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BANKS HAVE A DUTY IMPOSED ON THEM BY THE BIA

September 5, 2017

But they rarely, if ever, comply with Section 78 of the Bakruptcy & Insolvency Act.

Under Section 78 of the Bankruptcy & Insolvency Act bankers are required to notify trustee of bank accounts and to freeze them pending consent from the trustee.

Section 78.  Where a banker has ascertained that a person having an account with the banker is an undischarged bankrupt, it is his duty forthwith to inform the trustee of the existence of the account, and thereafter the banker shall not make any payments out of the account, except under an order of the court or in accordance with instructions from the trustee, unless on the expiration of one month from the date of giving the information no instructions have been received from the trustee.