The provincial LRBA further limits a commercial landlordвЂ™s remedies. Moreover, a stay of proceedings is automatically imposed by a bankruptcy order. The federal BIA describes the preferential claim of a commercial landlord where a tenant goes bankrupt and prescribes a scheme of distribution of the proceeds realized from the bankruptвЂ™s property. Applicable provincial legislation is the Alberta LandlordвЂ™s Rights on Bankruptcy Act 2В ( LRBA). The federal legislation applicable to tenant bankruptcy is the Bankruptcy and Insolvency Act 1В ( BIA), which sets out a distributive scheme relating to the bankrupt tenantвЂ™s estate. Tenant bankruptcy under a commercial lease is governed by federal and provincial legislation that impose strict limitations in relation to recovering rental arrears, accelerated rent and rent for the unexpired portion of the commercial lease. Federal and provincial legislative scheme The following paragraphs will assess a commercial landlordвЂ™s remaining rights and remedies and will provide our recommendations for commercial landlords. This precludes the landlord from exercising its rights of distress and terminating the commercial lease.

If a bankruptcy order is granted by the court, this order will stay all proceedings and actions against the tenant. When tenant insolvencies arise, commercial landlords are often faced with precarious situations. There are significant implications for commercial landlords and tenants from the resulting financial crisis. The ongoing global crisis will unfortunately push many businesses into bankruptcy. The coronavirus pandemic is having a devastating impact on the global economy and has caused economic activity to grind to a halt.

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