A DISINGENUOUS REMEDY: UNPAID FARMERS FISHERMEN AND AQUACULTURISTS LIENS UNDER BIA S. 81.2

By David R.M. Jackson on 2014/09/30

th-jackson-davidOn paper, the special priority afforded to unpaid farmers, fishermen and aquaculturists under s.81.2 of the Bankruptcy and Insolvency Act1 (“BIA”) is an extraordinary lien right. Once the unpaid farmer, fisherman or aquaculturist (“FFA”) satisfies the statutory prerequisites, a lien is created on the purchaser’s inventory in priority over every other charge, save and except 30 day goods rights of unpaid suppliers under BIAs.81.12 (“30 day goods”). That includes priority over employees’ wages.3 It even primes Canada Revenue Agency’s super priority for unremitted source deductions.4

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