A trustee dealing with a securities firm bankruptcy encounters a rule in Part XII regarding the vesting of securities that conflicts with a general property rule in Part I of the Bankruptcy and Insolvency Act. Which rule must the trustee apply?

Question

Accepted Answer

The trustee must apply the rule in Part XII because Section 255 dictates that Part XII prevails over any conflicting provisions in the rest of the Act.

A trustee dealing with a securities firm bankruptcy encounters a rule in Part XII regarding the vesting of securities that conflicts with a general property rule in Part I of the Bankruptcy and Insolvency Act. Which rule must the trustee apply?

Discussion