C-53 - Act respecting bills of lading, receipts and transfers of property in stock

Section 27 Disposition versions

1988-12-12

27. The transferor must indicate to the transferee in the writing evidencing the transfer any claim of an unpaid vendor affecting the transferred property, and any claim so indicated takes precedence over the rights of the transferee.

Subject to section 26, the rights of the transferee take precedence over all rights granted over the property by the transferor subsequently to the transfer, and they follow the property into whatever hands it may pass.

However, in the event of the bankruptcy of the transferor pursuant to the Bankruptcy Act (Revised Statutes of Canada, 1985, chapter B-3), his employees’ claims for wages, salary or other remuneration owed them for a period of not over three months immediately preceding the bankruptcy take precedence over the rights of the transferee. The same rule applies to any claim of a farmer or a farm producer held against the transferor under the conditions and for the purposes and the amount provided for in paragraph b of subsection 7 of section 178 of the Bank Act (Revised Statutes of Canada, 1985, chapter B-1).

1982, c. 55, s. 2.

1984-07-03

27. The transferor must indicate to the transferee in the writing evidencing the transfer any claim of an unpaid vendor affecting the transferred property, and any claim so indicated takes precedence over the rights of the transferee.

Subject to section 26, the rights of the transferee take precedence over all rights granted over the property by the transferor subsequently to the transfer, and they follow the property into whatever hands it may pass.

However, in the event of the bankruptcy of the transferor pursuant to the Bankruptcy Act (Revised Statutes of Canada, 1970, chapter B-3), his employees’ claims for wages, salary or other remuneration owed them for a period of not over three months immediately preceding the bankruptcy take precedence over the rights of the transferee. The same rule applies to any claim of a farmer or a farm producer held against the transferor under the conditions and for the purposes and the amount provided for in subparagraph b of paragraph 6 of section 178 of the Act respecting banks and banking (Statutes of Canada, 1980-81-82, chapter 40).

1982, c. 55, s. 2.