Acts and Regulations

2014, c.105 - Crown Construction Contracts Act

Full text
Payment bond
Repealed: 2020, c.29, s.107
2020, c.29, s.107
6Repealed: 2020, c.29, s.107
R.S.1973, c.C-36, s.6; 1981, c.19, s.2; 1984, c.C-5.1, s.47; 2020, c.29, s.107
Payment bond
6(1)If an amount is due to the Crown under a payment bond, a person within a class covered by the bond is, without any act by or notice by or to the Crown and without notice to the person liable on the payment bond, an assignee of the right of the Crown to recover an amount under the payment bond equal to the lesser of the following:
(a) the amount due to the person for labour or services performed or material supplied; and
(b) the amount due to the Crown under the payment bond.
6(2)A person may only be an assignee under subsection (1) if the person
(a) performed labour or services or supplied material in connection with a contract in respect of which a payment bond is held as security, and
(b) has not been paid in full for the labour or services performed or material supplied by the person under the contract within the time provided in the payment bond for payment to the class of persons of which he or she is a member.
6(3)A person who is an assignee under subsection (1) may bring action in his or her own name to enforce payment under the payment bond, and the Crown shall not be a party to the action nor be liable for any costs in connection with the action.
6(4)A payment bond given in respect of a contract to which a minister is a party shall be in the custody of the deputy head of the department under the control of that minister.
6(5)A payment bond given in respect of a contract to which a corporation or other agency is a party shall be in the custody of the chief executive officer of that corporation or agency.
6(6)The person having custody of a payment bond shall provide a copy of the payment bond, certified to be a true copy, to a person who files with him or her an affidavit setting forth that the person has performed labour or services or supplied material under the contract with respect to which the payment bond is held and that he or she has not been paid in full for it.
6(7)A document purporting to be a copy of a payment bond certified by the person having custody of the original is, without proof of the signature of the person, admissible in evidence in a court or before a person having by law or the consent of parties authority to hear, receive and examine evidence in an action to recover on the bond and has the same probative force as the original document would have if it were proven in the usual way provided by law.
R.S.1973, c.C-36, s.6; 1981, c.19, s.2; 1984, c.C-5.1, s.47