Assignments and Preferences Act

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Published: 2016-01-05

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Assignments and Preferences Act

amended 1995-96, c. 13, s. 77size>

An Act Respecting Assignments of
and Preferences by Insolvent Persons

Short title
1 This Act may be cited as the Assignments and Preferences Act. R.S., c. 25, s. 1.

2 In this Act,

(a) "insolvent person" means any person who is in insolventcircumstances, or is unable to pay his debts in full, or knowshimself to be about to become insolvent;

(b) "judge" means a judge of the Supreme Court or a judge ofthe county court for the county in which an assignment under thisAct is registered;

(c) "property" means goods, chattels or effects, bills, notes, orsecurities, shares, dividends, premiums or bonus in any bank,company or corporation, and every other description of property,real and personal;

(d) "transfer" includes gift, conveyance, assignment, deliveryover or payment of property. R.S., c. 25, s. 2.


Void confession of judgment
3 If any insolvent person, voluntarily or by collusion with a creditoror creditors, gives a confession of judgment, cognovit actionem orwarrant of attorney to confess judgment with intent in giving the same to

(a) defeat or delay his creditors wholly or in part; or

(b) thereby give one or more of his creditors a preference overhis other creditors, or over any one or more of such creditors,

every such confession, cognovit actionem or warrant of attorney toconfess judgment shall be deemed and taken to be null and void asagainst the creditors of the person giving the same, and shall be invalidand ineffectual to support any judgment or writ of execution. R.S., c. 25,s. 3.

Void property transfer
4 (1) Every transfer of property made by an insolvent person

(a) with intent to defeat, hinder, delay or prejudice his creditors,or any one or more of them; or

(b) to or for a creditor with intent to give such creditor an unjustpreference over other creditors of such insolvent person, or overany one or more of such creditors,

shall as against the creditor or creditors injured, delayed, prejudiced orpostponed, be utterly void.

(2) If any transfer to or for a creditor has the effect of giving suchcreditor a preference over the other creditors of such insolvent person,or over any one or more of them, the transfer shall

(a) in and with respect to any action or proceeding which isbrought, had or taken to impeach or set aside such transfer withinsixty days after the giving of the same; or

(b) if such insolvent person makes an assignment for the benefitof his creditors within sixty days from the giving of such transfer,

be presumed to have been made with intent to give such creditor anunjust preference as aforesaid, and to be an unjust preference, whethersuch transfer was made voluntarily or under pressure.

(3) Where the word "creditor" in this Section indicates the creditor towhom a preference is given over the other creditors of the insolventperson such word shall be deemed to include any surety, and the indorserof any promissory note or bill of exchange, who would upon payment byhim of the debt, promissory note or bill of exchange, in respect to whichsuch suretyship was entered into or such indorsement given, become acreditor of the person giving the preference within the meaning of thisSection. R.S., c. 25, s. 4.


Section 4 does not apply
5 Nothing in Section 4 shall apply to

(a) any assignment made to an official assignee for the countyin which the debtor resides or carries on business for the purposeof paying rateably and proportionately, and without preference orpriority, all the creditors of the debtor their just debts;

(b) any bona fide sale or payment made in the ordinary courseof trade or calling to innocent purchasers or parties;

(c) any payment of money to a creditor; or

(d) to any bona fide gift, conveyance, assignment, transfer ordelivery over of any property which is made in consideration ofany present actual bona fide payment in money, or by way ofsecurity for any present actual bona fide advance of money, orwhich is made in consideration of any present actual bona fide saleor delivery of property; provided that the money paid, or theproperty sold or delivered, bears a fair and reasonable relativevalue to the consideration therefor. R.S., c. 25, s. 5.

Void assignment
6 Every assignment for the general benefit of creditors not made tothe official assignee shall be void. R.S., c. 25, s. 6.

Invalid sale
7 In case of a valid sale of goods, securities or property, andpayment or transfer of the consideration or part thereof, by the purchaserto a creditor of the vendor under circumstances which would render voidsuch a payment or transfer, by the debtor personally and directly, thepayment or transfer even though valid as respects the purchaser, shall bevoid as respects the creditor to whom the same is made. R.S., c. 25, s. 7.

Return of void payment
8 If a payment has been made which is void under this Act, and anyvaluable security was given up in consideration of such payment, thecreditor shall be entitled to have the security restored, or its value madegood to him before, or as a condition of, the return of the payment. R.S., c. 25, s. 8.

9 Nothing in the preceding provisions shall affect

(a) any payment of money to a creditor, where such creditor, byreason or on account of such payment, has lost or been deprivedof, or has in good faith given up, any valid security which he heldfor the payment of the debt so paid, unless the value of the securityis restored to the creditor; or

(b) any substitution in good faith of one security for another forthe same debt as far as the debtors estate is not thereby lessenedin value to the other creditors. R.S., c. 25, s. 9.


Valid assignment
10 Every assignment made under this Act for the general benefit ofcreditors shall be valid and sufficient if it is made to an official assigneeand is in the words following, that is to say - "all my personal propertywhich may be seized and sold under execution, and all my real property,credits and effects" - or if it is in words to like effect, and an assignmentso expressed shall vest in the assignee all the real and personal property,rights, credits and effects, whether vested or contingent, belonging at thetime of the assignment to the assignor, except such as are by law exemptfrom seizure or sale under execution; subject, however, as regards landto the Registry Act. R.S., c. 25, s. 10.

Mistake or defect
11 No advantage shall be taken or gained by any creditor of anymistake, defect or imperfection in any assignment under this Act for thegeneral benefit of creditors if the same can be amended or corrected, andif there is any mistake, defect or imperfection therein, the same shall beamended by a judge on any application of the assignee, or of any creditorof the assignor, on such notice being given to other parties concerned asthe judge thinks reasonable, and the amendment, when made, shall haverelation back to the date of such assignment. R.S., c. 25, s. 11.


Publication of assignment
12 A notice of any assignment made for the general benefit ofcreditors under this Act shall, as soon as conveniently may be after theexecution thereof, be published at least twice in the Royal Gazette, andnot less than twice in one newspaper at least having a general circulationin the county in which the property assigned is situated. R.S., c. 25, s. 12.

Registration of notice of claim
13 A notice of claim in relation to an assignment for the generalbenefit of creditors shall be registered in the Personal Property Registrypursuant to Section 2A of the Creditors Relief Act. 1995-96, c. 13, s. 77.

14 repealed 1995-96, c. 13, s. 77.

Order for publication or registration
15 If the assignment is not registered and notice thereof published, anapplication may be made by anyone interested in the assignment to ajudge to compel the publication and registration thereof, and the judgeshall make an order in that behalf, with or without costs, or uponpayment of costs by such person as in his discretion he directs to pay thesame. R.S., c. 25, s. 15.

Omission or irregularity
16 The omission to publish or register as aforesaid, or any irregularityin the publication or registration, shall not invalidate the assignment. R.S., c. 25, s. 16.


Removal of property and deposit of sale proceeds
17 (1) No property or assets of an estate assigned under this Actshall be removed out of the Province without the order of a judge.

(2) The proceeds of the sales of such estate and any part thereof, andall money received on account thereof shall be deposited by the assigneein an incorporated bank within the Province, and shall not be withdrawnor removed therefrom without the order of a judge, except in payment ofdividends and charges incidental to the winding up of the estate.

(3) Any assignee or other person acting in his stead or on his behalf,who violates this Section, shall be liable to a penalty of four hundreddollars, and one half of the penalty shall go to the person suing therefor,and the other half shall belong to the estate of the assignor, and in defaultof payment of the penalty and all costs which are incurred in any actionor proceedings for the recovery thereof, such assignee or other personmay be imprisoned for any period not exceeding thirty days, and shall beliable to forfeit his office of official assignee. R.S., c. 25, s. 17.


Substitution or addition of assignee
18 (1) A majority in number and value of the creditors who haveproved claims to the amount of one hundred dollars or upwards, may attheir discretion substitute for the official assignee a person residing in thecounty in which the debtor resided or carried on business at the time ofthe assignment.

(2) An assignee may also be removed and another assignee may besubstituted, or an additional assignee may be appointed by a judge. R.S.,c. 25, s. 18.

Vesting in new assignee
19 Where a new assignee is appointed the estate shall forthwith vestin him without a conveyance or transfer, and he shall register an affidavitof his appointment in the registry of deeds for the registration district inwhich the original assignment was filed, and the registration of suchaffidavit shall have the same effect as the execution and registration of aconveyance from the original assignee. R.S., c. 25, s. 19.


Right to sue
20 (1) Except as in this Section is otherwise provided, the assigneeshall have the exclusive right of suing for the rescission of agreements,deeds and instruments or other transactions made or entered into in fraudof creditors, or made or entered into in violation of this Act.

(2) If at any time any creditor desires to cause any proceedings to betaken which, in his opinion, would be for the benefit of the estate, andthe assignee under the authority of the creditors refuses or neglects totake such proceeding, after being duly required so to do, the creditorsshall have the right to obtain an order of a judge authorizing him to takethe proceeding in the name of the assignee, but at his own expense andrisk, upon such terms and conditions as to indemnity to the assignee, asthe judge prescribes; and thereupon any benefit derived from theproceeding shall belong exclusively to the creditor instituting the samefor his benefit; provided that if, before such order is granted, theassignee signifies to the judge his readiness to institute such proceedingfor the benefit of the creditors, the order shall prescribe the time withinwhich he shall do so, and in that case the advantage derived from theproceeding, if instituted within such time, shall appertain to the estate.

(3) After an assignment under this Act has been made the assigneeshall have the right to be substituted for any party who has commencedproceedings under this Act for the rescission of agreements, deeds andinstruments or other transactions made and entered into in fraud ofcreditors or in violation of this Act, upon such terms as the court or ajudge orders. R.S., c. 25, s. 20.

Recovery of sale proceeds
21 (1) In the case of a transfer of any property which in law isinvalid against creditors, if the person to whom the transfer was made hassold or disposed of, realized or collected, the property or any partthereof, the money or other proceeds may be seized or recovered in anyaction by a person who would be entitled to seize and recover the property if it had remained in the possession or control of the debtor or of theperson to whom the transfer was made, and such right to seize andrecover shall belong, not only to an assignee for the general benefit of thecreditors of the debtor, but in case there is no such assignment, shallexist in favour of all creditors of such debtor.

(2) Where there has been no assignment for the benefit of creditors,and the proceeds are of a character to be seizable under execution, theymay be seized under the execution of any creditor, and shall bedistributable amongst the creditors under the Creditors Relief Act orotherwise.

(3) Where there has been no assignment for the benefit of creditors,and whether the proceeds realized as aforesaid are or are not of acharacter to be seized under execution, an action may be brought thereforby a creditor, whether an execution creditor or not, on behalf of himselfand all other creditors, or such other proceedings may be taken as maybe necessary to render the proceeds available for the general benefit ofthe creditors.

(4) This Section shall not apply as against innocent purchasers of theproperty. R.S., c. 25, s. 21.


Priority of payment
22 Whenever an assignment is made of any real or personal propertyfor the general benefit of creditors under this Act, the assignee shall payin priority to the claims of the ordinary or general creditors of the personmaking the same, the wages or salaries of all persons in the employmentof such person at the time of making the assignment or within one monthbefore the making thereof, not exceeding three months wages or salaryand such persons shall be entitled to rank as ordinary or general creditorsfor the residue, if any, of their claims. R.S., c. 25, s. 22.


Creditors meeting called by assignee
23 It shall be the duty of the assignee immediately upon the executionof the assignment to inform himself, by reference to the assignor and hisrecords of account, of the names and residences of the assignorscreditors, and within five days from the date of assignment to convene ameeting of the creditors for the giving of directions with reference to thedisposal of the estate, by mailing prepaid and registered to every creditorknown to him a circular calling a meeting of creditors to be held at aconvenient place to be named in the notice, not later than twelve daysafter the mailing of such notice, and by advertisement in the RoyalGazette; and all other meetings to be held shall be called in like manner. R.S., c. 25, s. 23.

Direction as to disposal of estate
24 If a sufficient number of creditors do not attend such meeting, orfail to give directions with reference to the disposal of the estate, thedisposal of the same shall be in the discretion of the assignee. R.S., c. 25,s. 24.

Creditors request for meeting
25 (1) If a request in writing, signed by a majority of the creditorshaving claims duly proved of one hundred dollars and upwards,computed in the manner hereinafter directed, is made upon the assignee,he shall within two days after receiving such request call a meeting of thecreditors at a time not later than twelve days after the receipt by him ofsuch request.

(2) If the assignee fails to call such meeting when so requested, heshall be liable to a penalty of twenty-five dollars for every day after theexpiration of the time limited for the calling of the meeting until themeeting is called. R.S., c. 25, s. 25.


26 At any meeting of creditors any creditor may vote in person, or byproxy authorized in writing, but no creditor whose vote is disputed shallbe entitled to vote until he has filed with the assignee an affidavit in proofof his claim, stating the nature and amount thereof. R.S., c. 25, s. 26.

Voting tally and entitlement to vote
27 (1) Except for the purpose of making a change of assignee allquestions discussed at meetings of creditors shall be decided by themajority of votes, and for such purpose the votes of creditors shall becalculated as follows:

(a) for every claim of or over $100, and not exceeding $200,one vote;

(b) for every claim of or over $200, and not exceeding $500,two votes;

(c) for every claim of or over $500, and not exceeding $1,000,three votes;

(d) for every additional $1,000, or fraction thereof, one vote.

(2) No person shall be entitled to vote on a claim which he hasacquired after the assignment unless the entire claim is acquired, but thisshall not apply to persons acquiring notes, bills or other securities uponwhich they are liable.

(3) In case of a tie, the assignee, or if there are two assignees, then theassignee appointed by the creditors, or by the judge, if none has beenappointed by the creditors, shall have a casting vote. R.S., c. 25, s. 27.


If individual and partnership debts
28 If any assignor executing an assignment under this Act for thegeneral benefit of his creditors owes debts both individually and as amember of a partnership, or as a member of two different partnerships,the claims shall rank first upon the estate by which the debts theyrepresent were contracted, and shall only rank upon the other after all thecreditors of that other have been paid in full. R.S., c. 25, s. 28.

Secured claim
29 (1) Every creditor in his proof of claim shall state whether heholds any security for his claim or any part thereof.

(2) If such security is on the estate of the debtor, or on the estate of athird party for whom such debtor is only secondarily liable, he shall puta specified value thereon, and the assignee under the authority of thecreditors may either consent to the right of the creditor to rank for theclaim after deducting such valuation, or he may require from the creditoran assignment of the security at an advance of ten per cent upon thespecified value, to be paid out of the estate as soon as the assignee hasrealized such security.

(3) In such case the difference between the value at which the securityis retained and the amount of the gross claim of the creditor shall be theamount for which he shall rank and vote in respect to the estate. R.S.,c. 25, s. 29.

Claim based on negotiable instrument
30 (1) If a creditor holds a claim based upon a negotiableinstrument, upon which the insolvent is only secondarily liable and whichhas not matured at the time of proving the claim, such creditor in hisproof of claim shall set a value upon the liability of the person primarilyliable thereon, and the difference between such value and the amount ofthe claim shall, until the instrument matures, be the amount at which theclaim shall be calculated for the purpose of voting at meetings and otherpurposes, except the payment of dividends thereon, or collocation in thedividend sheets.

(2) After the maturity of such instrument, the claim shall be calculatedfor all purposes at the full amount, less any sum paid on account thereofby the person primarily liable on such negotiable instrument. R.S., c. 25,s. 30.

Failure to value security
31 (1) In case a person claiming to be entitled to rank on the estateassigned holds security for his claim or any part thereof, of such a naturethat he is required by this Act to value the same, and he fails to valuesuch security, a judge may, upon summary application by the assignee orby any other person interested in the debtors estate, of which applicationten days notice shall be given to such claimant, order that unless aspecified value shall be placed on such security, and notified in writingto the assignee within a time to be limited by the order, such claimantshall, in respect of the claim, or the part thereof for which the securityis held, in case the security is held for part only of the claim, be whollybarred of any right to share in the proceeds of such estate.

(2) If a specified value is not placed on such security and notified inwriting to the assignee according to the exigency of the order, or withinsuch further time as the judge may by subsequent order allow, the claim,or the part, as the case may be, shall be wholly barred as against suchestate, but without prejudice to the liability of the debtor therefor. R.S.,c. 25, s. 31.

32 The law of set-off shall apply to all claims made against the estate,and also to all actions instituted by the assignee, for the recovery of debtsdue to the assignor, in the same manner and to the same extent as if theassignor were plaintiff or defendant, as the case may be, except in so faras any claim is affected by this Act or any other enactment respectingfrauds or unjust preferences. R.S., c. 25, s. 32.

Proof of claim
33 (1) Every person claiming to be entitled to rank on the estateassigned shall furnish to the assignee particulars of his claim, proved byaffidavit, and such vouchers as the nature of the case admits of.

(2) If any person claiming to be entitled to rank on the estate assigneddoes not within a reasonable time after receiving notice of theassignment, and of the name and address of the assignee, furnish to theassignee particulars and proofs of his claim as provided by this Act, theassignee may issue a final notice by registered letter mailed to suchperson requiring him within a time stated in the notice to furnish suchparticulars and proofs of his claim on penalty of being debarred fromparticipation in the proceeds of the estate, and if the particulars andproofs of the claim are not furnished within the time stated in suchnotice, the same shall be wholly barred and the assignee shall be atliberty to distribute the proceeds of the estate as if no such claim existed,but without prejudice to the liability of the debtor therefor.

(3) The time stated in such notice shall in the case of creditors residentwithin the Province be not less than thirty days and of those residentwithout the Province not less than sixty days. R.S., c. 25, s. 33.

Claim not accrued due
34 A person whose claim has not accrued due shall nevertheless beentitled to prove under the assignment and vote at meetings of creditors,but in ascertaining the amount of any such claim a deduction for interestshall be made for the time which has to run until the claim becomes due. R.S., c. 25, s. 34.


Contestation of claim
35 (1) At any time after the assignee receives from any personclaiming to be entitled to rank on the estate proof of his claim, notice ofcontestation of the claim may, at the request of any creditor, be servedby the assignee upon the claimant, and thirty days after the receipt of thenotice, or such further time as a judge on application allows,

(a) an action shall be brought by the claimant against theassignee to establish the claim; and

(b) a copy of the originating notice in the action served on theassignee,

and in default of such action being brought and the originating noticeserved within the time aforesaid, the claim to rank on the estate shall beforever barred.

(2) The notice by the assignee shall contain the name and place ofbusiness of one of the solicitors of the Supreme Court, upon whomservice of the originating notice may be made, and service upon suchsolicitor shall be deemed sufficient service of the originating notice.

(3) In any case where the assignee is unable to obtain personal serviceof the notice upon the claimant, the service of the same or of notice inlieu of service may be effected upon such other person or in such othermanner as a judge on the application of the assignee directs. R.S., c. 25,s. 35.


Accounts of assignee
36 Upon the expiration of one month from the first meeting ofcreditors, or as soon as may be after the expiration of such period, butnot more than three months thereafter, and afterwards from time to timeat intervals of not more than three months, the assignee shall prepare andkeep constantly accessible to the creditors, accounts and statements of hisdoings as assignee, and of the position of the estate. R.S., c. 25, s. 36.

Payment of dividend
37 As large a dividend as can with safety be paid shall be paid byevery assignee under this Act within twelve months from the date of anyassignment made thereunder, and earlier if required by vote of thecreditors, and thereafter a further dividend shall be paid every sixmonths, and more frequently if required by the creditors, until the estateis wound up and disposed of. R.S., c. 25, s. 37.

Notice and payment to creditor
38 So soon as a dividend sheet is prepared, notice thereof shall begiven by letter mailed, postage prepaid, to each creditor, enclosing anabstract of receipts and disbursements, showing what interest has beenreceived by the assignee for money in his hands, together with a copy ofthe dividend sheet, noting thereon the claims objected to, and statingwhether any reservation has or has not been made therefor; and after theexpiry of eight days from the date of mailing the notice, abstract anddividend sheet as aforesaid, dividends on all claims not objected to withinthat period shall be paid. R.S., c. 25, s. 38.


Final distribution
39 (1) At the expiration of eighteen months from the date of theassignment, and earlier if required by the creditors, the assignee shallprepare a final dividend sheet and abstract of receipts and disbursements,and take proceedings to finally wind up and dispose of the estate.

(2) If the assignee does not take such proceedings for final distributionbefore the expiration of said period of eighteen months, any creditor ofthe estate may, by originating notice, apply to a judge for an order fixinga time within which such final winding up and distribution shall be made,and an assignee on the return of such originating notice shall be requiredto show cause why such final winding up and distribution was not madewithin the period of eighteen months, and if good cause is not shown, theassignee shall be personally liable for the costs of such summons and theproceedings consequent thereon. R.S., c. 25, s. 39.


Official assignee
40 (1) The Governor in Council may in each county appoint one ormore persons to be official assignees, who shall perform the duties andexercise the powers imposed by this Act.

(2) Every person so appointed shall before entering upon any duties orexercising any powers as an official assignee, file in the office of theAttorney General a bond to Her Majesty in such sum and with suchsureties as is directed and approved by the Governor in Council, conditioned for the faithful performance of his duties as such official assignee. R.S., c. 25, s. 40.

41 (1) The assignee shall receive such remuneration as is voted bythe creditors at any meeting, subject to the review of a judge, ifcomplained of by the assignee or any creditor.

(2) If no remuneration is voted to the assignee by the creditors, theamount thereof shall be fixed by a judge, not exceeding five per cent onthe gross proceeds of the estate. R.S., c. 25, s. 41.

Examination of assignor
42 (1) Where there has been an assignment for the benefit ofcreditors, the assignee or assignees, upon resolution passed by a majorityvote of the creditors present, or represented at a meeting of the creditorsof the assignor regularly called, may without an order examine theassignor or any person who is or has been an agent, clerk, servant, officer or employee of any kind of the assignor, upon oath before a localjudge of the Trial Division of the Supreme Court or before a judge orbefore an official referee, or may by the order of the court or of thejudge examine the assignor on oath before any other person to bespecially named in the order, touching the estate and effects of theassignor, and as to the property and means he had when the earliest ofthe debts or liabilities of the assignor existing at the date of theassignment was incurred, and as to the property and means he still has ofdischarging his debts and liabilities and as to the disposal he has made ofany property since contracting the debt or incurring the liability, and asto any and what debts are owing to him.

(2) The rules and procedure from time to time in force in the SupremeCourt for the examination of judgment debtors shall, as far as may be,apply to an examination under this Act of an assignor in all respects asif the assignor were a judgment debtor.

(3) In case such assignor does not attend as required by the saidappointment or appointment and order, as the case may be, and does notallege a sufficient excuse for not attending, or if attending refuses todisclose his property or his transactions respecting the same, or does notmake satisfactory answers respecting the same, or if it appears from suchexamination that such assignor, has concealed or made away with hisproperty in order to defeat or defraud his creditors, or any of them, thecourt or a judge may order the assignor to be committed to the commonjail of the county in which he resides for any term not exceeding twelvemonths. R.S., c. 25, s. 42.

Service of appointment and conduct of examination
43 (1) Any person liable to be examined under Section 42 may beserved with an appointment signed by the judge or officer, or a copythereof, and where the examination is to take place under an order alsowith a copy of the order; such service to be made at least forty-eighthours before the time appointed for the examination; and the person tobe examined is to be paid the same fees as a witness is paid in cases inthe Supreme Court.

(2) The examination shall be conducted in the same manner as in thecase of an oral examination of an opposite party. R.S., c. 25, s. 43.

Compelling attendance and production
44 Any person liable to be examined under Section 42 may becompelled to attend and testify and to produce books and documents inthe same manner and subject to the same rules of examination and thesame consequences of neglecting to attend or refusing to disclose thematters in respect to which he may be examined as in the case of a witness in an action in the Supreme Court. R.S., c. 25, s. 44.

Attendance and production of documents
45 (1) In case any person has, or is believed or suspected to have,in his possession or power any book, document, or paper of any kind,relating in whole or in part to the debtor, his dealings or property, suchperson may upon resolution passed by a majority vote of the creditorspresent or represented at a regularly called meeting of the creditors of theassignor, exclusive of such person (if he is a creditor) be required by theassignee to produce such statement or statements for the information ofsuch assignee.

(2) In case the person fails to produce the book, document or otherpaper within four days of his being served with a copy of the resolution,and a request of the assignee in that behalf, or in case the assignee is notsatisfied that full production has been made, the assignee may without anorder examine the person before any of the officers mentioned in Section42, touching any book, document or other paper which he is supposed tohave received.

(3) Any such person may be compelled to attend and testify, and toproduce upon his examination any book, document or other paper whichunder this Section he is liable to produce, in the same manner and subjectto the same rules of examination, and the same consequences ofneglecting to attend or refusing to disclose the matters in respect of whichhe may be examined, as in the case of a witness in an action in theSupreme Court. R.S., c. 25, s. 45.

Precedence of assignment
46 An assignment for the general benefit of creditors under this Actshall take precedence of all attachments and of all executions notcompletely executed by payment provided, however, that this Sectionshall not apply to lands. R.S., c. 25, s. 46.

Death or removal of official assignee
47 (1) Where an assignment has been made to an official assignee,under provisions of this Act, all the estates, rights, duties and liabilitiesof such official assignee shall, upon the death, resignation or removalfrom office of such official assignee for the time being, devolve upon andbecome vested and continue in the succeeding official assignee, by virtueof his appointment, and so in succession without any further assignmentor transfer.

(2) All actions and other proceedings by or against such officialassignee for the time being, as such official assignee, at the time of hisdeath, resignation or removal, shall continue and be proceeded with by,in favor of and against the succeeding official assignee, saving to everycourt having jurisdiction in this behalf all such right and authority as thecourt would have or exercise if there has been no change in the holder ofthe office of official assignee. R.S., c. 25, s. 47.

48 (1) At a meeting of the creditors held under Section 23 or at anyother meeting of the creditors, inspectors may be appointed, and theassignee shall be subject at all times to the directions, orders andinstructions he may receive from time to time from such inspectors withregard to the modes, terms or conditions on which he may dispose of thewhole or any part of the estate.

(2) All books, accounts and correspondence of the assignee in respectto the estate shall be constantly accessible to the inspectors.

(3) The creditors shall determine what compensation, if any, shall beallowed the inspectors, but no such payment or allowance to an inspectorin any estate shall exceed the sum of fifty dollars. R.S., c. 25, s. 48.