Directions for Conservatory Measures to the Bank of Montreal, 6 Fred Grant Street, Barrie, ON, L4M 3G6—September 6, 2012
What is a conservatory measure?
The Superintendent of Bankruptcy puts in place conservatory measures when a bankruptcy or insolvency estate needs protection. It might be in cases of Licensed Insolvency Trustee (LIT) malfeasance or if serious wrongdoing on the part of a LIT puts estate files at risk. Conservatory measures may also be put in place if a LIT becomes ill or dies without a valid succession agreement. Finally, conservatory measures may be put in place if a LIT, for whatever reason, has allowed the administration of his or her practice to become substandard.
In the matter of:
Thomas J. Carleton and
T. Carleton & Co. Inc.
Directions for Conservatory Measures
(Section 14.03 of the Bankruptcy and Insolvency Act)
Whereas the Bankruptcy and Insolvency Act (the Act) provides the Superintendent of Bankruptcy (the Superintendent) with the general power to supervise the administration of all estates and matters to which the Act applies;
Whereas Thomas J. Carleton (the "Trustee") is the holder of an individual licence as trustee in bankruptcy;
Whereas T. Carleton & Co. Inc. is the holder of a corporate licence as trustee in bankruptcy;
Whereas the Trustee is the sole practitioner of T. Carleton & Co. Inc.;
Whereas Mr. Michele (Mike) Cacciavillani, Senior Bankruptcy Analyst ("SBA") of the Office of the Superintendent of Bankruptcy ("OSB"), was informed by Mr. Carl Rumanek that the trustee was hospitalized on August 17, 2012;
Whereas the trustee remains in hospital as at the date of this direction for conservatory measures;
Whereas the trustee, in the present circumstances, is unable to administer estates under the administration of Thomas J. Carleton and T. Carleton & Co. Inc.;
Whereas the Trustee’s current file inventory totals 245 estates;
Whereas according to the 2012 Annual Banking Report, the current estate inventory is comprised of an aggregate amount of approximately $1,160,000 in the trust bank accounts;
Whereas I believe on reasonable grounds that the estates require protection;
Whereas the Superintendent may, for the protection of an estate, exercise the powers set out in subsection 14.03(1) of the Act, in the circumstances referred to in section 14.03(2) of the Act;
Whereas the Superintendent has delegated to me, in accordance with section 14.01(2) of the Act, the powers of the Superintendent as specified at section 14.03(1) of the Act, in the circumstance referred to in section 14.03(2), a copy of which delegation is attached, along with copies of sections 14.01, 14.02 and 14.03 of the Act;
Whereas paragraph 14.03(2)(a) of the Act applies;
I, Diane Valic, in my capacity as delegate for the Superintendent, direct the Bank of Montreal (6 Fred Grant Street, Barrie, ON, L4M 3G6) that, pursuant to sections 14.03(1)(b) and (c) of the Act:
- it consider upon receipt of the present directions, Ms. Joy Shortt or Mr. Michele (Mike) Cacciavillani, employees of the Office of the Superintendent of Bankruptcy, as the only authorized signatories as relates to any operations on the funds credited to the estates of bankruptcies and proposals administered by Thomas J. Carleton and T. Carleton & Co. Inc.;
- it make no debit, payment or transfer of funds credited to, or which ought to have been credited to, the estates of bankruptcies and proposals administered by Thomas J. Carleton and T. Carleton & Co. Inc. without the countersignature of Ms. Joy Shortt or Mr. Michele (Mike) Cacciavillani;
- it not pay out of these accounts: cheques, bills of exchange, bank drafts or other instruments, issued before the receipt of these directions which are presented for payment after the receipt of these directions without these cheques, bills of exchange, bank drafts or other instruments being signed by Ms. Joy Shortt or Mr. Michele (Mike) Cacciavillani;
That these directions take effect immediately and will remain in effect until such time as the undersigned is satisfied that they are no longer required;
That in accordance with section 14.03(3) of the Act, these directions bind the Bank of Montreal, who must comply with them;
That, pursuant to section 14.03(4) of the Act, a person who complies with this direction is not liable for any act done by that person only to comply with this direction.
Signed at the City of Toronto, Ontario, this 6th day of September 2012.
Assistant Superintendent of Bankruptcy
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.
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