C-43 - Guarantee Companies Act

Repealed on 19 June 1988

This document has official status.

chapter C-43

Guarantee Companies Act

Repealed, 1988, c. 27, s. 1.

1988, c. 27, s. 1.

1. Whenever any person is obliged by law, or by a judgment or order, to make a deposit to pay costs or to furnish security before the courts, he may, in place of making such deposit or furnishing the surety or sureties required, furnish security by an incorporated surety or guarantee company which has an office in Québec, and which is specially authorized by the Government to become a judicial surety.

R. S. 1964, c. 288, s. 1.

2. The surety may be contested:

(1)  If the company does not come within the conditions set forth by section 1, or if the formalities prescribed by sections 8 and 9 have not been complied with;

(2)  If it be insufficient.

R. S. 1964, c. 288, s. 2.

3. The solvency of the company shall be estimated only with regard to its property in Canada.

R. S. 1964, c. 288, s. 3.

4. The company may sign the bond through one or more of its officers, authorized for that purpose by a resolution of the board of directors, a copy whereof shall be annexed to the bond.

R. S. 1964, c. 288, s. 4.

5. In all other respects, the bonds given by surety or guarantee companies before the court, as well as their reception, shall be subject to the ordinary rules governing judicial securities.

R. S. 1964, c. 288, s. 6.

6. The Government may grant the authorization mentioned in section 1, if the company:

(1)  Deposits in the office of the Inspector General of Financial Institutions a duly certified copy of its charter, articles of association or other act by which it was incorporated;

(2)  Establishes that it is incorporated in Québec with power to become judicial surety, or that it is empowered to grant security bonds and is licensed by competent authority to carry on the business of surety or guarantee insurance in Québec;

(3)  Deposits in the office of the Inspector General of Financial Institutions, if its head office be outside Québec, a power of attorney constituting an agent in Québec to receive services in all suits and proceedings taken against the company, and declaring where its office in Québec is established;

(4)  Establishes its solvency to the satisfaction of the Government.

R. S. 1964, c. 288, s. 7; 1966-67, c. 72, s. 23; 1975, c. 76, s. 11; 1981, c. 9, s. 24; 1982, c. 52, s. 160.

7. The Government shall not grant the authorization applied for until the company has deposited the sum of money required by sections 224 and following of the Act respecting insurance (chapter A-32).

R. S. 1964, c. 288, s. 8; 1966-67, c. 72, s. 23; 1974, c. 70, s. 473; 1975, c. 76, s. 11; 1981, c. 9, s. 24; 1982, c. 52, s. 161.

8. Notice that the authorization has been granted shall be published in the Gazette officielle du Québec, and, from the date of such publication, the company may become surety before the courts without being obliged to produce a copy of such notice in the case in which it gives the security.

R. S. 1964, c. 288, s. 9.

9. If a foreign company changes its office or its agent in Québec, it shall transmit to the Inspector General a notice of such change and a copy of the power of attorney appointing another agent; and notice thereof shall be given in the Gazette officielle du Québec.

R. S. 1964, c. 288, s. 10; 1966-67, c. 72, s. 23; 1975, c. 76, s. 11; 1981, c. 9, s. 24; 1982, c. 52, s. 162.

10. The Government, may, at any time, for reasons which it deems sufficient, summarily cancel the authorization granted under this act.

Notice of such revocation shall be published in the Gazette officielle du Québec, and, from and after the publication of the notice, the company shall no longer become a judicial surety.

R. S. 1964, c. 288, s. 11.

11. (This section ceased to have effect on 17 April 1987).

1982, c. 21, s. 1; U. K., 1982, c. 11, Sch. B, Part I, s. 33.

REPEAL SCHEDULE

In accordance with section 17 of the Act respecting the consolidation of the statutes (chapter R-3), chapter 288 of the Revised Statutes, 1964, in force on 31 December 1977, is repealed, except section 5, effective from the coming into force of chapter C-43 of the Revised Statutes.