1st Session, 63rd General Assembly
66 Elizabeth II, 2017
First Reading: October 17, 2017
This Bill provides that registered education savings plans are exempt from seizure under execution under the Judicature Act and, in doing so, by virtue of paragraph 67(1)(b) of the Bankruptcy and Insolvency Act (Canada), exempts registered education savings plans from the property of a bankrupt that may be divided among the bankrupt's creditors.
Be it enacted by the Governor and Assembly as follows:
1 This Act may be cited as the Education Fund Protection Act.
2 Chapter 240 of the Revised Statutes, 1989, the Judicature Act, is amended by renumbering Section 45A as Section 45AA and adding immediately before that Section the following Section:
(2) Property in a registered education savings plan, including any current obligation or future obligation under the plan, and any payments, or refunds of payments, out of a registered education savings plan to or for a beneficiary to assist the beneficiary to further the beneficiary's education at a post-secondary school level, are exempt from seizure under execution, but any other payments or refunds of payments out of a registered education savings plan are not exempt.
(3) For the purpose of subsection (2), a transfer of property held in one registered education savings plan to another registered education savings plan as described in subsection 146.1(6.1) of the Income Tax Act (Canada) does not constitute a payment or refund of payments out of a registered education savings plan.
(4) For greater certainty, a transfer of property held in a registered education savings plan referred to in subsection (3) does not constitute a fraudulent or preferential transfer under the Assignments and Preferences Act.
(6) This Section does not apply to the seizure under execution of a registered education savings plan if the proceeding in respect of the registered education savings plan was commenced before the coming into force of this Section.