Appendix A: Selected Legislative Provisions

Sale provisions of the Forestry Service Provider Protection Act (not in force)

Seizure and sale of forest products

17  (1) On application of one or more lienholders, the court, by order, may instruct a sheriff to seize and sell forest products subject to a contractor’s lien.

(2) On an application referred to in subsection (1), a court may do one or more of the following:

(a) determine the persons who are to receive notice of the application;

(b) take evidence on, hear and summarily dispose of any question as to the validity of the lien or the priority of a third party claim to the forest products subject to the lien;

(c) direct a trial of an issue;

(d) make an order as to costs of the application, including an order for payment of costs out of the fund.

(3) When enforcing a lien under a court order,

(a) a sheriff must seize and sell the forest products in the same manner as property is seized and sold by a sheriff under a writ of execution,

(b) a sheriff has the powers and immunities of an officer of the court, and

(c) the sale must have the same effect as a sale of the property under the authority of a writ of execution.

Distribution of lien fund

18  (1) On receipt of money from the sale of the forest products subject to a contractor’s lien under section 17, the sheriff must deduct the sheriff’s costs and create a fund by depositing the balance in a separate, designated account.

(2) On receipt of money paid to the sheriff under section 3, the sheriff must deduct the sheriff’s costs and include the balance in the fund referred to in subsection (1) of this section or, if a fund has not been created under subsection (1), in a fund created for the purposes of this subsection.

(3) On application of one or more persons claiming entitlement to money in a fund created under subsection (1) or (2), the court, by order, may designate the lienholders entitled to share in the applicable fund.

(4) On an application referred to in subsection (3), a court may do one or more of the following:

(a) determine the persons who are to receive notice of the application;

(b) take evidence on, hear and summarily dispose of any question as to the validity of the lien or the priority of a third party claim to the forest products subject to the lien;

(c) direct a trial of an issue;

(d) make an order as to costs of the application, including an order for payment of costs out of the fund.

(5) Subject to subsection (7), on the expiry of 30 days following the date an order under subsection (3) is issued, the sheriff must pay out of the fund an amount not exceeding

(a) the amount secured by the lien or liens, and

(b) the amount of the costs ordered by the court

to the lienholders or third parties referred to in subsection (4) (b) specified in the order or orders directing payment of the fund.

(6) If, before the expiry of the period referred to in subsection (5), the sheriff is given notice that one or more additional lienholders have made an application to the court respecting the fund, the sheriff must not distribute the amount of the fund as provided by subsection (5) or (7) unless ordered to do so by the court.

(7) If, after allocating an amount in the fund for third party claims referred to in subsection (4) (b) that have priority over the lien or liens, the amount in the fund is not sufficient to discharge the amount owing to the lienholders referred to in subsection (5) and to pay the costs referred to in subsection (4) (d), the amount in the fund must be distributed to the lienholders in the proportion that each obligation bears to the amount of the fund or as otherwise ordered by the court.