1993 Legislative Session: 2nd Session, 35th Parliament

The following electronic version is for informational purposes only.
The printed version remains the official version.


BILL 17 -- 1993









Bond payable to minister


Custodian of bond




Limitation period


Return of bond


Notice to government


Person who is not party to a bond may bring action


Rights under bond not affected


Power to make regulations


Repeal of former Act



HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:


1 In this Act "bond" means security of any kind, including money, given to ensure performance of an obligation arising under an enactment, a licence, a permit, a contract or another similar obligation, and includes the terms under which the security may be realized.


2 (1) This Act applies only to bonds required or permitted under another Act if the other Act

(a) is designated by a regulation made under this Act, or

(b) states expressly that the Bonding Act applies.

(2) If there is a conflict between this Act, or a regulation made under this Act, and an enactment to which the Bonding Act applies, this Act or the regulation made under this Act prevails unless the other enactment expressly provides otherwise.

Bond payable to minister

3 (1) A bond must be payable to the minister.

(2) Despite subsection (1), interest on a bond is not payable to the minister unless otherwise provided by regulation.

Custodian of bond

4 (1) The minister is the custodian of a bond.

(2) The minister may designate in writing a person

(a) who may act on behalf of the minister, or

(b) who may designate a person who may act on behalf of the minister

as custodian of a specific bond, a class of bonds or all bonds.

(3) A designation made by the minister or by a designated person may be made subject to conditions.


5 The minister holds a bond in trust for persons who establish rights to recover on the bond.

Limitation period

6 A person may not make a claim or bring an action against a bond after 2 years following the end of the period during which the bond was required to be maintained.

Return of bond

7 The minister must promptly return a bond to the bonded person if

(a) the bond is replaced with the permission of the minister or person designated by the minister and the minister is satisfied that the replacement bond adequately provides for the payment of claims that could be made against the replaced bond, or

(b) the limitation period for bringing actions against the bond expires and the minister is satisfied that no valid claim against the bond exists.

Notice to government

8 If a bonded person or a person who provided a bond to ensure the performance of the bonded person becomes aware of an actual or proposed claim or action against the bond, the person must promptly give that information to the minister responsible for the administration of the enactment under which the bond is required.

Person who is not party
to a bond may bring action

9 A person who is not a party to a bond may bring an action against the government in the person's own name for payment under the bond if the person has a right of action against the bonded person because of the failure to perform an obligation that the bond ensures.

Rights under bond not affected

10 A person's right to payment of a claim against a bond is not affected by reason only that the bond does not comply with this Act or a regulation made under this Act.

Power to make regulations

11 (1) The Lieutenant Governor in Council may make regulations as authorized by section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations

(a) respecting the form and content of a bond,

(b) respecting the type of security that is acceptable or not acceptable for a bond, and

(c) a matter referred to in section 3 (2).

(3) A regulation made under subsection (1) or (2)

(a) may be made in respect of a specific bond, a class of bonds or all bonds,

(b) may provide differently for different enactments, and

(c) may confer a discretion on a person to choose bonds or securities that will be accepted under an enactment from a list of bonds or securities that is prescribed under subsection (2).

Repeal of former Act

12 The Bonding Act, R.S.B.C. 1979, c. 31, is repealed.


13 This Act comes into force by regulation of the Lieutenant Governor in Council.

Explanatory Note

This Act replaces the existing Bonding Act.

It simplifies language, clarifies responsibilities and reflects modern commercial practice. For example, it provides greater flexibility in the types of security that are acceptable for a bond and in the arrangements that can be made for custody of the security.

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