Bill 65 - An Act Respecting the Enforcement of Money Judgments Act

BILL 65

An Act Respecting the Enforcement of Money Judgments Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

Absconding Debtors Act

1 The Absconding Debtors Act, chapter 100 of the Revised Statutes, 2011, is repealed.

Regulation under the Absconding Debtors Act

2 New Brunswick Regulation 82-222 under the Absconding Debtors Act is repealed.

Arrest and Examinations Act

3 The Arrest and Examinations Act, chapter A-12 of the Revised Statutes, 1973, is repealed.

Regulations under the Arrest and Examinations Act

4( 1) New Brunswick Regulation 84-23 under the Arrest and Examinations Act is repealed.

4( 2) New Brunswick Regulation 84-173 under the Arrest and Examinations Act is repealed.

4( 3) New Brunswick Regulation 91-64 under the Arrest and Examinations Act is repealed.

Business Corporations Act

5 Subsection 49(4) of the Business Corporations Act, chapter B-9.1 of the Acts of New Brunswick, 1981, is amended by striking out “sale under execution” and substituting “sale under the Enforcement of Money Judgments Act”.

Companies Act

6( 1) Section 50 of the Companies Act, chapter C-13 of the Revised Statutes, 1973, is amended

(a) in subsection (1) by striking out “until an execution at the suit of such creditor against the company has been returned unsatisfied in whole or in part” and substituting “until the creditor has obtained and enforced judgment against the company and the judgment is not wholly satisfied”;

(b) in subsection (2) by striking out “The amount due on such execution” and substituting “The unsatisfied amount of the judgment against the company”.

6( 2) Subsection 55(2) of the Act is amended by striking out “under execution of any such stock as provided by the Memorials and Executions Act” and substituting “of any such stock under the Enforcement of Money Judgments Act”.

6( 3) Section 74 of the Act is amended by striking out “sale under execution” and substituting “sale under the Enforcement of Money Judgments Act”.

Corporations Act

7 Section 3 of the Corporations Act, chapter C-24 of the Revised Statutes, 1973, is amended by striking out “Memorials and Executions Act” and substituting “Enforcement of Money Judgments Act”.

Creditors Relief Act

8 The Creditors Relief Act, chapter C-33 of the Revised Statutes, 1973, is repealed.

Regulations under the Creditors Relief Act

9( 1) New Brunswick Regulation 83-143 under the Creditors Relief Act is repealed.

9( 2) New Brunswick Regulation 84-80 under the Creditors Relief Act is repealed.

Crown Debts Act

10 Section 9 of the Crown Debts Act, chapter 135 of the Revised Statutes, 2011, is amended by striking out “the judge shall cause to be issued against and for the sale and seizure of the goods and chattels, lands and tenements of the person in default, the writ or writs as might have issued out of that court on a judgment recovered against that person in the ordinary way in favour of Her Majesty for the same sum, and the writ or writs shall be executed by the sheriff or other proper officer; and the sum with lawful interest on it from the time the judge causes the writ or writs to be issued until the sums are paid shall be levied under them, with costs, and all further proceedings shall be had as if the judgment had been actually obtained” and substituting “the judge may grant judgment against that person and in favour of Her Majesty for that sum”.

Crown Lands and Forests Act

11 Section 63 of the Crown Lands and Forests Act, chapter C-38.1 of the Acts of New Brunswick, 1980, is amended

(a) in paragraph (1)(a) by striking out “or attached”;

(b) by repealing subsection (2) and substituting the following:

63( 2) Notwithstanding subsection (1), where timber or processed wood to which a lien attaches has been seized pursuant to a lawful process, a person who initiated the seizure without notice of the lien under section 61 is entitled to recover from the Crown taxable costs of the seizure up to the time he or she received notice under subsection (1), in the event the timber or processed wood is delivered to the Minister under subsection (1).

Evidence Act

12 Section 84 of the Evidence Act, chapter E-11 of the Revised Statutes, 1973, is amended by striking out “, memorial”.

Family Services Act

13 Subsection 124(2) of the Family Services Act, chapter F-2.2 of the Acts of New Brunswick, 1980, is repealed and the following is substituted:

124( 2) If a judgment obtained under subsection (1) and another judgment are enforced under the Enforcement of Money Judgments Act at the same time, the enforcement proceeds shall be applied to the judgment obtained under subsection (1) in priority to the other judgment.

Garnishee Act

14 The Garnishee Act, chapter G-2 of the Revised Statutes, 1973, is repealed.

Regulations under the Garnishee Act

15( 1) New Brunswick Regulation 83-111 under the Garnishee Act is repealed.

15( 2) New Brunswick Regulation 84-119 under the Garnishee Act is repealed.

Insurance Act

16 Subsection 266.9(3) of the Insurance Act, chapter I-12 of the Revised Statutes, 1973, is repealed and the following is substituted:

266.9( 3) If the judgment creditor has delivered an enforcement instruction to the sheriff under the Enforcement of Money Judgments Act and a copy of the assignment of judgment, certified in accordance with subsection (2), is delivered to the sheriff who is enforcing the judgment, subsection (2) applies with the necessary modifications.

Judicature Act

17 Subsection 26(7) of the Judicature Act, chapter J-2 of the Revised Statutes, 1973, is amended by striking out “by attachment or otherwise” and substituting “by any means”.

Land Titles Act

18( 1) Section 40 of the Land Titles Act, chapter L-1.1 of the Acts of New Brunswick, 1981, is amended

(a) in subsection (1) by striking out “memorial of”;

(b) in subsection (2) by striking out “memorial of”;

40( 3) An application to register a judgment against registered land shall not be considered to be incomplete or in improper form only by reason that

( a) the name of the judgment debtor is not in the exact form or spelled in the same manner as the name of the registered owner of the land against which the judgment is to be registered,

( b) the land described therein is registered in the name of the judgment debtor and one or more additional persons, unless one or more of such additional persons have names similar to that of the judgment debtor,

( c) the judgment debtor holds a leasehold or life interest in the land against which the judgment is to be registered, or

( d) the judgment names as the judgment debtor

( i) the estate of the registered owner, or

( ii) a person acting in the capacity of personal representative of the registered owner.

(d) in subsection (5) by striking out “memorial of”;

(e) in subsection (6) by striking out “memorial of”.

18( 2) Section 41 of the Act is repealed and the following is substituted:

41 While a judgment is registered and remains in force it binds the interest of the judgment debtor who is an owner of the land or an estate or interest therein against which it is registered as provided in the Enforcement of Money Judgments Act.

18( 3) The Act is amended by adding after section 41 the following:

41.1( 1) If a judgment has been registered against the interest of a judgment debtor who is a joint tenant and the judgment debtor dies before the joint tenancy has been severed, the judgment does not bind the interest that the surviving joint tenant holds in the land after the death of the judgment debtor.

41.1( 2) If a judgment has been registered against the interest of a judgment debtor who is a joint tenant and the other joint tenant dies before the joint tenancy has been severed, the judgment binds the interest that the judgment debtor holds in the land after the death of the other joint tenant.

18( 4) Section 42 of the Act is amended by striking out “memorial of”.

18( 5) Section 43 of the Act is amended

(a) in subsection (1) by striking out “memorial of”;

(b) in subsection (3) by striking out “memorial of”;

43( 4) A judgment ceases to be registered upon the expiration of ninety days from the giving of the notice pursuant to subsection (3) unless, within that time, the judgment creditor files with the registrar who gave the notice an order of the court extending the period of registration of the judgment and in such case the judgment remains registered for the period determined by the order.

(d) in subsection (5) by striking out “memorial of”;

(e) in subsection (6) by striking out “memorial of”;

(f) in subsection (7) by striking out “, a memorial of which is registered,” and substituting “that has been registered”.

18( 6) Section 44 of the Act is amended by striking out “memorial of”.

18( 7) Section 45 of the Act is amended

(a) in subsection (1) by striking out “memorial of”;

(b) in subsection (2) by striking out “memorial of”.

18( 8) Section 46 of the Act is amended by striking out “Memorials and Executions Act” and substituting “Enforcement of Money Judgments Act”.

Landlord and Tenant Act

19( 1) Subsection 34(1.3) of the Landlord and Tenant Act, chapter L-1 of the Revised Statutes, 1973, is repealed and the following is substituted:

34( 1.3) A landlord’s distress has priority over a judgment registered in the Personal Property Registry in accordance with the Enforcement of Money Judgments Act if the landlord distrains before the sheriff seizes the tenant’s property.

19( 2) The heading “DISTRAINABLE GOODS TAKEN ON EXECUTION” preceding section 39 of the Act is repealed.

19( 3) Section 39 of the Act is repealed.

19( 4) Section 40 of the Act is repealed.

Mechanics’ Lien Act

20( 1) Paragraph 9(1)(a) of the Mechanics’ Lien Act, chapter M-6 of the Revised Statutes, 1973, is amended by striking out “, attachments, garnishments”.

20( 2) Subsection 44(1) of the Act is repealed and the following is substituted:

44( 1) In the judgment the judge may order that the estate or interest charged with the lien be sold allowing, however, a reasonable time for advertising the sale, and the sale shall be by the sheriff unless otherwise ordered and shall be in any manner permitted by the Enforcement of Money Judgments Act.

Members Superannuation Act

21 Subsection 20(1) of the Members Superannuation Act, chapter M-8 of the Revised Statutes, 1973, is amended by striking out “garnishment, attachment,”.

Memorials and Executions Act

22 The Memorials and Executions Act, chapter M-9 of the Revised Statutes, 1973, is repealed.

Motor Vehicle Act

23( 1) Paragraph 283(1)(d) of the Motor Vehicle Act, chapter M-17 of the Revised Statutes, 1973, is amended by striking out “unsatisfied executions against the depositor registered in the office of the sheriff for the judicial district in which the depositor resides” and substituting “unsatisfied judgments against the depositor registered in the Personal Property Registry”.

23( 2) Subsection 326(3) of the Act is repealed and the following is substituted:

326( 3) If the judgment creditor has delivered an enforcement instruction to the sheriff under the Enforcement of Money Judgments Act and a copy of the assignment of judgment, certified in accordance with subsection (2), is delivered to the sheriff who is enforcing the judgment, subsection (2) applies with the necessary modifications.

Municipal Elections Act

24 Subsection 53(9) of the Municipal Elections Act, chapter M-21.01 of the Acts of New Brunswick, 1979, is amended by striking out “the judge may authorize the issue of a writ of attachment for the recovery thereof” and substituting “the judge’s order may be registered and enforced under the Enforcement of Money Judgments Act”.

Municipalities Act

25 Subsection 190.061(6) of the Municipalities Act, chapter M-22 of the Revised Statutes, 1973, is amended by striking out “order for”.

New Brunswick Income Tax Act

26( 1) Paragraph 51(9)(c) of the New Brunswick Income Tax Act, chapter N-6.001 of the Acts of New Brunswick, 2000, is repealed.

26( 2) Section 101 of the Act is amended by striking out “has the same force and effect as an order for seizure and sale issued out of the The Court of Queen’s Bench of New Brunswick” and substituting “may be executed in the same manner that an enforcement instruction may be carried out under the Enforcement of Money Judgments Act”.

Northumberland Strait Crossing Act

27 Subsection 4(3) of the Northumberland Strait Crossing Act, chapter 196 of the Revised Statutes, 2011, is amended by striking out “attachment” and substituting “seizure”.

Partnership Act

28 Section 24 of the Partnership Act, chapter P-4 of the Revised Statutes, 1973, is amended

(a) by repealing subsection (1) and substituting the following:

24( 1) Subject to section 74 of the Enforcement of Money Judgments Act, enforcement action under that Act shall not be taken against any partnership property except on a judgment against the firm.

(b) by repealing subsection (2);

Pension Benefits Act

29( 1) Section 57 of the Pension Benefits Act, chapter P-5.1 of the Acts of New Brunswick, 1987, is amended

(a) in subsection (3) by striking out “or attachment”;

(b) in subsection (4) by striking out “or attachment”;

(d) in subsection (6) by striking out “or attachment”.

29( 2) Section 99.4 of the Act is amended

(a) in subsection (2) by striking out “or attachment”;

(b) in subsection (3) by striking out “or attachment”;

Personal Property Security Act

30( 1) Paragraph 14(2)(b) of the Personal Property Security Act, chapter P-7.1 of the Acts of New Brunswick, 1993, is amended by striking out “non-exempt exigible personal property or attachable debts of the debtor within the meaning of the Creditors Relief Act” and substituting “personal property that is bound by the notice of judgment in accordance with the Enforcement of Money Judgments Act”.

30( 2) Section 20 of the Act is amended

(a) in subsection (1)

( i) in paragraph (a) by striking out “subsection 2.2(1) of the Creditors Relief Act” and substituting “subsection 21(1) of the Enforcement of Money Judgments Act”;

( ii) by repealing paragraph (b);

( iii) in paragraph (c) by striking out “and a representative of creditors”;

(b) by repealing paragraph (2)(c) and substituting the following:

( c) a person who has registered a notice of claim in the Registry pursuant to subsection 18(1) of the Enforcement of Money Judgments Act if the security interest is unperfected at the time the notice of claim is registered.

30( 3) Subsection 36(9) of the Act is repealed and the following is substituted:

36( 9) A security interest in goods that attaches before, when or after the goods become fixtures is subordinate to the interest of a creditor of the debtor who causes a judgment affecting the land to be registered in the records of the appropriate land registry office or the title register of the appropriate land titles office under the Enforcement of Money Judgments Act before notice of the security interest in the fixtures is registered in accordance with section 49.

30( 4) Subsection 37(7) of the Act is repealed and the following is substituted:

37( 7) A security interest in crops is subordinate to the interest of a creditor of the debtor who causes a judgment affecting the land to be registered in the records of the appropriate land registry office or the title register of the appropriate land titles office under the Enforcement of Money Judgments Act before notice of the security interest is registered in accordance with section 49.

Political Process Financing Act

31 Subsection 30(3) of the Political Process Financing Act, chapter P-9.3 of the Acts of New Brunswick, 1978, is amended by striking out “following the procedure established for executions under the Memorials and Executions Act” and substituting “by the Supervisor in any manner that he or she considers appropriate”.

Proceedings Against the Crown Act

32 Subsection 17(6) of the Proceedings Against the Crown Act, chapter P-18 of the Revised Statutes, 1973, is amended by striking out “or attachment”.

Provincial Offences Procedure Act

33 Subsection 88(2) of the Provincial Offences Procedure Act, chapter P-22.1 of the Acts of New Brunswick, 1987, is amended by striking out “execute and deal with the proceeds of an order for seizure and sale issued out of The Court of Queen’s Bench of New Brunswick” and substituting “seize and sell property under the Enforcement of Money Judgments Act”.

Public Service Superannuation Act

34 Section 19 of the Public Service Superannuation Act, chapter P-26 of the Revised Statutes, 1973, is amended

(a) in subsection (1) by striking out “garnishment, attachment,”;

(b) in subsection (2) by striking out “garnishment, attachment,”.

Registry Act

35( 1) Section 1 of the Registry Act, chapter R-6 of the Revised Statutes, 1973, is amended

(a) in the definition “instrument” by striking out “memorial of a judgment or decree” and substituting “judgment or decree or memorial of judgment or decree”;

(b) by adding the following definitions in alphabetical order:

“decree” includes an abbreviated decree referred to in subsection 50(3.1);

“judgment” includes an abbreviated judgment referred to in subsection 50(3.1);

35( 2) Section 19 of the Act is amended

(a) in subsection (2) by striking out “a memorial of the judgment” and substituting “the judgment or a memorial of the judgment”;

(b) by adding after subsection (4) the following:

19( 4.1) Without limiting subsection (4), if a sheriff executes a conveyance of an interest in lands sold by the sheriff under the Enforcement of Money Judgments Act, the conveyance, if registered within six months after the day of its execution, shall, as against any subsequent purchaser or judgment creditor, be as valid as if registered on the day of its execution.

35( 3) Subsection 43(3) of the Act is repealed and the following is substituted:

43( 3) Nothing in this section affects a conveyance by a sheriff under the Enforcement of Money Judgments Act.

35( 4) Paragraph 46(3)(f) of the Act is amended by striking out “memorial of judgment or decree” and substituting “judgment, decree or memorial of judgment or decree”.

35( 5) Section 50 of the Act is amended by adding after subsection (3) the following:

50( 3.1) If a person presents for registration a judgment or decree that affects an interest in or title to land or requires the payment of money, but also includes provisions that do not do so, the registrar may refuse to register the judgment or decree and require the person to present an abbreviated judgment or decree that

( a) omits the provisions that do not affect an interest in or title to land or require the payment of money, and

( b) is certified under the seal of the court that issued the judgment or decree.

35( 6) Section 57 of the Act is repealed and the following is substituted:

57 A registered judgment or certificate or memorial of judgment may be discharged or partially discharged by the person entitled to discharge the same, by certificate executed and registered in the same manner as a certificate of discharge of mortgage, and such certificate, when registered, shall have the effect of releasing the land charged by the registration of the judgment, certificate or memorial, or such portion thereof as may be specially mentioned in such discharge.

The Residential Tenancies Act

36 Subsection 8.3(4) of The Residential Tenancies Act, chapter R-10.2 of the Acts of New Brunswick, 1975, is amended by striking out “order for”.

Rules of Court

37( 1) Subrule .03 of Rule 40 of the Rules of Court of New Brunswick, “INTERLOCUTORY INJUNCTION OR MANDATORY ORDER”, New Brunswick Regulation 82-73 under the Judicature Act and the Provincial Offences Procedure Act, is repealed.

37( 2) Rule 61 of the Rules of Court, “ENFORCEMENT OF ORDERS AND JUDGMENTS”, is amended

(a) in subrule .02 of Rule 61

( i) by repealing clause (1)(a);

( ii) by repealing clause (2)(a);

(b) by repealing subrule .03 of Rule 61;

(d) by repealing subrule .08 of Rule 61;

(e) by repealing subrule .14 of Rule 61;

(f) in paragraph (2) of Rule 61.15 by striking out “the person who obtained the order may, with leave, issue an Order for Seizure and Sale” and substituting “the court may grant judgment”.

Sale of Lands Publication Act

38 The Sale of Lands Publication Act, chapter S-2 of the Revised Statutes, 1973, is repealed.

Regulation under the Sale of Lands Publication Act

39 New Brunswick Regulation 82-182 under the Sale of Lands Publication Act is repealed.

Support Enforcement Act

40( 1) Section 1 of the Support Enforcement Act, chapter S-15.5 of the Acts of New Brunswick, 2005, is amended

(a) by repealing the definition “garnishee”;

(b) in the definition “income source” by striking out “will become due” and substituting “may become due”.

40( 2) Section 15 of the Act is amended

(a) in subsection (1) by striking out “a person who is or may become liable to pay a sum of money to a payer” and substituting “an income source”;

(b) in subsection (4) in the portion preceding paragraph (a) by striking out “garnishee” and substituting “income source”;

40( 3) Section 16 of the Act is amended

(a) in paragraph (1)(b) by striking out “garnishee” and substituting “income source”;

(b) in subsection (3) by striking out “a garnishee” and “the garnishee” and substituting “an income source” and “the income source” respectively.

40( 4) Section 17 of the Act is amended

(a) in subsection (1)

( i) in the portion preceding paragraph (a) by striking out “a garnishee” and substituting “an income source”;

( ii) in paragraph (a) by striking out “garnishee” and substituting “income source”;

(b) in paragraph (2)(a)

( i) in the portion preceding subparagraph (i) by striking out “garnishee” and substituting “income source”;

( ii) in subparagraph (i) by striking out “garnishee” and substituting “income source”;

(d) in subsection (5)

( i) in subparagraph (a)(i) by striking out “garnishee” and substituting “income source”;

( ii) in paragraph (b)

( A) in the portion preceding subparagraph (i) by striking out “garnishee” and substituting “income source”;

( B) in subparagraph (i) by striking out “garnishee” and substituting “income source”;

(e) in subsection (6)

( i) in the portion preceding paragraph (a) by striking out “a garnishee” and “the garnishee” and substituting “an income source” and “the income source” respectively;

( ii) in paragraph (a) by striking out “garnishee” and substituting “income source”;

( iii) in paragraph (b) by striking out “garnishee” and substituting “income source”;

(f) in subsection (6.1) by striking out “garnishee” and “garnishee’s” and substituting “income source” and “income source’s” respectively;

(g) in subsection (6.2) by striking out “garnishee” and substituting “income source”.

40( 5) Section 18 of the Act is amended

(a) in subsection (1)

( i) in the portion preceding paragraph (a) by striking out “a garnishee” and substituting “an income source”;

( ii) in paragraph (a) by striking out “garnishee” and substituting “income source”;

( iii) in paragraph (b) by striking out “garnishee” and substituting “income source”;

(b) in paragraph (2)(c) by striking out “garnishee” and substituting “income source”;

40( 6) Section 20 of the Act is amended

(a) by repealing subsection (2) and substituting the following:

20( 2) Notwithstanding any other Act, upon service, a payment order has priority over a seizure under the Enforcement of Money Judgments Act, or any other execution, whenever made, with respect to any debt owed by the income source.

(b) by repealing subsection (3).

40( 7) Subsection 22(1) of the Act is amended by striking out “A garnishee” and “the garnishee” and substituting “An income source” and “the income source” respectively.

40( 8) Section 24 of the Act is amended

(a) by repealing subsection (3) and substituting the following:

24( 3) Within ten days after being served with a payment order in relation to a sum of money referred to in subsection (1), an income source shall

(a) pay to the Director that portion of the money deemed to be owed to the payer that is necessary for the income source to comply with the payment order,

(b) serve notice on the Director that the money is owed jointly or jointly and severally to two or more persons, and

(c) serve notice on the co-creditors who are not named in the payment order that the money has been paid to the Director.

(b) in subsection (4) by striking out “a garnishee” and substituting “an income source”;

Wage Earners Protection Act

41 Subsection 6(3) of the Wage Earners Protection Act, chapter 235 of the Revised Statutes, 2011, is repealed and the following is substituted:

6( 3) When a claim is filed with the sheriff, if the sheriff has not already recovered an amount sufficient to satisfy the claim of the execution creditor and also the claim of the employee, the sheriff may seize further property to recover such an amount.

Commencement

42 This Act or any provision of it comes into force on a day or days to be fixed by proclamation.