130 Creditor May Require Trustee To Elect To Exercise Power

In This Volume

130 Notwithstanding subsection 128(3) and section 129, the creditor may, by notice in writing, require the trustee to elect whether he will exercise the power of redeeming the security or requiring it to be realized, and if the trustee does not, within one month after receiving the notice or such further time or times as the court may allow, signify in writing to the creditor his election to exercise the power, he is not entitled to exercise it, and the equity of redemption or any other interest in the property comprised in the security that is vested in the trustee shall vest in the creditor, and the amount of his claim shall be reduced by the amount at which the security has been valued.

R.S. 1970, c. B-3, s. 101.

PRACTICE

Application for Vesting of Equity in a Creditor

Upon receiving an application for vesting under s. 130, the registrar gives the trustee a notice under s. 294.6(e) or s. 303(e) of the Land Title Act.

CROSS REFERENCES AND OTHER SOURCES OF INFORMATION

Sections 128(3) and 129

Section 128(3) provides that a trustee may redeem a security on payment to the secured creditor of the debt or the value of the security as assessed. Section 129 provides that where the trustee is dissatisfied with the value at which a security is assessed, the trustee may require that the property the security comprises be offered for sale.