IN THE SUPREME COURT OF NOVA SCOTIA
IN BANKRUPTCY AND INSOLVENCY
Citation: Zinck (Re), 2012 NSSC 114
Date: March 21, 2012
Docket: B 35658
Registry: Halifax
District of Nova Scotia
Division No. 01 - Halifax
Court No. 35658
Estate No. 51-1444762
In the Matter of the Bankruptcy of Toby Marlon Zinck
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LIBRARY HEADING
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Registrar: Richard W. Cregan, Q.C.
Heard: November 29, 2011
Written Decision: March 21, 2012
Subject: The Applicant held security on the bankrupt’s fishing licenses. The Trustee found a buyer for the licenses. It completed the sale and remitted to the Applicant the amount of its secured claim less the Superintendent’s levy required by Section 147 of the Bankruptcy and Insolvency Act.
Issue: The Applicant objected to the levy being retained. Section 147 clearly states that the levy must be paid on all payments made by a trustee “by way of dividend or otherwise”. The jurisprudence has clearly established that this requirement applies to secured creditors. The Superintendent’s Directive No. 10 confirms the requirement that the levy must be imposed on payments to secured creditors, unless either of two exceptions apply, namely where the trustee has acted as an agent, receiver or mandatory for the secured creditor in effecting the sale of the collateral or the trustee has redeemed the security.
Result: As the Trustee had not acted within the scope of these exceptions, the retention of the levy was confirmed.
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