishor, the sheriff may recover from the garnishor the amount received by him." Sub-sections 5 and 6 are added by 48 Vict., c. 15, s. I. 22. If any party to any contestation, matter, or thing Appeal. upon which a judge has made or render(>d any final order or judgment, is dissatisfied with such order or judgment, and the same is in respect to a question involving a s;im greater than one hundred dollars, he may appeal therefrom to the Court of Appeal, subject to the like practice as near as may be, including the giving of security for costs, as may be from time to time in force in respect of appeals from the County Court, unless and until the judges of the said Court of Appeal shall enact rules establishing a different practice under this Act ; and the said judges, or a majority of them, are hereby authorized to frame and enact rules to govern such practice, 2». The provisions of the forty-fffth section of " The ih^tJ^-^pf^'. Administration of Justice Act" shall applv to this Act. ;.aken. Note. — The.-.e provisions apply to the foimsof procet^s and pleadings, evidence, cost«, time and mode of pleading, justification of bail taken by commissionors, duties of officers, &c.. Arc. 24. Affidavits required by this Act may be taken before Affldavit ■^ , , •' , 1 • 1 i -I ■ • , li"W take any commissioner or other person authorized to administer oaths for use in any of the superior courts. 25 A judge for the purpose of giving effect to this Act Powers of and carrying out its provisions shall have all the powers ■'"'^^'^" which a county court or a judge thereof has by law for other purposes ; and any proceedings wrongly taken under this Act may be set aside by the judge, with or without costs as he may think fit, in the same manner as other pro- ceedings wrongly taken in his court. "6. No proceedings under this Act shall be void for any nefectsof defect of form ; and the rules, for amending or otherwise "'""• 150 Scale of fees. Act not to inlei-rero wltli Insolvency Laws. curing irregularities or defects, which may from time to time be iii force in the county courts shall apply to this Act. 27. Besides the fees otherwise authorized to be paid to the clerk of the county court for his own use, the following fees shall be levied on the following proceedings under this Act upon all claims filed, where the amount of the claim exceeds two hundred dollars, and the same shall be payable to the Crown in stamps, subject to the provisions of the Act respecting Law Stamps, and shall form part of the Consoli- dated Revenue Fund of the Province : — On an affidavit of claim, where the amount claimed exceeds $200 but does not exceed $400 |0 75 On CA'^ery such affidavit where the claim exceeds $400 1 50 On every certificate of clerk given under section 7, where the claim exceeds $200 but does not exceed $400 75 On every such certificate where the claim exceeds $400 1 60 On every order made by the judge under section 7, where the claim exceeds $200, but does not ex- ceed $400 50 On every such order where the claim exceeds $400... 1 00 Where the claim is contested, on the proceedings after the order, the same fees as are now payable on like proceed- ings in the Superior Court of law. 28. This Act is not intended to interfere with the Insol- vency Laws which may from time to time be in force in this province, but this Act is intended to be subject to such laws, and subfject as aforesaid to apply to all debtors whether solvent or not. FORM " A." {Section 5, Subs. 2.) Sheriff's Notice. Notice is hereby given that I have, by virtue of certain executions delivered to me against the goods and chattels (o' lands) of C. D., levied and made out of the property of the said C. D., the sum of $ And notice is further gi ven that this notice is first posted in my office on the first day of May, 1880, and that distri- bution of the said money will be made amongst the creditors of the said C. D. entitled to share therein, at the expiration of one month from the said first day of May. F. G. Sheriff. Dated Ist May, 1880. FORM " B." {Section 7, Subs. 1.) Affidavit of Claim. — ^The Creditors' Relief Act, 1880. In the county court of the county of {slate county or united counties in which it is intended proceedings 01 time to this Act. 3e paid to following under this the claim be payable of the Act le Consoli- tned 10 75 MOO I 50 a 7, :eed 75 Beds 1 60 n 7, ; ex- 50 )0... 1 00 dings after ke proceed- 1 the Insol- orce in this ct to such rs whether of certain d chattels )roperty of rst posted hat distri- e creditors expiration Sheriff. LOT, 1880. (statu roceedings skull be taken ) A.B. 161 vs. Claimant, Debtor, CD. I, A B , oi in the county of Merchant (or as the case may be), make oath and say : — 1. I am the above named claimant (or the duly authorized agent of the claimant in this behalf, and have a personal knowledge of the matter hereinafter deposed to ) 2. The above named debtor is justly and truly indebted to me {or to the above named claimant) in the sum of dollars for {here slate shortly the nature and particulars cf the claim as they are required to be staled upon a specially endorsed writ.) Sworn before me at this day of A D. 18 FORM " C." {Section 7, Sub-s. 2.) Notice to he served with Claim. — The Creditors' JIelief Act, 1880. In the county court of the county of A B. CD. vs. Claimant, Debtor. To the above {or within) named debtor. Take notice that the claimant intends to file with the clerk of the county court of {or of the united counties of ) the original affidavit of claim of which a duplicate is served herewith, and that this proceeding is taken by reason of there being in the hands of the sheriff of the said county {or united coun ties) a writ of execution against your goods and chattels {or lands), and that the claimant intends to call on the sheriff to levy the amount of the said debt from your property under the authority of "The Creditors' Relief Act, 1880." And further, take notice that in case you desire to dispute the said claim, or any part thereof, you must, within ten days after the service of this notice upon you, file with the clerk of the said court an affidavit stating that you have a good defence to the said claim on the merits, or that you have such a defence to a specified part of the claim, other- wise such claim will be treated as admitted by you, or may be so treated as to the part not disputed. You are further hereby notified that unless you endorse upon such affidavit filed by you a statement of some place in, or within three miles of the county town of the said county {or united counties) at which service may be made upon you, or the address of some solicitor in the Province of Ontario who may be served on your behalf, service may be 162 made upon you of any notice, paper, or document requiring service, by mailing the same enclosed in an envelope addressed to you at said county town. NoTK : — In case the above notice is endorsei,! upon tiio copy of the uHi- (lavit served, the lioading of the notice niuy bo oniittcid. Where fui'ther time is given by a judge, the notice should bo varied accordingly. FORM "D." (Section 7, suh-s. 0.) Affidavit of Service of Claim.— The Crediiors' Relief Act, 1880. In the County Court of the County of A.B. Claimant. Debtor, in the County of vs. CD. I, G. H , of make oath and say ; — 1. That I did, on the day of personally serve C. D., the above named debtor, with an original affi- davit identical with the annexed affidavit, and that there was at the time the said affidavit was so served, attached to (or endorsed upon) tl^e said affidavit so served a true copy of the notice addressed to the debtor now attached to {or endorsed upon) the said annexed affidavit. Sworn before me at this day of A.D 18 . FORM " E." (Sec'iou 7, sub-as. 8 and 24.) Certificate of Proof of Claim. — The Creditors' Relief Acr, 1880. In the County Court of the County of A.B. Claimant. vs, C D. Debtor I, clerk of the County Court of the County of , do hereby certify that the above named cbiimant did oji the day of lile with me a claim against the above named debtor, for the sum together with an affidavit of personal ser- vice thereof (or as the c/ise maij require) wnOi of the notice required by the Creditor's Relief Act, 1^80, upon the said debtor, and that it thereby appears that such service was made upon the said debtor on the day of And I further certify that the debtor has not disputed the said claim (or, has only disputed the sum of portion of the said claim, or as the case may be), and that the claimant is entitled to the sum of against the said debtor and the further sum of for costs. it requiring u envelope pv of the iilli- iVIiero further ngly. Rs' Relief iraant. btor. .f personally riginal affi- tliat there attached to I true copy ihed to {or Rs' Relief imant. >tor ;y Court of the above tor, for the rsonal ser- the notice I the said jrvice was sputed the d that the against ler sum of 168 FORM " F." (Section 14.) Sheriffs Statement of Executions on hand against C. D. Caii.-ie. I'rocco'Ung. 3 O Si as A. B. vs. C. 1) K (1. v.f U & E U .. K. L. i* C. D. M. X. cf. CD. /'('. Fa. goods. Fi. Fu. lands Qarnlslipo Order. Creditors Cortilleiito.: 100 $ 50J 100 riato of l{(!Cflpt by Hlierlfl. 30 18th Feb., 1880. 30 list March, 1880 •a '> a B o S < 15th May, l&SO. $ MO 300 300 Dati.' of Levy. 1st May, 1880. 3rd Miiy, 1H.S(), nothing made against K. O. 10th May, 1880. FORM "G." (Sec'ion 10, tSub-sectinn 5.) COMESTATION OF ScHEME OF DlSTRlBUTIO V. The Chrditors' Relief Act, 1880. In the County Court o( the County of A. B Claimant. vs CD Debtor. To F. (t. and M. N., claimants of moneys levied by the sheriff of the County of out of the estate of CD. Take notice that I will on the dav of next apply to the judge of the County Court of the County of at his chambers at the court house in the Town of for an order adjudicating upon the right of you the said to rank upon the said moneys for any amount whatever (or as Ike raae ma// be): and further take notice that i will, upon the said application, read the affidavits of E. F. and X. Y. filed with the clerk of the said court. exccji ACC A. Al Al Be C(j Pr; ACT A,. Ac Adm llK \VI \VI Ager Allot Anni Sill Wli Rut Amu AbSI Alii Asg A A A A D Hi INDE X. XdiK. — Tl'r titles oCtlic Acts coiituiicil ill till.-; liook iiic in full ciiiMiiil- in liii' iiiiU'X. iiinl lilt' Acta, exci'iil the IJaiik Act, iiiv indexed diily niidei' their lesjiective titles. ACOESSOaiES— I'AOK. I'AOK. Act i-es|»ectiii(r ll.". Asslgnmentd for boneflt of Creditorri — Con. i;(l Aliettor — in niisdeiiicanor — how piiiiisli- Hl)le 114 III otlencerf |tuiiidhtil)le diimiiiiirily, how linnif Setotf 135 Voles— 8cale of 134 On eliiitns aci|uiicil after assignment 13.") On claims not accrued 1.35 Wages— jii-oviso as to arrangements for piiyiiig' 1^0 Ballot- Voting at annual meeting to be by.... Of sluucliolders to lie by 5 Bankd — Advances by, for building ships 25 Agency t'cos may be charged by 3G A,2 Stock — not to leiidor discount on security of their own 34 No* to deal in their own 34 E.vcept when necessary to realize for adt^uuces 31 Lien on, for overdue debts 34 .Subject to any general Bank Act 43 Trusts, not boiiini t, 2T ;!4 lid vumiur 3.'! et'iirity of 34 ailditioii.il 'y^, li3 mI only liy 42 !ss powers 21, 22 Ill's 2.-) for lu'tiiiil irud aliso- 2.'. iiiilcsii ill 25 ufsillf 25 iiidur exL- ,. 24 iiivd from 32 lie!' 31, 32 lit of debt ;!2 II security 34 34 I'eiilize tor 31 34 t 43 17, 1«, 37 deiiieiiiior 42 'or 35 en by, iis ■•■i^h '.iT, 3') idiiig 31 ilieil in 28 21 1 seetioiif! 14 44 , certain 44 I'ACiE. Banque dn Peiiple, certain sections nppli- cablo to 44 Bank Notes — How and by wliom to lie signed 10 Miiy bf signed Viy machinery '!* Xot to exceeil iiniinpaired capital IS \o. for less than 85.00 to be issued or rc- issned ^^ Penalty if issue exceeds iininiiiaired caiii- tai IS Power to sign, may be deputed !•' lledemption of. '•* Wliere payable lf» BILLS OF EXCHANGE AND PROMIS- SORY NOTES— ACT RESPECTING. W Acceptance — wiiat is an 'J9 IJank otlicer — when he may not act as a notary "^^ Pninages— on bills, &c., payable in Cana- ila or Newfoundland <>!• On bills payalile el.sewliere G9 Dishonor — ■what sufUcii it notice of 09 Holidays — what are in Canada 68 Quebec 08, 09 .Maturity of 08 When last day of grace a legal iioliday 08 Patent right— wiiat must be marked on, if given for 70 When must be so marked 71 Penalty for uttering, if not so marked 71 Protest -what sufticieiit notice of. 09 111 Xew Hrnnswick 70 Protest, what evidence of 70 In XovaScotia 70 nills, ifec, for $40 and upwards may be protested 70 Notary's fees 70 Protest, what evidence of. 70 III Ontario 71 .Vcceidance — general 71 Qualilied 71 Ifipialified where presentment should be made 71 Damages — what reeoverabli' 72 Ivxehange — how rate ascertained 72 Forms — for u, Ad 40 Capital- Amount wliicli must lie sniiserilted before eoninieneiiit;' luisiiuss 2 If any lost, lalls lo lie made 12 Loss of, to lie mentioned in next return.. 12 Profits to l)c applied to make ^i^ooil lo.^s of 12 AVliat funount to lie paid n]i :! Capital Stock— Allotment of ?> May lie inerea.ed .'i How increased 3 Must he taken up williin a certain time. .T Certificate — Treasury liop.rd must jfiant, before commencing business 3 Chairman to liave ensiing vote 5,7 Charters — Certain, eoulinued 2,45 Circulation — Penalty for excessive 18 Pedemption >t' 19 Collateral Setnirity— Hills of biding as. 20, 27, 30 Dominion. &e.. and forei;i'n securities stock, lionds and debentures as .'!.") How may be dealt \\itli :'."( Mortgages as 22 Waiver of rights a.s tu .35 Warehouse receipts .is 20, 27, 30 Collection fees 3(5 Curator — Indemnified for paying instal- ments on shares 9 AVhen not personally liilile as a share- h(dder IT, IH When so liable 17 CREDITORS RELIEF ACT 130 Absconding Hebtors Act, proviso as to.... 148 Agent — Service on solicitor's, Toronto.... 143 Affidavits — Before whom may be sworn... 149 Amounts levied eonsiderod as made on all writs in sheriff's hands 145 Appeals — Procedure in, II. R. <).. e. 40, s. 45, to apply to 145 Attachment of debts due to debtor 144 Baililf, I). (V— Traii-I'er to sheriff of pro- perty belonging to debtor in hands of. 144 Penalty for failing to transfer 144 Certificate— County Court clerk's 1.30 Address for servic;- to be endorsed on... 140 Delivery of, to sheriff 139 Duty of clerk before giving 142 Effect of 1.39 Efl'ect of entry of, by clerk 142 How long to remain in force 140 Renewal of 145. 140 SherifTs duty on rcueiviug 140 141 147 144 Creditors Relief Act — Contiwicil. pace. Certificate — Wnen to be given 139 Who entitled to 1,3!) Contestation — Ky debtor- Affidavit 1(1 be filed 140 Servi<'e on creditor 140 l!y creilitor-- Time for filing affidavit 140 l)istribnti Number of 4 President and vice-president when to be elected by 7 Punishment of, for making false statement in returns 42 Qualification of. 4 Must be natural l)orn or naturalized sub- jects Must continue 4 CJuoruni of 7 Refusing to make certain calls, guilty of misdemeanor 40 Removal and replacing at special general meeting .") Remuneration of. 4 Voting for G, 7 Who shall be 6 Dividends — iJi'clared by directors 12 Liable for overdue debts of owner 34 Notice of 12 Xot to impair capital 12 Capital lost by. to be made u]) liy calls. 12 Penally for excessive 12 Xot to exceed 8 p. c. unless a certain re- serve fund exists 12 May be made |)ayuble in I'niled Kingdom H Dominion notes — Arrangements forsui>ply- ing 18 DOMINION NOTES— Act respecting 50 Agencies for redemption of. ')! .\mount of issue of ."il If exceeded, gold equivalent to excess to be held by Minister of Finance 51 To be held in gold for redemption of .">1 Debentures of Canada to be held for secur- ing redemption of. 51 Definition— "specie" 50 Ifov, signed 51 redeemable 51, 52 Monthly statement as to, to be publlsiied by Minister of Finance 52 To be legal tender 51 Who may issue 51 When redeemable 52 Election — See Directors. Executor — See Administrator. False statements in returns — A misdemeanor , 42 PAOB. FOROERY— Act respecting 123 Attestation to power of attorney, punish- ment for 124 Bank notes 12.") Purcliasing, receiving oi;having forged, making pai)er or engraving plates for forging 125 Exception as to ,)aper for bills of ex- ciiange and promissory notes 12(5 Bills of exchange, punishment for 128 Acce]iling witiioiit authority, punish- ment for 128 Claim for land grunt, punishnu'ut for 124 Cheque— obliterating crossing, i)unish- ment for 128 Foreign bills — engraving or making plates for forging, uttering forged 127 .Mould — i)unishment for making or having moidd for making paper with name of bank, company or jterson carrying on business as bankers or for having such paper 127 Notes — iMigraving, making, having in ])ossession or uttering forged Dominion. Provincial or Hank, pnnisbment for 12t) Engraving a part of or having or using any forged plate or having any pajier on wbicli any part of such note Is Im- jtressed. pmilshment for 120 Power of attorney, punishment for 124 Promissory note, punishment for 128 Promissory note, making without au- thority, punishment for 128 I Receipts, piinishnu'ut for 128 '; Transfer of stock, ]iunishment fur 123 i'ersonating, owner of stock, punish- ment for 124 ' Fraudulent preference, u misdemeanor 41 I FRAUDULENT PREFERENCE TO CRED- 1 rrORS— ACT RESPECTING 12!) Confessions- of judgment, in fraud of ' creditors, void 12!) Qoods — Sale of, on non-payment of debt.... 32 Sale of, notice of 33 Klfect of want of notice 33 Without owners consent must be by ] ]iublic auction 33 ' GOVERNMENT SAVINGS BANKS— ACT RESPECTING 53 I Accounts of, to be laid before Parliament ' yearly, by .Minister of Finance 57 I Agents of, altering entries, embezzling, I &c., pnulshmeut for 57 i Collectors of custmns In N. U. may act I aa 53 Go\ INDEX. I6i PA(!B. 123 ey, punish- I2.f ll>.-) intr forged, ? pliitos for 125 ills of cx- tos I'jt; for l'2,s y, piiiiisli- 12H I'lit for 124 f. i)unish- 128 ciii^ plates 127 ■ or Imviiiir li name of irrying on viiig such 127 avuig ill Dominion. nt for I2ii ; or using any pajier lote is ini- 120 tor 124 '• 128 lioiit aii- 128 128 II' 12.'! , pnnisli- 124 eanor 41 O CRED- 3^ 12!) fraud of 12!) fdelif.... 32 ;!3 33 H lie liy 33 53 57 57 03 Government Savings Bank — Continued. i'AOB. Agents of — Du'iies 53, 54,55 To give seenrity 54 Receive deposits.. 53, 54 Take oath of ofliee 54 Assistant Receivers General, appointment of. 53 Definitions — "agent," ''Minister" 53 Ue]iositor, report to, its eH'ect 55 To give his address, &c 54 AVho may lie a 53, 54 Deposits — Til Isely pretending to own, pnnishnicnl for 58 IIow made and proved 55 Interest on 55 Ca|iitalization of, yearly 5(3 In joint names 5C Receipt of one sufficient 5() In N. B. and N. S. on 1st July, 18G7.... 58 Received from persons wiietlier (juali- lied to contraet or not 54 1, imitation of amount to !5500 54 To lie deposited to eree taken by corporations, except banks Ki Contracts for higher rate, void 83 Penalty for taking higher rate.. 83 Recovery of 8,3 Proviso, as to certain insurance companies 83 In Prince I'ldward Island — Application of sections 29 and iiO 85 Rate.O per cent, maybe recovered in absence of agreement for more 85 ('ertain I'iglits protected 85 LARCENY— ACT RBSPBCTING 115 162 INDEX. Larceny — Act Respecting — Conliniied i-acie. Adviiiici'S Dii tfouils, wiml (U'cinud 119, 120 Ageiil— FrauiUs by 117, 118 Proviso as to 1 18 When deemed intrusted 119 in i)ossessi()n 119 AUorneys— Fitiud.^ by 117, UH liaukcrs — Francis by IIT, 1 IH Proviso as to 118 Di'tinitions of- '• Banker UG '■ Doeuraent of title to goods ' 115 " Document of title to lands" 113 " Having in custody" 117 " Property" 110 " Trustee" 115 " Valuable security" 115 " Writing" 110 Directors— Punishment of, for Fraudulently aiipropriiitiug in-ojieity... Tin ket'iiing fal.-^L' accounts \'lu publishing false statements IJl Wilfully destroying or falsifying books. Til Embezzlement — by otlicers of niiinioi po- rated societies — punishment for liil Evidence — No person exempt from giving. I'.'l Xo person liable to i)roseculion for mat- ters tlisclosed by him in 121 Factors — Frauds liy 117, 118 I'loviso as lo 1 18 When deeuRMl intrusted II!) in possession 119 Owners— Frauds by 122 Punisliment for 122 Partners— Fraud.^ by 123 Piinishnieut for 12IJ Uiceipts — Fraudulent alienation or reten- tion of property covered by 12;! .Making false statement in. a misdemea- nor 123 Itcniedies— othe;-. not alfecled by tins Act 122 Tmslees— Frauds by 120 Prosecution I2(i Cousentof couil to, must be obtaiind if after civil proceeding I2n .Niiiie, without consent of .Vtloiiu'y (ti'Ueral of Province I2i> Warehouse keepers- Frauds by 122 Loans— on the stock of the bank prohibited. 34 Penalty in respect of 35 To directors 4 Meeting's — annual. See Annual meetings, .Votice of, wiiat should contain 5 Special geucriil, liowcallcd 5 Voting at, to be by ballot 5, If uu oi|iiality of votes 5, 7 PAoe, Meetings— i'roxies may vote at 8 Renewal of 7 Who may hold U Mortgages as additional security 22, 23 Notes — Chartered banks only to issue 42 Notices, how to be given 4.'! Officers— appointed by directors 8 Certain, must give security 8 Effect of alteration of duties of, on liability of surety H Giving uiulue preference, guilty of a niis- demeauor 41 -Making fal.-ie statements in returns, guilty ot a misdemeanor 42 President — election of llow removed at special general meeting. 5 How replaced 7 Procedure— Toetfecl forfeiture of stock 10 Sale of lumber, goods, &c., iield in pledge 33 .Sale of stock for debt of owner 34 Profits to be api>lied in making good loss ol capital 12 Promissory notes. See Bills of exchange. Provincial notes, redemption of 53 Proxies— renewal of 7 A\'ho may vote on 5 Quorum ofdireclois 7 Real estat( — For actual occupation 22 If nu)rtgaged to bank nniy be aci|uired absolutely 25 May only be held for 7 years, unless in actual occupation 25 May be sold under power of sale 25 Purchased, if sold under execution 24 Receipts — false statements in, a misde- meanor 31, 123 Reserves — part of, to lie in homiuion notes. 18 Returns — Animal, lobe madi', lo 31st Ueceniber. .. 39 .Monthly, to be made 38 Fo.ni of 45, 40, 47 How atlesteil 38 i'enalty for not nuikiug i>8 Special, UMiy be called for by Minister of Finance 39 RETURNS— ACT RESPECTING, BY PER- SONS RECEIVING MONEY ON DEPOSIT AT INTEREST 81 Sale of goods — on non-payment of debt 32 Notice of 33 Ellect of want of notice d'i INDEX, 168 PAGE, 7 Ij •■!2, 23 ssiiu 42 4:: 8 s L'S of, on 8 of a niis- 41 as. guilty 42 ineotlng. 5 7 10 held ill o.» ■!■ 34 good loss 12 xcliangi.'. 53 7 5 7 __ 22 it'i|iiiic(l 25 liiik'ss in 25 25 iition 2-1 I niisile- 31, 123 luu notes. 18 (■iiiImt. .. 30 38 ...15, 4(), 47 :!8 38 mister of 3'J YPEB- EY ON 81 Idebt 32 33 W PAGE. Sale of groods — Continued. Without owner's eon-sent must be by pub- lic (luetiou 33 Sale of stock for overdue (lel)ts ,34 SAVINGS BANKS, IN ONTARIO AND QUEBEC— ACT RESPECTING 68 Annual meeting 59 Blink notes, not to issue 65 Calls 59,60 On stock generally 59 in ease of insolvency 60 llecovery of, by action 60 Proof in such cases 60 Charities — Charity fund ut Quebec 65 Distribution to 65 Poor fund at .Montreal 66 Charters — (jertain continued 58 Collateral .security — Loans on 63 Accountaliility of bank on sale of. 64 Enforcing payment of loans on by sale.. 04 Proviso as to other retnedies 04 Transfer of, on siilc 04 Definition—" Bank ' 58 Depositor — To give name and address 03 AVho may be a 62, 03 Deposits— Hank may receive and pay in- terest 02 Investment of 03 On call in chartered hanks 03 iJeceivalile from persons ordinarily un- able to contract 0.'! But amount limited to .5500 03 Transmission of. by death or marriage.. 62 Directors— Calls by 59 Election of. 59 Failure to elect, how remedied 59 Liability of. for failing to make calls if bank insolvent 60 Qinilifications of 59 To declare half-yearly dividends 61 When dis(pialified 59 Dividends — To be declared half-yearly 61 Dominion securities — Amount to be held by 63 Election — of directors, when hebl 59 Who may vote at 59 Loans — None on real estate 63 On collateral security 63. 64 Meetings— Notice of .59 Offences— Altering books. &c.. or embe/- xling, punishment for 66 Falsely pretending to own deposits, punishment for 00 Making false statements in accounts, punishment for ()7 Officers of— -Not to vote o'- hold proxies... 59 SavlngB Banks, Sec— Continued. paob. Payments — Certain, made in good faith on certain documents, valid 63 Real estate — May e.M'rcise jiower of sale over 64, 65 May obtain absolute title by release of ecpiity of redemption — foreclosure or purchase of prior mortgage 04 May purchase, if sold by bank under execution 64 No loan on 63 Returns — Annual list of shareholders to laid before Parliament by .Minister of Finance 66 I Form of 07,68 Monthly, to .Minister of Firmnce 66 I Shareholders — Calls on, generally 69 I Liability of, in case of deficiency of I assets 60, 01 ! (Jails in such cases 60 Forfeiture for non-payment of such calls 60 Votes of. 59 Proxies 59 Shares— Joint holders of. to ai>point at- torney in writing 01 Personal property 01 Transfer of. 01 Transmission of. otlierwise than by or- dinary transfer 61 Declaration in foreign country 02 By nnirriage or death 02 Trusts — Not bound to see to 05 Securities— Hank may hold certain, as col- lateral 35 Sale of 35 Shai*es — Amount of, to be declared in Act of incorporation 2 Amount payable on, in 30 days from sub- scription 9 Are personal estate 12 Books of subscription for, may be opened in United Kingdom 8 Calls on 9, 10 Directors when in doubt as to owner of, to api>ly to court lo Notice of application to be given to claimant iq Provisoasto costs 16 Dividends on, may be made payable in United Kingdom g Forfeiture of, for non-payment of calls 10 How and when paid 9 Lien on, for unpaid claims 13 P'or overdue debts 34 List of transfers of, to be made up daily... 13 To be open to shareholders 13 164 INDEX. Shares — Continued. i-aok. No tViic.tional part of, transferiihlc 13 Sale of, on execution 13 How title obtaiiu'd 13 Who to transfer 14 Surrender of certificate of, on transfer.... 13 Transferable at will of holder 13 Transfers of, when valid 12 In case of sale by bank for over due debts 34 Transmission of, otherwise than by trans- fer 14 How proved 14 How authenticated if made out of Canada 14 Ou marriage of female shareholder 15 On death of shareholder 15 Further provision in such case 15 Votes on 5 Shareholders— All calls on, to be paid be- fore voting 7 Liability of, on insolvency 39 ("alls to meet such lial)ility 40 Forfeiture I'or non-jiayment of such calls 41 Who have transferred stock within a month before insolvency 41 List of, to be transmitted yearly to .Minis- ter of Finance 3t» Penalty for omission 3!) May regulate certain matters by by-law... 3. 4 Vote by proxy G Not allowed to inspect books, &c 17 To vote by ballot 5 Ships — Advances for building 25 Statement — False, in returns, ii misde- meanor 42 Stock — Set Capital Stock. Transfer book, closing of 4 Trustee — See Curator. Tnists — Hank not bound to see to 16 Usury — Bank not liable to penalty for 35 Not to render innocent party liable to penalty for .36 Not to render innocent party liable to loss of remedy .36 Provisions as to 35, 36 Vendor, unpaid, has no lien over bank iu certain cases .3.3 Vessel — advances for building 35 Vice-President — election of 7 lliiw removed and replaceil at special general meeting 5 Votes — if a tie, at annual general meeting.. 5 If a tie, chairman to have casting vote 5 Majority of, to determine questions 5 Of joint holders of shares 5 Votes — Continued. i*aob. On shares 5 To be by ballot 5 Warehouseman, when also owner 31, 33 Warehouse receipt— as collateral 8ecurity..26,27 How goods should be described in 28 May be exchanged for bill of lading 31 Transfer of, by agent of owner 28 WINDING-UP— Act respecting 86 Appeals from court or judge 101 Dismissal of, for non-prosecntion 102 Practice in 101 Security on 102 To Supreme Court 102 Application of Act 87 (!or]>orations excepted from 87 -Vpplication of sections 8-96 87 Assets — how distributed 97 When distributed 97 Attachment of debts 102 Hanks — .\i»plication for, must be by cred- tor forfl,000 106 liiquiibitors — number and appointment of. 106 To reserve dividends in respect of outstanding notes 106 Meeting of shareholders and creditors of, must be called by court before granting order for 106 Chairman at, appointment of 106 To report result of votes to court... 106 Votes at 106 Notice to holders of notes 107 Sections 98-104, exclusively, applicable to 106 Commencement of 88 Company — When deemeil insolvent 88 Unable to ])ay ittJ debts 88 Coiitributories — AbscondiufT. nniy be arrested and papers seized 96 Books of company ^r»'ff»(? facie evidence as between 96 Calls ou, when may be made 95 Calls on, not to compel i)aymentof debt before maturity 96 Court niiiy adjust rights of 96 order payment by 95 Inspection of conii)auy"s books by 96 Liability of 95 Liability of shar(!iu)lders as 94 Liability of shareholders after transfer of shares 95 List of, what must show 94 Payment into court by 96 When may vole at meetings 96 i T INDEX. W» PAOB. 5 ■ 5 er 31, 32 1 8ecurity..26,27 in 28 ading 31 ■ 28 86 101 ition 102 101 102 102 87 87 87 97 97 102 lOG 106 106 106 100 lOG 10(! 107 106 88 88 88 96 96 95 9(5 96 95 96 95 94 95 94 96 96 Windiner Up — Continued. pacik. Costs of. 105 Courts — Powers confiMxed on by this Act additional to all other powers of 104 Provincial — auxiliary to each other 104 Orders of, to he deemed judgments 102 How enforced 102 Creditors — Claims of certain privileged 97 Compromising with 97 Contestation of claims of. 99 Duty of, when holding security 98 Inspection of company's books by 9*5 Judgment and execi tion, have no lien ... 99 Proviso as to cost.'? 99 Rank on dividend sheet 99 Rights of, when holding security 98 Set off to apply to claims of 97 Time for sending in claims 97 Voting bj- 91 What claims may be proved 96 AVishes of— how ascertained 90 Definitions — •' Company" 86 •' Contributory" 87 '• Court' 86 "Insurance ('ompany " 86 "Official Gazette".... 87 ■' Trading Company" 86 •• Winding up order" 87 Dividends — Payable to Receiver General if unclaimed for three years lo5 Fraudulent ])rcfercnces — Contriicts by company wliicli obstruct creditors — void 100 AVIien gratuitous contracts made by company void 100 Contracts with consideration, when voidable 100 Debts transferred by company to con- tributory, when cannot be set off... 101 Payments by company when void 101 Securities given by company void 101 Insurance Companies — Life — Claims against, accruing within 30 days after winding up order 109 Claims against, accruing after .SO days. 109 Dejiosits of, with Minister of Finance liow applied 107 1-iceosc — Kxpiry or withdrawal of, ren- ders liable to insolvency 107 Liquidator — Duty of, if policy holder requires re- insiirance 110 To make statement of creditors 109 To file copy of statement of creditors with Superintendent of Insurance 109 Windlnsr-up— Con7 I'roviuff in bankr\iptcy 92 Sale of proiierty ; 92 Suits 01,92 Transfer of shares 90 Provisional, may be appointed by court. 91 Quor.im of 91 Remedies against estate in hands of, how enforced 93 Remuneration of !'l Resignation of 91 Security by 91 Offences — Criminal proceedings against past or present otlicers of company 106 Persons dest oying books of company guilty of a misdemeanor 105 Officers of company — Duty of, if enquiry ordered by court 89 Misapplying funds 103 Punishment of, if information refused by H9 Order for — Actions may be restrained after applica- tion for 89 Wlndlngr-up— Cont»n««rf. paok. Order for— Ktfect of, ou actions commenced after... 90 On business r)f company 90 On company 90 On executions 90 How obtained H8 Power of court on a]iplication for 89 I'roceedings, may be stayed by court 90 Procedure — Affidavits, before whom may be sworn.. 104 Amendment of pleadings 104 Attachment of debts 102 Order of one court enforccal)le by ano- ther 104 Orders of court to be deemed judgments 102 Pleadiu'jTS — amendment of. . ... 104 Not void for irregularity 104 Powers — of judge 102 Of master. Ac, in Ontario 102 Present, to apply until altered 105 Rules may be made by judges 105 Seals — judicial notice to be taken of..... 104 Witnesses, attendance of, lu)W secured.. 102 K.vamination to be on oath 103 [.lien of. on papers 103 Penalty for refusing to attend 103 Liable for contempt for refusing to answer 103 Trustees, may be ordered to pay over balance and deliver up books of com- pany 95 r PAOK. L'od after... 90 90 90 90 88 I for 89 court 90 l)f sworn.. 104 104 102 k' liy iiiio- 104 iiiilguionts lO'J 104 104 102 102 I 10,5 103 ikcii of..... 104 • seciirc'il.. 102 103 103 1(1 10.3 fusing to 103 pay over ;s of coin- 95 I \