Part 14 — Remedies and Enforcement
151 Property freeze orders
(a) "investigated person" means
(i) a licensee referred to in subsection (2),
(ii) a collection agency or collector as defined in section
109,
(iii) a supplier, or
(iv) any other person to whom this Act applies,
who is under investigation in respect of an alleged
contravention of this Act or the regulations;
(b) "property" means real property or personal property as
defined in the Personal Property Security Act, and personal
property includes but is not limited to money, money in a
trust account, goods, assets, a security or a debt;
(c) "property freeze order" means an order of the Director
under subsection (2).
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(2) The Director may issue a property freeze order in the following
circumstances:
(a) where the Director is ab out to cancel or suspend or has
cancelled or suspended the licence of a licensee;
( b ) w h e r e
(i) criminal proceedings that, in the opinion of the Director,
are connected with or arise out of matters under this Act,
or
(ii) proceedings in respect of an alleged contravention of this
Act or the regulations
are about to be or have been initiated against any person;
(c) where an investigated person has been paid money or been
given security by a person in respect of a consumer
transaction, or where an investigated person has been paid
money by a debtor in respect of a debt, and
(i) the investigated person has absconded from Alberta, or
(ii) the Director has reasonab le and probable grounds to
believe that the investigated person
(A) is about to abscond from Alberta,
(B) has removed or has atte mpted to remove personal
property from Alberta to avoid legal liabilities,
(C) has sold or disposed of or has attempted to sell or
dispose of real or personal property to avoid legal
liabilities, or
(D) is misusing any money p aid or any assets delivered
to the investigated person;
(d) where the Director has reason to believe that the trust fu nds
that are required to be held by a licensee or other person
under this Act or the regulations are less than the amount for
which the licensee or other person is accountable;
(e) where the Director has reason to believe it advisable for the
protection of consumers dealing with an investigated person.
(3) In the circumstances referred to in subsection (2), the Director
may, in writing, on terms that the Director considers reasonable,
issue one or more of the following property freeze orders:
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(a) that the investigated person
(i) not take any of the investigated person's real or personal
property from the possession of another person named in
the order who has the property on deposit, under control
or for safekeeping, or
(ii) not dispose of any of the investigated person's real or
personal property nor otherwise deal with the
investigated person's real or personal property in a way
that reduces the value of the property, whether the
property is acquired by the investigated person before,
on or after the date of the order;
(b) that a person to whom the order is directed hold in trust any
real or personal property of the investigated person that the
person has possession or control of or holds for safekeeping;
(c) that a debtor of the investigated person to whom the order is
directed
(i) hold in trust any real or personal property that is payabl e
or transferable in satisfaction of the debt, or
(ii) transfer to a receiver, receiver-manager or trustee
appointed under subsection (4) any real or personal
property that is payable or transferable in satisfaction of
the debt;
(d) that a lessor to whom the order is directed who leases safety
deposit boxes, safes or compartments in safes not permit an
investigated person or the investigated person's
representative or agent to open or remove a safety deposit
box, safe or compartment in a safe leased to the investigated
person;
(e) that a person to whom the o rder is directed hold the real or
personal property affected by the order in that person's
possession, safekeeping or control in trust for an interim
receiver, custodian, trustee, receiver-manager, receiver or
liquidator who has been appointed or whose appointment
has been applied for under the Bankruptcy and Insolvency
Act (Canada), the Canada Business Corporations Act
(Canada), the Judicature Act, the Personal Property
Security Act, the Companies Act, the Business Corporations
Act, the Cooperatives Act or this Act, as the case may be.
(4) In the circumstances referred to in subsection (2), the Director
may apply to the Court of King's Bench for the appointment of a
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receiver, receiver-manager or trustee to hold or manage, as the case
may be, all or part of the property of an investigated person on any
terms or conditions that the Court approves.
(5) An application under subsection (4) may be made ex parte
unless in the opinion of the Court of King's Bench it would be
improper to do so.
(6) A property freeze order does not apply to assets in a stock
exchange clearing house or to securities in process of transfer by a
transfer agent unless the order expressly states that it applies to
those assets or securities.
(7) A property freeze order must be served on each person to
whom it is directed and on each investigated person who is named
in the order.
(8) A property freeze order takes effect in respect of a person or an
investigated person at the time the order is served on the person or
investigated person or at a later time specified by the Director in
the order.
(9) Subject to section 151.3, any property affected by a property
freeze order continues to be affected by the order until the Director,
in writing,
(a) amends or cancels the order, or
(b) orders the release of the property.
(10) An amendment or a cancellation of a property freeze order
under subsection (9)(a) or a release order under subsection (9)(b)
must be served on the person to whom it is directed.
RSA 2000 cF-2 s151;2005 c9 s53;2009 c53 s64;
AR 217/2022