Directive No. 5R8

Estate Funds and Banking

Date: May 22, 2025

To: Licensed Insolvency Trustees

Subject: Directive No. 5R8, Estate Funds and Banking

The Office of the Superintendent of Bankruptcy (OSB) had updated Directive No. 5R7, Estate Funds and Banking.

Directive No. 5R8 supersedes Directive No. 5R7. Improvements have been made in order to reduce the administrative burden on stakeholders and to continue with modernization and digital transformation efforts to ensure an effective and efficient insolvency system. The main changes are as follows:

• The timeframe required for transmittal of remittance and payment information has been updated from the same day to 72 hours to allow for a more realistic timeframe to ensure the information can be processed.
• The signing requirements for Schedule 3 – Electronic Fund Transfer (EFT) – Authorization Agreement have been updated to allow for electronic signatures (e-signatures) when they meet the minimum requirements for e-signatures set out in paragraph 5(4.2) of Directive No. 5R8, Estate Funds and Banking.
• To ease the administrative burden on Licensed Insolvency Trustees (LIT) regarding the obligation to obtain the consent of a creditor/recipient to receive payments electronically, a single Schedule 3 can now be provided to the LIT for all estates in which the creditor/recipient is or may be involved.
• The wording has been amended where appropriate to ensure it is gender-neutral and inclusive.

Please note a more comprehensive review and consultation on the directive will be undertaken in the near future, which may include Information Technology related amendments.  

Coming into Force

Directive No. 5R8 comes into force on the date it is signed.

Enquiries

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

Att.

Elisabeth Lang
Superintendent of Bankruptcy 

Issued: May 22, 2025

(Supersedes Directive No. 5R7 issued on May 3, 2021, on the same topic.)

This Directive applies to individual and corporate Licensed Insolvency Trustees (LIT) licensed pursuant to section 13 of the Bankruptcy and Insolvency Act (the “Act”) and to administrators of consumer proposals as defined in section 66.11 of the Act. 

Interpretation

1. (1) In this Directive,

“Act” means the Bankruptcy and Insolvency Act;

“bank” means a bank as defined in section 2 of the Act;

“consolidated trust account” means a bank account operated pursuant to paragraph 155(g) or subsection 66.26(2) of the Act;

“control ledger” means a record maintained by the LIT that reports the balance of funds held in an estate trust account. In the case of a consolidated account, such record will show the control ledger balance as the sum of all sub-ledger balances;

“electronic payment” means a payment from an estate trust fund to another party, excluding levy payments, unclaimed dividends and undistributed funds, and filing fees payable to the OSB; or the receipt of a payment, using a system that meets the requirements in paragraph 17 of this Directive;

“electronic signature” or “e-signature” means a signature that consists of one or more letters, characters, numbers or other symbols in digital form incorporated in, attached to or associated with an electronic document;

“estate” means a bankruptcy, a proposal filed under Division I or Division II of Part III of the Act, a notice of intention, or an interim receivership under section 46 or section 47.1 of the Act;

“estate trust funds” means funds received by an LIT that belong to an estate, including any moneys advanced in payment of fees for services not yet rendered or money advanced in payment of disbursements to be made that are not subject to a third-party agreement;

“Licensed Insolvency Trustee (LIT)” means a trustee or licensed trustee, as defined in section 2 of the Act and an administrator of consumer proposals as defined in section 66.11 of the Act;

“OSB” means the Office of the Superintendent of Bankruptcy;

“Rules” means the Bankruptcy and Insolvency General Rules made pursuant to subsection 209(1) of the Act;

“sub-ledger balance” means the balance of funds for each estate that comprises a consolidated bank account;

“Superintendent” means the Superintendent of Bankruptcy or such persons as the Superintendent may assign or direct;

“transaction posting report” means an accounting record maintained by the LIT showing all banking transactions (credits and debits) posted to an estate account during a specific time period, and the account balance;

“trust account” means an account with a bank into which estate funds are deposited and held in trust by an LIT; and

“trust transfer account” means an account with a bank into which estate funds are temporarily deposited and held in trust by an LIT for the purpose of being transferred without delay into the appropriate estate trust account or consolidated trust account.

(2) The coming into force date for that part of the definition of “estate” in paragraph 1(1) that refers to a “proposal filed under Division I” and a “notice of intention” shall be held in abeyance until further notice.

Purpose

2. This Directive, issued pursuant to paragraphs 5(4)(b) and (c) of the Act, imposes upon an LIT the minimum standards for the accounting for and the proper custody of estate trust funds. The main applicable sections of the Act are subsections 6(2), (3) and (4), sections 25, 26, 27 and 66.26, paragraphs 155(g) and 14.01(1)(f), and sections 65, 67, 101, 103, 128 and 129 of the Rules.

Sending of Documents

3. Pursuant to section 2.2 of the Act, any notification, documents or other information that is required by this Directive to be given, forwarded, mailed or sent or otherwise provided to the Superintendent (or the OSB) shall be given, forwarded, sent or otherwise provided to the Superintendent (or the OSB) at the local OSB division office.

Principles

4. Section 25 of the Act imposes a duty on an LIT to deposit without delay in a trust account all moneys received for an estate. The trust account shall be held at a bank, provided that federal or provincial law guarantees deposits of that institution, and that such law protects depositors from the loss of money on deposits with that institution.^{Footnote 1}

   Subsection 25(1.3) of the Act also provides that, except for paying dividends and charges incidental to administering the estate, an LIT shall not withdraw any funds from the trust account of an estate without the permission, in writing, of the inspectors or, on application, the Court.

   When withdrawing funds from the trust account of an estate, the LIT must comply with the rules governing fees and disbursements drawn in summary administration bankruptcies and consumer proposals.

   Trust account funds are to be kept intact and not commingled with non-estate funds and in the case of consolidated trust accounts, not commingled with estates of administration types other than that type for which the account was approved.

Banking and Accounting Records

5. (1) An LIT has a fiduciary relationship with an estate under their administration. As such, an LIT has a duty to control and account for the funds under their administration in accordance with the Act.

   (2) For each estate trust account under an LIT’s administration, the LIT shall maintain, at a minimum, up-to-date books and records, including the control ledger, of estate funds showing:

(a) all receipts and disbursements of estate trust funds, including the name of the payer or payee, the date, the nature of the payment and the amount;

(b) duplicate deposit slips, duplicate receipts for cash deposits, cancelled cheques, bank statements, passbooks, and all other documents of deposit; and

(c) for consolidated trust accounts, a calculation of the balance within the consolidated account, which we refer to as the control ledger, produced on the same day as the bank statement.

(3) Every month, within forty-five (45) days of the bank statement date, the LIT shall reconcile all trust accounts.

(4) The LIT approving the bank reconciliation shall sign and date:

(a) the bank reconciliation for each consolidated trust account; and

(b) either,

(i) the bank reconciliation for each estate trust account; or

(ii) a single attestation, as set out in Schedule 4 of this Directive, providing, at a minimum, the estate name, estate number and account number of each reconciled estate trust account, and stating that the LIT has reviewed and verified the reconciliation for all listed accounts and that they accept full accountability.

(4.1) For the purpose of paragraph 5(4), the LIT may use an e-signature to sign the bank reconciliation.

(4.2) The minimum requirements for using an e-signature are:

(a) the reason or context for the e-signature is clear (i.e., the signature is for approval, agreement, consent, authorization, confirmation, acknowledgment, witnessing, notarization, certification or other purposes);

(b) it is clear that the individual understands that they are signing the electronic document (i.e., indication of intent to sign);

(c) the individual has the authority to sign the electronic document;

(d) it can be proven that the e-signature resulting from the use by a person of the technology or process is unique to the person;

(e) it can be proven that the individual who signed the electronic document had sole control of the technology or process at the time of signing;

(f) the technology or process is able to identify the individual who is using the technology or process;

(g) the date and time of the e-signature is captured; and

(h) the e-signature is linked with the electronic document such that it can be determined whether the electronic document has been changed since the time the e-signature was incorporated in, attached to or associated with the electronic document.

(5) The LIT shall advise the OSB, in writing, of all outstanding errors that have not been corrected within seventy-five (75) days of the bank statement date.

(6) Each monthly trust account reconciliation must be supported by:

(a) an original detailed monthly bank statement for each trust account, supported by cancelled cheques and deposit receipts;

(b) the LIT’s transaction posting report for the month;

(c) a complete listing of all outstanding cheques, including the cheque number, payee, amount and date of issue, an explanation regarding any cheques outstanding for longer than six (6) months and a complete listing of outstanding deposits;

(d) a complete and detailed listing of all other reconciling items;

(e) the name and signature of the individual preparing the bank reconciliation.

(7) In addition to the supporting evidence listed in paragraphs 5(6)(a) to (e) of this Directive, reconciliation of all consolidated trust accounts must include the control ledger, which in turn is comprised of a listing of the component sub-ledger balances. Outstanding cheques or deposits that are reconciling items in a consolidated account must be identified by sub-ledger to ensure sub-ledger balances are accurate.

(8) The monthly trust account reconciliation must be accompanied by a report of any estate trust funds invested pursuant to paragraph 7(2) of this Directive. The report will indicate the trust account to which the investment belongs and the monetary value of the investment.

Electronic Banking and Accounting Records

6. (1) An LIT may keep banking and accounting records in electronic media format subject to paragraph 6(2) of this Directive.

Computer Records for Books of Original Entry

(2) An LIT who maintains banking and accounting records for trust accounts in an electronic format shall ensure that the system used:

(a) is capable of producing on demand a hard copy of the records of original entry at any given date;

(b) shows, at a minimum, details required by paragraph 5(6) of this Directive;

(c) provides a complete audit trail of transactions.

(3) The period of retention for electronic banking and accounting records shall be the same as required for “hard copy” records. 

Computer Bank Reconciliation

(4) An LIT who keeps trust records in an electronic format shall produce and keep a printed copy of the bank reconciliations referred to in paragraphs 5(2), (4), (4.2), (6) and (7) of this Directive.

Backup Copy

(5) An LIT who keeps trust records in an electronic format shall maintain a backup copy of the electronic records that shall be updated each business day, and stored in a secure manner at an off-site location on a weekly basis.

Handling Estate Trust Money

7. (1) An LIT shall:

(a) protect estate trust funds from loss, misappropriation or defalcation by establishing adequate security arrangements and internal controls;

(b) immediately advise the OSB, in writing, of any defalcation or misappropriation of estate trust funds;

(c) deposit estate funds without undue delay in a bank, in a trust account in the name of the estate or that of the LIT in the LIT’s capacity as LIT of the estate (for example, the estate of John Doe or Joan Smith, LIT to the estate of John Doe);

(d) periodically review and evaluate the internal control system to ensure that it functions adequately with the appropriate safeguards;

(e) ensure that all cheques issued from a trust account are consecutively numbered or, in the case of electronic payments, use consecutive trace numbers;

(f) ensure that cheques drawn on a trust account are not made payable to “cash”, “bearer” or other such non-specific recipient;

(g) ensure that all cheques drawn on a trust account are signed by at least one LIT;

(h) not pay any of their personal or general office expenses from a trust account;

(i) make reasonable efforts to obtain a competitive rate of interest on all trust accounts;

(j) ensure that all interest earned on summary administration estate funds, whether held in a trust account or other investment certificate referred to in paragraph 7(2) of this Directive, which has not been offset by reasonable bank service charges, forms part of the assets of the estate, and is allocated monthly;

(k) not permit an estate trust account to be overdrawn, and immediately correct any transactions that inadvertently place the account into an overdraft position;

(l) disclose on the statement of receipts and disbursements the total amount of interest earned for each estate;

(m) in the event that the LIT’s general account is charged a transaction fee by the bank for a non-sufficient fund cheque, be permitted to recover this transaction fee from the person responsible and deposit it to the estate trust account, in which circumstance the LIT is permitted to reimburse the general account from the consolidated bank account for the amount of the transaction fee;

(n) inform the OSB promptly of any change to the type of banking or accounting system used for trust accounts;

(o) inform the OSB, within five (5) business days, of any change in the name and address of a bank where estate trust funds are held;

(p) be permitted to offset reasonable bank fees (other than non-sufficient fund charges) against interest earned by a summary administration or a Division II Proposal trust account, provided the amounts are clearly disclosed on the monthly bank reconciliation, and be permitted to offset bank fees related to investment certificates against interest earned on those certificates, provided this is also clearly disclosed;

(q) not be permitted to offset bank fees described in paragraph 7(1)(p) of this Directive beyond the generated interest.

(2) An LIT may invest estate moneys in appropriate investment certificates where such funds are not immediately needed for distribution of dividends to creditors, or for the day-to-day administration of the estate. Such investment certificates must be guaranteed against losses and should not be used in cases where service charges and related costs exceed the interest that would accrue had the funds remained in an estate trust account. Investment certificates are to be held at the same financial institution where the related trust account is held and must bear the name of the trust account to which they belong.

(3) Pre-filing deposits from debtors are not considered to be estate trust funds until a bankruptcy has been accepted or a proposal or notice of intention has been filed. Such deposits are to be held separately by the LIT in a trust account, clearly identified for that purpose only or in a separate trust account containing the aggregate of all these funds held, provided the accounting records in respect of the account fully document deposits and withdrawals. Such deposits are not to be held in a consolidated estate trust account or individual estate trust account until a proceeding under the Act has been registered.

(4) The coming into force date for that part of paragraph 7(3) of this Directive that alludes to a “proposal filed under Division I” and a “notice of intention” shall be held in abeyance until further notice.

(5) (a) Filing fees may be paid either from an estate trust account or from the LIT’s corporate account, provided that all accounting records fully document deposits and withdrawals (i.e., all filing fees, whether drawn from an estate trust account or from the LIT’s corporate account, are to be included in the Statement of Receipts and Disbursements).

(b) Where filing fees are paid from the LIT’s corporate account and once funds are available in the estate trust account, the LIT shall reimburse the corporate account from the estate trust account for the filing fees paid.

Electronic Banking

(6)(a) An LIT may move funds (such as fees) electronically from an estate trust account to another of the LIT’s accounts (such as a general account).^{Footnote 2}

(b) No transfer of funds as described in paragraph 6(a) shall be permitted unless the electronic transfer system used by the LIT produces a confirmation from the financial institution that shall contain:

(i) the number of the trust account from which the money is drawn;

(ii) the name, branch and address of the financial institution from which the money is drawn; or the 3-digit financial institution number and the 5-digit transit number assigned by Payments Canada for the financial institution from which the money is drawn;

 (iii) the number of the account to which the money is transferred;

(iv) the name, branch and address of the financial institution to which the money is transferred; or the 3-digit financial institution number and the 5-digit transit number assigned by Payments Canada for the financial institution to which the money is transferred; and

(v) the time, date and details of the transfer.

Consolidated Trust Account

8. (1) An individual LIT may, with the approval of the Superintendent, operate only one consolidated trust account for summary administrations, pursuant to paragraph 155(g) of the Act, and only one consolidated trust account for consumer proposals, pursuant to subsection 66.26(2) of the Act, provided that the LIT:

(a) submits a request in writing with the information required in paragraph 9 of this Directive and obtains prior written approval of the Superintendent; and

(b) maintains in good order a bank account and accounting system providing for, and disclosing, equitable monthly distribution to each of the individual estate accounts of all the interest earned by the consolidated trust account.

(2) Consolidated trust accounts are to be used exclusively for their intended purpose. Sub-accounts or separate accounts, including clearing accounts, dividend accounts, expense accounts, etc., are not permitted.

(3) Where the LIT does not comply with the requirements of this Directive, the Superintendent may revoke approval to operate a consolidated trust account.

(4) An LIT may reapply to the Superintendent for approval to operate a consolidated trust account after a revocation under paragraph 8(3) of this Directive has occurred.

Operating a Consolidated Trust Account

9. (1) An individual LIT shall submit the following along with the written request to the Superintendent to operate a consolidated trust account:

(a) a complete description of the accounting and banking systems and procedures, whether manual or electronic;

(b) a complete description of the backup procedures, manual or electronic, to allow for the recovery of accounting records in the event of destruction of same;

(c) the name and address of the branch of the bank where the consolidated trust account will operate;

(d) a description of the type of bank accounts to be operated;

(e) a copy of the current banking agreement;

(f) a description of the method by which the bank calculates the rate of interest payable on a consolidated trust account;

(g) a description of the method by which interest is to be calculated and attributed monthly to individual estate accounts; and

(h) the details of bank charges applicable to the consolidated trust account and the method by which said charges will be disposed of.

(2) An LIT shall keep a copy of the original approval for a consolidated account and copies of any subsequent revisions or approvals.

Corporate LIT

10. (1) For corporate LITs, paragraphs 8 and 9 of this Directive shall apply to each individual LIT, except in those cases where a corporate LIT operates a consolidated account as described in paragraph 10(2) of this Directive.

(2) A corporate LIT may, upon written request and with the written permission of the Superintendent, operate one consolidated bank account for summary estates, and/or one consolidated bank account for consumer proposals, for all or some of its LITs. In any such arrangement, however, individual LITs will be linked to the said account as being responsible for specific estates contained therein. A named LIT will be designated by the corporate LIT as the principal contact for the purposes of banking questions. This in no way relieves a corporate LIT of its responsibilities.

(3) Where a corporate LIT operates an approved consolidated account as described in paragraph 10(2) of this Directive, paragraphs 8, 9 and 11 of this Directive apply to the corporate LIT.

(4) For greater clarity, an individual LIT who is linked to a multi-user corporate account as described in paragraph 10(2) of this Directive shall not be permitted to also operate consolidated accounts pursuant to paragraph 8(1) of this Directive.

Annual Banking Report

11. (1) An LIT must complete and deliver to the OSB on or before May 31 of each year a report that shall contain:

(a) for the benefit of each bank holding trust accounts as of April 30 of that year, a signed request for a bank confirmation as set out in Schedule 1 of this Directive;

(b) a master control list of all trust accounts open as of April 30 of that year showing the account number, the name and address of the banking institution, the name and the Superintendent’s estate number of each estate, and balances on deposit as of April 30; and

(c) the information required pursuant to paragraph 11(1)(b) of this Directive presented in conformity with the form found in Schedule 2 of this Directive.

(2) An LIT shall include, along with the first annual banking report submitted pursuant to this Directive, a description of the software programs (either commercially available or proprietary) used to administer estate trust funds. Thereafter, the LIT shall promptly inform the OSB of any changes to the type of software used for this purpose as required by paragraph 7(1)(n) of this Directive.

Maintaining a Trust Transfer Account

12. (1) Notwithstanding paragraph 7(1)(c) of this Directive, certain circumstances may arise where an LIT must use a trust transfer account to temporarily hold trust funds. These circumstances may include, but are not limited to:

(a) where an LIT has an establishment in a town that does not have a branch of the LIT's bank;

(b) where an LIT uses a debit machine to receive payments from debtors, or;

(c) where an LIT receives electronic payments from debtors or the OSB.

(2) An LIT may operate a trust transfer account subject to the following:

(a) The costs of operating debit machines and bank fees associated with the trust transfer account are not borne by the debtor and do not come out of the trust transfer account, the estate trust accounts or the consolidated trust accounts;

(b) No interest is to be earned on the trust transfer account;

(c) All funds are transferred without delay from the trust transfer account to the appropriate estate trust account or the consolidated trust account;

(d) No payments shall be drawn on the trust transfer account;

(e) Trust transfer account funds are not commingled with non-estate funds and are not used for any other purpose;

(f) The LIT shall keep a complete audit trail of all the deposits received into the trust transfer account; and

(g) The OSB shall be granted the necessary access to all information relating to the trust transfer account, including the audit trail.

(3) Upon request from the OSB, an individual LIT or a corporate LIT shall identify no more than one destination account for payments to be received from the OSB. Where payments consist of trust money, this single destination account shall be a trust transfer account or, should the LIT operate only one consolidated trust account and no other estate trust account, a consolidated trust account.

(4) Trust transfer accounts are subject to the same record retention and reconciliation process as consolidated trust accounts as provided for in paragraphs 5(2) to (6) of this Directive.

Undistributed Interest

13. (1) Any amount of monthly interest earned on a consolidated trust account that is too small to be rateably apportioned to the individual estates may be carried forward to the following month, where it will form part of the next month’s interest allocation. Such amounts of unallocatable interest shall be clearly identified on the monthly reconciliation.

(2) Any amount of interest earned on a non-consolidated trust account that cannot be allocated to that account shall be remitted to the Superintendent as undistributed funds as provided for in Directive No. 18, Unclaimed Dividends and Undistributed Funds.

Deposit Insurance

14. An LIT shall take necessary steps to ensure that estate funds are insured under the Canada Deposit Insurance Corporation Act or equivalent provincial deposit insurance legislation.

Change of Status of Estate from Summary to Ordinary Administration

15. Where an estate is converted from a summary to an ordinary administration and the estate funds therein were previously held in a consolidated trust account, an LIT shall immediately open a separate trust account into which they shall transfer all of the estate funds.

Foreign Moneys

16. Subject to subsection 25(1.2) of the Act, the provisions of this Directive also apply to moneys in foreign countries, with such modifications as the circumstances require.

Electronic Payments and Related Records

17. (1) When using electronic payments as means of payment, the LIT shall ensure that the electronic payment system and internal controls meet or exceed the requirements specified in this Directive.

(2) For the purposes of making electronic payments, an LIT must utilize the services of a bank as defined under section 2 of the Act.

(3) By using electronic payment, the LIT understands and accepts the right of the Superintendent to receive, upon request, bank confirmations or other relevant banking information relating to electronic transactions made on a trust account.

(4) An acceptable electronic payment system shall, as a minimum:

(a) provide remittance information sufficient to allow the creditor/recipient to reconcile this information with the payment. The remittance information must include the estate name and estate number to which the payment relates, the account number from which the payment was drawn and a description of the nature of the payment;

(b) transmit within 72 hours:

(i) the payment information to the bank for processing; and

(ii) the remittance information from the LIT to the creditor.

Confirmation of payment details may be sent directly to the creditor/recipient. The LIT may send the remittance details by email, facsimile or other electronic format;

(c) use consecutively numbered payment trace numbers as generated by the LIT's accounting system to clearly identify each payment as to amount, payee, estate name and number, date of payment and nature of payment (i.e., dividend, other type of disbursement);

(d) provide for secure and traceable transmission of payment and remittance information;

(e) satisfy the requirements set out in paragraph 5(2) of this Directive relating to proper books and records, with such allowances for electronic equivalents of paper-based records as are reasonable;

(f) ensure that the account reconciliation requirements set out in paragraphs 5(4), (5) and (6) of this Directive can be satisfied;

(g) ensure that requirements for handling trust moneys as set out in paragraph 7(1) of this Directive can be satisfied. In particular, LITs must indicate how they intend to ensure that payments made via the electronic payment system can only be approved by an LIT in accordance with the requirements of paragraph 7(d) of Directive No. 4R, Delegation of Tasks;

(h) not compromise the LIT’s ability to comply with any other requirement of the Act, Rules or directives;

(i) not permit the alteration of information relating to statements or reports of transactions (i.e., not permit banking records to be overwritten);

(j) allow printing of electronic statements or reports regarding payment transactions;

(k) provide the LIT with prompt notification of unsuccessfully completed electronic payments;

(l) use unique identifiers for each individual with access to the electronic payment system;

(m) keep records showing which LIT(s) initiated each electronic payment.

(5) Where the LIT receives notification of an unsuccessfully completed electronic payment, measures shall be taken within five (5) business days to deal with the problem.

(6) The LIT shall obtain the consent of a creditor/recipient to receive payments electronically;

(a) such consent shall be provided to the LIT in the form set out in Schedule 3 of this Directive. A single Schedule 3 can be provided to the LIT for all estates in which the creditor/recipient is or may be involved; 

(b) the LIT shall keep all consent documents in a separate file designated for this purpose for the period of time prescribed by the Rules for retention of estate documents or for the duration of the consent period, whichever is longer;

(c) the LIT shall take steps to ensure that consent documents are kept in a safe and secure manner;

(d) a creditor may revoke consent to receive electronic payments by sending written notification to the LIT.

(6.1) For the purpose of paragraph 17(6), the LIT may use an e-signature to sign Schedule 3.

(6.2) The e-signature used to sign Schedule 3 shall meet the minimum requirements for e-signatures set out in paragraph 5(4.2).

Coming into Force

18. This Directive comes into force on the date that it is signed.

Enquiries

19. For any questions pertaining to this Directive, please contact your local OSB office.

Elisabeth Lang
Superintendent of Bankruptcy

Schedule 1—Annual Banking Report
Request for Bank Confirmation

Part 1–Acknowledgement:

To be completed by the Licensed Insolvency Trustee (LIT)

I, the undersigned, do hereby submit this request in accordance with the Superintendent of Bankruptcy's Directive No. 5R8, Estate Funds and Banking. Paragraph 11(1)(a) of that Directive requires that LITs annually complete and deliver such a request to the Office of the Superintendent of Bankruptcy (OSB) for each bank branch holding trust accounts administered by the LIT as at April 30 of that year.

I understand that a representative of the Superintendent of Bankruptcy may present this request to the bank at any time during the year where it is determined that a bank confirmation is required. Costs associated with processing such a request are to be borne by the undersigned.

LIT (legal name)

Signature of LIT (authorized signing officer)

Date: mm/dd/yyyy

Part 2 – Financial Institution Identification:

To be completed by LIT

Part 3 – Notice to Financial Institution:

To be completed by a representative of the Superintendent of Bankruptcy

The aforementioned LIT has reported that, as at April 30, trust accounts were held in your institution.

The Superintendent of Bankruptcy has a duty under the Bankruptcy and Insolvency Act to "from time to time, make or cause to be made any enquiry or investigation of estates or other matters to which this Act applies, including the conduct of a trustee or a trustee acting as a receiver […] or as an interim receiver, that the Superintendent considers appropriate […]" [Par. 5(3)(e)]

Pursuant to subsection 6(2) of the Bankruptcy and Insolvency Act, the "Superintendent, or any one duly authorized by him in writing on his behalf, is entitled to have access to and to examine and make copies of the banking accounts of a trustee in which estate funds may have been deposited, and, when required, all deposit slips, cancelled cheques or other documents relating thereto in the custody of the bank or the trustee shall be produced for examination."

I, as a duly authorized representative of the Superintendent, do hereby require confirmation of the bank accounts of the aforementioned LIT which are open as at:

Date : mm/dd/yyyy

Details regarding the information requested are found in Part 4 of this document. Please provide this information to the undersigned at the following address:

Part 4 — Information Requested from Financial Institution:

To be completed by financial institution

1. Specific bank accounts

A. Are all of the above-listed accounts designated as "Trust Accounts"?

Yes

No

 

B. Have any of the above-listed accounts been pledged as collateral for loans or other credit instruments?

Yes

No

 

C. For the above-listed accounts, is the withdrawal or transfer of funds allowed by cheque only?

Yes

No

 

D. Are there any arrangements in place allowing the LIT to overdraw the trust accounts? If yes, please provide details.

Yes

No

 

E. Are you aware of any other trust accounts in the name of this LIT? If yes, please provide details as above.

Yes

No

 

2. Comments
Please provide on a separate sheet any comments or additional information, if applicable.

3. Trust Account Agreement
Please provide a copy of the most recent Trust Account Agreement between the LIT and the financial institution.

4. Signing Authority
Please provide below, or on a separate sheet, a list of individuals with signing authority on all trust accounts.

Statement of Procedures Performed by Financial Institution
The above information was completed in accordance with our records.

Authorized Signing Officer – Financial Institution

Branch Contact – Name and telephone number

Schedule 2—Annual Banking Report

Part 1. Acknowledgement to be Completed by the Licensed Insolvency Trustee (LIT)

I, the undersigned, do hereby submit this report in accordance with Directive No. 5R8, Estate Funds and Banking. Paragraph 11(1)(b) of that Directive requires that an LIT annually complete and deliver such a report to the Office of the Superintendent of Bankruptcy (OSB) for all trust accounts open as at April 30 of that year. The undersigned LIT reports that, as at April 30, the following trust accounts were maintained by the undersigned at the bank(s) and branch(es) noted below and that the following information is true and complete in all material respects.

Part 2 – Insolvency Software Details (see below)

The LIT shall include, in the first Annual Banking Report submitted to the OSB, a description of the software programs (either commercially available or proprietary) used to administer estate trust funds. Thereafter, the LIT shall promptly inform the OSB of any changes to the type of software used for this purpose as required by paragraph 7(1)(n) of Directive No. 5R8, Estate Funds and Banking.

Description of software used:

Part 3 – Financial Institution Identification

List Attached

Part 4 – Consolidated Bank Account – Detailed Estate Master List Information

List Attached

Part 5 – Consolidated Bank Account – Detailed Estate Master List Information

List Attached

Part 6 – Consolidated Bank Account – Detailed Estate Master List Information

List Attached

Part 7 - Individual Estate Bank Account Detailed Information

List Attached

Part 8 - Trust Transfer Account Detailed Information

Schedule 3—Electronic Fund Transfer (EFT) – Authorization Agreement

Part 1: To be completed by Licensed Insolvency Trustee (LIT)

Schedule 3—Electronic Fund Transfer (EFT) – Authorization Agreement

Name and Address of LIT

Part 2: Identification of electronic payment recipient (print or type)

Part 2: Identification of electronic payment recipient

Last name or Business name	First name
Mailing address
Phone Number ( ) -
Designated Contact Person	Phone Number ( ) -

Part 3: Account information for electronic payment

Part 3: Account information for electronic payment

Bank Name
Bank Address
Transit Number	Institution Number	Account Number
Type of Account Chequing Savings Other (Explain)   Please attach a copy of a voided cheque or deposit slip for validation of information.

Part 4: Declaration consent and authorization

Part 4: Declaration consent and authorization

(Signature of authorized signatory) Direct phone number ( ) -

(Print name of signatory) (Title)

Date (mm/dd/yyyy)

Schedule 4—Single Attestation for Monthly Estate Trust Account Reconciliations

[Licensed Insolvency Trustee (LIT) Signature]

[Bank Reconciliation Approval Date]

[Print LIT's Name]

[LIT Licence Number]