Directive No. 9R3

December 15, 2006

Electronic Filing and Other Methods

This revised Directive follows several notices and discussions since the Spring of 2005, including meetings with the CAIRP Executive Committee, the Annual CAIRP Seminars of 2005 and 2006 and the OSB newsletter issues of July 2005, August 2006 and December 2006 as well as a Communiqué released to all trustees in October 2006.

Since 2002, when the e-filing system was first introduced, many benefits to using it have been noted by both the OSB and the trustees. The e-filing system is a quick, easy and secure method for trustees and proposal administrators to file prescribed documents. The e-filing system is available 24 hours a day, 7 days a week, with the exception of downtime for routine maintenance. With this system, the initial filing of summary administration bankruptcies and Division II proposals can be accepted instantly, as long as the documents are in the proper format, with an immediate notice to this effect sent to the trustee. In fact, the e-filing system has demonstrated a vastly improved turnaround time for letters of comment.

We recognize that occasionally and under unusual circumstances, for example, during a power outage, it will be impossible to file electronically. In those rare circumstances, the OSB will accept a paper filing and communicate in a timely manner to trustees the proper protocol to follow. Nevertheless, the trustee is expected to convert the paper file to an electronic one at the first opportunity. In these instances, the trustee may consult with the Official Receiver to decide whether to submit a paper filing and convert it or wait until the electronic system is once again available. In addition, trustee firms are encouraged to have a contingency plan in case their system malfunctions.

Furthermore, the e-filing system is designed with the capacity to store up to 10 years' worth of data on-line without a significant loss of performance. If necessary, the OSB could archive data to off-line media or, given the growth rate in technology, increase the storage and processing capacities.

Coming into force

The date of coming into force of Directive No. 9R3—Electronic Filing and Other Methods is in two stages. Effective January 8, 2007, all new summary administration bankruptcies and Division II proposals must be filed electronically, and effective June 4, 2007, all new ordinary administration bankruptcies and Division I proposals must be filed electronically.

Enquiries

If you require further information, please do not hesitate to contact the OSB office nearest you.

Marc Mayrand
Superintendent of Bankruptcy

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Electronic Filing and Other Methods

Issued: December 15, 2006

(Supersedes Directive No. 9R2 issued on June 20, 2006, as of the dates mentioned in section 15 and to the extent required.)

Interpretation

1. In this Directive,
   • "Act" means the Bankruptcy and Insolvency Act;
   • "administrator" means an administrator as defined in section 66.11 of the Act;
   • "business hours"
     • (a) for the purposes of the electronic filing of documents means 24 hours a day, 7 days a week, except for those periods required for system maintenance;
     • (b) for the purposes of the fax filing of documents means the business hours of division offices of the Office of the Superintendent of Bankruptcy, which are from 8: 30 a.m. to 4: 30 p.m. (local time), Monday to Friday (except statutory holidays);
   • "electronic filing" or "e-filing" means the transmission of documents using the system developed for this purpose by the Office of the Superintendent of Bankruptcy;
   • "fax" means the transmission of documents by that electronic media also known as a "facsimile machine";
   • "locality of a debtor" means locality of a debtor as defined in section 2 of the Act;
   • "Official Receiver" means an Official Receiver as defined in section 2 of the Act;
   • "OSB" means Office of the Superintendent of Bankruptcy;
   • "Rules" means the Bankruptcy and Insolvency General Rules;
   • "prescribed documents" means all insolvency documents required under the Act, Rules and Directives;
   • "trustee" means a trustee as defined in section 2 of the Act.

Purpose

2. The purpose of this Directive is to require trustees and proposal administrators to file estates and transmit prescribed documents electronically to the Office of the Superintendent of Bankruptcy and, where it is not possible to do so for reasons out of their control, to allow for the filing of these documents by fax or in person.

Authority

3. This Directive is issued pursuant to paragraphs 5(4)(b)(c) and (e) of the Act.

Mandatory Electronic Filing

4. (1) As of January 8, 2007, electronic filing is mandatory for all admissible new summary administration bankruptcy estates and Division II proposals that are submitted by trustees and administrators and for all admissible subsequent prescribed documents submitted for these estates that are accepted by the OSB's electronic filing system.

   (2) As of June 4, 2007, electronic filing is mandatory for all admissible new ordinary administration bankruptcy estates and Division I proposals that are submitted by trustees and administrators and for all admissible subsequent statutory documents submitted for these estates that are accepted by the OSB's electronic filing system.

   (3) During a service interruption, for example, a power outage or a system malfunction, trustees should use alternative methods of filing after contacting the Official Receiver to discuss the proper protocol to follow.

5. For insolvency proceedings that are not admissible to the OSB's electronic filing system, documents pertaining to those proceedings should continue to be filed in person, or sent by mail, courier or fax. These proceedings are:
   • (a) partnership assignments and partnership proposals;
   • (b) receiverships under Part XI of the Act; and
   • (c) assignments deriving from bankruptcy orders.

Copies of Documents & Costs

6. If the OSB is requested to provide to the court a copy of a document that was received or generated by the OSB by means of electronic filing, the printed copy, which does not include an original signature, will indicate that the document is a certified copy of the records of the Superintendent of Bankruptcy.
7. If a court refuses to accept a fax copy as an original document, the trustee or the OSB, as applicable, shall provide the original document to the court.
8. The paper size for documents transmitted by fax or in person is letter size (216 mm × 280 mm or 8 1/2" × 11") in all bankruptcy districts.
9. The allowable cost chargeable in an ordinary estate and Division I proposal when a trustee transmits documents by fax is the same amount as for photocopies as per Directive No. 3R plus long distance telephone charges. No charge is applicable for the receipt of documents sent by fax.

Assignments into Bankruptcy and Other Insolvency Proceedings Except Proposals under Part III of the Act

10. For the purposes of assignments made pursuant to s. 49 of the Act, the date and time of the filing of a bankruptcy is the date and time when the assignment is examined and accepted by the Official Receiver, using such technological tools as are available to assist in this task.
11. A Certificate of Appointment, containing an estate number, the date and time of the bankruptcy, the date of the trustee's appointment, and the date of the creditors' meeting, will be transmitted electronically or by fax to the trustee after acceptance of the assignment.

Documents Under Part III of the Act

12. Documents filed in person, or sent by mail, courier or fax that relate to proceedings under Part III of the Act shall be filed with the Official Receiver in the division office which serves the locality of the debtor.
13. Documents related to proceedings under Part III of the Act which are filed by fax after business hours, or by electronic filing, and which are in the proper form, are deemed to be filed with the Official Receiver on the date and at the time that they are received by the OSB. The date and time of receipt shall be the date and time as recorded by the electronic filing system or the fax machine that received the document(s).

Special Circumstances

14. Trustees who wish to transmit prescribed documents by fax, relating either to assignments or proposals, to the division office after business hours, and require confirmation from an Official Receiver that they have been received and/or are accepted, may in special circumstances communicate with an Official Receiver during business hours to make other arrangements at the discretion of that Official Receiver.

Coming into Force

15. (1) This Directive comes into force on January 8, 2007, for all admissible new summary administration bankruptcies and Division II proposals.

    (2) This Directive comes into force on June 4, 2007, for all admissible new ordinary administration bankruptcies and Division I proposals.

Marc Mayrand
Superintendent of Bankruptcy