For the purposes of this Act, an entity is widely held if it is
For the purposes of this Act, a person is a major shareholder of a body corporate if
References in this Act to the carrying on of business in Canada by an authorized foreign bank and to the business in Canada of an authorized foreign bank are deemed, respectively, to be references to the carrying on of business in Canada, or to business in Canada, under Part XII.1.
WTO Member resident means a WTO Member resident within the meaning of section 11.1. (résident d’un membre de l’OMC)
transfer, in respect of securities, includes a transmission by operation of law; (transfert)
trade, in respect of securities, means any sale or disposition of securities for valuable consideration; (opération)
Superintendent means the Superintendent of Financial Institutions appointed pursuant to the Office of the Superintendent of Financial Institutions Act; (surintendant)
substantial investment means a substantial investment determined in accordance with section 10; (intérêt de groupe financier)
subsidiary means an entity that is a subsidiary of another entity as defined in section 5; (filiale)
subordinated indebtedness means an instrument evidencing an indebtedness of a bank that by its terms provides that the indebtedness will, in the event of the insolvency or winding-up of the bank, be subordinate in right of payment to all deposit liabilities of the bank and all other liabilities of the bank except those that, by their terms, rank equally with or are subordinate to such indebtedness; (titre secondaire)
squeeze-out transaction means a transaction by a bank that is not a distributing bank, or a bank holding company that is not a distributing bank holding company, that requires an amendment to a by-law referred to in subsection 217(1) and that would directly or indirectly result in the interest of a holder of shares of a class of shares being terminated without their consent and without substituting an interest of equivalent value in shares that are issued by the following persons and have rights and privileges equal to or greater than those of the shares of the affected class:
special resolution means a resolution passed by a majority of not less than two thirds of the votes cast in respect of that resolution or signed by all the persons who are entitled to vote on that resolution; (résolution extraordinaire)
significant interest means a significant interest determined in accordance with section 8; (intérêt substantiel)
series, in respect of shares, means a division of a class of shares; (série)
send includes deliver; (envoyer)
security interest means an interest in or charge on property by way of mortgage, lien, pledge or otherwise taken by a creditor or guarantor to secure the payment or performance of an obligation; (sûreté)
security means
securities underwriter means a person who, as principal, agrees to purchase securities with a view to the distribution of the securities or who, as agent for a body corporate or other person, offers for sale or sells securities in connection with a distribution of the securities, and includes a person who participates, directly or indirectly, in a distribution of securities, other than a person whose interest in the distribution of securities is limited to receiving a distributor’s or seller’s commission payable by a securities underwriter; (souscripteur à forfait)
residential property means real property consisting of buildings that are used, or are to be used, to the extent of at least one half of the floor space thereof, as one or more private dwellings; (immeuble résidentiel)
resident Canadian means a natural person who is
regulatory capital, in respect of a bank or a bank holding company, has the meaning given that expression by the regulations; (capital réglementaire)
regulated foreign entity means an entity that is
registered form, in respect of a security, means a security in registered form as determined in accordance with subsection 83(4); (titre nominatif)
recorded address means
real property includes a leasehold interest in real property; (biens immeubles)
proxyholder means the person appointed by proxy to attend and act on behalf of a shareholder at a meeting of shareholders; (fondé de pouvoir)
proxy means a completed and executed form of proxy by means of which a shareholder appoints a proxyholder to attend and act on the shareholder’s behalf at a meeting of shareholders; (procuration)
principal officer in relation to an authorized foreign bank means the person appointed under section 536; (dirigeant principal)
principal office means, in relation to an authorized foreign bank, the office required to be maintained under section 535; (bureau principal)
prescribed means prescribed by regulation; (Version anglaise seulement)
personal representative means a person who stands in place of and represents another person and, without limiting the generality of the foregoing, includes, as the circumstances require, a trustee, an executor, an administrator, a committee, a guardian, a tutor, a curator, an assignee, a receiver, an agent or an attorney of any person, but does not include a delegate; (représentant personnel)
person means a natural person, an entity or a personal representative; (personne)
patronage allocation means an amount that a federal credit union allocates among its members based on the business done by them with or through the federal credit union; (ristourne)
ordinary resolution means a resolution passed by a majority of the votes cast in respect of that resolution; (résolution ordinaire)
order form, in respect of a security, means a security in order form as determined in accordance with subsection 83(3); (titre à ordre)
officer means
non-WTO Member foreign bank means a foreign bank that is not controlled by a WTO Member resident; (banque étrangère d’un non-membre de l’OMC)
NAFTA country resident[Repealed, 1999, c. 28, s. 1]
minor has the same meaning as in the applicable provincial law and in the absence of any such law has the same meaning as the word child in the United Nations Convention on the Rights of the Child adopted in the United Nations General Assembly on November 20, 1989; (mineur)
Minister means the Minister of Finance; (ministre)
members register, in relation to a federal credit union, means the register referred to in section 254.1; (registre des membres)
member, in relation to a federal credit union, means a person who is one of the members of the federal credit union in accordance with subsection 47.04(2); (membre)
local cooperative credit society means a body corporate organized on cooperative principles incorporated by or under an Act of the legislature of a province
letters patent, in respect of an instrument authorized to be issued under this Act, means letters patent in a form approved by the Superintendent; (lettres patentes)
issuer, in respect of a security, means the entity that issues or issued the security; (émetteur)
insurance holding company means a body corporate that is incorporated or formed under Part XVII of the Insurance Companies Act; (société de portefeuille d’assurances)
incorporator, in relation to a bank or a bank holding company, means a person who applied for letters patent to incorporate the bank or bank holding company, as the case may be; (fondateur)
incorporating instrument means the special Act, letters patent, instrument of continuance or other constating instrument by which a body corporate was incorporated or continued and includes any amendment to or restatement of the constating instrument; (acte constitutif)
incorporated, when used with reference to a body corporate that is incorporated by or under an Act of Parliament or of the legislature of a province, also refers to a body corporate that is continued by or under any such Act; (constitué en personne morale)
holding body corporate means a holding body corporate within the meaning of section 4; (société mère)
holder means
head office, in relation to a bank, means the office required to be maintained under section 237 and, in relation to a bank holding company, means the office required to be maintained under section 814; (siège)
guarantee includes a letter of credit; (garantie)
going-private transaction means a going-private transaction as defined in the regulations; (transaction de fermeture)
form of proxy means a written or printed form that, when completed and executed by or on behalf of a shareholder, constitutes a proxy; (formulaire de procuration)
foreign institution means an entity that is
foreign bank subsidiary[Repealed, 2001, c. 9, s. 35]
foreign bank, subject to section 12, means an entity incorporated or formed by or under the laws of a country other than Canada that
financial institution means
fiduciary means any person acting in a fiduciary capacity and includes a personal representative of a deceased person; (représentant)
federation of cooperative credit societies means an association under the Cooperative Credit Associations Act or a federation, league or corporation incorporated or organized by or under an Act of the legislature of a province, the membership or the shareholders of which include two or more central cooperative credit societies; (fédération de sociétés coopératives de crédit)
federal financial institution means
federal credit union means a bank that, within the meaning of section 12.1, is organized and carries on business on a cooperative basis; (coopérative de crédit fédérale)
external complaints body means the body corporate designated under subsection 627.48(1); (organisme externe de traitement des plaintes)
equity, in respect of a bank or a bank holding company, means its equity as determined in accordance with the regulations; (capitaux propres)
entity means a body corporate, trust, partnership, fund, an unincorporated association or organization, Her Majesty in right of Canada or of a province, an agency of Her Majesty in either of such rights and the government of a foreign country or any political subdivision thereof and any agency thereof; (entité)
domestic systemically important bank means a bank that is designated as a domestic systemically important bank under section 484.1; (banque d’importance systémique nationale)
director means a natural person occupying the position of director, by whatever name called, of a body corporate, and board of directors or directors refers to the directors of a body corporate as a body; (administrateur, conseil d’administration ou conseil)
delegate means a natural person appointed or elected to represent a member of a federal credit union at a meeting of members; (délégué)
debt obligation means a bond, debenture, note or other evidence of indebtedness of an entity, whether secured or unsecured; (titre de créance)
court of appeal means the court to which an appeal lies from a decision or order of a court; (cour d’appel)
court means
consumer provision means a provision referred to in paragraph (a) or (a.1) of the definition consumer provision in section 2 of the Financial Consumer Agency of Canada Act; (disposition visant les consommateurs)
complainant, in relation to a bank or any matter concerning a bank, means
common-law partner, in relation to an individual, means a person who is cohabiting with the individual in a conjugal relationship, having so cohabited for a period of at least one year; (conjoint de fait)
Commissioner means the Commissioner of the Financial Consumer Agency of Canada appointed under section 4 of the Financial Consumer Agency of Canada Act; (commissaire)
central securities register or securities register, in relation to a bank, means the register referred to in section 248 and, in relation to a bank holding company, means the register referred to in section 825; (registre central des valeurs mobilières ou registre des valeurs mobilières)
central cooperative credit society means a body corporate organized on cooperative principles by or under an Act of the legislature of a province, one of whose principal purposes is to receive deposits from and provide liquidity support to local cooperative credit societies, and
Canadian financial institution means a financial institution that is incorporated or formed by or under an Act of Parliament or of the legislature of a province; (institution financière canadienne)
Canadian entity means an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province, or otherwise formed in Canada, and that carries on business in Canada; (entité canadienne)
branch
body corporate means an incorporated body wherever or however incorporated; (personne morale)
beneficial ownership includes ownership through one or more trustees, legal representatives, agents or other intermediaries; (véritable propriétaire et propriété effective)
bearer form, in respect of a security, means a security in bearer form as determined in accordance with subsection 83(2); (titre au porteur)
bearer, in relation to a security, means the person in possession of a security payable to bearer or endorsed in blank; (porteur)
bank holding company means a body corporate that is incorporated or formed under Part XV; (société de portefeuille bancaire)
bank means a bank listed in Schedule I or II; (banque)
authorized foreign bank means a foreign bank that is the subject of an order under subsection 524(1); (banque étrangère autorisée)
annual statement, in relation to a bank, means the annual financial statement of the bank within the meaning of paragraph 308(1)(a) and, in relation to a bank holding company, means the annual financial statement of the bank holding company within the meaning of paragraph 840(1)(a); (rapport annuel)
annual return means a return prepared in accordance with section 601; (état annuel)
Agency means the Financial Consumer Agency of Canada established under section 3 of the Financial Consumer Agency of Canada Act; (Agence)
affiliate means an entity that is affiliated with another entity within the meaning of section 6; (groupe)
affairs, with respect to a bank, an authorized foreign bank or a bank holding company, means the relationships among the bank, authorized foreign bank or bank holding company and its affiliates and the shareholders, members, directors and officers of the bank, authorized foreign bank or bank holding company and its affiliates, but does not include the business of the bank, authorized foreign bank or bank holding company or any of its affiliates; (affaires internes)
in respect of an authorized foreign bank, means an agency, the principal office or any other office of the authorized foreign bank in Canada at which is carried on the business in Canada of the authorized foreign bank; (succursale)
in respect of a bank, means an agency, the head office or any other office of the bank, and
whose directors are wholly or primarily persons elected or appointed by local cooperative credit societies; (société coopérative de crédit centrale)
whose membership consists solely or primarily of local cooperative credit societies, or
a member or a former member of a federal credit union; (plaignant)
any other person who, in the discretion of a court, is a proper person to make an application under section 334, 338 or 989, or
a director or an officer, or a former director or officer, of a bank or any of its affiliates,
a registered holder or beneficial owner, and a former registered holder or beneficial owner, of a security of a bank or any of its affiliates,
the Supreme Court of Yukon, the Supreme Court of the Northwest Territories and the Nunavut Court of Justice; (tribunal)
in the Province of Newfoundland and Labrador, the Trial Division of the Supreme Court of the Province, and
in the Provinces of New Brunswick, Manitoba, Saskatchewan and Alberta, the Court of Queen’s Bench for the Province,
in the Provinces of Nova Scotia, British Columbia and Prince Edward Island, the Supreme Court of the Province,
in the Province of Quebec, the Superior Court of the Province,
in the Province of Ontario, the Superior Court of Justice,
an insurance company or a fraternal benefit society incorporated or formed under the Insurance Companies Act; (institution financière fédérale)
an association to which the Cooperative Credit Associations Act applies, or
a body corporate to which the Trust and Loan Companies Act applies,
a bank,
a foreign institution; (institution financière)
an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province and that is primarily engaged in dealing in securities, including portfolio management and investment counselling, and
a cooperative credit society incorporated and regulated by or under an Act of the legislature of a province,
a trust, loan or insurance corporation incorporated by or under an Act of the legislature of a province,
an insurance company or a fraternal benefit society incorporated or formed under the Insurance Companies Act,
an association to which the Cooperative Credit Associations Act applies,
a body corporate to which the Trust and Loan Companies Act applies,
a bank or an authorized foreign bank,
but does not include a subsidiary of a bank named in Schedule I as that Schedule read immediately before the day section 184 of the Financial Consumer Agency of Canada Act comes into force, unless the Minister has specified that subsection 378(1) no longer applies to the bank; (banque étrangère)
is a foreign institution, other than a foreign bank within the meaning of any of paragraphs (a) to (f), that controls a bank incorporated or formed under this Act,
controls another foreign bank, or
engages, directly or indirectly, in the business of providing financial services and is affiliated with another foreign bank,
engages in the business of lending money and accepting deposit liabilities transferable by cheque or other instrument,
engages, directly or indirectly, in the business of providing financial services and employs, to identify or describe its business, a name that includes the word “bank”, “banque”, “banking” or “bancaire”, either alone or in combination with other words, or any word or words in any language other than English or French corresponding generally thereto,
carries on a business in any foreign country that, if carried on in Canada, would be, wholly or to a significant extent, the business of banking,
is a bank according to the laws of any foreign country where it carries on business,
incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province; (institution étrangère)
engaged in the business of banking, the trust, loan or insurance business, the business of a cooperative credit society or the business of dealing in securities or is otherwise engaged primarily in the business of providing financial services, and
in respect of the ownership of a membership share, the member who holds the membership share within the meaning of section 7.1; (détenteur)
in respect of the ownership of a share, the shareholder of the share within the meaning of section 7, and
in respect of a security certificate, the person in possession of the certificate issued or endorsed to that person or to bearer or in blank,
whose principal purpose is to receive deposits from and make loans to its members and shareholders; (société coopérative de crédit locale)
whose members or shareholders consist substantially of natural persons, and
in relation to any other entity, any natural person designated as an officer of the entity by by-law, by resolution of the members thereof or otherwise; (dirigeant)
in relation to a body corporate, a chief executive officer, president, vice-president, secretary, controller, treasurer and any other natural person designated as an officer of the body corporate by by-law or by resolution of the directors of the body corporate, and
in relation to a person in any other respect in relation to a bank, the latest postal address of the person according to the records of the branch concerned; (adresse enregistrée)
in relation to a person who is a member of a federal credit union, the latest postal address of the person according to the members register, and
in relation to a person who is a shareholder of a bank or a bank holding company, the latest postal address of the person according to its central securities register,
subject to financial services regulation in that country or territory; (entité étrangère réglementée)
incorporated or formed otherwise in a country or territory, other than Canada, in which a trade agreement listed in Schedule IV is applicable, and
a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act and ordinarily resident in Canada, except a permanent resident who has been ordinarily resident in Canada for more than one year after the time at which the individual first became eligible to apply for Canadian citizenship; (résident canadien)
a Canadian citizen not ordinarily resident in Canada who is a member of a prescribed class of persons, or
a Canadian citizen ordinarily resident in Canada,
in relation to any other entity, any ownership interest in or debt obligation of the entity; (titre ou valeur mobilière)
in relation to a body corporate, a share of any class of shares of the body corporate or a debt obligation of the body corporate, and includes a warrant of the body corporate, but does not include a deposit with a financial institution or any instrument evidencing such a deposit or, for greater certainty, a membership share, and
in the case of a bank holding company, the bank holding company; (transaction d’éviction)
in the case of a bank, the bank, and
the aggregate of the shares of any class of non-voting shares of the body corporate that are beneficially owned by the person and that are beneficially owned by any entities controlled by the person is more than 30 per cent of the outstanding shares of that class of non-voting shares of the body corporate.
the aggregate of the shares of any class of voting shares of the body corporate that are beneficially owned by the person and that are beneficially owned by any entities controlled by the person is more than 20 per cent of the outstanding shares of that class of voting shares of the body corporate; or
a cooperative credit society incorporated or formed, and regulated, by or under an Act of the legislature of a province.
an association to which the Cooperative Credit Associations Act applies; or
an insurance company incorporated or formed under a mutual plan;
a federal credit union;
a body corporate that has no major shareholder;
The Superintendent may determine that members of a class of banks or bank holding companies are not or were not distributing banks or distributing bank holding companies, as the case may be, if the Superintendent is satisfied that the determination would not prejudice any security holder of a member of the class or any holder of a membership share of a bank that is a member of the class.
On the application of a bank or bank holding company, the Superintendent may determine that it is not or was not a distributing bank or distributing bank holding company, as the case may be, if the Superintendent is satisfied that the determination would not prejudice any security holder of that bank or bank holding company or any holder of a membership share of that bank.
The Governor in Council may make regulations respecting the determination of what constitutes a distributing bank or distributing bank holding company for the purposes of this Act.
a person controls an entity if the person has any direct or indirect influence that, if exercised, would result in control in fact of the entity.
the general partner of a limited partnership controls the limited partnership; and
a person controls an unincorporated entity, other than a limited partnership, if more than 50 per cent of the ownership interests, however designated, into which the entity is divided are beneficially owned by that person and the person is able to direct the business and affairs of the entity;
a person controls a federal credit union if the person and all of the entities controlled by the person have the right to exercise more than 50 per cent of the votes that may be cast at an annual meeting or to elect the majority of the directors of the federal credit union;
a person controls a body corporate if securities of the body corporate to which are attached more than 50 per cent of the votes that may be cast to elect directors of the body corporate are beneficially owned by the person and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate;
The Minister may, for any purpose of any provision of this Act that refers to control within the meaning of paragraph (1)(d), make guidelines respecting what constitutes such control of a federal credit union, including guidelines describing the policy objectives that the guidelines and the relevant provisions of the Act are intended to achieve and, if any such guidelines are made, the reference to paragraph (1)(d) in that provision is to be interpreted in accordance with the guidelines.
The Minister may, for any purpose of any provision of this Act that refers to control within the meaning of paragraph (1)(d), make guidelines respecting what constitutes such control, including guidelines describing the policy objectives that the guidelines and the relevant provisions of the Act are intended to achieve and, if any such guidelines are made, the reference to paragraph (1)(d) in that provision shall be interpreted in accordance with the guidelines.
A person is deemed to control, within the meaning of paragraph (1)(a) or (b), an entity if the aggregate of
A person who controls an entity is deemed to control any entity that is controlled, or deemed to be controlled, by the entity.
For the purposes of this Act,
any securities of the entity that are beneficially owned by any entity controlled by that person
any securities of the entity that are beneficially owned by that person, and
Despite subsection (1), for the purposes of subsections 265(1) and 283(1), one entity is affiliated with another entity if one of them is controlled, determined without regard to paragraph 3(1)(d), by the other or both are controlled, determined without regard to paragraph 3(1)(d), by the same person.
One entity is affiliated with another entity if one of them is controlled by the other or both are controlled by the same person.
A reference in this Act to the holding of a share by or in the name of any person is a reference to the fact that the person is registered or is entitled to be registered in the securities register or like record of the body corporate as the holder of that share.
For the purposes of this Act, a person is a shareholder of a body corporate when, according to the securities register of the body corporate, the person is the owner of one or more shares of the body corporate or is entitled to be entered in the securities register or like record of the body corporate as the owner of the share or shares.
A reference in this Act to the holding of a membership share by or in the name of any person is a reference to the fact that the person is registered or is entitled to be registered in a federal credit union’s members register, or like record of the federal credit union, as the holder of that membership share.
For the purposes of this Act, a person is a holder of a membership share of a federal credit union if the person is the owner of one or more membership shares according to the federal credit union’s members register or is entitled to be entered in that register, or like record of the federal credit union, as the owner of one or more membership shares.
any shares of that class beneficially owned by entities controlled by the person
any shares of that class beneficially owned by the person, and
A person who has a significant interest in the membership shares of a federal credit union increases that significant interest in the membership shares if the person or any entity controlled by the person acquires beneficial ownership of additional membership shares, or acquires control of any entity that beneficially owns membership shares, of the federal credit union in such number as to increase the percentage of membership shares that are beneficially owned by the person and by any entities controlled by the person.
A person who has a significant interest in a class of shares of a bank or bank holding company increases that significant interest in the class of shares if the person or any entity controlled by the person
A person has a significant interest in the membership shares of a federal credit union if the aggregate of membership shares beneficially owned by the person and membership shares beneficially owned by entities controlled by the person exceeds 10 per cent of all of the outstanding membership shares.
A person has a significant interest in a class of shares of a bank or a bank holding company if the aggregate of
acquires control of any entity that beneficially owns shares of that class,
acquires beneficial ownership of additional shares of that class, or
shares or ownership interests that they beneficially own of any entity that controls any entity that beneficially owns shares of a bank or bank holding company,
shares or ownership interests that they beneficially own of any entity that beneficially owns shares of a bank or of a bank holding company, or
shares of a bank or of a bank holding company that they beneficially own,
A person contravenes a provision of Part VII or Division 7 of Part XV if the person agrees to act jointly or in concert with one or more other persons in such a manner that a deemed single person contravenes the provision.
Where in the opinion of the Superintendent it is reasonable to conclude that an agreement, commitment or understanding referred to in subsections (1) and (2) exists by or among two or more persons, the Superintendent may designate those persons as persons who have agreed to act jointly or in concert.
For the purposes of this section, persons shall be presumed not to have agreed to act jointly or in concert solely by reason of the fact that
Without limiting the generality of subsection (1), any agreement, commitment or understanding by or between two or more persons who beneficially own shares of a bank or bank holding company or shares or ownership interests of any entity referred to in paragraph (1)(b) or (c),
For the purposes of Part VII and Division 7 of Part XV, if two or more persons have agreed, under any agreement, commitment or understanding, whether formal or informal, verbal or written, to act jointly or in concert in respect of
under which no proposal put before the board of directors of the bank or bank holding company may be approved except with the consent of any of them or their nominees,
whereby any of them or their nominees may veto any proposal put before the board of directors of the bank or bank holding company, or
they vote the voting rights attached to shares or ownership interests referred to in subsection (1) in the same manner.
one is the proxyholder of one or more of the others in respect of shares or ownership interests referred to in subsection (1); or
A member contravenes a provision of Part VII if the member agrees to act jointly or in concert with one or more other members in such a manner that a deemed single member contravenes that provision.
If in the opinion of the Superintendent it is reasonable to conclude that an agreement, commitment or understanding referred to in subsection (1) exists by or among two or more members, the Superintendent may designate those members as members who have agreed to act jointly or in concert.
For the purposes of this section, members are presumed not to have agreed to act jointly or in concert solely by reason of the fact that
For the purposes of Part VII, if two or more members have agreed, under any agreement, commitment or understanding, whether formal or informal, verbal or written, to act jointly or in concert in respect of the exercise of any right to vote at a meeting of members, those members are deemed to be a single member.
they exercise their membership voting rights in the same manner.
their membership voting rights are vested in the same delegate or delegates; or
A shareholder or a member contravenes a provision of Part VII if the shareholder or member agrees to act jointly or in concert with one or more other shareholders or members in such a manner that a deemed single person contravenes that provision.
If in the opinion of the Superintendent it is reasonable to conclude that an agreement, commitment or understanding referred to in subsection (1) exists by or among one or more members and one or more shareholders, the Superintendent may designate those members and shareholders as persons who have agreed to act jointly or in concert.
For the purposes of this section, persons are presumed not to have agreed to act jointly or in concert solely by reason of the fact that
For the purposes of Part VII, if one or more members of a federal credit union and one or more shareholders of the federal credit union have agreed, under any agreement, commitment or understanding, whether formal or informal, verbal or written, to act jointly or in concert in respect of the exercise of their respective rights to vote, those persons are deemed to be a single person.
they exercise their respective voting rights in the same manner.
one or more of the shareholders is a delegate of one or more of the members; or
one or more of the members is the proxyholder of one or more of the shareholders;
in the case of a body corporate that is a federal credit union,
the aggregate of any shares of the body corporate beneficially owned by the person and by any entities controlled by the person represents ownership of greater than 25 per cent of the shareholders’ equity of the body corporate; or
the voting rights attached to the aggregate of any voting shares of the body corporate beneficially owned by the person and by any entities controlled by the person exceed 10 per cent of the voting rights attached to all of the outstanding voting shares of the body corporate;
the aggregate of any shares and membership shares of the federal credit union beneficially owned by the person and by any entities controlled by the person represents ownership of greater than 25 per cent of the members’ and shareholders’ equity of the federal credit union.
the voting rights of the person and of entities controlled by the person exceed 10 per cent of the aggregate of the voting rights that may be exercised by members and shareholders, or
A person who has a substantial investment in an unincorporated entity increases that substantial investment when the person or any entity controlled by the person
A person has a substantial investment in an unincorporated entity where the aggregate of any ownership interests, however designated, into which the entity is divided, beneficially owned by the person and by any entities controlled by the person exceeds 25 per cent of all of the ownership interests into which the entity is divided.
For greater certainty,
For greater certainty,
A person who has a substantial investment in a federal credit union under subparagraph (1)(c)(ii) increases that substantial investment when
A person who has a substantial investment in a federal credit union under subparagraph (1)(c)(i) increases that substantial investment when the percentage of the voting rights of the person and of entities controlled by the person in relation to the aggregate of the voting rights that may be exercised by members and shareholders is increased for any reason.
A person who has a substantial investment in a body corporate pursuant to paragraph (1)(b) increases that substantial investment when the person or any entity controlled by the person
A person who has a substantial investment in a body corporate pursuant to paragraph (1)(a) increases that substantial investment when the person or any entity controlled by the person
A person has a substantial investment in a body corporate where
acquires control of any entity that beneficially owns any voting shares of the body corporate in such number as to increase the percentage of voting rights attached to the aggregate of the voting shares of the body corporate beneficially owned by the person and by any entities controlled by the person.
acquires beneficial ownership of additional voting shares of the body corporate in such number as to increase the percentage of voting rights attached to the aggregate of the voting shares of the body corporate beneficially owned by the person and by any entities controlled by the person; or
acquires control of any entity that beneficially owns any shares of the body corporate in such number as to increase the percentage of the shareholders’ equity of the body corporate represented by the aggregate of the shares of the body corporate beneficially owned by the person and by any entities controlled by the person.
acquires beneficial ownership of additional shares of the body corporate in such number as to increase the percentage of the shareholders’ equity of the body corporate represented by the aggregate of the shares of the body corporate beneficially owned by the person and by any entities controlled by the person; or
the person or any entity controlled by the person acquires control of any entity that beneficially owns shares or membership shares of the federal credit union in such number as to increase the percentage of the members’ and shareholders’ equity of the federal credit union represented by the aggregate of the shares and membership shares beneficially owned by the person and by entities controlled by the person.
the person or any entity controlled by the person acquires beneficial ownership of additional shares or membership shares of the federal credit union in such number as to increase the percentage of the members’ and shareholders’ equity of the federal credit union represented by the aggregate of the shares and membership shares beneficially owned by the person and by entities controlled by the person; or
acquires control of any entity that beneficially owns shares of the body corporate,
purchases or otherwise acquires beneficial ownership of shares of the body corporate, or
where a person has a substantial investment in a body corporate pursuant to paragraph (1)(b) and the person or any entity controlled by the person
where a person has a substantial investment in a body corporate pursuant to paragraph (1)(a) and the person, or any entity controlled by the person,
acquires control of any entity that beneficially owns voting shares of the body corporate,
purchases or otherwise acquires beneficial ownership of voting shares of the body corporate, or
if a person has a substantial investment in a federal credit union under subparagraph (1)(c)(ii) and the person or any entity controlled by the person acquires voting rights in the federal credit union — or acquires control of any entity that has voting rights in the federal credit union — in such number that the percentage of the voting rights of the person and entities controlled by the person exceeds 10 per cent of the aggregate of the voting rights of the members and shareholders of the federal credit union, the acquisition is deemed to cause the person to increase a substantial investment in the federal credit union.
if a person has a substantial investment in a federal credit union under subparagraph (1)(c)(i) and the person, or any entity controlled by the person, purchases or otherwise acquires beneficial ownership of shares or membership shares of the federal credit union or acquires control of any entity that beneficially owns shares or membership shares of the federal credit union, the acquisition is deemed to cause the person to increase a substantial investment in the federal credit union if the percentage of the members’ and shareholders’ equity of the federal credit union represented by the aggregate of the shares and membership shares of the federal credit union beneficially owned by the person and by any entities controlled by the person exceeds 25 per cent of the members’ and shareholders’ equity of the federal credit union; or
acquires control of any entity that beneficially owns ownership interests in the unincorporated entity in such number as to increase the percentage of ownership interests beneficially owned by the person and by any entities controlled by the person.
acquires beneficial ownership of additional ownership interests in the unincorporated entity in such number as to increase the percentage of ownership interests in the unincorporated entity beneficially owned by the person and by any entities controlled by the person; or
a body corporate, association, partnership or other organization that is controlled, directly or indirectly, by a trust referred to in paragraph (c).
a trust established by one or more persons referred to in paragraph (a) or (b) or a trust in which one or more of those persons have more than 50 per cent of the beneficial interest; or
a body corporate, association, partnership or other organization that is incorporated, formed or otherwise organized in a country or territory that is a WTO Member, as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act, other than Canada, and that is controlled
a natural person who is ordinarily resident in a country or territory that is a WTO Member, as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act, other than Canada;
by a government of a WTO Member, whether federal, state or local, or an agency of one of those governments;
directly or indirectly, by one or more persons referred to in paragraph (a), or
For the purposes of subsection (1),
For the purposes of this Act, a WTO Member resident is
the votes attached to those securities are sufficient to elect a majority of the directors of the body corporate;
securities of the body corporate to which are attached more than 50 per cent of the votes that may be cast to elect directors of the body corporate are beneficially owned by the person or persons, and
a body corporate, association, partnership or other organization that controls another body corporate, association, partnership or other organization is deemed to control any body corporate, association, partnership or other organization that is controlled or deemed to be controlled by the other body corporate, association, partnership or other organization.
a body corporate, association, partnership or other organization is controlled by one or more persons if the person or persons have, directly or indirectly, control in fact of the body corporate, association, partnership or other organization; and
an association, partnership or other organization is controlled by one or more persons if
a body corporate is controlled by one or more persons if
the person or persons are able to direct the business and affairs of the association, partnership or other organization;
more than 50 per cent of the ownership interests, however designated, into which the association, partnership or other organization is divided are beneficially owned by the person or persons, and
For greater certainty, a member of a federal credit union who is also a shareholder of the federal credit union may exercise the rights given to a shareholder by this Act for all shares held by the member.
Before filing an application for an order referred to in subsection (1), an applicant shall publish a notice of intention to make the application in the Canada Gazette.
The Minister may, by further order, revoke or vary any order made under subsection (1), and any such revocation or variation shall come into force three months after the date the further order is made, unless the Minister and the entity to which the order relates agree that the revocation or variation should come into force at some other time agreed by them.
The Minister may, by order, and subject to such terms and conditions as the Minister considers appropriate, exempt for the purposes of any provision of this Act any entity from being a foreign bank that, but for that order, would be a foreign bank.
surplus funds arising from the federal credit union’s operations are used
dividends on any membership share are limited to the maximum percentage fixed in the federal credit union’s letters patent or by-laws; and
a delegate has only one vote even though the delegate is a member or represents more than one member;
each member has only one vote;
membership in the federal credit union is wholly or primarily open, in a non-discriminatory manner, to persons who can use the services of the federal credit union and who are willing and able to accept the responsibilities of membership;
it provides financial services primarily to its members;
a majority of its members are natural persons;
as a distribution to its members as a patronage allocation.
for community welfare or the propagation of cooperative enterprises, or
to provide for reserves or dividends on membership shares and shares,
to provide or improve common services to members,
to develop its business,
to provide for the financial stability of the federal credit union,
Paragraph (1)(c) is subject to any restrictions in the by-laws of the federal credit union on the classes of persons to which membership may be available, as long as the restrictions are consistent with applicable laws with respect to human rights.
For the purposes of this Act, a federal credit union is organized and carries on business on a cooperative basis if
the province in which the head office of the bank is situated; and
the name of every bank incorporated or formed under this Act that is not a subsidiary of a foreign bank, and
the name of every bank named in Schedules I and II as those Schedules read immediately before the day section 184 of the Financial Consumer Agency of Canada Act comes into force that was not a subsidiary of a foreign bank,
there shall be set out in Schedule II
there shall be set out in Schedule I
the province in which the head office of the bank is situated.
the name of every bank incorporated or formed under this Act that is a subsidiary of a foreign bank, and
the name of every bank named in Schedule II as that Schedule read immediately before the day section 184 of the Financial Consumer Agency of Canada Act comes into force that was a subsidiary of a foreign bank,
For the purpose of implementing Canada’s international trade obligations, the Governor in Council may, by order, amend Schedule IV by adding or deleting the name of a trade agreement.
The Governor in Council may make regulations exempting any class of foreign banks from the application of any provision of this Act.
If in any year either Schedule I or II is amended, the Superintendent shall, within sixty days after the end of the year, cause a notice to be published in the Canada Gazette showing Schedule I or II in its complete amended form as at the end of the year.
Where
Subject to this Act,
a bank is continued, or amalgamated and continued, as a body corporate to which another Act of Parliament applies,
a bank is dissolved, or
a bank becomes, or ceases to be, a subsidiary of a foreign bank,
the head office of a bank is changed,
the name of a bank is changed,
one or more bodies corporate are amalgamated as a bank,
a body corporate is continued as a bank,
a bank is incorporated,
whether the authorized foreign bank is subject to the restrictions and requirements referred to in subsection 524(2).
the province in which the principal office of the authorized foreign bank is situated; and
the name of every authorized foreign bank and, where applicable, any other name under which it is permitted to carry on business in Canada;
Where in any year Schedule III is amended, the Superintendent shall, within sixty days after the end of the year, cause a notice to be published in the Canada Gazette showing Schedule III in its complete amended form as at the end of the year.
Schedule III shall be amended accordingly where
There shall be set out in Schedule III
the restrictions and requirements referred to in subsection 524(2) to which an authorized foreign bank is subject are added or removed.
any of the information referred to in paragraph (1)(a) or (b) changes; or
an order made under subsection 524(1) is revoked;
A bank shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference.
Subject to this Act, a bank has the capacity to carry on its business, conduct its affairs and exercise its powers in any jurisdiction outside Canada to the extent and in the manner that the laws of that jurisdiction permit.
A bank may carry on business throughout Canada.
A bank shall not carry on any business or exercise any power that it is restricted by this Act from carrying on or exercising, or exercise any of its powers in a manner contrary to this Act.
A bank has the capacity of a natural person and, subject to this Act, the rights, powers and privileges of a natural person.
in the case of an authorized foreign bank, this Act.
in the case of a bank, the bank’s incorporating instrument or this Act; or
The members of a federal credit union are not, as members, liable for any liability, act or default of the federal credit union except as otherwise provided by this Act.
The shareholders of a bank are not, as shareholders, liable for any liability, act or default of the bank except as otherwise provided by this Act.
a document issued by any director, officer or representative of the bank with actual or usual authority to issue the document is not valid or not genuine.
a person held out by the bank as a director, officer or representative of the bank has not been duly appointed or has no authority to exercise the powers and perform the duties that are customary in the business of the bank or usual for a director, officer or representative; or
the place named in the incorporating instrument or by-laws of the bank is not the place where the head office of the bank is situated;
the persons named as directors of the bank in the most recent return sent to the Superintendent under section 632 are not the directors of the bank;
the bank’s incorporating instrument or any by-laws of the bank have not been complied with;
Subsection (1) does not apply in respect of a person who has or ought to have knowledge of a situation described in that subsection by virtue of their relationship to the bank.
No bank and no guarantor of an obligation of a bank may assert against a person dealing with the bank or against a person who has acquired rights from the bank that
If Parliament dissolves on the day set out in subsection (1) or on any day within the six-month period before that day or on any day within an extension ordered under subsection (2), banks may continue to carry on business, and authorized foreign banks may continue to carry on business in Canada, until the end of the 180th day after the first day of the first session of the next Parliament.
The order is not a regulation for the purposes of the Statutory Instruments Act. However, it shall be published in Part II of the Canada Gazette.
The Governor in Council may, by order, extend by up to six months the time during which banks may continue to carry on business and authorized foreign banks may continue to carry on business in Canada. No more than one order may be made under this subsection.
Subject to subsections (2) and (4), banks shall not carry on business, and authorized foreign banks shall not carry on business in Canada, after June 30, 2025.
On the application of five or more persons, a majority of whom are natural persons, made in accordance with this Act, the Minister may, subject to this Part, issue letters patent incorporating a federal credit union.
On the application of one or more persons made in accordance with this Act, the Minister may, subject to this Part, issue letters patent incorporating a bank, other than a federal credit union.
an entity that is controlled by the government of a foreign country or any political subdivision thereof, other than an entity that is a foreign bank, a foreign institution or a subsidiary of a foreign bank or foreign institution.
an agency of the government of a foreign country or any political subdivision thereof; or
the government of a foreign country or any political subdivision thereof;
Her Majesty in right of Canada or in right of a province, an agency of Her Majesty in either of those rights, or an entity controlled by Her Majesty in either of those rights;
Before filing an application referred to in subsection (1), the applicant or one of the applicants, as the case may be, shall, at least once a week for a period of four consecutive weeks, publish, in a form satisfactory to the Superintendent, a notice of intention to make the application in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the bank is to be situated.
An application for letters patent to incorporate a bank setting out the names of the first directors of the bank shall be filed with the Superintendent, together with such other information, material and evidence as the Superintendent may require.
Subject to the approval of the Governor in Council, the Superintendent may make rules governing the proceedings at public inquiries held under this section.
Within thirty days after receiving a report under subsection (3), the Minister shall make the report available to the public.
On receipt of an objection under subsection (1), and if the application for the issuance of the letters patent to which the objection relates has been received, the Superintendent shall, if satisfied that it is necessary and in the public interest to do so, hold or cause to be held a public inquiry into the objection as it relates to the application and, on completion of the inquiry, the Superintendent shall report the findings of the inquiry to the Minister.
On receipt of an objection under subsection (1), the Superintendent shall inform the Minister of the objection.
Any person who objects to the proposed incorporation of a bank may, within thirty days after the date of the last publication under subsection 25(2) in respect of the proposed bank, submit the objection in writing to the Superintendent.
the best interests of the financial system in Canada including, if the bank will be a federal credit union, the best interests of the cooperative financial system in Canada.
if the bank will be a federal credit union, that it will be organized and carry on business on a cooperative basis in accordance with section 12.1; and
the opinion of the Superintendent regarding the extent to which the proposed corporate structure of the applicant or applicants and their affiliates may affect the supervision and regulation of the bank, having regard to
the impact of any integration of the businesses and operations of the applicant or applicants with those of the bank on the conduct of those businesses and operations;
whether the bank will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;
the character and integrity of the applicant or applicants or, if the applicant or any of the applicants is a body corporate, its reputation for being operated in a manner that is consistent with the standards of good character and integrity;
the business record and experience of the applicant or applicants;
the soundness and feasibility of the plans of the applicant or applicants for the future conduct and development of the business of the bank;
the nature and sufficiency of the financial resources of the applicant or applicants as a source of continuing financial support for the bank;
the nature and degree of supervision and regulation applying to the proposed financial services activities to be carried out by the affiliates of the bank;
the nature and extent of the proposed financial services activities to be carried out by the bank and its affiliates, and
the date that the bank came, or is to come, into existence.
the province in which the head office of the bank is to be situated; and
in the case of a bank that is to be a federal credit union, a statement that it is a federal credit union;
the name of the bank;
The Minister may impose such terms and conditions in respect of the issuance of letters patent incorporating a bank as the Minister considers necessary or appropriate.
The Minister may set out in the letters patent incorporating a bank any provision not contrary to this Act that the Minister considers advisable in order to take into account the particular circumstances of the proposed bank.
There shall be set out in the letters patent incorporating a bank
[Repealed, 2001, c. 9, s. 48]
On application of a bank authorized by subsection (7) to hold, directly or through a subsidiary, shares of another bank, the Minister may, by order, extend the period referred to in subsection (7), but the aggregate of such extensions from time to time granted to a bank and of the period referred to in subsection (7) may not, in any case, exceed ten years.
Notwithstanding any other provision of this Act, where letters patent incorporating a bank include a provision described in subsection (1) and, on the date of issuance of the letters patent, another bank and any entities controlled by that other bank held, in the aggregate, more than ten per cent of any class of shares of the applicant company, that other bank may have a significant interest in any class of shares of the bank deemed to be issued pursuant to subsection (1) in exchange for the shares of the company for a period of two years from the date of issuance of the letters patent.
Where, pursuant to a provision included in the letters patent incorporating a bank, a share exchange is deemed to have taken place, the bank shall, within ninety days after the issuance of the letters patent, make provision for the issue of share certificates representing shares of the bank and for the exchange of those certificates for share certificates representing the shares of the company that were outstanding on the day the letters patent were issued.
No provision described in subsection (1) may be included in letters patent issued pursuant to section 22 unless the application therefor is accompanied by evidence that the request for such a provision was approved by a vote of at least two thirds of those shareholders of the applicant company entitled to vote thereon, present or represented by proxy and voting at a shareholders’ meeting called to consider the application.
Notwithstanding subsection (3), no share of a bank that is deemed to be issued pursuant to a provision included in the letters patent incorporating a bank may subsequently be transferred or voted contrary to this Act, but any shareholder of a bank who acquired shares of the bank by means of an exchange of shares of a company referred to in subsection (1) pursuant to that provision may, for a period of ten years from the date of issuance of the letters patent, exercise the voting rights attached to the shares without regard to any provisions of this Act, other than subsection (7), that would otherwise prohibit the shareholder from voting the shares.
An exchange of shares of a company referred to in subsection (1) pursuant to a provision included in the letters patent incorporating a bank does not deprive a person who was a holder of shares of the company immediately prior to the exchange of any right or privilege with respect to the shares or relieve the person of any liability in respect thereof, but any such right or privilege shall be exercised in accordance with this Act.
Shares of a bank deemed to be issued pursuant to subsection (1) are subject to the same designation, rights, privileges and restrictions or conditions and, subject to any agreement to the contrary, to the same charges, encumbrances and other restrictions as the shares of the company for which they are exchanged and the shares of the company, on the issuance of the letters patent, become the property of the bank free and clear of any charge, encumbrance or other restriction.
If the Minister issues letters patent, under section 22, incorporating a bank on the application of a company to which the Trust and Loan Companies Act or the Insurance Companies Act applies and the paid-in capital of the bank immediately following its incorporation will be not less than five million dollars or any greater amount that the Minister may specify under subsection 46(1), there may, on the request of the company and with the approval of the Minister, be included in the letters patent a provision deeming shares of the bank to be issued, on a share for share basis, to all shareholders of the company in exchange for all the issued and outstanding shares of the company.
The incorporators of a federal credit union are deemed to be its first members.
An application referred to in subsection (3) or (4) must be made at the same time as an application referred to in subsection 223(1.2) or (1.3) in respect of the amalgamation.
Two or more local cooperative credit societies may, if so authorized by the laws of the jurisdiction in which they are incorporated, apply to the Minister for letters patent continuing each of them as a federal credit union if they propose to be continued under this Act for the purpose of immediately amalgamating with each other in accordance with this Act.
A local cooperative credit society may, if so authorized by the laws of the jurisdiction in which it is incorporated, apply to the Minister for letters patent continuing it as a federal credit union if it proposes to be continued under this Act for the purpose of immediately amalgamating with another federal credit union in accordance with this Act.
A body corporate incorporated otherwise than by or under an Act of Parliament may, if so authorized by the laws of the jurisdiction where it is incorporated, apply to the Minister for letters patent continuing the body corporate as a bank under this Act.
A body corporate incorporated under the Canada Business Corporations Act or any other Act of Parliament, including a bank holding company, may apply to the Minister for letters patent continuing the body corporate as a bank under this Act.
In the case of an application made under subsection 33(3) or (4), the vote on the special resolution must be held at the same time as the vote on the special resolutions referred to in subsection 226(4).
A copy of the special resolution referred to in subsection (2) shall be filed with the application.
If a body corporate applies for letters patent under section 33, the application must be duly authorized by a special resolution.
In the case of an application made under subsection 33(3) or (4), the applicants referred to in subsection 223(1.2) or (1.3) may, in accordance with subsection 25(2) and paragraph 228(2)(a), jointly publish the notices referred to in those provisions in the form of a single notice.
If a body corporate applies for letters patent under section 33, sections 23 to 27 apply in respect of the application, with any modifications that the circumstances require.
Where letters patent are issued to a body corporate under subsection (1), section 28 applies in respect of the issue of letters patent, with such modifications as the circumstances require.
On the application of a body corporate under section 33, the Minister may, subject to this Part, issue letters patent continuing the body corporate as a bank under this Act.
For the purpose of facilitating the continuance as a federal credit union of a local cooperative credit society, the Minister may, on application and by order, subject to any terms and conditions that he or she considers appropriate, exempt the local cooperative credit society from any requirement of this Part or of the regulations made under this Part, if he or she is of the opinion that it has acted in a manner that substantially complies with the requirement.
The Governor in Council may make regulations respecting notice and disclosure requirements for the purpose of subsections (1) and (2).
On the application of a local cooperative credit society under subsection 33(3) or (4), the Minister may, subject to this Part, issue letters patent continuing the local cooperative credit society as a federal credit union only if
On the application of a local cooperative credit society under subsection 33(2), the Minister may, subject to this Part, issue letters patent continuing the local cooperative credit society as a federal credit union only if the Minister is of the opinion that the local cooperative credit society has complied with the regulations respecting notice and disclosure requirements.
the Minister will, immediately after issuing letters patent for the continuance, issue letters patent for the amalgamation under subsection 229(1).
the Minister is of the opinion that the federal credit union that results from the amalgamation will satisfy the requirements for incorporation as a federal credit union; and
the Minister is of the opinion that the local cooperative credit society has complied with the regulations respecting notice and disclosure requirements;
the letters patent are deemed to be the incorporating instrument of the continued bank.
the body corporate becomes a bank as if it had been incorporated under this Act; and
In the case of a continuance that results from an application made under subsection 33(3) or (4), the Superintendent may publish, in the form of a single notice, the notice referred to subsection (2), the notice required under subsection 229(3) in respect of the amalgamation and any notice required under subsection (2) in respect of other applicants for the amalgamation.
The Superintendent shall cause to be published in the Canada Gazette a notice of the issuance of letters patent continuing a body corporate as a bank under this Act.
Where a body corporate is continued as a bank under this Part, the Superintendent shall forthwith send a copy of the letters patent to the appropriate official or public body in the jurisdiction in which the body corporate was authorized to apply to be continued under this Act.
the by-laws of the body corporate, except those that are in conflict with this Act, continue as the by-laws of the bank.
a person who, on the day the body corporate becomes a bank, was the holder of a security issued by the body corporate is not deprived of any right or privilege available to the person at that time in respect of the security or relieved of any liability in respect thereof, but any such right or privilege may be exercised only in accordance with this Act; and
a conviction against, or any ruling, order or judgment in favour of or against the body corporate may be enforced by or against the bank;
a civil, criminal or administrative action or proceeding pending by or against the body corporate may continue to be prosecuted by or against the bank;
an existing cause of action or claim by or against the body corporate or any liability of the body corporate to prosecution is unaffected;
the bank continues to be liable for the obligations of the body corporate;
the property of the body corporate continues to be the property of the bank;
In addition, if the body corporate is continued as a federal credit union,
Where a body corporate is continued as a bank under this Part,
any agreement made before continuance under which the holders of any common shares of the body corporate have agreed to vote those shares in a manner provided in the agreement is of no effect; and
the holders of those common shares are deemed to be the members of the federal credit union, and
its common shares are deemed to be membership shares to which are attached the rights, privileges and restrictions set out in this Act,
in the case of a body corporate that has members,
in the case of a body corporate with common shares,
any agreement made before continuance under which the members of the body corporate have agreed to vote in a manner provided in the agreement is of no effect.
the members of the body corporate are deemed to be the members of the federal credit union, and
the membership shares, however designated, of the body corporate are deemed to be membership shares of the federal credit union to which are attached the rights, privileges and restrictions set out in this Act,
maintain outside Canada any records or registers required by this Act to be maintained in Canada.
acquire and hold assets that a bank is not otherwise permitted by this Act to acquire or hold if the body corporate continued as the bank was obliged, at the time the application for the letters patent was made, to acquire those assets; and
hold assets that a bank is not otherwise permitted by this Act to hold if the assets were held by the body corporate continued as the bank at the time the application for the letters patent was made;
[Repealed, 1994, c. 47, s. 14]
continue to have issued and outstanding debt obligations the issue of which is not authorized by this Act if the debt obligations were outstanding at the time the application for the letters patent was made;
engage in a business activity specified in the order that a bank is not otherwise permitted by this Act to engage in and that the body corporate continued as the bank was engaging in at the time the application for the letters patent was made;
If a bank applies for a certificate or letters patent referred to in section 39.1 or 39.2 in accordance with that section and the certificate is given or the letters patent are issued, this Act ceases to apply to the bank as of the day on which the certificate or the letters patent take effect.
For the purpose of supporting a federal credit union during the period that begins on the effective date of the federal credit union’s letters patent issued under subsection 35(1) and ends on the third anniversary of that date, the Minister may, subject to any terms and conditions that he or she considers appropriate and for the period that he or she considers appropriate, guarantee the repayment of a loan that a federal financial institution makes to the federal credit union.
The Minister shall not grant to a bank any permission
Subject to subsection (4), the Minister may, on the recommendation of the Superintendent, by order, renew a permission granted by order under subsection (1) with respect to any matter described in paragraphs (1)(b) to (e) for such further period or periods as the Minister considers necessary.
The permission granted under subsection (1) shall be expressed to be granted for a period specified in the order not exceeding
Notwithstanding any other provision of this Act or the regulations, the Minister may, on the recommendation of the Superintendent, by order, grant to a bank in respect of which letters patent were issued under subsection 35(1) permission to
if the bank is a federal credit union and an undertaking to cease engaging in the activity has been given under subsection 973.02(1), the cessation date set out in the undertaking in respect of the activity;
if the activity is conducted under an agreement existing on the date of issue of the letters patent, the expiry of the agreement, or
with respect to any matter described in any of paragraphs (1)(d) to (f), two years.
with respect to any matter described in paragraph (1)(b), ten years; and
with respect to any activity described in paragraph (1)(a), 30 days after the date of issue of the letters patent or
with respect to matters described in paragraphs (1)(d) and (e), that purports to be effective more than ten years after the date of the approval for the bank to commence and carry on business.
with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the date of the approval for the bank to commence and carry on business, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the bank that the bank will not be able at law to redeem at the end of the ten years the outstanding debt obligations to which the permission relates; and
The order shall specify the period of the exemption, which may not extend beyond the third anniversary of the effective date of the letters patent.
When the Minister issues letters patent continuing a local cooperative credit society as a federal credit union under subsection 35(1), he or she may, on application and by order, subject to any terms and conditions that he or she considers appropriate, exempt the federal credit union resulting from the continuance from any requirement of Part VI — or of the regulations made under this Act — relating to voting, if he or she is of the opinion that the federal credit union will act in a manner that substantially complies with the requirement.
apply, under the Trust and Loan Companies Act, for letters patent continuing the bank as a company under that Act, or amalgamating and continuing the bank as a company under that Act.
apply, under the Insurance Companies Act, for letters patent continuing the bank as a company (other than a mutual company) or an insurance holding company under that Act, or amalgamating and continuing the bank as a company (other than a mutual company) or an insurance holding company under that Act; or
apply, under the Cooperative Credit Associations Act, for letters patent continuing the bank as an association under that Act, or amalgamating and continuing the bank as an association under that Act;
apply, with the approval in writing of the Minister, under the Canada Cooperatives Act for a certificate of continuance, or a certificate of continuance and a certificate of amalgamation, as a cooperative under that Act;
apply, with the approval in writing of the Minister, under the Canada Business Corporations Act for a certificate of continuance as a corporation under that Act;
A bank may not apply to be continued, or to be amalgamated and continued, as the case may be, as a body corporate other than one referred to in subsection (1).
If a special resolution authorizing the application for the certificate or letters patent so states, the directors of the bank may, without further approval of the shareholders, withdraw the application before it is acted on.
The approval referred to in paragraph (1)(a) or (b) may be given only if the Minister is satisfied that
A bank that is not a federal credit union may
the bank does not hold deposits, other than deposits that are made by a person who controls the bank or by a person who has a significant interest in a class of shares of the bank and that are not insured by the Canada Deposit Insurance Corporation.
the application has been authorized by a special resolution; and
the bank has published, once a week for four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the bank is situated, a notice of its intention to apply for the approval;
apply under the Cooperative Credit Associations Act for letters patent continuing the federal credit union as an association under that Act or amalgamating and continuing the federal credit union as an association under that Act.
apply, with the approval in writing of the Minister, under the Canada Cooperatives Act for a certificate of continuance, or a certificate of continuance and a certificate of amalgamation, as a cooperative under that Act; or
A federal credit union may not apply to be continued, or to be amalgamated and continued, as the case may be, as a body corporate other than one referred to in subsection (1).
For the purpose of paragraph (2)(b), each share carries the right to vote in respect of the special resolution, whether or not it otherwise carries the right to vote in respect of any other matter.
The approval referred to in paragraph (1)(a) may be given only if the Minister is satisfied that
A federal credit union may
the federal credit union does not hold deposits.
the application has been authorized by a special resolution of the members and, if the federal credit union has issued shares, by a separate special resolution of the shareholders of each class of shares; and
the federal credit union has published, once a week for four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where its head office is situated, a notice of its intention to apply for the approval;
Despite any other Act, but subject to paragraphs 40(f) and (g), a bank may be incorporated or formed under this Act with the words “credit union” “coopérative de crédit”, “cooperative” or “coopérative”, or any abbreviation, combination or derivative of those words, in its name, but only if it will be a federal credit union.
that includes the words “cooperative” or “coopérative”, or any abbreviation, combination or derivative of those words, unless it is to be a federal credit union and its name also includes the word “bank”, “banque”, “federal” or “fédérale” in conjunction with those words.
that includes the phrase “credit union” or “coopérative de crédit”, or any abbreviation, combination or derivative of those phrases, unless it is to be a federal credit union and its name also includes the word “bank”, “banque”, “federal” or “fédérale” in conjunction with those phrases; or
that is reserved under section 43 for another bank or an authorized foreign bank or a proposed bank or a proposed authorized foreign bank or under section 697 for a bank holding company or a proposed bank holding company;
that is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any entity carries on business or is identified;
that is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing
that is, in the opinion of the Superintendent, deceptively misdescriptive;
that is prohibited by an Act of Parliament;
corporate name of a body corporate,
trademark or trade name, or
If a bank is carrying on business under or identifying itself by a name other than its corporate name, the Superintendent may, by order, direct the bank not to use that other name if the Superintendent is of the opinion that that other name is a name referred to in any of paragraphs 40(a) to (g).
Subject to subsection (4) and section 255, a bank may carry on business under or identify itself by a name other than its corporate name.
A bank may identify itself outside Canada by its name in any language and the bank may use and be legally designated by any such form of its name outside Canada.
The name of a bank may be set out in its letters patent in an English form, a French form, an English form and a French form or in a combined English and French form, and the bank may use and be legally designated by any such form.
on an application to change its name, is granted a name
comes into existence or is continued with a name, or
If a bank has been directed under subsection (1) to change its name and has not, within sixty days after the service of the direction, changed its name to a name that is not prohibited by this Act, the Superintendent may revoke the name of the bank and assign to it a name and, until changed in accordance with section 215 or 217, the name of the bank is thereafter the name so assigned.
If through inadvertence or otherwise a bank
deal with any other matters necessary to organize the bank.
make banking arrangements; and
appoint, pursuant to subsection 314(1), an auditor or auditors to hold office until the first meeting of shareholders;
appoint officers;
authorize the issue of shares of the bank;
adopt forms of share certificates and corporate records;
make by-laws;
An incorporator or a director named in the application for letters patent may call the meeting referred to in subsection (1) by giving, subject to subsection 181(2), no fewer than five days notice of the purpose, time and place of the meeting to each director of the bank.
After letters patent incorporating a bank that is not a federal credit union are issued, a meeting of the directors of the bank must be held at which the directors may, subject to this Part,
The shareholders of a bank shall, by resolution at the meeting of shareholders called pursuant to subsection (1),
If at least five million dollars, or any greater amount that the Minister may specify, has been received by a bank in respect of which letters patent were issued under subsection 22(1) from the issue of its shares, the directors of the bank must without delay call a meeting of the shareholders of the bank.
appoint an auditor or auditors to hold office until the close of the first annual meeting of shareholders.
subject to section 168, elect directors to hold office for a term expiring not later than the close of the third annual meeting of shareholders following the election; and
approve, amend or reject any by-law made by the directors of the bank;
The Minister may, subject to any terms and conditions that the Minister considers appropriate, exempt any entity or federal credit union from the application of sections 47.11, 47.12 and 47.18.
No transfer of membership shares in a federal credit union is valid unless the transfer is approved by resolution of the directors.
No transfer of a membership is valid for any purpose.
Subject to the by-laws, a person less than 18 years of age may be admitted to membership in a federal credit union and may vote at meetings of the federal credit union.
Each member of a federal credit union has only one vote on all matters to be decided by the members.
A federal credit union must provide its services primarily to its members.
An entity must not become a member of a federal credit union if, as a result of becoming a member, the majority of the members of the federal credit union would not be natural persons.
Unless the by-laws provide otherwise, the membership of a member may be terminated by a special resolution of the members. Section 47.06 applies, with any modifications that the circumstances require, to a termination by the members.
No by-law governing the withdrawal of a member from membership or the termination of the membership of a member may authorize a redemption of membership shares in contravention of section 485.
No by-law may provide for the expulsion of a member by reason only of inactivity of the member in relation to the business or affairs of the federal credit union.
Despite subsection 47.06(1), a federal credit union may, by written notice to a member, terminate the membership if the member is a body corporate and winding-up proceedings have commenced with respect to it.
deal with any other matters necessary to organize the federal credit union.
make banking arrangements; and
appoint, under subsection 314(1), an auditor or auditors to hold office until the first meeting of members;
appoint officers;
authorize the issue of shares of the federal credit union;
admit persons to membership in the federal credit union and issue or authorize the issuance of membership shares;
adopt forms of certificates for membership shares, forms of share certificates and forms of corporate records;
A first director may call the meeting referred to in subsection (1) by giving, subject to subsection 181(2), the other directors notice of the time and place of the meeting no fewer than five days before the meeting.
After letters patent incorporating a federal credit union are issued, a meeting of its first directors must be held at which the first directors may, subject to this Part,
The term of office of the first directors ends at the close of the meeting referred to in subsection (1).
At the meeting, the members must
If at least five million dollars, or any greater amount that the Minister may specify, has been received by a federal credit union in respect of which letters patent were issued under subsection 22(2) from the issue of its membership shares and shares, the directors of the federal credit union must, without delay, call a meeting of the members of the federal credit union.
appoint an auditor or auditors to hold office until the close of the first annual meeting of the federal credit union.
elect directors in accordance with this Act and the federal credit union’s by-laws; and
make by-laws;
For greater certainty, subsection (3) does not prevent holding fewer than the minimum number of membership shares from being set out in the federal credit union’s by-laws as a ground for expulsion under subsection 47.06(1) or section 47.09.
Subject to any limitations in the federal credit union’s by-laws, including limitations on the rights members may exercise, a member of a federal credit union who ceases to hold enough membership shares to be a member continues to be a member of the federal credit union for the purposes of this Act.
To be a member of a federal credit union, a person must acquire and hold the minimum number of membership shares required under the federal credit union’s by-laws.
Subject to the provisions of this Act, membership in a federal credit union is governed by its by-laws.
Subject to subsection (1), a person becomes a member of a federal credit union when the person’s application for membership is approved by the directors or an employee authorized by the federal credit union and the applicant has complied fully with the federal credit union’s by-laws governing admission of members.
A subscription for the number of membership shares in a federal credit union required by the federal credit union’s by-laws for membership constitutes an application for membership and the issue of a membership share to the applicant constitutes admission to membership.
The by-laws of a federal credit union must set out the rights of a withdrawing member.
A deceased member is deemed to have given notice to the federal credit union of their intention to withdraw on the day of their death.
A member of a federal credit union may withdraw from the federal credit union at any time by giving notice in accordance with the by-laws.
If the directors pass a resolution expelling a member under subsection (1), the federal credit union must, within five days after the passing of the resolution, notify the member of the directors’ decision by registered letter addressed to the member at the member’s recorded address.
The by-laws of a federal credit union must set out
The by-laws of a federal credit union must set out the rights of members who are expelled under subsection (1), and those rights must include
A member of a federal credit union may be expelled from membership, in accordance with the by-laws, by a resolution of the directors on the grounds set out in the by-laws.
the right of the expelled member to be reinstated as a member of the federal credit union if, at the next meeting of the members, the members, by ordinary resolution, set aside the directors’ resolution.
the right of an expelled member to appeal the decision of the directors at the next meeting of the members; and
the right of a member not to be expelled without being given an opportunity to make representations on the matter at the meeting of the directors;
the right of a member to receive advance notice of any meeting of the directors at which the board will consider a resolution to expel the member;
the procedures to be followed relating to the appeal referred to in paragraph (2)(c).
the procedures to be followed by the directors to provide the advance notice referred to in paragraph (2)(a); and
A person whose membership has been terminated under section 47.09 may be reinstated as a member of the federal credit union only by special resolution of the members.
A person whose membership has been terminated under section 47.06 may be reinstated as a member of the federal credit union only by ordinary resolution of the members.
If the membership of a federal credit union is reduced to fewer than five members, the federal credit union must, without delay, take the steps that are necessary to
A federal credit union must ensure that at all times it has at least five members.
liquidate and dissolve the federal credit union under Part VI.
make an application referred to in subsection 39.2(1) or section 216.08; or
For greater certainty, subsection 49(2) and section 52 do not apply in respect of a bank referred to in subsections (3) and (4).
Where letters patent amalgamating and continuing two or more bodies corporate as a bank under this Act are issued, the Superintendent shall make an order approving the commencement and carrying on of business by the bank.
Except in respect of a body corporate that is continued as a bank under this Act for the purposes of forthwith amalgamating with one or more bodies corporate and continuing as a bank under this Act, where letters patent continuing a body corporate as a bank under this Act are issued, the Superintendent shall make an order approving the commencement and carrying on of business by the bank.
If, on the day this subsection comes into force, an order approving the commencement and carrying on of business by a bank named in Schedule I or II as those Schedules read immediately before that day, has not been made, such an order is deemed to have been made in respect of the bank on that day.
A bank shall not carry on any business until the Superintendent has, by order, approved the commencement and carrying on of business by the bank.
An application by a bank for an order under subsection (1) must contain a statement setting out the amounts paid or to be paid by the bank in connection with its incorporation and organization.
On application by a bank, the Superintendent may make an order approving the commencement and carrying on of business by the bank.
for the payment of clerical assistance, legal services, accounting services, office accommodation at one location, office expenses, advertising, stationery, postage and travel expenses.
for the payment of costs related to the issue of shares, or membership shares, of the bank; and
for the remuneration of not more than two officers;
invest paid-in capital of the bank in unencumbered securities of the Government of Canada or the government of any province.
deposit, in Canada, paid-in capital of the bank in another deposit-taking Canadian financial institution; or
all other relevant requirements of this Act have been complied with.
the expenses of incorporation and organization to be borne by the bank are reasonable; and
the bank has paid-in capital of at least five million dollars or any greater amount that is specified by the Minister under subsection 46(1) or 47.02(1);
the meeting of shareholders of the bank referred to in subsection 46(1), or, in the case of a federal credit union, the meeting of members referred to in subsection 47.02(1), has been duly held;
The Superintendent shall not make an order approving the commencement and carrying on of business by a bank more than one year after the day on which the bank comes into existence.
The Superintendent shall not make an order approving the commencement and carrying on of business by a bank until it has been shown to the satisfaction of the Superintendent that
An order approving the commencement and carrying on of business by a federal credit union is deemed to contain a condition that the federal credit union must, on an ongoing basis, be organized and carry on business on a cooperative basis in accordance with section 12.1.
An order approving the commencement and carrying on of business by a bank may contain such conditions or limitations that are consistent with this Act and relate to the business of the bank as the Superintendent deems expedient and necessary.
amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject, other than the condition deemed to be in the order by subsection 53(2),
make the order subject to such conditions or limitations that are consistent with this Act and that relate to the business of the bank as the Superintendent deems expedient and necessary, or
[Repealed, 1996, c. 6, s. 4]
In respect of the order approving the commencement and carrying on of business by a bank, the Superintendent may at any time, by further order,
the impact that the nature and degree of supervision and regulation of those financial services activities have on the supervision and regulation of the bank.
the nature and extent of the financial services activities carried out by entities affiliated with the bank; and
For the purposes of subsections (1) and (3), total assets, in respect of a bank, has the meaning given that expression by the regulations.
For the purposes of subsection (1), the average total assets of a bank in a three month period shall be computed by adding the total assets of the bank as calculated for the month end of each of the three months in the period and by dividing the sum by three.
If the Minister is of the opinion that the circumstances giving rise to the order have ceased to exist or have changed substantially, the Minister may, by further order, revoke the order.
The Minister may, by order, require a bank not to have average total assets in any three month period ending on the last day of a month subsequent to the month specified in the order exceeding the bank’s average total assets in the three month period ending on the last day of the month immediately before the month specified in the order if the Minister is of the opinion that it is in the best interests of the financial system in Canada to do so, after having considered the Superintendent’s opinion on
hold assets that banks are not otherwise permitted by this Act to hold if, at the time application for letters patent incorporating the subsidiary was made, the assets were held by an affiliate of the eligible foreign institution, as defined in subsection 370(1), that is the holding body corporate of the subsidiary.
hold assets that banks are not otherwise permitted by this Act to hold if those assets consist of shares of a body corporate incorporated by or under an Act of Parliament or of the legislature of a province that, at the time application for letters patent incorporating the subsidiary was made, were held by the eligible foreign institution, as defined in subsection 370(1), that is the holding body corporate of the subsidiary or any affiliate of that eligible foreign institution; and
Permission granted to a bank by order of the Minister under subsection (1) is only for the period specified in the order. That period may not be more than two years, except that the Minister may extend the period by further order on application by the bank. The total of the period and any extensions of it may not, in any case, exceed ten years.
On the recommendation of the Superintendent, the Minister may, at the same time that an order is made approving the commencement and carrying on of business by a bank that is the subsidiary of a foreign bank, by further order, grant the subsidiary permission to
For greater certainty, this section does not apply to a bank referred to in subsection 48(2).
The Superintendent shall cause to be published in the Canada Gazette a notice of the making of an order approving the commencement and carrying on of business by a bank.
On the making of an order approving the commencement and carrying on of business by a bank, the bank shall publish a notice of the making of the order in a newspaper in general circulation at or near the place where the head office of the bank is located.
After the amounts referred to in this section have been paid, the directors shall pay, with any interest earned, to the shareholders, incorporators or members, the respective balances of the moneys paid in by them, less the amount chargeable to each under subsection (4).
In order that the amounts paid and payable under this section may be equitably borne by the shareholders, incorporators or members, as the case may be, the directors must, after the amounts of the payments have been approved by special resolution or settled and determined by a court, fix the proportionate part of the amounts chargeable to each shareholder, incorporator or member as the ratio of the amount paid in by that person to the aggregate of all the amounts paid in by the shareholders, incorporators or members.
The directors must, at least 21 days before the date fixed for the hearing of the application referred to in subsection (2), send to the shareholders, incorporators or members, as the case may be, a notice of the application, containing a statement of the amounts that are proposed to be settled and determined by the court.
If the amount allowed by a special resolution for the payment of any incorporation and organization expenses referred to in subsection (1) is considered insufficient by the directors or if no special resolution for the payment of such expenses is passed, the directors may apply to any court having jurisdiction in the place where the head office of the bank is situated to settle and determine the amounts to be paid out of any moneys of the bank before distribution of the balance to
Where an order approving the commencement and carrying on of business is not made for a bank, no part of the moneys of the bank shall be used for the payment of incorporation and organization expenses, other than remuneration and costs referred to in section 50, unless the payment has been approved by a special resolution.
if the bank is a federal credit union, its members.
if the bank is not a federal credit union, the shareholders or, if there are no shareholders, to the incorporators; or
If a right, other than a voting right, of a holder of a share with nominal or par value of a bank referred to in subsection (3) or a body corporate continued as a bank under this Act was stated or expressed in terms of the nominal or par value of the share immediately before the coming into force of this subsection or the continuance under this Act, as the case may be, that right is deemed, after the coming into force of this Part or the continuance, as the case may be, to be the same right stated or expressed without reference to the nominal or par value of the share.
Where a body corporate is continued as a bank under this Act, shares with nominal or par value issued by the body corporate before it was so continued are deemed to be shares without nominal or par value.
Shares with nominal or par value of a bank that was in existence immediately prior to the day this Part comes into force are deemed to be shares without nominal or par value.
Shares of a bank shall be in registered form and shall be without nominal or par value.
Subject to this Act and the by-laws of the bank, shares of a bank may be issued at such times and to such persons and for such consideration as the directors of the bank may determine.
the right to receive the remaining property of the bank on dissolution.
the right to receive dividends declared on those shares; and
the right to vote at all meetings of shareholders except where only holders of a specified class of shares are entitled to vote;
A federal credit union must not designate a class of its shares as “membership shares” or any variation of those words.
A body corporate continued as a bank under this Act that is not in compliance with subsection (2) on the date letters patent continuing it as a bank are issued shall, within twelve months after that date, redesignate its shares to comply with that subsection.
[Repealed, 2012, c. 5, s. 4]
No bank shall designate more than one class of its shares as “common shares” or any variation of that term.
A bank that is not a federal credit union must have one class of shares, to be designated as “common shares”, which are non-redeemable and in which the rights of the holders of those common shares are equal in all respects, and those rights include
the rights, privileges, restrictions and conditions attaching to the shares of each class.
the number of classes of shares; and
the maximum number, if any, of shares of any class that the federal credit union is authorized to issue;
whether the shares may be issued to persons who are not members;
If shareholders are entitled to vote in accordance with subsection (3) or otherwise in accordance with this Act, each share entitles the holder to one vote.
Despite subsections (2) and (3), the shareholders do not have the right to elect more than 20 per cent of the directors.
A federal credit union’s by-laws may provide that
Subject to this Act, a federal credit union must not issue any share that confers on the holder of the share the right
A federal credit union may issue shares only if its by-laws set out the following:
to receive any of the remaining property of the federal credit union on dissolution.
to vote at meetings of the federal credit union otherwise than in accordance with this Act; or
the shareholders, any class of shareholders or the holders of a series of shares, may elect a fixed number or a percentage of the directors.
a share confers on its holder the right to vote at an election of directors by reason of an event that has occurred and is continuing or by reason of a condition that has been fulfilled; or
the maximum number, if any, of shares of any class that the bank is authorized to issue.
the rights, privileges, restrictions and conditions attaching to the shares of each class; and
A by-law referred to in subsection (1) is not effective until it is confirmed or confirmed with amendments by special resolution of the shareholders at the meeting referred to in subsection (2).
Where a by-law referred to in subsection (1) is made, the directors of the bank shall submit the by-law to the shareholders at the next meeting of shareholders.
The by-laws of a bank that is not a federal credit union may provide for more than one class of shares and, if they so provide, they must set out
authorize the directors to do anything referred to in paragraph (a).
fix the maximum number of shares in each series and determine the designation, rights, privileges, restrictions and conditions attaching to them; and
If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors.
No rights, privileges, restrictions or conditions attached to a series of shares authorized under this section confer on the series a priority in respect of dividends or return of capital over any other series of shares of the same class that are then outstanding.
Where voting rights are attached to any series of a class of shares, the shares of every other series of that class shall have the same voting rights.
If any cumulative dividend or amounts payable on return of capital in respect of a series of shares are not paid in full, the shares of all series of the same class participate rateably in respect of accumulated dividends and return of capital.
In the case of a federal credit union, a by-law referred to in subsection (1) must be made by special resolution of the members. If the federal credit union has issued shares, the by-law is not effective until it is confirmed by a separate special resolution of the shareholders, the class of shareholders or the holders of the series of shares that is affected by the by-law.
The by-laws of a bank may, subject to any limitations set out in them, authorize the issue of any class of shares in one or more series and may
When issuing shares, a bank may provide that any aspect of the shares relating to money or involving the payment of or the liability to pay money be in a currency other than the currency of Canada.
No share of any class of shares of a bank shall be issued until it is fully paid for in money or, with the approval of the Superintendent, in property.
If the bank referred to in subsection (5) is a federal credit union, the addition must be approved by special resolution of the members and by a separate special resolution of the shareholders, the class of shareholders or the holders of the series of shares that is affected by the special resolution, unless all the issued and outstanding shares are of not more than two classes of convertible shares referred to in subsection 77(4).
Where a bank that has issued any outstanding shares of more than one class or series proposes to add to a stated capital account that it maintains in respect of a class or series of shares an amount that was not received by the bank as consideration for the issue of shares, the addition must be approved by special resolution unless all the issued and outstanding shares are of not more than two classes of convertible shares referred to in subsection 77(4).
On the issuance of a share or membership share, a bank must not add to the appropriate stated capital account an amount greater than the amount of the consideration it receives for the share or membership share.
Despite subsection (2), a federal credit union may, subject to subsection (4), record in the stated capital account maintained for its membership shares any part of the consideration it receives in an exchange if it issues membership shares
Despite subsection (2), a bank may, subject to subsection (4), record in the stated capital account maintained for the shares of a class or series any part of the consideration it receives in an exchange if it issues shares
A bank must record in the appropriate stated capital account the full amount of any consideration it receives for any shares or membership shares it issues.
A federal credit union must also maintain a stated capital account for the membership shares it issues.
A bank shall maintain a separate stated capital account for each class and series of shares it issues.
property of a person who immediately before the exchange dealt with the bank at arm’s length within the meaning of that expression in the Income Tax Act if the person, the bank and all of the holders of shares in the class or series of shares so issued consent to the exchange;
shares of or another interest in a body corporate that immediately before the exchange or because of it did not deal with the bank at arm’s length within the meaning of that expression in the Income Tax Act, or
property of a person who immediately before the exchange did not deal with the bank at arm’s length within the meaning of that expression in the Income Tax Act,
to shareholders of an amalgamating body corporate who receive the shares in addition to or instead of securities of the amalgamated bank.
under an agreement referred to in subsection 224(1); or
in exchange for
property of a person who immediately before the exchange dealt with the federal credit union at arm’s length within the meaning of that expression in the Income Tax Act if the person, the federal credit union and all of the holders of the membership shares so issued consent to the exchange;
shares of or another interest in a body corporate that immediately before the exchange or because of it did not deal with the federal credit union at arm’s length within the meaning of that expression in the Income Tax Act, or
property of a person who immediately before the exchange did not deal with the federal credit union at arm’s length within the meaning of that expression in the Income Tax Act,
to shareholders of an amalgamating body corporate who receive the membership shares in addition to or instead of securities of the amalgamated bank.
under an agreement referred to in subsection 224(1); or
in exchange for
the amount of the contributed surplus of the bank that is attributable to those shares or other ownership interests.
the aggregate amount paid up on the shares of each class and series of shares, or on the other ownership interests, immediately before the body corporate was so continued, and
Any amount unpaid in respect of a share or other ownership interest, however designated, in the body corporate, that was issued by a body corporate before it was continued as a bank under this Act and paid after it was so continued must be recorded in the stated capital account maintained by the bank for the shares of that class or series or for membership shares.
The amount of any contributed surplus recorded in the stated capital account pursuant to paragraph (1)(b) shall be deducted from the contributed surplus account of the bank.
If a body corporate is continued as a bank under this Act, the bank must record in the stated capital account maintained for each class and series of shares, or for other ownership interests, however designated, then outstanding an amount that is equal to the aggregate of
Notwithstanding the existence of a pre-emptive right, a shareholder of a bank has no pre-emptive right in respect of shares to be issued
Notwithstanding the existence of a pre-emptive right, a shareholder of a bank has no pre-emptive right in respect of shares of a class to be issued
Where the by-laws of a bank so provide, no shares of any class shall be issued unless the shares have first been offered to the shareholders holding shares of that class, and those shareholders have a pre-emptive right to acquire the offered shares in proportion to their holdings of the shares of that class, at such price and on such terms as those shares are to be offered to others.
pursuant to the exercise of conversion privileges, options or rights previously granted by the bank.
as a share dividend; or
for a consideration other than money;
where, to the knowledge of the directors of the bank, the offer of shares to a shareholder whose recorded address is in a country other than Canada ought not to be made unless the appropriate authority in that country is provided with information in addition to that submitted to the shareholders at the last annual meeting.
where the issue of shares to the shareholder is prohibited by this Act; or
in the securities to which the conversion privileges, options or rights are attached.
in the documents that evidence the conversion privileges, options or rights; or
Where a bank has granted privileges to convert any securities issued by the bank into shares, or into shares of another class or series, or has issued or granted options or rights to acquire shares, if the by-laws limit the number of authorized shares, the bank shall reserve and continue to reserve sufficient authorized shares to meet the exercise of such conversion privileges, options and rights.
Conversion privileges, options and rights to acquire securities of a bank may be made transferable or non-transferable, and options and rights to acquire such securities may be made separable or inseparable from any securities to which they are attached.
A bank may issue conversion privileges, options or rights to acquire securities of the bank, and shall set out the conditions thereof
permit any of its subsidiaries to hold any ownership interests of any unincorporated entity that controls the bank.
if the bank is a federal credit union, permit any of its subsidiaries to hold any membership shares of the federal credit union, other than the minimum number of membership shares required by the by-laws of the federal credit union to qualify for membership in it, if any; or
permit any of its subsidiaries to hold any shares of the bank or of any body corporate that controls the bank;
hold any ownership interests of any unincorporated entity that controls the bank;
hold shares of the bank or of any body corporate that controls the bank;
A bank may accept from any shareholder or member a share or membership share, as the case may be, of the bank surrendered to it as a gift, but may not extinguish or reduce a liability in respect of an amount unpaid on any such share or membership share except in accordance with section 75.
A bank must not make any payment to purchase or redeem any shares or membership shares issued by it if there are reasonable grounds for believing that the bank is, or the payment would cause the bank to be, in contravention of any regulation referred to in subsection 485(1) or (2) or any direction made under subsection 485(3).
Subject to subsection (2) and to its by-laws, a bank may, with the consent of the Superintendent, purchase, for the purpose of cancellation, any shares or membership shares issued by it, or redeem any redeemable shares or membership shares issued by it at prices not exceeding the redemption price for the shares or membership shares calculated according to a formula stated in its by-laws or the conditions attaching to the shares or membership shares.
Nothing in subsection (2) precludes a bank that was in existence immediately prior to the day this Part comes into force, or any of its subsidiaries, from holding any security interest held immediately prior to the coming into force of this Part.
A bank may, and may permit its subsidiaries to, by way of a security interest
A bank may, and may permit its subsidiaries to, hold, in the capacity of a personal representative, shares of the bank — or, if the bank is a federal credit union, membership shares of the federal credit union — or of any body corporate that controls the bank or ownership interests in any unincorporated entity that controls the bank, but only if the bank or the subsidiary does not have a beneficial interest in the shares, membership shares or ownership interests.
hold any ownership interests of any entity that controls the bank,
hold shares of the bank or of any body corporate that controls the bank, or
If a bank permits any of its subsidiaries to acquire shares of the bank under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, despite section 16 and subsection 66(2), the bank must comply with the prescribed requirements.
After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met.
A bank may permit any of its subsidiaries to acquire shares of the bank through the issuance of those shares by the bank to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares.
Where a bank or any of its subsidiaries, through the realization of security, acquires any shares of the bank or of any body corporate that controls the bank or any ownership interests in an unincorporated entity that controls the bank, the bank shall, or shall cause its subsidiaries to, as the case may be, within six months after the day of the realization, sell or otherwise dispose of the shares or ownership interests.
Subject to subsection (2), if a bank purchases shares of the bank or fractions of shares, or membership shares of the bank, or redeems or otherwise acquires shares or membership shares of the bank, the bank must cancel those shares or membership shares.
In addition to evidence of the passing of a special resolution to reduce the stated capital of a bank and of the publication thereof, statements showing
No approval to reduce the stated capital of a bank may be given by the Superintendent unless application therefor is made within three months after the time of the passing of the special resolution and a copy of the special resolution, together with a notice of intention to apply for approval, has been published in the Canada Gazette.
Subsection (4) does not apply if
A special resolution to reduce the stated capital of a bank has no effect until it is approved in writing by the Superintendent.
A special resolution to reduce the stated capital of a bank shall specify the stated capital account or accounts from which the reduction of stated capital effected by the special resolution will be deducted.
A bank shall not reduce its stated capital by special resolution if there are reasonable grounds for believing that the bank is, or the reduction would cause the bank to be, in contravention of any regulation referred to in subsection 485(1) or (2) or any direction made pursuant to subsection 485(3).
The stated capital of a federal credit union may be reduced by special resolution of its members and, if it has issued shares, by a separate special resolution of the shareholders, the class of shareholders or the holders of the series of shares that is affected by the special resolution.
The stated capital of a bank that is not a federal credit union may be reduced by special resolution.
there is to be no return of capital to shareholders or members, as the case may be, as a result of the reduction.
the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 308(4); and
the reason why the bank seeks the reduction of capital
the bank’s assets and liabilities, and
the results of the voting,
the number of the bank’s shares or membership shares, as the case may be, issued and outstanding,
This section does not affect any liability that arises under section 207.
An action to enforce a liability imposed by subsection (1) may not be commenced more than two years after the date of the act complained of.
No person holding shares or membership shares in the capacity of a personal representative and registered on the records of the bank as a shareholder or member and described in those records as the personal representative of a named person is personally liable under subsection (1), but the named person is subject to all the liabilities imposed by that subsection.
If any money or property was paid or distributed to a shareholder, member or other person as a consequence of a reduction of capital made contrary to section 75, a creditor of the bank may apply to a court for an order compelling the shareholder, member or other person to pay the money or deliver the property to the bank.
Shares issued by a bank and converted into shares of another class or series, or changed under subsection 192.03(1) or 217(1) into shares of another class or series, become issued shares of the class or series of shares into which the shares have been converted or changed.
For the purposes of subsection (3) and subject to the bank’s by-laws, where a bank issues two classes of shares and there is attached to each class a right to convert a share of one class into a share of the other class and a share is so converted, the amount of stated capital attributable to a share in either class is the aggregate of the stated capital of both classes divided by the number of outstanding shares of both classes immediately before the conversion.
On a conversion of outstanding shares of a bank into shares of another class or series, or on a change of outstanding shares of the bank into shares of another class or series, the bank shall
A bank shall adjust its stated capital account or accounts in accordance with any special resolution referred to in section 75.
On a purchase, redemption or other acquisition by a bank of shares or fractions of shares, or of membership shares, issued by it, other than shares or membership shares acquired under section 72 or acquired through the realization of security and sold under subsection 73(2), the bank must deduct from the stated capital account maintained for the class or series of shares, or for the membership shares, as the case may be, so purchased, redeemed or otherwise acquired an amount equal to the result obtained by multiplying the stated capital in respect of the shares of that class or series, or in respect of the membership shares, as the case may be, by the number of shares of that class or series, or the number of membership shares, as the case may be, so purchased, redeemed or otherwise acquired and dividing by the number of shares of that class or series, or the number of membership shares, as the case may be, outstanding immediately before the purchase, redemption or other acquisition.
record the result obtained under paragraph (a) and any additional consideration received pursuant to the conversion or change in the stated capital account maintained or to be maintained for the class or series of shares into which the shares have been converted or changed.
deduct from the stated capital account maintained for the class or series of shares converted or changed an amount equal to the result obtained by multiplying the stated capital of the shares of that class or series by the number of shares of that class or series converted or changed, and dividing by the number of outstanding shares of that class or series immediately before the conversion or change; and
record the result obtained under paragraph (a) and any additional consideration received for the conversion in the stated capital account maintained or to be maintained for the class or series of shares, or for the membership shares, as the case may be, into which the debt obligation has been converted.
deduct from the liabilities of the bank the nominal value of the debt obligation being converted; and
A body corporate that is continued as a federal credit union under this Act and that is not in compliance with section 79.1 on the date letters patent continuing it as a federal credit union are issued must, within 12 months after that date, redesignate a class of its shares to comply with that section.
Membership shares issued by a federal credit union are non-assessable, and their holders are not liable to the federal credit union or to its creditors in respect of those membership shares.
The membership shares of a federal credit union must be issued with no par value, and its by-laws must specify any limit on the number of membership shares and set out the formula to be used to determine the value of the membership shares.
[Repealed, 2007, c. 6, s. 11]
The directors of a bank must not declare and a bank must not pay a dividend or patronage allocation if there are reasonable grounds for believing that the bank is, or the payment would cause the bank to be, in contravention of any regulation referred to in subsection 485(1) or (2) or any direction made under subsection 485(3).
If shares or membership shares of a bank are issued in payment of a dividend or patronage allocation, the bank must record in the stated capital account maintained or to be maintained for the shares of the class or series, or for the membership shares, issued in payment of the dividend or patronage allocation the declared amount of the dividend or patronage allocation stated as an amount of money.
The directors of a bank shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment.
The directors of a bank may declare and a bank may pay a dividend or patronage allocation by issuing fully paid shares or, subject to subsection 79.2(1), membership shares of the bank or options or rights to acquire fully paid shares or membership shares of the bank and, subject to subsection (4), the directors of a bank may declare and a bank may pay a dividend or patronage allocation in money or property, and if a dividend or patronage allocation is to be paid in money, the dividend may be paid in a currency other than the currency of Canada.
the remaining property of the federal credit union on dissolution.
dividends declared on those membership shares; and
When issuing membership shares, a federal credit union may provide that any aspect of the membership shares relating to money or involving the payment of or the liability to pay money be in a currency other than the currency of Canada.
No membership share of a federal credit union is to be issued until it is fully paid for in money or, with the approval of the Superintendent, in property.
A federal credit union may have only one class of membership shares in which the rights of their holders are equal in all respects, and those rights include the right to receive
A federal credit union’s letters patent or by-laws may not include any preference, right, condition, restriction, limitation or prohibition on membership shares, except as provided for by this Act.
The right to vote attaches to membership and not to a membership share.
Membership shares may be held only by members.
The face of each certificate that the federal credit union issues in respect of membership shares must contain
The by-laws of a federal credit union may provide that no membership share certificates need be issued and, if they so provide, the federal credit union must, on the request of a member, issue a statement of the number of membership shares held by the member.
a statement that there is a charge on the membership shares represented by the certificate in favour of the federal credit union for any indebtedness of the member to the federal credit union.
a statement that the certificate is transferable only in accordance with this Act; and
a statement that the certificate represents membership shares in the federal credit union, and the number of the membership shares represented by the certificate;
the name of the person to whom it is issued;
a statement that the federal credit union is subject to this Act;
the name of the federal credit union;
When issuing subordinated indebtedness, a bank may provide that any aspect of the subordinated indebtedness relating to money or involving the payment of or the liability to pay money in relation thereto be in a currency other than that of Canada including, without restricting the generality of the foregoing, the payment of any interest thereon.
Subordinated indebtedness issued by a bank is deemed not to be a deposit.
A person shall not in any prospectus, advertisement, correspondence or literature relating to any subordinated indebtedness issued or to be issued by a bank refer to the subordinated indebtedness otherwise than as subordinated indebtedness.
A bank shall not issue subordinated indebtedness unless the subordinated indebtedness is fully paid for in money or, with the approval of the Superintendent, in property.
valid means issued in accordance with the applicable law or validated under section 97. (valide)
uncertificated security means a security, not evidenced by a security certificate, the issue and any transfer of which is registered or recorded in records maintained for that purpose by or on behalf of a bank; (valeur mobilière sans certificat)
unauthorized, in relation to a signature or an endorsement, means a signature or an endorsement made without actual, implied or apparent authority, and includes a forgery; (non autorisé)
trust indenture has the meaning given that expression by section 294; (acte de fiducie)
security or security certificate means an instrument issued by a bank that is
securities broker means a person who is engaged for all or part of the person’s time in the business of buying and selling securities and who, in the transaction concerned, acts for, or buys a security from, or sells a security to, a customer; (courtier)
purchaser means a person who takes an interest in a security by sale, mortgage, pledge, issue, reissue, gift or any other voluntary transaction; (acquéreur)
over-issue means the issue of securities in excess of any maximum number of securities that the issuer is authorized to issue; (émission excédentaire)
good faith means honesty in fact in the conduct of the transaction concerned; (bonne foi)
genuine means free of forgery or counterfeit; (authentique)
fungible, in respect of securities, means securities of which any unit is, by nature or usage of trade, the equivalent of any other like unit; (fongibles)
delivery means voluntary transfer of possession; (livraison ou remise)
clearing agency means a person designated as a recognized clearing agency by the Superintendent; (agence de compensation et de dépôt)
adverse claim includes a claim that a transfer was or would be wrongful or that a particular adverse person is the owner of or has an interest in a security; (opposition)
bona fide purchaser means a purchaser for value in good faith and without notice of any adverse claim who takes delivery of a security in bearer form or order form or of a security in registered form issued to the purchaser or endorsed to the purchaser or endorsed in blank; (acheteur de bonne foi)
but does not include an instrument evidencing a deposit or, in the case of a federal credit union, a membership share; (valeur mobilière ou certificat de valeur mobilière)
evidence of a share, participation or other interest in or obligation of a bank,
one of a class or series or by its terms divisible into a class or series of instruments, and
of a type commonly dealt in on securities exchanges or markets or commonly recognized in any area in which it is issued or dealt in as a medium for investment,
in bearer, order or registered form,
A security is in registered form if
A security is in order form where the security is not a share and, by its terms, it is payable to the order or assigns of any person therein specified with reasonable certainty or to the person or the person’s order.
A security is in bearer form if it is payable to bearer according to its terms and not by reason of any endorsement.
A security is a negotiable instrument but, in the case of any inconsistency between the provisions of the Bills of Exchange Act and this Act, this Act prevails to the extent of the inconsistency.
it bears a statement that it is in registered form.
it specifies a person entitled to the security or to the rights it evidences, and its transfer is capable of being recorded in a securities register; or
A bank is not required to issue more than one security certificate in respect of securities held jointly by several persons, and delivery of a security certificate to one of several joint holders is sufficient delivery to all joint holders of the security.
A bank may charge a fee, not exceeding a prescribed amount, for a security certificate issued in respect of a transfer.
Subject to Part VII, every security holder is entitled at the holder’s option to a security certificate that complies with this Act or to a non-transferable written acknowledgement of the holder’s right to obtain a security certificate that complies with this Act from a bank in respect of the securities of that bank held by the security holder.
a trustee who certifies it in accordance with a trust indenture.
a registrar or transfer agent of the bank or a branch transfer agent or a natural person on their behalf; or
a director or officer of the bank;
If a security certificate contains a person’s printed or mechanically reproduced signature, the bank may issue the security certificate even if the person has ceased to be a director or officer of the bank. The security certificate is as valid as if the person were a director or officer at the date of its issue.
A security certificate shall be signed by or bear the printed or otherwise mechanically reproduced signature of at least one of the following:
the number and class of shares and the designation of any series that the certificate represents.
the name of the person to whom the share certificate is issued; and
a statement that the bank is subject to the Bank Act;
the name of the bank;
If a body corporate that is continued as a bank under this Act has outstanding security certificates and the words “private company” or “private corporation” appear on the certificates, those words are deemed to be a notice of a charge or restriction for the purposes of subsection (1).
If any of the issued shares of a distributing bank remain outstanding and are held by more than one person, the bank may not restrict the transfer or ownership of its shares except by way of a constraint under Part VII.
No charge in favour of a bank and no restriction on transfer other than a constraint under Part VII is effective against a transferee of a security issued by the bank if the transferee has no actual knowledge of the charge or restriction unless it or a reference to it is noted conspicuously on the security certificate.
that the class or series of shares that the certificate represents has rights, privileges, restrictions or conditions attached thereto and that the bank will furnish a shareholder, on demand and without charge, with a full copy of
the rights, privileges, restrictions and conditions attached to the shares of each class and series existing when the share certificate is issued; or
the text of the authority of the directors, if the directors are so authorized, to fix the rights, privileges, restrictions and conditions of subsequent series of shares.
the text of the rights, privileges, restrictions and conditions attached to each class authorized to be issued and to each series in so far as those rights, privileges, restrictions and conditions have been fixed by the directors, and
Where a share certificate issued by a bank contains the statement mentioned in paragraph (1)(b), the bank shall provide a shareholder, on demand and without charge, with a full copy of the texts referred to in subparagraphs (1)(b)(i) and (ii).
There shall be stated legibly on a share certificate issued after the coming into force of this section by a bank that is authorized to issue shares of more than one class or series
any shares for which the scrip certificate is exchangeable may, notwithstanding any pre-emptive right, be issued by the bank to any person and the proceeds thereof may be distributed rateably to the holders of all the scrip certificates.
the scrip certificate becomes void if not exchanged for a share certificate representing a full share before a specified date; and
A holder of a scrip certificate is not entitled to exercise voting rights or to receive a dividend in respect of the scrip certificate.
A holder of a fractional share issued by a bank is not entitled to exercise voting rights or to receive a dividend in respect of the fractional share.
A bank is not required to inquire into the existence of, or see to the performance or observance of, any duty owed to a third person by a registered holder of any of its securities or by anyone whom it treats, as permitted or required by this Part, as the owner or registered holder thereof.
If a person on whom the ownership of a security of a bank devolves by operation of law, other than a person described in subsection (2), provides proof of that person’s authority to exercise rights or privileges in respect of a security of the bank that is not registered in the person’s name, the bank shall, subject to this Act, treat that person as entitled to exercise those rights or privileges.
Notwithstanding subsection (1), a bank may treat a person as a registered security holder entitled to exercise all of the rights of the security holder that the person represents, if that person provides the bank with evidence as described in subsection 127(4) that the person is
A bank or a trustee within the meaning of section 294 may, subject to subsections 137(5) to (7) and sections 138 to 141 and 145, treat the registered owner of a security as the person exclusively entitled to vote, to receive notices, to receive any interest, dividend or other payment in respect of the security and to exercise all of the rights and powers of an owner of the security.
a liquidator of, or a trustee in bankruptcy for, a registered security holder.
the personal representative of a registered security holder who is a minor, an incompetent person or a missing person; or
the heir or personal representative of a deceased security holder or the personal representative of the heirs of the deceased security holder;
a lawyer or notary acting on behalf of the person referred to in paragraph 93(2)(a), or
a trust company incorporated under the Trust and Loan Companies Act or under the laws of a province, or
the court that granted the probate or letters of administration,
the security certificate that was owned by the deceased holder
an affidavit or declaration of transmission made by the person referred to in paragraph 93(2)(a) that states the particulars of the transmission, and
in the case of transmission by notarial will in the Province of Quebec, a copy thereof authenticated pursuant to the laws of that Province,
the original grant of probate or of letters of administration, or a copy thereof certified to be a true copy by
in the case of a transfer to any other person, endorsed in accordance with section 111,
in the case of a transfer to the person referred to in paragraph 93(2)(a), with or without the endorsement of that person, and
Subject to Part VII, delivery of the documents referred to in this section empowers a bank or its transfer agent to record in a securities register the transmission of a security from the deceased holder to a person referred to in paragraph 93(2)(a) or to such person as the person referred to in that paragraph may designate and, thereafter, to treat the person who becomes so registered as the owner of that security.
Notwithstanding subsection (1), if the laws of the jurisdiction governing the transmission of a security of a deceased holder do not require a grant of probate or of letters of administration in respect of the transmission, a personal representative of the deceased holder is entitled, subject to Part VII and any applicable law relating to the collection of taxes, to become registered as the owner or to designate a person to be registered as the owner, if the personal representative delivers to the bank or its transfer agent the following documents, namely,
Subject to the provisions of Part VII and any applicable law relating to the collection of taxes, a person referred to in paragraph 93(2)(a) is entitled to become registered as the owner of a security, or to designate another person to be registered as the owner of a security, if the person referred to in paragraph 93(2)(a) delivers to the bank or its transfer agent
reasonable proof of the governing laws, of the deceased holder’s interest in the security and of the right of the personal representative or the designated person to become the registered shareholder.
the security certificate that was owned by the deceased holder; and
if a valid security similar in all respects to the security involved in the over-issue is not reasonably available for purchase, the person entitled to the validation or issue may recover from the issuer an amount equal to the price the last purchaser for value paid for the invalid security.
if a valid security similar in all respects to the security involved in the over-issue is reasonably available for purchase, the person entitled to the validation or issue may compel the issuer to purchase and deliver such a security to that person against surrender of the security that the person holds; or
A purchase or payment by an issuer under subsection (1) is not a purchase or payment in respect of which section 71 or 77 applies.
Where an issuer is subsequently authorized to issue securities of a number equal to or exceeding the number of securities previously authorized plus the amount of the securities over-issued, the securities so over-issued are valid from the date of their issue.
The provisions of this Part that validate a security or compel its issue or reissue do not apply to the extent that a validation, issue or reissue would result in over-issue, but
if the defendant establishes that a defence or defect exists, the plaintiff has the burden of establishing that the defence or defect is ineffective against the plaintiff or any person under whom the plaintiff claims.
if a signature is admitted or established, production of the instrument entitles a holder to recover on it unless the defendant establishes a defence or a defect going to the validity of the security; and
a signature on the security is presumed to be genuine and authorized but, if the effectiveness of the signature is put in issue, the burden of establishing that it is genuine and authorized is on the party claiming under the signature;
unless specifically denied in the pleadings, each signature on the security or in a necessary endorsement is admitted;
After an event that creates a right to immediate performance of the principal obligation evidenced by a security, or that sets a date on or after which a security is to be presented or surrendered for redemption or exchange, a purchaser is deemed to have notice of any defect in its issue or of any defence of the issuer
All defences of an issuer, including non-delivery and conditional delivery of a security but not including lack of genuineness, are ineffective against a purchaser for value without notice of the particular defence.
Except as provided in section 101, the fact that a security is not genuine is a complete defence even against a purchaser for value and without notice.
A security is valid in the hands of a purchaser for value without notice of any defect going to its validity.
Even against a purchaser for value and without notice of a defect going to the validity of a security, the terms of the security include those stated on the security and those incorporated therein by reference to another instrument, statute, rule, regulation or order to the extent that the terms so referred to do not conflict with the stated terms, but such a reference is not of itself notice to a purchaser for value of a defect going to the validity of the security, notwithstanding that the security expressly states that a person accepting it admits the notice.
if the purchaser takes the security more than two years after the date set for presentation or surrender or the date on which the performance became due.
if the event requires the payment of money or the delivery of securities, or both, on presentation or surrender of the security, and the funds or securities are available on the date set for payment or exchange, and the purchaser takes the security more than one year after that date; or
an employee of the issuer or of a person referred to in paragraph (a) who, in the ordinary course of the employee’s duties, handles the security.
an authenticating trustee, registrar, transfer agent or other person entrusted by the issuer with the signing of the security, or of similar securities, or their immediate preparation for signing; or
notwithstanding that the blanks are incorrectly filled in, the security as completed is enforceable by a purchaser who took it for value and without notice of the incorrectness.
any person may complete it by filling in the blanks in accordance with the person’s authority; and
A completed security that has been improperly altered, even if fraudulently altered, remains enforceable, but only according to its original terms.
Where a security contains the signatures necessary to its issue or transfer but is incomplete in any other respect,
the person has reasonable grounds for believing that the security is in the form and within the amount the issuer is authorized to issue.
the person’s acts in connection with the issue of the security are within the person’s authority; and
the security is genuine;
Unless otherwise agreed, a person referred to in subsection (1) does not assume any further liability for the validity of a security.
A person signing a security, as authenticating trustee, registrar, transfer agent or other person entrusted by the issuer with the signing of the security, warrants to a purchaser for value without notice that
A purchaser of a limited interest acquires rights only to the extent of the interest purchased.
A bona fide purchaser, in addition to acquiring the rights of a purchaser, also acquires the security free from any adverse claim.
Subject to Part VII, on delivery of a security the purchaser acquires the rights in the security that the purchaser’s transferor had or had authority to convey, except that the position of a purchaser who has been a party to any fraud or illegality affecting the security or who as a prior holder had notice of an adverse claim is not improved by taking from a later bona fide purchaser.
the security is in bearer form and has on it a statement that it is the property of a person other than the transferor, except that the mere writing of a name on a security is not such a statement.
the security, whether in bearer form or registered form, has been endorsed “for collection” or “for surrender” or for some other purpose not involving transfer; or
made more than six months after any date set for payment of money against such a presentation or surrender if funds are available for payment on that date.
made more than one year after any date set for such a presentation or surrender; or
A securities broker gives to the broker’s customer, to the issuer and to a purchaser, as the case may be, the warranties provided in subsections (1) to (4) and has the rights and privileges of a purchaser under those subsections, and those warranties of and in favour of the broker acting as an agent are in addition to warranties given by the broker’s customer and warranties given in favour of the broker’s customer.
A pledgee or other holder for purposes of security who redelivers a security received, or after payment and on order of the debtor delivers that security to a third person, gives only the warranties of an intermediary under subsection (3).
Where a security is delivered by an intermediary known by the purchaser to be entrusted with delivery of the security on behalf of another or with collection of a draft or other claim to be collected against that delivery, the intermediary by that delivery warrants only the intermediary’s own good faith and authority even if the intermediary has purchased or made advances against the draft or other claim to be collected against the delivery.
A person by transferring a security to a purchaser for value warrants only that
A person who presents a security for registration of transfer or for payment or exchange warrants to the issuer that the person is entitled to the registration, payment or exchange, except that a purchaser for value without notice of an adverse claim who receives a new, reissued or re-registered security on registration of transfer warrants only that the purchaser has no knowledge of any unauthorized signature in a necessary endorsement.
the person knows of nothing that might impair the validity of the security.
the security is genuine and has not been materially altered; and
the transfer is effective and rightful;
to the extent that a person described in any of paragraphs (a) to (f) may act through an agent, the person’s authorized agent.
a person having power to sign under any applicable law or a power of attorney; or
if the security or endorsement mentioned in paragraph (a) specifies more than one person with right of survivorship and by reason of death not all of the persons can sign, the survivor or survivors;
if a person described in paragraph (a) is a natural person and is without capacity to act by reason of death, incompetence, minority or other reason, the person’s fiduciary;
if the security or endorsement mentioned in paragraph (a) specifies more than one person as fiduciaries and one or more of those persons are no longer serving in the described capacity, the remaining fiduciary or fiduciaries, whether or not a successor has been appointed;
if a person described in paragraph (a) is described as a fiduciary but is no longer serving in the described capacity, either that person or that person’s successor;
the person specified by the security or by special endorsement to be entitled to the security;
Whether the person signing is an appropriate person is determined as of the time of signing, and an endorsement by such a person does not become unauthorized for the purposes of this Part by reason of any subsequent change of circumstances.
In this section, section 111, subsections 118(1), 121(4) and 126(1) and section 130, appropriate person means
A holder may convert an endorsement in blank into a special endorsement.
A special endorsement specifies the person to whom the security is to be transferred, or who has power to transfer it.
An endorsement in blank includes an endorsement to bearer.
An endorsement may be special or in blank.
An endorsement of a security in registered form is made when an appropriate person signs, either on the security or on a separate document, an assignment or transfer of the security or a power to assign or transfer it, or when the signature of an appropriate person is written without more on the back of the security.
is otherwise precluded from impugning the effectiveness of an unauthorized endorsement.
has ratified an unauthorized endorsement of the security; or
An issuer who registers the transfer of a security on an unauthorized endorsement is liable for improper registration.
The owner of a security may assert the ineffectiveness of an endorsement against the issuer or any purchaser, other than a purchaser for value and without notice of an adverse claim, who has in good faith received a new, reissued or re-registered security on registration of transfer, unless the owner
the signer had legal capacity to sign.
the signer was an appropriate person to endorse; and
the signature was genuine;
The warranties referred to in subsections (1) to (3) are made to any person who, relying on the guarantee, takes or deals with the security, and the guarantor is liable to such a person for any loss resulting from breach of warranty.
A person who guarantees the endorsement of a security warrants both the signature and the rightfulness, in all respects, of the transfer to which the signature relates, but an issuer may not require a guarantee of endorsement as a condition to registration of transfer.
A person who guarantees the signature of an endorser does not otherwise warrant the rightfulness of the transfer to which the signature relates.
A person who guarantees the signature of an endorser of a security warrants that, at the time of signing,
in respect of an identified security to be delivered while still in the possession of a third person, that person acknowledges that it is held for the purchaser.
the purchaser’s securities broker sends the purchaser confirmation of the purchase and the broker in the broker’s records identifies a specific security as belonging to the purchaser; or
the purchaser’s securities broker acquires possession of a security specially endorsed to or issued in the name of the purchaser;
the purchaser or a person designated by the purchaser acquires possession of a security;
Notice of an adverse claim received by a securities broker or by a purchaser after the broker takes delivery as a holder for value is not effective against the broker or the purchaser, except that, as between the broker and the purchaser, the purchaser may demand delivery of an equivalent security in respect of which no notice of an adverse claim has been received.
If a security is part of a fungible bulk, a purchaser of the security is the owner of the proportionate interest in the fungible bulk.
A purchaser is the owner of a security held for the purchaser by a securities broker, but a purchaser is not a holder except in the cases referred to in paragraphs 119(b) and (c).
the selling securities broker, including a correspondent broker, acting for a selling customer fulfils the securities broker’s duty to deliver by delivering the security or a like security to the buying securities broker or to a person designated by the buying securities broker or by effecting clearance of the sale in accordance with the rules of the exchange on which the transaction took place.
the selling customer fulfils the customer’s duty to deliver when the customer delivers the security to the selling securities broker or to a person designated by the selling securities broker or causes an acknowledgement to be made to the selling securities broker that it is held for the selling securities broker; and
That entries made in the records of the clearing agency as provided in subsection (4) are not appropriate does not affect the validity or effect of the entries nor the liabilities or obligations of the clearing agency to any person adversely affected thereby.
A transfer or pledge under subsections (4) to (10) does not constitute a registration of transfer under sections 126 to 133.
A person depositing a security certificate or an uncertificated security with a clearing agency, or a transferee or pledgee of a security under subsections (4) to (10), is a holder of the security and shall be deemed to have possession of the security so deposited, transferred or pledged, as the case may be, for all purposes.
If a pledge or the creation of a security interest is intended, the making of entries has the effect of a taking of delivery by the pledgee or a secured party and the pledgee or secured party shall be deemed to have taken possession for all purposes.
A transfer or pledge under subsections (4) to (10) has the effect of a delivery of a security in bearer form or duly endorsed in blank representing the amount of the obligation or the number of shares or rights transferred or pledged.
Under subsections (4) to (10), entries may be in respect of like securities or interests therein as part of a fungible bulk and may refer merely to a quantity of a particular security without reference to the name of the registered owner, certificate or bond number or the like and, in appropriate cases, may be on a net basis taking into account other transfers or pledges of the same security.
If a security shown in the records of a clearing agency is evidenced by
A sale to a securities broker purchasing for the securities broker’s own account is subject to subsection (2) and not subsection (1), unless the sale is made on a stock exchange.
Except as otherwise provided in this section and unless otherwise agreed, a transferor’s duty to deliver a security under a contract of purchase is not fulfilled until the transferor delivers the security in negotiable form to the purchaser or to a person designated by the purchaser, or causes an acknowledgement to be made to the purchaser that the security is held for the purchaser.
Unless otherwise agreed, if a sale of a security is made on a stock exchange or otherwise through securities brokers,
an uncertificated security registered or recorded in records maintained by or on behalf of the bank in the name of the clearing agency or a custodian, or of a nominee of either, subject to the instructions of the clearing agency,
a security certificate in the custody of the clearing agency or a custodian, or a nominee of either, subject to the instructions of the clearing agency, and is in bearer form or endorsed in blank by an appropriate person or registered in the name of the clearing agency or a custodian, or of a nominee of either, or
claim damages.
reclaim possession of the security or obtain possession of any new security evidencing all or part of the same rights; or
The right to reclaim possession of a security may be specially enforced, its transfer may be restrained and the security may be impounded pending litigation.
If the transfer of a security is wrongful by reason of an unauthorized endorsement, the owner may reclaim possession of the security or a new security even from a bona fide purchaser if the ineffectiveness of the purported endorsement is asserted against the purchaser under section 117.
A person against whom the transfer of a security is wrongful for any reason, including the person’s incapacity, may, against anyone except a bona fide purchaser,
If a transferor fails to comply with a demand under subsection (1) within a reasonable time, the purchaser may reject or rescind the transfer.
Unless otherwise agreed, a transferor shall, on demand, supply a purchaser with proof of the transferor’s authority to transfer a security or with any other requisite that is necessary to obtain registration of the transfer of a security, but if the transfer is not for value, it is not necessary for a transferor to prove authority to transfer unless the purchaser pays the reasonable and necessary costs of the proof and transfer.
the fee, if any, referred to in subsection 85(2) has been paid.
the transfer is rightful or is to a bona fide purchaser; and
all applicable laws relating to the collection of taxes have been complied with;
the issuer has no duty to inquire into adverse claims or has discharged any such duty;
reasonable assurance is given that the endorsement is genuine and effective;
the security is endorsed by an appropriate person;
Where an issuer has a duty to register a transfer of a security, the issuer is liable to the person presenting it for registration for any loss resulting from any unreasonable delay in registration or from the failure or refusal to register the transfer.
Subject to Part VII, where a security in registered form is presented for transfer, the issuer shall register the transfer if
in any other case, assurance that corresponds as closely as practicable to the foregoing.
if there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and
if the endorsement is by a fiduciary, evidence of appointment or incumbency;
if the endorsement is by an agent, reasonable assurance of authority to sign;
An issuer is deemed not to have notice of the contents of any document referred to in subsection (4) that is obtained by the issuer except to the extent that the contents relate directly to appointment or incumbency.
An issuer may adopt reasonable standards with respect to evidence referred to in paragraph (4)(b).
For the purposes of paragraph (1)(b), evidence of appointment or incumbency means
An issuer may adopt reasonable standards to determine responsible persons for the purposes of subsection (2).
For the purposes of subsection (1), guarantee of the signature means a guarantee signed by or on behalf of a person whom the issuer believes, on reasonable grounds, to be a responsible person.
An issuer may require an assurance that each necessary endorsement on a security is genuine and effective by requiring a guarantee of the signature of the person endorsing the security and by requiring
in the case of any other fiduciary, a copy of a document showing the appointment or other evidence believed by the issuer to be appropriate.
in the case of a fiduciary appointed by a court and referred to in subsection 96(1), a copy of the certified court order referred to in subsection 96(1) and dated not earlier than sixty days before the day a security is presented for transfer; or
the issuer is deemed to have notice of an adverse claim from a document that it obtained under section 128.
the issuer receives written notice of an adverse claim at a time and in a manner that provides the issuer with a reasonable opportunity to act on it before the issue of a new, reissued or re-registered security and the notice discloses the name and address of the claimant, the registered owner and the issue of which the security is a part; or
An issuer may discharge a duty of inquiry by any reasonable means, including notifying an adverse claimant by registered mail sent to the address provided by the adverse claimant or, if no such address has been provided, to the adverse claimant’s residence or regular place of business, that a security has been presented for registration of transfer by a named person and that the transfer will be registered unless, within thirty days after the date of mailing of the notice, either
An issuer to whom a security is presented for registration has a duty to inquire into adverse claims if
the issuer is provided with an indemnity bond sufficient in the issuer’s judgment to protect the issuer and any registrar, transfer agent or other agent of the issuer from any loss that may be incurred by any of them as a result of complying with the adverse claim.
the issuer is served with a restraining order or other order of a court, or
an issuer is deemed not to have notice of the contents of any court record or any registered document even if the record or document is in the issuer’s possession and even if the transfer is made on the endorsement of a fiduciary to the fiduciary specifically or to the fiduciary’s nominee.
an issuer registering a transfer on an endorsement by a fiduciary has no duty to inquire into whether the transfer is made in compliance with the document or with the law of the jurisdiction governing the fiduciary relationship; and
an issuer registering a security in the name of a person who is a fiduciary or who is described as a fiduciary is not bound to inquire into the existence, extent or correct description of the fiduciary relationship and thereafter the issuer may assume without inquiry that the newly registered owner continues to be the fiduciary until the issuer receives written notice that the fiduciary is no longer acting as such with respect to the particular security;
the issuer had no duty to inquire into adverse claims or had discharged any such duty.
the necessary endorsements were on or with the security; and
If an issuer has registered a transfer of a security to a person not entitled to it, the issuer shall on demand deliver a like security to the owner unless
Except as otherwise provided in any applicable law relating to the collection of taxes, an issuer is not liable to the owner or any other person who incurs a loss as a result of the registration of a transfer of a security if
the delivery would result in over-issue in respect of which section 97 applies.
the owner is precluded by subsection 133(1) from asserting any claim; or
the issuer is not liable by virtue of subsection (1);
In addition to the rights that an issuer has by reason of an indemnity bond, the issuer may recover the new security issued under subsection (2) from the person to whom it was issued or any person taking under that person other than a bona fide purchaser.
If, after the issue of a new security under subsection (2), a bona fide purchaser of the original security presents the original security for registration of transfer, the issuer shall register the transfer unless registration would result in over-issue in respect of which section 97 applies.
Where the owner of a security claims that the security has been lost, destroyed or wrongfully taken, the issuer shall issue a new security in place of the original security if the owner
Where a security has been lost, apparently destroyed or wrongfully taken, and the owner fails to notify the issuer of that fact by giving the issuer written notice of the owner’s adverse claim within a reasonable time after the owner knows of the loss, destruction or taking, then, if the issuer has registered a transfer of the security before receiving the notice, the owner is precluded from asserting against the issuer any claim to a new security.
satisfies any other reasonable requirements imposed by the issuer.
provides the issuer with a sufficient indemnity bond; and
so requests before the issuer has notice that the security has been acquired by a bona fide purchaser;
the same obligations to the holder or owner of a security and the same rights, privileges and immunities as the issuer.
a duty to the issuer to exercise good faith and reasonable diligence; and
The Governor in Council may make regulations respecting the manner of and conditions for participating in a meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting.
Unless the by-laws provide otherwise, any person who is entitled to attend a meeting of shareholders or members may participate in the meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting if the bank makes one available. A person who is participating in a meeting by one of those means is deemed for the purposes of this Act to be present at the meeting.
Meetings of shareholders or members of a bank are to be held at the place within Canada provided for in the by-laws of the bank or, in the absence of any such provision, at the place within Canada that the directors determine.
may at any time call a special meeting of shareholders or members.
must, after the meeting called under subsection 46(1) or section 47.02, call the first annual meeting of shareholders or members, as the case may be, of the bank, which meeting must be held not later than six months after the end of the first financial year of the bank, and subsequently call an annual meeting of shareholders or members, as the case may be, which meeting must be held not later than six months after the end of each financial year; and
If a record date is fixed and unless notice of the record date is waived in writing by every holder of a share of the class or series affected whose name is set out in the securities register at the close of business on the day on which the directors fix the record date, notice of the record date shall be given within the prescribed period by
If no record date is fixed,
The directors may in advance fix a record date, that is within the prescribed period, for the determination of shareholders or members for any purpose, including for a determination of which shareholders or members are entitled to
The Superintendent is entitled to appear and be heard in person or by counsel at any hearing concerning the application.
The bank shall give notice of the application to the Superintendent before any hearing concerning the application and shall provide the Superintendent with a copy of any order that is issued.
Despite subsection (1), the bank may apply to the court for an order extending the time for calling an annual meeting.
The directors of a bank
vote at a meeting of shareholders or members.
receive notice of a meeting of shareholders or members; or
participate in a liquidation distribution;
receive payment of a dividend or a patronage allocation;
if no notice is given, the day on which the meeting is held; and
at the close of business on the day immediately preceding the day on which the notice is given, or
the record date for the determination of shareholders or members for any other purpose, other than to establish a right to vote, is at the close of business on the day on which the directors pass a resolution in respect of that purpose.
the record date for the determination of shareholders or members who are entitled to receive notice of a meeting is
written notice to each stock exchange in Canada on which the bank’s shares are listed for trading.
advertisement in a newspaper in general circulation in the place where the bank’s head office is situated and in each place in Canada where the bank has a transfer agent or where a transfer of its shares may be recorded; and
the Superintendent.
the auditor or auditors of the bank; and
each director;
each shareholder or member entitled to vote at the meeting;
In addition to the notice required under subsection (1), where any class of shares of a bank is publicly traded on a recognized stock exchange in Canada, notice of the time and place of a meeting of shareholders shall be published once a week for at least four consecutive weeks before the date of the meeting in a newspaper in general circulation in the place where the head office of the bank is situated and in each place in Canada where the bank has a transfer agent or where a transfer of the bank’s shares may be recorded.
A bank with equity of twelve billion dollars or more that is not a federal credit union must set out in the notice of a meeting the number of eligible votes, as defined under subsection 156.09(1), that may be cast at the meeting as of the record date for determining shareholders entitled to receive the notice of meeting or, if there are to be separate votes of shareholders at the meeting, the number of eligible votes, as defined in that subsection, in respect of each separate vote to be held at the meeting.
In the case of a bank that is not a federal credit union and that is not a distributing bank, notice may be sent within any shorter period specified in its by-laws.
Notice of the time and place of a meeting of shareholders or members of a bank must be sent within the prescribed period to
Failure to receive a notice of a meeting does not deprive a shareholder or member of the right to vote at the meeting.
A notice of a meeting is not required to be sent to shareholders or members who are not registered on the records of the bank or the bank’s transfer agent on the record date fixed under paragraph 137(5)(c) or determined under paragraph 137(6)(a).
If a meeting is adjourned by one or more adjournments for a total of 30 days or more, notice of the continuation of the meeting must be given as for an original meeting but, unless the meeting is adjourned by one or more adjournments for a total of more than 90 days, subsection 156.04(1) does not apply.
If a meeting is adjourned for less than 30 days, it is not necessary, unless the by-laws otherwise provide, to give notice of the adjourned meeting, other than by announcement at the earliest meeting that is adjourned.
Notice of a meeting of shareholders or members at which special business is to be transacted must
All matters dealt with at a special meeting of shareholders or members and all matters dealt with at an annual meeting, except consideration of the financial statements, report of the auditor or auditors, election of directors, remuneration of directors and reappointment of the incumbent auditor or auditors, are deemed to be special business.
contain the text of any special resolution to be submitted to the meeting.
state the nature of the special business in sufficient detail to permit a shareholder or member to form a reasoned judgment in respect of that special business; and
a notice of a meeting of shareholders must include any nomination made in accordance with paragraph (a) for the election of a director.
a nomination for the election of a director may be made only by one or more registered holders or beneficial owners of shares representing in the aggregate not less than 5 per cent of the shares of the federal credit union or 5 per cent of the shares of a class of its shares entitled to vote at the meeting at which the election is to take place; and
Paragraph (1)(b) does not apply if the nomination is submitted to the federal credit union at least the prescribed number of days before the anniversary date of the previous annual meeting.
If shareholders of a federal credit union are entitled to elect one or more directors,
Attendance at a meeting of shareholders or members is a waiver of notice of the meeting, except when a person attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.
A shareholder, a member and any other person entitled to attend a meeting may in any manner waive notice of the meeting.
discuss at the meeting any matter in respect of which they would have been entitled to submit a proposal.
submit to the bank notice of any matter that they propose to raise at the meeting (in this section and section 144 referred to as a “proposal”); and
No bank or person acting on behalf of a bank incurs any liability by reason only of circulating a proposal or statement in compliance with subsections (2) and (3).
If a person who submits a proposal fails to continue to hold or own shares in accordance with paragraph (1.1)(a) or, as the case may be, does not continue to have the support of persons who are in the aggregate the registered holders or beneficial owners of the prescribed number of shares in accordance with paragraph (1.1)(b) until the end of the meeting, the bank is not required to set out any proposal submitted by that person in or attach it to a management proxy circular for any meeting held within the prescribed period after the day of the meeting.
A bank is not required to comply with subsections (2) and (3) if
A proposal may include nominations for the election of directors if it is signed by one or more registered holders or beneficial owners of shares representing in the aggregate not less than 5% of the shares of the bank or 5% of the shares of a class of its shares entitled to vote at the meeting at which the proposal is to be presented.
At the request of the person who submits a proposal, the bank shall set out in the management proxy circular or attach to it the person’s statement in support of the proposal and their name and address. The statement and proposal together are not to exceed the prescribed maximum number of words.
A bank that solicits proxies shall, in the management proxy circular required by subsection 156.05(1), set out any proposal of a shareholder submitted for consideration at a meeting of shareholders or attach the proposal to the management proxy circular.
If the bank requests within the prescribed period that a person provide proof that they are eligible to submit a proposal, the person shall within the prescribed period provide proof that they meet the requirements of subsection (1.1).
The information provided under subsection (1.2) does not form part of a proposal or of the supporting statement referred to in subsection (3) and is not to be included for the purpose of the prescribed maximum number of words referred to in subsection (3).
A proposal is to be accompanied by the following information:
To be eligible to submit a proposal a person shall
Subject to subsections (1.1) and (1.2), a registered holder or beneficial owner of shares of a bank that is not a federal credit union that may be voted at an annual meeting of shareholders may
have the support of persons who, in the aggregate and including or not including the person who submits the proposal, have for at least the prescribed period been the registered holders or beneficial owners of at least the prescribed number of the bank’s outstanding shares.
for at least the prescribed period be the registered holder or beneficial owner of at least the prescribed number of the bank’s outstanding shares; or
the number of shares held or owned by the person and their supporters, if any, and the date that the shares were acquired.
the name and address of the person submitting the proposal and the names and addresses of their supporters, if any; and
the rights conferred by subsections (1) to (4) are being abused to secure publicity.
substantially the same proposal was set out in or attached to a management proxy circular or dissident’s proxy circular relating to, and presented to shareholders at, a meeting of shareholders held within the prescribed period before the receipt of the proposal and did not receive the prescribed minimum amount of support at the meeting; or
the person submitting the proposal failed within the prescribed period before the bank receives their proposal to present, in person or by proxy, at a meeting of shareholders a proposal that at their request had been set out in or attached to a management proxy circular;
it clearly appears that the proposal does not relate in a significant way to the business or affairs of the bank;
it clearly appears that the primary purpose of the proposal is to enforce a personal claim or redress a personal grievance against the bank or its directors, officers or security holders;
the proposal is not submitted to the bank at least the prescribed number of days before the anniversary date of the notice of meeting that was sent to shareholders in respect of the previous annual meeting of shareholders;
An applicant under subsection (2) or (3) shall give the Superintendent written notice of the application and the Superintendent may appear and be heard at the hearing of the application in person or by counsel.
A bank or any person claiming to be aggrieved by a proposal may apply to a court for an order permitting the bank to omit the proposal from the management proxy circular, and the court, if it is satisfied that subsection 143(5) applies, may make such order as it thinks fit.
On the application of a person submitting a proposal who claims to be aggrieved by a bank’s refusal under subsection (1), a court may restrain the holding of the meeting at which the proposal is sought to be presented and make any further order that it thinks fit.
If a bank refuses to include a proposal in a management proxy circular, it shall in writing notify the person submitting the proposal of its intention to omit the proposal from the management proxy circular and of the reasons for the refusal. It shall notify the person within the prescribed period after either the day on which it receives the proposal or, if it has requested proof under subsection 143(1.4), the day on which it receives the proof.
discuss at an annual meeting any matter in respect of which they would have been entitled to submit a proposal.
submit to the federal credit union notice of any matter that they propose to raise at an annual meeting (in this section referred to as a “proposal”); and
No federal credit union or person acting on behalf of a federal credit union incurs any liability by reason only of circulating a proposal.
If a member who submits a proposal withdraws from membership in accordance with section 47.05 before the meeting, the federal credit union is not required to attach any proposal submitted by that member to the notice of a meeting held within the prescribed period following the date of the meeting.
A federal credit union need not comply with subsection (6) if
A proposal may include nominations for the election of directors if it is signed by the lesser of 250 members and 1 per cent of the members who are entitled to vote at the meeting.
A proposal submitted for consideration at a meeting must be attached to the notice of the meeting, together with, if requested by the member making the proposal, a statement in support of the proposal and the name and address of the member making the proposal. The statement and the proposal must together not exceed the prescribed maximum number of words.
If the federal credit union requests within the prescribed period that a member provide proof that they are eligible to submit a proposal, the member must within the prescribed period provide proof that they meet the requirement of subsection (2).
The information provided under subsection (3) does not form part of a proposal or of the supporting statement referred to in subsection (6) and is not included for the purposes of the prescribed maximum number of words referred to in subsection (6).
A proposal is to be accompanied by a statement setting out the name and address of the member submitting the proposal and the period of time the member has been a member.
To be eligible to submit a proposal a member must have been a member of the federal credit union for at least the prescribed period before making the proposal.
Subject to subsections (2) and (3), a member of a federal credit union may
the rights conferred by subsection (1) are being abused to secure publicity.
substantially the same proposal was attached to a notice of meeting, and presented at a meeting, of the federal credit union held not more than the prescribed period before the receipt of the proposal and the proposal did not receive the prescribed minimum amount of support at the meeting; or
the person submitting the proposal has failed, within the prescribed period before the federal credit union receives the person’s proposal, to present, at a meeting, a proposal that, at the person’s request, had been attached by the federal credit union to the notice of the meeting;
it clearly appears that the primary purpose of the proposal is to enforce a personal claim or redress a personal grievance against the federal credit union or its directors, officers, members or security holders;
the proposal is not submitted to the federal credit union at least the prescribed number of days before the anniversary date of the notice of meeting that was sent to members in connection with the previous annual meeting;
An applicant under subsection (2) or (3) must give the Superintendent written notice of the application, and the Superintendent may appear and be heard at the hearing of the application in person or by counsel.
A federal credit union or any person claiming to be aggrieved by a proposal may apply to a court for an order permitting the federal credit union to omit the proposal from a notice of meeting, and the court, if it is satisfied that subsection 144.1(7) applies, may make any order that it thinks fit.
On the application of a person submitting a proposal who claims to be aggrieved by a federal credit union’s refusal under subsection (1), a court may restrain the holding of the meeting at which the proposal is sought to be presented and make any further order it thinks fit.
If a federal credit union refuses to include a proposal in a notice of a meeting referred to in section 138, it must, within the prescribed period after the day on which it receives the proposal or the day on which it receives the proof of eligibility under subsection 144.1(5), as the case may be, notify in writing the person submitting the proposal of its intention to omit the proposal from the notice and of the reasons for the refusal.
if no record date is fixed, on the record date determined under paragraph 137(6)(a).
if a record date is fixed under paragraph 137(5)(c), no later than 10 days after that date; and
A person who is entitled to vote at a meeting of a federal credit union may examine a list that relates to the meeting
A shareholder of a bank that is not a federal credit union may examine the list of shareholders
Subject to section 156.09, a shareholder whose name appears on a list prepared under subsection (2) is entitled to vote the shares shown opposite their name.
A federal credit union must also prepare an alphabetical list of members entitled to vote as of the record date
The bank shall prepare an alphabetical list of shareholders entitled to vote as of the record date showing the number of shares held by each shareholder
A federal credit union must also prepare an alphabetical list of members entitled to receive notice of a meeting
A bank shall prepare an alphabetical list of shareholders entitled to receive notice of a meeting showing the number of shares held by each shareholder
if no record date is fixed, on the record date determined under paragraph 137(6)(a).
if a record date is fixed under paragraph 137(5)(c), no later than 10 days after that date; or
if no record date is fixed under paragraph 137(5)(d), no later than 10 days after a record date is fixed under paragraph 137(5)(c) or no later than the record date determined under paragraph 137(6)(a), as the case may be.
if a record date is fixed under paragraph 137(5)(d), no later than 10 days after that date; and
if no record date is fixed under paragraph 137(5)(d), no later than 10 days after a record date is fixed under paragraph 137(5)(c) or no later than the record date determined under paragraph 137(6)(a), as the case may be.
if a record date is fixed under paragraph 137(5)(d), no later than 10 days after that date; or
at the meeting of shareholders for which the list was prepared.
during usual business hours at the head office of the bank or at the place where its central securities register is maintained; and
at the meeting for which the list was prepared.
during usual business hours at the head office of the federal credit union or at the place where its members register or central securities register is maintained; and
If a quorum is not present at the opening of a meeting of shareholders or members, the shareholders or members present may adjourn the meeting to a fixed time and place but may not transact any other business.
If a quorum is present at the opening of a meeting of shareholders or members, the shareholders or members present may, unless the by-laws otherwise provide, proceed with the business of the meeting even though a quorum is not present throughout the meeting.
Unless the by-laws otherwise provide, a quorum of members is present at a meeting of members of a federal credit union if at least 500 members who are entitled to vote at the meeting, or one per cent of the total number of members entitled to vote at the meeting, whichever is the lesser, are present in person or represented by a personal representative or delegate.
Unless the by-laws otherwise provide, a quorum of shareholders is present at a meeting of shareholders if the holders of a majority of the shares who are entitled to vote at the meeting are present in person or represented by proxyholders.
A natural person authorized under subsection (1) to represent an entity may exercise on behalf of the entity all the powers the entity could exercise if it were a natural person as well as a shareholder or member.
If an entity is a shareholder or member of a bank, the bank must recognize any natural person authorized by a resolution of the directors or governing body or similar authority of the entity to represent it at meetings of shareholders or members of the bank.
The Governor in Council may make regulations
The by-laws of a federal credit union may, subject to the regulations, allow members to vote, prior to the meeting, subject to any conditions set out in the by-laws,
Unless the by-laws provide otherwise, any person who is participating in a meeting under subsection 136(2) and entitled to vote at that meeting may vote by means of the telephonic, electronic or other communication facility that the bank has made available for that purpose.
Despite subsection (1) and unless the by-laws provide otherwise, any vote referred to in that subsection may be held entirely by means of a telephonic, electronic or other communication facility if the bank makes one available.
A person entitled to vote at a meeting of shareholders or members may demand a ballot either before or after any vote by show of hands.
Unless the by-laws otherwise provide, voting at a meeting of shareholders or members is to take place by show of hands except when a ballot is demanded by a person entitled to vote at the meeting.
by any other prescribed means.
by telephonic or electronic means; or
in person, at one of its branches;
by mail;
respecting the manner and conditions of voting referred to in paragraphs (5)(a) to (d) by members of federal credit unions.
respecting the manner of and conditions for voting at a meeting of members or shareholders by means of a telephonic, electronic or other communication facility; and
a resolution in writing dealing with all matters required by this Act to be dealt with at a meeting of shareholders or members, and signed by all the persons entitled to vote at that meeting, satisfies all the requirements of this Act relating to meetings of shareholders or members.
a resolution in writing signed by all the persons entitled to vote on that resolution at a meeting of shareholders or members is as valid as if it had been passed at a meeting of the shareholders or members; and
Unless a ballot is demanded, an entry in the minutes of a meeting that the chairperson declared a resolution to be carried or defeated is in the absence of evidence to the contrary proof of that fact without proof of the number or proportion of votes recorded in favour of or against the resolution.
A copy of every resolution referred to in subsection (1) must be kept with the minutes of the meetings.
Except where a written statement is submitted by a director under section 174 or by an auditor under subsection 321(1),
Unless the shareholders or members, as the case may be, otherwise resolve at a meeting called under subsection (4), the bank must reimburse the shareholders or members for any expenses reasonably incurred by them in requisitioning, calling and holding the meeting.
A meeting called under this section shall be called as nearly as possible in the manner in which meetings are to be called pursuant to the by-laws and this Act.
If the directors do not call a meeting within 21 days after receiving the requisition, any person who signed the requisition may call the meeting.
On receipt of the requisition, the directors must call a meeting of shareholders or members, as the case may be, to transact the business stated in the requisition, unless
The requisition
At least two members entitled to vote at a meeting of a federal credit union that is sought to be held, or one per cent of the total number of members entitled to vote at a meeting of a federal credit union that is sought to be held, whichever is greater, may requisition the directors to call a meeting of members, or of members and shareholders, for the purposes stated in the requisition.
Shareholders who together hold not less than 5 per cent of the issued and outstanding shares of a bank that carry the right to vote at a meeting sought to be held may requisition the directors to call a meeting of shareholders for the purposes stated in the requisition.
may consist of several documents of like form, each signed by one or more shareholders or members, as the case may be.
must state the business to be transacted at the meeting and must be sent to each director and to the head office of the bank; and
the business of the meeting as stated in the requisition includes matters described in paragraphs 143(5)(b) to (e) or 144.1(8)(b) to (e).
the directors have called a meeting of shareholders or members, as the case may be, and have given the notice required by section 138; or
a record date has been fixed under paragraph 137(5)(c) and notice of it has been given under subsection 137(7);
the court thinks that the meeting ought to be called, held or conducted within the time or in the manner that it directs for any other reason.
it is impracticable to conduct the meeting in the manner required by this Act or the by-laws; or
it is impracticable to call the meeting within the time or in the manner in which it is to be called;
A meeting called, held and conducted under this section is for all purposes a meeting of shareholders or members, as the case may be, of the bank duly called, held and conducted.
Without restricting the generality of subsection (1), a court may order that the quorum required by the by-laws or this Act be varied or dispensed with at a meeting called, held and conducted pursuant to this section.
A court may, on the application of a director of a bank, a person who is entitled to vote at a meeting of shareholders or members of a bank or the Superintendent, order a meeting to be called, held or conducted in the manner that the court directs if
On an application under subsection (1), a court may make any order it thinks fit including, without limiting the generality of the foregoing,
A bank or any of its shareholders, members or directors may apply to a court to resolve any dispute in respect of the election or appointment of a director or an auditor of the bank.
an order determining the voting rights of members and of persons claiming to be members.
an order determining the voting rights of shareholders and of persons claiming to own shares; and
an order requiring a new election or appointment, and including in the order directions for the management of the business and affairs of the bank until a new election is held or the new appointment is made;
an order declaring the result of the disputed election or appointment;
an order restraining a director or auditor whose election or appointment is challenged from acting pending determination of the dispute;
The Governor in Council may make regulations
The directors may specify, in a notice calling a meeting of shareholders or a continuation of a meeting of shareholders after an adjournment, a time before which executed forms of proxy to be used at the meeting or the continued meeting must be deposited with the bank or its transfer agent. The time specified may not be more than forty-eight hours, excluding Saturdays and holidays, before the meeting or the continued meeting.
The definitions in this section apply in this section and sections 156.02 to 156.08.
The Superintendent may appear and be heard in person or by counsel at the hearing of an application referred to in subsection (1).
A person who makes an application under subsection 154(1) or 155(1) shall give notice of the application to the Superintendent before the hearing and shall deliver a copy of the order of the court, if any, to the Superintendent.
a person who performs functions similar to those performed by a person referred to in any of paragraphs (a) to (e) and holds a security registered in their name, or in the name of their nominee, on behalf of another person who is not the registered holder of the security. (intermédiaire)
a nominee of a person referred to in any of paragraphs (a) to (e); and
a trustee or administrator of a self-administered retirement savings plan, retirement income fund or education savings plan or another similar self-administered savings or investment plan that is registered under the Income Tax Act;
in respect of a clearing agency, a securities dealer, trust company, association within the meaning of section 2 of the Cooperative Credit Associations Act, bank or other person, including another clearing agency, on whose behalf the clearing agency or its nominee holds securities of an issuer;
a financial institution;
a securities depositary;
a securities broker or dealer required to be registered to trade or deal in securities under the laws of any jurisdiction;
solicitation by or on behalf of the management of a bank means a solicitation by any person pursuant to a resolution or instruction of, or with the acquiescence of, the directors or a committee of the directors of the bank. (sollicitation effectuée par la direction d’une banque ou pour son compte)
but does not include
a solicitation by a person in respect of shares of which that person is the beneficial owner. (sollicitation)
the sending by a registrant of the documents referred to in section 156.07, or
the performance of administrative acts or professional services on behalf of a person soliciting a proxy,
the sending of a form of proxy in response to an unsolicited request made by or on behalf of a shareholder,
the sending of a form of proxy to a shareholder under section 156.04,
the sending of a form of proxy or other communication to a shareholder under circumstances reasonably calculated to result in the procurement, withholding or revocation of a proxy, and
a request to execute or not to execute a form of proxy or to revoke a proxy,
a request for a proxy, whether or not accompanied by or included in a form of proxy,
solicit or solicitation includes
registrant[Repealed, 2005, c. 54, s. 27]
intermediary means a person who holds a security on behalf of another person who is not the registered holder of the security, and includes
A shareholder may revoke a proxy
A proxy is valid only at the meeting in respect of which it is given or at a continuation of the meeting after an adjournment.
A form of proxy must indicate, in bold-face type, that the shareholder by whom or on whose behalf it is executed may appoint a proxyholder, other than a person designated in the form of proxy, to attend and act on the shareholder’s behalf at a meeting to which the proxy relates, and must contain instructions as to the manner in which the shareholder may do so.
No appointment of a proxyholder provides authority for the proxyholder to act in respect of the appointment of an auditor or the election of a director unless a nominee proposed in good faith for the appointment or election is named in the form of proxy, a management proxy circular, a dissident’s proxy circular or a proposal under subsection 143(1).
A form of proxy shall be executed by a shareholder or by a shareholder’s attorney authorized in writing to do so.
A shareholder who is entitled to vote at a meeting of shareholders may, by executing a form of proxy, appoint a proxyholder or one or more alternate proxyholders, who are not required to be shareholders, to attend and act at the meeting in the manner and to the extent authorized by the proxy and with the authority conferred by the proxy.
with the chairperson of the meeting on the day of the meeting or a continuation of the meeting after an adjournment; or
at the head office of the bank at any time up to and including the last business day before the day of a meeting, or a continuation of the meeting after an adjournment, at which the proxy is to be used, or
in any other manner permitted by law.
by depositing an instrument in writing executed by the shareholder or by the shareholder’s attorney authorized in writing to do so
The management of a bank is not required to send a form of proxy under subsection (1) if the bank
Subject to subsections (2) and 140(2), the management of a bank shall, concurrently with sending notice of a meeting of shareholders, send a form of proxy that is in accordance with the regulations to each shareholder entitled to receive notice of the meeting.
has 50 or fewer shareholders who are entitled to vote at a meeting, two or more joint holders of a share being counted as one shareholder.
is not a distributing bank; and
in the case of any other solicitation, a dissident’s proxy circular stating the purposes of the solicitation.
in the case of solicitation by or on behalf of the management of a bank, a management proxy circular, either as an appendix to or as a separate document accompanying the notice of meeting; and
The Superintendent shall publish in a publication generally available to the public, a notice of a decision made by the Superintendent granting an exemption under subsection (3).
On the application of an interested person, the Superintendent may, on any terms that the Superintendent thinks fit, exempt the person from any of the requirements of subsection (1) and section 156.04, and the exemption may be given retroactive effect.
A person who sends a management proxy circular or dissident’s proxy circular shall concurrently send to the Superintendent a copy of it together with the form of proxy, any other documents for use in connection with the meeting and, in the case of a management proxy circular, a copy of the notice of meeting.
Despite subsection (1), a person may solicit proxies, other than by or on behalf of the management of a bank, without sending a dissident’s proxy circular if the solicitation is, in the prescribed circumstances, conveyed by public broadcast, speech or publication.
Despite subsection (1), a person may solicit proxies, other than by or on behalf of the management of a bank, without sending a dissident’s proxy circular, if the total number of shareholders whose proxies are solicited is 15 or fewer, with two or more joint holders being counted as one shareholder.
A person shall not solicit proxies unless a proxy circular that is in accordance with the regulations is sent to the auditor or auditors of the bank, to each shareholder whose proxy is solicited and, in the case set out in paragraph (b), to the bank as follows:
Despite subsections (1) and (2) and unless a shareholder or proxyholder demands a ballot, if the chairperson of a meeting of shareholders declares to the meeting that, if a ballot were conducted, the total number of votes attached to shares represented at the meeting by proxy required to be voted against what, to the knowledge of the chairperson, would be the decision of the meeting on a matter or group of matters is less than 5% of all the votes that might be cast by shareholders in person or by proxy,
A proxyholder or an alternate proxyholder has the same rights as the appointing shareholder to speak at a meeting of shareholders in respect of any matter, to vote by way of ballot at the meeting and, except where a proxyholder or an alternate proxyholder has conflicting instructions from more than one shareholder, to vote at the meeting in respect of any matter by way of a show of hands.
A person who solicits a proxy and is appointed proxyholder shall attend in person or cause an alternate proxyholder to attend the meeting in respect of which the proxy is valid, and the proxyholder or alternate proxyholder shall comply with the directions of the shareholder who executed the form of proxy.
a proxyholder or alternate proxyholder may vote in respect of that matter or group of matters by way of a show of hands.
the chairperson may conduct the vote in respect of that matter or group of matters by way of a show of hands; and
a written request for voting instructions except if the intermediary has already received written voting instructions from the beneficial owner.
a copy of the notice of the meeting, annual statement, management proxy circular and dissident’s proxy circular and any other documents, other than the form of proxy, that were sent to shareholders by or on behalf of any person for use in connection with the meeting; and
Nothing in this Part gives an intermediary the right to vote shares that they are otherwise prohibited from voting.
The failure of an intermediary to comply with any of subsections (1) to (6) does not render void any meeting of shareholders or any action taken at the meeting.
If a beneficial owner so requests and provides an intermediary with the appropriate documentation, the intermediary shall appoint the beneficial owner or a nominee of the beneficial owner as proxyholder.
The intermediary shall vote or appoint a proxyholder to vote in accordance with any written voting instructions received from the beneficial owner.
A person by or on behalf of whom a solicitation is made shall on request and without delay provide the intermediary, at the person’s expense, with the necessary number of copies of the documents referred to in paragraph (1)(a).
An intermediary or a proxyholder appointed by them may not vote shares that the intermediary does not beneficially own and that are registered in the name of the intermediary or their nominee unless the intermediary or proxyholder, as the case may be, receives written voting instructions from the beneficial owner.
The intermediary shall send the documents referred to in subsection (1) without delay after they receive the documents referred to in paragraph (1)(a).
Shares of a bank that are registered in the name of an intermediary or an intermediary’s nominee and not beneficially owned by the intermediary may not be voted unless the intermediary sends to the beneficial owner
respecting the conditions under which a bank is exempt from any of the requirements of sections 156.02 to 156.07.
respecting proxy circulars and forms of proxy, including the form and content of those documents; and
respecting the powers that may be granted by a shareholder in a form of proxy;
an order adjourning the meeting.
an order requiring correction of any form of proxy or proxy circular and a further solicitation; and
an order restraining the solicitation or the holding of the meeting, or restraining any person from implementing or acting on a resolution passed at the meeting, to which the form of proxy, management proxy circular or dissident’s proxy circular relates;
Where a person other than the Superintendent is an applicant under subsection (1), the applicant shall give notice of the application to the Superintendent and the Superintendent is entitled to appear and to be heard in person or by counsel.
If a form of proxy, management proxy circular or dissident’s proxy circular contains an untrue statement of a material fact or omits to state a material fact that is required to be contained in it or that is necessary to make a statement contained in it not misleading in light of the circumstances in which the statement is made, an interested person or the Superintendent may apply to a court and the court may make any order it thinks fit, including
For the purpose of this section, the Minister may, with respect to a particular bank, designate two or more persons who are parties to an agreement, commitment or understanding referred to in section 9 to be a single person.
For the purpose of this section, a person is entitled to rely on the number of eligible votes set out in a notice of a meeting under subsection 138(1.1).
Subsection (9) ceases to apply in respect of a person when the shares to which the order relates have been disposed of.
If the Minister makes an order under subsection (8), the person to whom the order relates may not, in person or by proxy, exercise any voting rights that are attached to shares of the bank beneficially owned by the person.
If, with respect to any bank, a person contravenes subsection (2) or (3), the Minister may, by order, direct the shareholder of the shares to which the contravention relates or any person controlled by that shareholder to dispose of any number of shares of the bank beneficially owned by any of those persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the shareholder and the persons controlled by that shareholder that is specified in the order.
A vote in respect of a particular matter is not invalid merely because a person voted contrary to subsection (2) or (3).
Subsection (2) does not apply in respect of a vote held under section 218.
Subsections (2) and (3) do not apply in respect of votes cast by or on behalf of any entity that controls the bank or any entity that is controlled by an entity that controls the bank.
If a person is, with respect to a bank, a person referred to in subsection 375(1), subsections (2) and (3) do not apply with respect to votes cast by or on behalf of the person during any period that the person is entitled under section 375 to remain a major shareholder of the bank.
No person who is a proxyholder for a person or for an entity controlled by a person may cast votes to which the proxy relates that the person or entity may not cast by reason of subsection (2).
Subsection (2) does not apply in respect of a meeting of shareholders or members of a federal credit union.
At a meeting of shareholders of a bank with equity of twelve billion dollars or more, no person and no entity controlled by any person may, in respect of any vote of shareholders or holders of any class or series of shares of the bank, cast votes in respect of any shares beneficially owned by the person or the entity that are, in aggregate, more than 20 per cent of the eligible votes that may be cast in respect of that vote.
In this section, eligible votes means the total number of votes that may be cast by or on behalf of shareholders on a vote of shareholders or a vote of holders of a class or series of shares, as the case may be, in respect of any particular matter, calculated without regard to subsection (2).
Paragraphs (2)(a) and (b) do not apply to the directors of a bank if
Without limiting the generality of subsection (1), the directors of a bank shall
Subject to this Act, the directors of a bank shall manage or supervise the management of the business and affairs of the bank.
establish investment and lending policies, standards and procedures in accordance with section 465.
[Repealed, 2018, c. 27, s. 316]
designate a committee of the board of directors to perform the duties set out in section 195.1; and
designate a committee of the board of directors to monitor the procedures referred to in paragraph (c);
establish procedures to resolve conflicts of interest, including techniques for the identification of potential conflict situations and for restricting the use of confidential information;
establish a conduct review committee to perform the duties referred to in subsection 195(3);
establish an audit committee to perform the duties referred to in subsections 194(3) and (4);
the audit committee or conduct review committee of the financial institution performs for and on behalf of the bank all the functions that would otherwise be required to be performed by the audit committee or conduct review committee of the bank under this Act.
all the voting shares of the bank are beneficially owned by a Canadian financial institution described in any of paragraphs (a) to (d) of the definition financial institution in section 2; and
exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
act honestly and in good faith with a view to the best interests of the bank; and
No provision in any contract, in any resolution or in the by-laws of a bank relieves any director, officer or employee of the bank from the duty to act in accordance with this Act and the regulations or relieves a director, officer or employee from liability for a breach thereof.
Every director, officer and employee of a bank shall comply with this Act, the regulations, the bank’s incorporating instrument and the by-laws of the bank.
Every director and officer of a bank in exercising any of the powers of a director or an officer and discharging any of the duties of a director or an officer shall
Not less than two thirds of the directors of a federal credit union, or any greater proportion that is provided for by the by-laws, must be members of the federal credit union or representatives of members of the federal credit union.
At least one half of the directors of a bank that is a subsidiary of a foreign bank and a majority of the directors of any other bank must be, at the time of each director’s election or appointment, resident Canadians.
A bank shall have at least seven directors.
[Repealed, 2013, c. 40, s. 162]
if the bank is a federal credit union, a person who fails to meet any of the qualification requirements set out in its by-laws.
a person who is an agent or employee of the government of a foreign country or any political subdivision thereof; and
a minister of Her Majesty in right of Canada or in right of a province;
[Repealed, 2013, c. 40, s. 161]
a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of subsection 370(1);
a person who is an officer, director or full time employee of an entity that is prohibited by subsection 156.09(9) or section 392 or 401.3 from exercising voting rights attached to shares of the bank or whose voting rights attached to the shares are suspended under section 402.2 or subsection 973.03(4);
a person who is prohibited by subsection 156.09(9) or section 392 or 401.3 from exercising voting rights attached to shares of the bank or whose voting rights attached to the shares are suspended under section 402.2 or subsection 973.03(4);
a person who is not a natural person;
a person who has the status of a bankrupt;
a person who is of unsound mind and has been so found by a court in Canada or elsewhere;
a person who is less than eighteen years of age;
A determination by the Superintendent under subsection (1)
Notwithstanding section 162, the Superintendent may determine that a particular director is affiliated with a bank for the purposes of this Act if, in the opinion of the Superintendent, the director has a significant or sufficient commercial, business or financial relationship with the bank or with an affiliate of the bank to the extent that the relationship can be construed as being material to the director and can reasonably be expected to affect the exercise of the director’s best judgment.
ceases to be in effect on the day of the next annual meeting of those persons after a notice in writing by the Superintendent revoking the determination is received by the bank.
becomes effective on the day of the next annual meeting of the persons who are entitled to elect directors unless a notice in writing by the Superintendent revoking the determination is received by the bank prior to that day; and
Subsection (1) does not apply in respect of a bank that was in existence immediately prior to the day that subsection comes into force until the day that is three years after the day that subsection comes into force.
For the purposes of subsection (1), whether or not a person is affiliated with a bank is to be determined as at the day the notice of the annual meeting is sent under section 138 and that determination becomes effective on the day of that meeting, and a person is deemed to continue to be affiliated or unaffiliated, as the case may be, until the next annual meeting of the shareholders or members, as the case may be.
Subsection (1) does not apply where all the voting shares of a bank, other than directors’ qualifying shares, if any, are beneficially owned by a Canadian financial institution incorporated by or under an Act of Parliament.
At the election of directors at each annual meeting of a bank and at all times until the day of the next annual meeting, no more than two thirds of the directors may be persons affiliated with the bank.
The election or appointment of a person as a director is subject to the following:
A by-law made under subsection (1) or (2) that provides for a minimum and maximum number of directors may provide that the number of directors to be elected at any annual meeting of the shareholders or members, as the case may be, be the number that is fixed by the directors before the annual meeting.
Subject to subsection 159(1), the members of a federal credit union must, by by-law, determine the number of directors or the minimum and maximum number of directors.
Subject to subsection 159(1) and sections 168 and 217, the directors of a bank that is not a federal credit union must, by by-law, determine the number of directors or the minimum and maximum number of directors, but no by-law that decreases the number of directors shortens the term of an incumbent director.
the person was not present at the meeting when the election or appointment took place but
the person was present at the meeting when the election or appointment took place and did not refuse to hold office as a director; or
acted as a director after the election or appointment.
consented in writing to hold office as a director before the election or appointment or within 10 days after it, or
Subject to subsection 163(4), if a director of a bank is elected or appointed for a term of more than one year, the bank must comply with subsections 159(2) and 163(1) and section 164 at each annual meeting of shareholders or members, as the case may be, during the director’s term of office as if that director were elected or appointed on that date.
If a by-law of a bank provides that the directors be elected for a term of two or three years, it may also provide that the term of office of each director be for the whole of that term, or that, as nearly as may be, one half of the directors retire each year if the term is two years, and that one third of the directors retire each year if the term is three years.
It is not necessary that all directors elected at a meeting of shareholders or members hold office for the same term.
A director who is not elected for an expressly stated term of office ceases to hold office at the close of the next annual meeting of shareholders or members, as the case may be, following the election of the director.
A director elected for a term of one, two or three years holds office until the close, as the case may be, of the first, second or third annual meeting of shareholders or members, as the case may be, following the election of the director.
Except where this Act or the by-laws of a bank provide for cumulative voting, a bank may, by by-law, provide that the directors be elected for terms of one, two or three years.
If, at any election of directors referred to in subsection (1), two or more persons receive an equal number of votes and there are not sufficient vacancies remaining to enable all the persons receiving an equal number of votes to be elected, the directors who receive a greater number of votes or the majority of them shall, in order to complete the full number of directors, determine which of the persons so receiving an equal number of votes are to be elected.
Except where this Act or the by-laws of a bank provide for cumulative voting, the persons, to the number authorized to be elected, who receive the greatest number of votes at an election of directors of a bank shall be the directors thereof.
the number of directors required by the by-laws may be decreased only if the number of votes cast in favour of a motion to decrease the number of directors is greater than the product of the number of directors required by the by-laws and the number of votes cast against the motion.
a director may be removed from office only if the number of votes cast in favour of a motion to remove the director is greater than the product of the number of directors required by the by-laws and the number of votes cast against the motion; and
each director ceases to hold office at the close of the next annual meeting of shareholders following the director’s election;
if the number of candidates nominated for director exceeds the number of positions to be filled, the candidates who receive the least number of votes shall be eliminated until the number of candidates remaining equals the number of positions to be filled;
if a shareholder has voted for more than one candidate without specifying the distribution of the votes among the candidates, the shareholder is deemed to have distributed the votes equally among the candidates for whom the shareholder voted;
a separate vote of shareholders shall be taken with respect to each candidate nominated for director unless a resolution is passed unanimously permitting two or more persons to be elected by a single vote;
each shareholder entitled to vote at an election of directors has the right to cast a number of votes equal to the number of votes attached to the shares held by the shareholder multiplied by the number of directors to be elected, and the shareholder may cast all such votes in favour of one candidate or distribute them among the candidates in any manner;
there shall be a stated number of directors fixed by by-law and not a minimum and maximum number of directors;
Despite section 168 or any provision of its by-laws, cumulative voting is not permitted in a federal credit union.
Nothing in this Act precludes the holders of any class or series of shares of a bank from having an exclusive right to elect one or more directors.
Where this Act or the by-laws of a bank provide for cumulative voting, the shareholders of the bank shall,
Subsection (2) does not apply to a widely held bank with equity of twelve billion dollars or more or to a bank in respect of which subsection 378(1) applies.
Subsection (2) does not apply
Where the aggregate of the voting shares beneficially owned by a person and any entities controlled by the person carries more than 10 per cent of the voting rights attached to all the outstanding voting shares of a bank, the directors shall be elected by cumulative voting.
Where this Act or the by-laws provide for cumulative voting,
one or more entities controlled by the same person;
one person and one or more entities controlled by that person, or
one person,
in respect of a bank that was in existence immediately prior to the day that subsection comes into force whose shareholders are confined to entities incorporated or formed by or under an Act of Parliament or of the legislature of a province that are, in the opinion of the directors, operating as credit unions or cooperative associations.
where all the voting shares of the bank that are outstanding are beneficially owned by
at each succeeding annual meeting,
at the first annual meeting of shareholders held not earlier than ninety days following the date that cumulative voting is required under subsection (2) or provided for in the by-laws, and
[Repealed, 1997, c. 15, s. 15]
If, at the close of a meeting of shareholders or members of a bank, the shareholders or members have failed to elect the number or minimum number of directors required by this Act or the by-laws of a bank, the purported election of directors at the meeting
If, immediately after the time of any purported election or appointment of directors, the board of directors would fail to comply with subsection 159(2) or 163(1) or section 164, the purported election or appointment of all persons purported to be elected or appointed at that time is void unless the directors, within forty-five days after the discovery of the non-compliance, develop a plan, approved by the Superintendent, to rectify the non-compliance.
is void if the directors purported to be elected and those incumbent directors, if any, whose terms did not expire at the close of the meeting, together do not constitute a quorum.
is valid if the directors purported to be elected and those incumbent directors, if any, whose terms did not expire at the close of the meeting, together constitute a quorum; or
where subsection 170(1) or paragraph 170(2)(b) applies, the persons who were the incumbent directors immediately before the meeting.
where paragraph 170(2)(a) applies, the directors referred to in that paragraph; or
If the directors fail to call a special meeting required by subsection (3), the meeting may be called by any person who would be entitled to vote at the meeting.
If subsection (1) or (2) applies, the board of directors referred to in that subsection must, without delay, call a special meeting of shareholders or members, as the case may be, to fill the vacancies if paragraph 170(2)(a) applies, or elect a new board of directors if subsection 170(1) or paragraph 170(2)(b) applies.
Notwithstanding subsections 166(2) and (3) and paragraphs 168(1)(f) and 172(1)(a), where a plan to rectify the non-compliance referred to in subsection 170(1) has not been approved by the Superintendent by the end of the forty-five day period referred to in that subsection, the board of directors shall, until their successors are elected or appointed, consist solely of the persons who were the incumbent directors immediately before the meeting at which the purported election or appointment referred to in that subsection occurred.
Despite subsections 166(2) and (3) and paragraphs 168(1)(f) and 172(1)(a), if subsection 170(1) or (2) applies at the close of any meeting of shareholders or members of a bank, the board of directors, until their successors are elected or appointed, consists solely of
when the director is removed from office under section 647 or 647.1.
when the director is removed under section 173; or
when the director becomes disqualified under section 160 or ineligible to hold office pursuant to subsection 203(2);
when the director dies or resigns;
at the close of the annual meeting at which the director’s term of office expires;
The resignation of a director of a bank becomes effective at the time a written resignation is sent to the bank by the director or at the time specified in the resignation, whichever is later.
A director ceases to hold office
Subject to paragraphs 168(1)(b) to (e), a vacancy created by the removal of a director may be filled at the meeting of the shareholders or members, as the case may be, at which the director is removed or, if not so filled, may be filled under section 177 or 178.
If members of a federal credit union have the exclusive right to elect one or more directors, a director so elected may be removed only by a resolution of the members having that right.
Where the holders of any class or series of shares of a bank have the exclusive right to elect one or more directors, a director so elected may be removed only by a resolution at a meeting of the shareholders of that class or series.
A director of a federal credit union may be removed from office by resolution at a special meeting of the persons who are entitled to vote in the election of that director.
Subject to paragraph 168(1)(g), the shareholders of a bank that is not a federal credit union may by resolution at a special meeting of shareholders remove any director or all the directors from office.
receives a notice or otherwise learns of a meeting of directors, shareholders or members at which another person is to be appointed or elected to fill the office of director, whether because of the director’s resignation or removal or because the director’s term of office has expired or is about to expire,
receives a notice or otherwise learns of a meeting called for the purpose of removing the director from office, or
resigns,
Where a director resigns as a result of a disagreement with the other directors or the officers of a bank, the director shall submit to the bank and the Superintendent a written statement setting out the nature of the disagreement.
A director who
No bank or person acting on its behalf incurs any liability by reason only of circulating a director’s statement in compliance with subsection (1) or (2).
A federal credit union must, without delay on receipt of a director’s statement referred to in subsection 174(1) relating to a matter referred to in paragraph 174(1)(b) or (c), or a director’s statement referred to in subsection 174(2), send a copy of it to the Superintendent, to each member and, if the director was elected by the holders of shares of a class, to those shareholders.
A bank that is not a federal credit union must without delay on receipt of a director’s statement referred to in subsection 174(1) relating to a matter referred to in paragraph 174(1)(b) or (c), or a director’s statement referred to in subsection 174(2), send a copy of it to each shareholder entitled to receive a notice of meetings and to the Superintendent, unless the statement is included in or attached to a management proxy circular required by subsection 156.05(1).
by a vote of the holders of any class or series of shares having an exclusive right to elect one or more directors if the vacancy occurs among the directors elected by the holders of that class or series.
by a vote of the shareholders; or
The by-laws of a federal credit union may provide that a vacancy among its directors is to be filled by election or appointment by members only or by an election or appointment by persons having an exclusive right to elect or appoint one or more directors if the vacancy occurs among the directors appointed or elected by those persons.
The by-laws of a bank that is not a federal credit union may provide that a vacancy among the directors is to be filled only
Notwithstanding sections 176 and 183, where by reason of a vacancy the number of directors or the composition of the board of directors fails to meet any of the requirements of section 159, subsection 163(1) and section 164, the directors who, in the absence of any by-law, would be empowered to fill that vacancy shall do so forthwith.
Despite section 183 but subject to subsection (2) and sections 176 and 178, a quorum of directors may fill a vacancy among the directors except a vacancy resulting from a change in the by-laws by which the number or the minimum or maximum number of directors is increased or from a failure to elect the number or minimum number of directors provided for in the by-laws.
if there are no such remaining directors and paragraph (b) does not apply, any person of that class may call a meeting of the class for the purpose of filling the vacancy.
if there are no such remaining directors and, by reason of the vacancy, the number of directors or the composition of the board of directors fails to meet any of the requirements of section 159, subsection 163(1) and section 164, the other directors may fill that vacancy; and
the remaining directors elected by those persons may fill the vacancy except one resulting from an increase in the number or the minimum or maximum number of directors who may be elected by that class from a failure to elect the number or minimum number of directors provided for in the by-laws for that class;
Notwithstanding subsection 163(3), the affiliation of a person to be elected or appointed to fill a vacancy shall be determined as at the date of the person’s election or appointment and that person shall be deemed to continue to be affiliated or unaffiliated, as the case may be, until the next annual meeting of the shareholders.
Unless the by-laws otherwise provide, a director elected or appointed to fill a vacancy holds office for the unexpired term of the director’s predecessor in office.
The total number of directors appointed under subsection (1) may not exceed one third of the number of directors elected at the previous annual meeting of shareholders of the bank.
A director appointed under subsection (1) holds office for a term expiring not later than the close of the next annual meeting of shareholders of the bank.
The directors of a bank that is not a federal credit union may appoint one or more additional directors if the by-laws of the bank allow them to do so and the by-laws determine the minimum and maximum numbers of directors.
The notice for the meetings must be given as required by the by-laws.
The directors may meet at any place unless the by-laws provide otherwise.
The directors shall meet at least four times during each financial year.
Notice of an adjourned meeting of directors is not required to be given if the time and place of the adjourned meeting was announced at the original meeting.
A director may in any manner waive notice of a meeting of directors and the attendance of a director at a meeting of directors is a waiver of notice of that meeting except where the director attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.
A notice of a meeting of directors shall specify each matter referred to in section 198 that is to be dealt with at the meeting but, unless the by-laws otherwise provide, need not otherwise specify the purpose of or the business to be transacted at the meeting.
A director who is present at a meeting of directors or of a committee of directors but is not, in accordance with subsection 203(1), present at any particular time during the meeting is considered to be present for the purposes of this section.
The number of directors constituting a quorum at any meeting of directors or a committee of directors shall be
Subject to section 183, the number of directors referred to in subsection (2) constitutes a quorum at any meeting of directors or a committee of directors and, notwithstanding any vacancy among the directors, a quorum of directors may exercise all the powers of the directors.
such greater number of directors than the number calculated pursuant to paragraph (a) as may be established by the by-laws of the bank.
a majority of the minimum number of directors required by this Act for the board of directors or a committee of directors; or
in any other case, a majority of the directors present are resident Canadians.
in the case of a bank that is a subsidiary of a foreign bank, at least one half of the directors present are resident Canadians; or
The directors of a federal credit union that has issued shares that provide for the election of directors must not transact business at a meeting of directors or of a committee of directors unless the majority of the directors present at the meeting are members.
Despite subsection (1), the directors of a bank may transact business at a meeting of directors without the required proportion of directors who are resident Canadians if
The directors of a bank shall not transact business at a meeting of directors unless
there would have been present the required proportion of directors who are resident Canadians had that director been present at the meeting.
a director who is a resident Canadian unable to be present approves, in writing or by telephonic, electronic or other communications facilities, the business transacted at the meeting; and
Subsection (1) does not apply if all the voting shares of the bank, other than directors’ qualifying shares, if any, are beneficially owned by a Canadian financial institution incorporated by or under an Act of Parliament.
Despite subsection (1), the directors of a bank may transact business at a meeting of directors if a director who is not affiliated with the bank and who is not able to be present approves, in writing or by telephonic, electronic or other communications facilities, the business transacted at the meeting.
The directors of a bank shall not transact business at a meeting of directors unless at least one of the directors who is not affiliated with the bank is present.
A director participating in a meeting by any means referred to in subsection (1) is deemed for the purposes of this Act to be present at that meeting.
Subject to the by-laws of a bank, a meeting of directors or of a committee of directors may be held by means of such telephonic, electronic or other communications facilities as permit all persons participating in the meeting to communicate adequately with each other during the meeting.
Unless a ballot is demanded, an entry in the minutes of a meeting that the chairperson declared a resolution to be carried or defeated is in the absence of evidence to the contrary proof of that fact without proof of the number or proportion of votes recorded in favour of or against the resolution.
A copy of the resolution referred to in subsection (3) shall be kept with the minutes of the proceedings of that committee.
A resolution in writing signed by all the directors entitled to vote on that resolution at a meeting of a committee of directors, other than a resolution of the audit committee in carrying out its duties under subsection 194(3) or a resolution of the conduct review committee in carrying out its duties under subsection 195(3), is as valid as if it had been passed at a meeting of that committee.
A copy of the resolution referred to in subsection (1) shall be kept with the minutes of the proceedings of the directors.
A resolution in writing signed by all the directors entitled to vote on that resolution at a meeting of directors is as valid as if it had been passed at a meeting of directors.
the director sends the director’s dissent by registered mail or delivers it to the head office of the bank immediately after the meeting is adjourned.
the director sends a written dissent to the secretary of the meeting before the meeting is adjourned; or
the director requests that the director’s dissent be entered or the director’s dissent is entered in the minutes of the meeting;
A director of a bank who is not present at a meeting at which a resolution is passed or action taken is deemed to have consented thereto unless, within seven days after the director becomes aware of the resolution, the director
A director of a bank who votes for or consents to a resolution is not entitled to dissent under subsection (1).
A director of a bank who is present at a meeting of directors or a committee of directors is deemed to have consented to any resolution passed or action taken at that meeting unless
sends the director’s dissent by registered mail or delivers it to the head office of the bank.
causes the director’s dissent to be placed with the minutes of the meeting; or
A bank must attach to the notice of each annual meeting it sends to its shareholders or members, as the case may be, a statement showing, in respect of the financial year immediately preceding the meeting, the total number of directors’ meetings and directors’ committee meetings held during the financial year and the number of those meetings attended by each director.
A bank shall keep a record of the attendance at each meeting of directors and each committee meeting of directors.
The Superintendent may attend and be heard at a meeting referred to in subsection (1).
Where in the opinion of the Superintendent it is necessary, the Superintendent may, by notice in writing, require a bank to hold a meeting of directors of the bank to consider the matters set out in the notice.
If a by-law, or an amendment to or a repeal of a by-law, is rejected by the shareholders, or is not submitted to the shareholders by the directors as required under subsection (2), the by-law, amendment or repeal ceases to be effective from the date of its rejection or the date of the next meeting of shareholders, as the case may be, and no subsequent resolution of the directors to make, amend or repeal a by-law having substantially the same purpose or effect is effective until it is confirmed, or confirmed as amended, by the shareholders.
Unless this Act otherwise provides, a by-law, or an amendment to or a repeal of a by-law, is effective from the date of the resolution of the directors under subsection (1) until it is confirmed, confirmed as amended or rejected by the shareholders under subsection (2) or until it ceases to be effective under subsection (4) and, where the by-law is confirmed, or confirmed as amended, it continues in effect in the form in which it was so confirmed.
The directors shall submit a by-law, or an amendment to or a repeal of a by-law, that is made under subsection (1) to the shareholders at the next meeting of shareholders, and the shareholders may, by resolution, confirm or amend the by-law, amendment or repeal.
Unless this Act otherwise provides, the directors of a bank that is not a federal credit union may by resolution make, amend or repeal any by-law that regulates the business or affairs of the bank.
Subsections 188(3) and (4) and section 189 apply in respect of a by-law referred to in this section as if it were a by-law made under section 188.
A by-law referred to in subsection (2) shall be submitted to the shareholders at the first meeting of shareholders following the coming into force of this section.
A by-law made by the directors of a bank under section 45 of the Bank Act, being chapter B-1 of the Revised Statutes of Canada, 1985, as that section read immediately prior to the day this section comes into force, and not confirmed by the shareholders of the bank in accordance with that section on or before the day this section comes into force, continues to have effect, unless it is contrary to the provisions of this Act, until the first meeting of the shareholders following the day this section comes into force.
A by-law of a bank respecting the remuneration of the directors of the bank, as directors, that is in effect on the coming into force of this section ceases to have effect on the day on which the first annual meeting is held following the coming into force of this section.
immediately prior to the day a body corporate is continued as a bank other than a federal credit union, was provided for in the incorporating instrument of the body corporate,
immediately prior to the day this section comes into force, was provided for in the incorporating instrument of a bank that was in existence immediately prior to that day, or
No amendment to the letters patent or by-laws of a federal credit union affects an existing cause of action or claim or liability to prosecution in favour of or against the federal credit union or its directors or officers, or any civil, criminal or administrative action or proceeding to which the federal credit union or any of its directors or officers are a party.
If the remuneration of directors of a body corporate that is continued as a federal credit union was, immediately before the issuance of the federal credit union’s letters patent, fixed by a resolution of the directors, that resolution continues to have effect, unless it is contrary to the provisions of this Act, until the first meeting of the federal credit union’s members.
Subject to section 192.05, the by-laws of a body corporate that is continued as a federal credit union under this Act continue in effect until amended or repealed, unless contrary to a provision of this Act.
A member may, in accordance with section 144.1, make a proposal to make, amend or repeal a by-law.
Subject to this Act, every by-law of a federal credit union binds the federal credit union and its members to the same extent as if
Where a by-law of the bank made in accordance with sections 188 and 189 amends or repeals any matter referred to in subsection (1), the by-law prevails.
Any matter that,
the date on which the federal credit union’s financial year ends.
if the federal credit union wishes to permit members or shareholders to attend a meeting of the federal credit union by means of a communication facility referred to in subsection 136(2), the ways in which votes must be held; and
the rights of withdrawing members and members who are expelled;
the manner of distribution of any surplus earnings arising from the operations of the federal credit union;
the selection, qualifications, term of office and removal of directors and members of committees of directors;
the limit, if any, on the number of membership shares;
the fact that a delegate has only one vote even though the delegate is a member or represents more than one member;
the rights of joint members, if any;
the membership obligations of members, including any obligation to use the services of the federal credit union and any fees to be paid by members;
the qualifications of members and the procedures for acceptance of members;
If the by-laws of a federal credit union provide for the representation of members by delegates, the by-laws must set out procedures for their selection and removal.
The by-laws of a federal credit union may provide for any other matter that the members consider necessary or desirable, including
The by-laws of a federal credit union must provide for
voting by mail.
a formula for calculating the redemption price of membership shares; and
a formula for calculating the value of membership shares;
the manner of distribution of any remaining property on the voluntary liquidation and dissolution of the federal credit union;
the distribution of patronage allocations;
the representation of members by delegates;
restrictions on the classes of persons to which membership may be available, as long as the restrictions are consistent with applicable laws with respect to human rights;
The federal credit union must provide each creditor, and, if the federal credit union is a distributing federal credit union, any other person, on payment of a reasonable fee, with a copy of the federal credit union’s letters patent and by-laws.
Each member and shareholder of a federal credit union may on request, not more than once in each calendar year, receive free of charge one copy of the letters patent and by-laws of the federal credit union, and one copy of any amendments to them.
Letters patent issued under subsection (7) become effective on the day stated in the letters patent.
If the name of a federal credit union or the province in which its head office is situated is changed under subsection (1) or (2), the Superintendent may issue letters patent to amend the federal credit union’s incorporating instrument accordingly.
If a by-law or an amendment to a by-law made under subsection (1) or (2) changes the name of the federal credit union, the by-law or the amendment is not effective until it is approved by the Superintendent.
If a by-law, or an amendment to or a repeal of a by-law, made under subsection (1) or (2) does any thing referred to in subsection 218(1) in relation to any class or series of shares, the by-law, amendment or repeal is not effective until it is confirmed or confirmed as amended by the holders of shares of that class or series in accordance with section 218.
If a by-law or an amendment to a by-law made by the directors is not confirmed, with or without amendments, under subsection (3), the by-law or amendment is repealed as of the date of the meeting of members at which it was not confirmed.
The directors must present a by-law or an amendment to a by-law that is made under subsection (2) to the members at the next meeting of members and the members may, by special resolution, confirm or amend it.
Unless the by-laws of a federal credit union provide otherwise, the directors may, by special resolution, make a by-law or amend a by-law of the federal credit union, including a by-law changing the federal credit union’s name or the province in which its head office is situated, but only if the by-law or amendment is not contrary to a by-law made by the members.
The members of a federal credit union may, by special resolution, make, amend or repeal any by-law that regulates the business and affairs of the federal credit union, including a by-law changing the federal credit union’s name or the province in which its head office is situated.
If a by-law or an amendment to a by-law made by the directors under subsection 192.03(2) is repealed under subsection 192.03(4) or ceases to be effective under subsection (3), no subsequent resolution of the directors to make or amend a by-law that has substantially the same purpose or effect is effective until it is confirmed, or confirmed as amended, by the members.
If a by-law or an amendment to a by-law made by the directors under subsection 192.03(2) is not submitted by the directors to the next meeting of the members as required under subsection 192.03(3), the by-law or amendment ceases to be effective from the date of that meeting.
A by-law or an amendment to a by-law made by the directors of a federal credit union is effective from the later of the date the by-law is made or amended by the directors and the date specified in the by-law, until it is confirmed, with or without amendment, under subsection 192.03(3) or repealed under subsection 192.03(4) and, if the by-law is confirmed, or confirmed as amended, it is in effect in the form in which it was so confirmed.
A by-law or an amendment to or repeal of a by-law made by the members is effective from the later of the date of the resolution made under subsection 192.03(1) and the date specified in the by-law, amendment or repeal.
If a by-law of the federal credit union made in accordance with section 192.03 amends or repeals any matter referred to in subsection (1), the by-law prevails.
Any matter provided for in the incorporating instrument of a body corporate that is continued as a federal credit union that, under this Act, is to be provided for in the by-laws of a federal credit union is deemed to be provided for in the by-laws of the federal credit union.
there were in the by-law a covenant under seal on the part of each member, and the successors and assigns of the member, to conform to the by-law.
each member had duly approved the by-law; and
Subsection (2), in so far as it relates to the affiliation of directors with the bank, does not apply in respect of a bank that was in existence immediately prior to the day that subsection comes into force until the day that is three years after the day that subsection comes into force.
The audit committee of a bank may call a meeting of the directors of the bank to consider any matter of concern to the committee.
In the case of the annual statement and returns of a bank that under this Act must be approved by the directors of the bank, the audit committee of the bank shall report thereon to the directors before the approval is given.
The audit committee of a bank shall
A majority of the members of the audit committee must consist of directors who are not persons affiliated with the bank and none of the members of the audit committee may be officers or employees of the bank or a subsidiary of the bank.
The audit committee of a bank shall consist of at least three directors.
meet with the chief internal auditor of the bank, or the officer or employee of the bank acting in a similar capacity, and with management of the bank, to discuss the effectiveness of the internal control procedures established for the bank.
meet with the auditor or auditors to discuss the annual statement and the returns and transactions referred to in this subsection; and
review such investments and transactions that could adversely affect the well-being of the bank as the auditor or auditors or any officer of the bank may bring to the attention of the committee;
review, evaluate and approve those procedures;
require the management of the bank to implement and maintain appropriate internal control procedures;
review such returns of the bank as the Superintendent may specify;
review the annual statement of the bank before the annual statement is approved by the directors;
[Repealed, 1997, c. 15, s. 23]
Within ninety days after the end of each financial year, the directors of a bank shall report to the Superintendent on what the conduct review committee did during the year in carrying out its responsibilities under subsection (3).
After each meeting of the conduct review committee of the bank, the committee shall report to the directors of the bank on matters reviewed by the committee.
A bank shall report to the Superintendent on the mandate and responsibilities of the conduct review committee and the procedures referred to in paragraph (3)(a).
The conduct review committee of a bank shall
A majority of the members of the conduct review committee of a bank must consist of directors who are not persons affiliated with the bank and none of the members of the conduct review committee may be officers or employees of the bank or a subsidiary of the bank.
The conduct review committee of a bank shall consist of at least three directors.
review the practices of the bank to ensure that any transactions with related parties of the bank that may have a material effect on the stability or solvency of the bank are identified.
if a widely held bank holding company or a widely held insurance holding company has a significant interest in any class of shares of the bank,
review those procedures and their effectiveness in ensuring that the bank is complying with Part XI;
require the management of the bank to establish procedures for complying with Part XI;
review transactions referred to in subsection 495.3(1); and
establish policies for entering into transactions referred to in subsection 495.1(1), and
Within 90 days after the end of each financial year, the directors of a bank shall report to the Commissioner on what the committee did during the year in performing its duties under subsection (3).
After each meeting of the committee, the committee shall report to the directors of the bank on matters reviewed by the committee.
A bank shall report to the Commissioner on the mandate and responsibilities of the committee and the procedures referred to in paragraph (3)(a).
The committee shall
A majority of the members of the committee shall consist of directors who are not persons affiliated with the bank, and none of the members of the committee may be officers or employees of the bank or a subsidiary of the bank.
The committee designated under paragraph 157(2)(e) shall consist of at least three directors.
require the management of the bank to report at least annually to the committee on the implementation of the procedures and on any other activities that the bank carries out in relation to the protection of its customers.
review those procedures to determine whether they are appropriate to ensure that the bank is complying with the consumer provisions; and
require the management of the bank to establish procedures for complying with the consumer provisions;
[Repealed, 1997, c. 15, s. 24]
The directors of a bank shall appoint from their number a chief executive officer who must be ordinarily resident in Canada and, subject to section 198, may delegate to that officer any of the powers of the directors.
Two or more offices of a bank may be held by the same person.
Subject to section 164, a director of a bank may be appointed to any office of the bank.
The directors of a bank may, subject to the by-laws, designate the offices of the bank, appoint officers thereto, specify the duties of those officers and delegate to them powers, subject to section 198, to manage the business and affairs of the bank.
The directors of a federal credit union may not delegate the power to
adopt, amend or repeal by-laws.
except as provided in this Act, approve the annual statement of the bank and any other financial statements issued by the bank; or
approve a management proxy circular;
authorize the payment of a commission on a share issue;
authorize the redemption or other acquisition by the bank pursuant to section 71 of shares issued by the bank;
declare a dividend;
issue or cause to be issued securities, including an issue of shares of a series that is authorized in accordance with section 62, except in accordance with any authorization made by the directors;
fill a vacancy among the directors, on a committee of directors or in the office of auditor, or appoint additional directors;
submit to the shareholders a question or matter requiring the approval of the shareholders;
adopt or amend by-laws.
expel members; or
except as provided in this Act, approve the annual statement of the federal credit union and any other financial statements it issued;
approve a management proxy circular;
authorize the payment of a commission on a share issue;
authorize the redemption or other acquisition by the federal credit union under section 71 of membership shares, or shares, issued by the federal credit union;
declare a dividend on membership shares or shares or allocate an amount as a patronage allocation;
issue or cause to be issued securities, including an issue of shares of a series that is authorized in accordance with section 62, except in accordance with any authorization made by the directors;
fill a vacancy among the directors, on a committee of directors or in the office of auditor;
admit members, except in accordance with any authorization made by the members;
submit to the members or shareholders a question or matter requiring their approval;
No remuneration shall be paid to a director as director until a by-law fixing the aggregate of all amounts that may be paid to all directors in respect of directors’ remuneration during a fixed period of time has been confirmed by special resolution.
Subject to this section and the by-laws, the directors of a bank may fix the remuneration of the directors, officers and employees of the bank.
An act of the board of directors of a bank is valid notwithstanding a defect in the composition of the board or an irregularity in the election of the board or in the appointment of a member of the board.
An act of a director or an officer of a bank is valid notwithstanding a defect in the director’s qualification or an irregularity in the director’s election or in the appointment of the director or officer.
have a material interest in a party to the contract or transaction.
are a director or officer of a party to the contract or transaction or a person acting in a similar capacity; or
are a party to the contract or transaction;
If the material contract or material transaction, whether entered into or proposed, is one that in the ordinary course of the bank’s business would not require approval by the directors, shareholders or members, as the case may be, the director or officer must disclose to the bank, in writing or by requesting to have it entered in the minutes of a meeting of directors or of a committee of directors, the nature and extent of their interest immediately after they become aware of the contract or transaction.
The disclosure shall be made in the case of an officer who is not a director
The disclosure shall be made in the case of a director
A director or officer of a bank shall disclose to the bank, in writing or by requesting to have it entered in the minutes of a meeting of directors or a meeting of a committee of directors, the nature and extent of any interest they have in a material contract or material transaction with the bank, whether entered into or proposed, if they
if a person who is interested in a contract or transaction becomes a director, at the first one after they become a director.
if the director becomes interested after a contract or transaction is entered into, at the first one after they become interested; or
if at the time of the meeting referred to in paragraph (a) the director was not interested in the proposed contract or transaction, at the first one after they become interested in it;
at the meeting of directors, or of a committee of directors, at which the proposed contract or transaction is first considered;
if a person who is interested in a contract or transaction becomes an officer, immediately after they become an officer.
if they become interested after the contract or transaction is entered into, immediately after they become interested; or
immediately after they become aware that the contract, transaction, proposed contract or proposed transaction is to be considered or has been considered at a meeting of directors or of a committee of directors;
is with an affiliate of the bank.
is for indemnity under section 212 or insurance under section 213; or
relates primarily to their remuneration as a director, officer, employee or agent of the bank, an entity controlled by the bank or an entity in which the bank has a substantial investment;
An act of the board of directors of a bank, or of a committee of the board of directors, is not invalid because a person acting as a director had ceased under subsection (2) to hold office as a director.
Any director who knowingly contravenes subsection (1) ceases to hold office as director and is not eligible, for a period of five years after the date on which the contravention occurred, for election or appointment as a director of any financial institution that is incorporated or formed by or under an Act of Parliament.
A director who is required to make a disclosure under subsection 202(1) shall not be present at any meeting of directors, or of a committee of directors, while the contract or transaction is being considered or vote on any resolution to approve it unless the contract or transaction
there has been a material change in the nature of the director’s or officer’s interest in the party.
the director or officer has a material interest in the party; or
the director or officer is a director or officer of a party referred to in paragraph 202(1)(b) or (c) or a person acting in a similar capacity;
The shareholders and members of the bank may examine the portions of any minutes of meetings of directors or committees of directors that contain disclosures under subsection 202(1), or the portions of any other documents that contain those disclosures, during the usual business hours of the bank.
For the purposes of subsection 202(1), a general notice to the directors declaring that a director or officer is to be regarded as interested for any of the following reasons in a contract or transaction entered into with a party is a sufficient declaration of interest in relation to any contract or transaction with that party:
the contract or transaction was reasonable and fair to the bank at the time that it was approved.
the directors approved the contract or transaction; and
the director or officer disclosed their interest in accordance with section 202 and subsection 204(1);
Even if the conditions set out in subsection (1) are not met, a director or officer acting honestly and in good faith is not accountable to the bank or its shareholders or members for any profit realized from a contract or transaction for which disclosure was required and the contract or transaction is not invalid by reason only of the director’s or officer’s interest in it if
A contract or transaction for which disclosure is required under subsection 202(1) is not invalid and a director or officer is not accountable to the bank or its shareholders or members for any profit realized from it by reason only of the director’s or officer’s interest in the contract or transaction or the fact that the director was present or was counted to determine whether a quorum existed at the meeting of directors, or of a committee of directors, that considered it if
in the case of a federal credit union, at a meeting of its members and, if it has shareholders, at a meeting of its shareholders;
in the case of a bank that is not a federal credit union, a meeting of shareholders, or
the contract or transaction was reasonable and fair to the bank at the time that it was approved or confirmed.
disclosure of the interest was made to the shareholders or, in the case of a federal credit union, to the members and shareholders, if any, in a manner sufficient to indicate its nature before the contract or transaction was approved or confirmed; and
the contract or transaction is approved or confirmed by special resolution at
Directors of a bank who vote for or consent to a resolution of the directors authorizing any of the following are jointly and severally, or solidarily, liable to restore to the bank any amounts so distributed or paid and not otherwise recovered by the bank and any amounts in relation to any loss suffered by the bank:
Directors of a bank who vote for or consent to a resolution of the directors authorizing the issue of a share contrary to subsection 65(1), the issue of a membership share contrary to subsection 79.1(2) or the issue of subordinated indebtedness contrary to section 80 for a consideration other than money are jointly and severally, or solidarily, liable to the bank to make good any amount by which the consideration received is less than the fair equivalent of the money that the bank would have received if the share, membership share or subordinated indebtedness had been issued for money on the date of the resolution.
any transaction contrary to Part XI.
a payment of an indemnity contrary to section 212; or
a payment of a dividend or patronage allocation contrary to section 79;
a reduction of capital contrary to section 75;
a redemption or purchase of shares or membership shares contrary to section 71;
Where an application is made to a court under subsection (2), the court may, where it is satisfied that it is equitable to do so,
A director who is liable under section 207 is entitled to apply to a court for an order compelling a shareholder, member or other person to pay or deliver to the director
A director who has satisfied a judgment in relation to the director’s liability under section 207 is entitled to contribution from the other directors who voted for or consented to the unlawful act on which the judgment was founded.
an amount equal to the value of the loss suffered by the bank as a result of any transaction contrary to Part XI.
any money or property that was paid or distributed to the shareholder, member or other person contrary to section 71, 75, 79 or 212; or
make any further order it thinks fit.
order a bank to return or issue shares or membership shares to a person from whom the bank has purchased, redeemed or otherwise acquired shares or membership shares; or
order a shareholder, member or other person to pay or deliver to a director any money or property that was paid or distributed to the shareholder, member or other person contrary to section 71, 75, 79 or 212 or any amount referred to in paragraph (2)(b);
A director of a bank who has satisfied a claim under this section is entitled to a contribution from the other directors of the bank who are liable for the claim.
Where a director of a bank pays a debt referred to in subsection (1) that is proven in liquidation and dissolution or winding-up proceedings, the director is entitled to any preference that the employee would have been entitled to and, where a judgment has been obtained, the director is entitled to an assignment of the judgment.
Where execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.
A director is not liable under subsection (1) unless the director is sued for a debt referred to in that subsection while a director or within two years after the director has ceased to be a director.
A director is not liable under subsection (1) unless
Subject to subsections (2) and (3), the directors of a bank are jointly and severally, or solidarily, liable to each employee of the bank for all debts not exceeding six months wages payable to the employee for services performed for the bank while they are directors.
a winding-up order has been issued in respect of the bank under the Winding-up and Restructuring Act and a claim for the debt has been allowed or proven within six months after the issue of the winding-up order.
the bank has commenced liquidation and dissolution proceedings or has been dissolved and a claim for the debt has been proven within six months after the earlier of the date of commencement of the liquidation and dissolution proceedings and the date of dissolution; or
the bank has been sued for the debt within six months after it has become due and execution has been returned unsatisfied in whole or in part;
a report of a person whose profession lends credibility to a statement made by them.
financial statements of the bank that were represented to them by an officer of the bank or in a written report of the auditor or auditors of the bank fairly to reflect the financial condition of the bank; or
A director or officer of a bank has fulfilled their duty under subsection 158(1) if they relied in good faith on
A director, officer or employee of a bank is not liable under section 207 or 210 or subsection 506(1) and has fulfilled their duty under subsection 158(2) if they exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on
a report of a person whose profession lends credibility to a statement made by them.
financial statements of the bank that were represented to them by an officer of the bank or in a written report of the auditor or auditors of the bank fairly to reflect the financial condition of the bank; or
A bank may, to the extent referred to in subsections (1) to (5) in respect of the person, indemnify the heirs or personal representatives of any person whom the bank may indemnify under those subsections.
Despite subsection (1), a person referred to in that subsection is entitled to be indemnified by the bank in respect of all costs, charges and expenses reasonably incurred by them in connection with the defence of any civil, criminal, administrative, investigative or other proceeding to which the person is subject because of the association referred to in subsection (1) with the bank or other entity described in that subsection if the person
A bank may with the approval of a court indemnify a person referred to in subsection (1) or advance amounts to them under subsection (2) — in respect of an action by or on behalf of the bank or other entity to procure a judgment in its favour to which the person is made a party because of the association referred to in subsection (1) with the bank or other entity — against all costs, charges and expenses reasonably incurred by them in connection with that action if they fulfil the conditions set out in subsection (3).
A bank may not indemnify a person under subsection (1) unless
A bank may advance amounts to the director, officer or other person for the costs, charges and expenses of a proceeding referred to in subsection (1). They shall repay the amounts if they do not fulfil the conditions set out in subsection (3).
A bank may indemnify a director or officer of the bank, a former director or officer of the bank or another person who acts or acted, at the bank’s request, as a director or officer of or in a similar capacity for another entity against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by them in respect of any civil, criminal, administrative, investigative or other proceeding in which they are involved because of that association with the bank or other entity.
in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the person had reasonable grounds for believing that their conduct was lawful.
the person acted honestly and in good faith with a view to the best interests of, as the case may be, the bank or the other entity for which they acted at the bank’s request as a director or officer or in a similar capacity; and
fulfils the conditions set out in subsection (3).
was not judged by the court or other competent authority to have committed any fault or omitted to do anything that they ought to have done; and
in the capacity of a director or officer of another entity or while acting in a similar capacity for another entity, if they act or acted in that capacity at the bank’s request, except if the liability relates to a failure to act honestly and in good faith with a view to the best interests of the entity.
in the capacity of a director or an officer of the bank, except where the liability relates to a failure to act honestly and in good faith with a view to the best interests of the bank; or
On an application under subsection (1), the court may order notice to be given to any interested person and that person is entitled to appear and to be heard in person or by counsel at the hearing of the application.
An applicant under subsection (1) shall give the Superintendent written notice of the application and the Superintendent is entitled to appear and to be heard at the hearing of the application in person or by counsel.
A bank or a person referred to in section 212 may apply to a court for an order approving an indemnity under that section and the court may so order and make any further order it thinks fit.
If the Minister issues letters patent to amend a federal credit union’s incorporating instrument to convert it into a bank with common shares, then, on the day stated in the letters patent, members of the federal credit union become, in accordance with the conversion proposal, holders of common shares of the bank to which are attached the rights, privileges and restrictions set out in this Act.
In determining whether to issue letters patent converting a federal credit union into a bank with common shares, the Minister must consider all matters that the Minister considers relevant, including whether
An application under section 216.08 may be made no later than three months after the bank’s conversion proposal has been approved by the members and shareholders, if any.
On the application of a federal credit union, the Minister may, by letters patent, amend the federal credit union’s incorporating instrument to convert the federal credit union into a bank with common shares.
If the Minister issues letters patent to amend a bank’s incorporating instrument to convert it into a federal credit union, then, on the day stated in the letters patent,
In determining whether to issue letters patent to amend a bank’s incorporating instrument to convert it into a federal credit union, the Minister must consider all matters that the Minister considers relevant, including whether
An application under section 216.01 may be made no later than three months after the bank’s conversion proposal has been approved by the shareholders.
On the application of a bank that is not a federal credit union, the Minister may, by letters patent, amend the bank’s incorporating instrument to convert the bank into a federal credit union.
Letters patent issued pursuant to subsection (1) become effective on the day stated in the letters patent.
On receipt of an application referred to in section 215, the Minister may issue letters patent to effect the proposal.
authorization to make the application.
confirmation of any by-law or of any amendment to or repeal of a by-law that is necessary to implement the conversion proposal; and
approval of a conversion proposal that meets the requirements of the regulations and that has been approved by the Superintendent;
The Minister may require the federal credit union to provide the Minister with any additional information that he or she considers necessary.
Before a bank makes an application under section 216.01, the directors of the bank must obtain from the shareholders, by special resolution,
For the purposes of subsection 216.02(1), the holders of shares of a class or series of shares of the bank are entitled to vote separately as a class or series in respect of any matter referred to in that subsection.
For the purposes of subsection 216.02(1), each share of the bank carries the right to vote in respect of any matter referred to in that subsection whether or not it otherwise carries the right to vote.
the conversion is in the best interests of the financial system in Canada, including the best interests of the cooperative financial system in Canada.
the conversion is fair and reasonable to the shareholders; and
the conversion of the bank into a federal credit union may reasonably be expected to be achieved under the terms of the conversion proposal;
the bank’s conversion proposal was approved by special resolution of the shareholders;
there are no reasonable grounds for believing that the issuance of the letters patent would cause the federal credit union to be in contravention of subsection 485(1), any regulation made under subsection 485(2) or any order made under subsection 485(3);
the applicant bank will, on the issuance of the letters patent, be organized and carry on business on a cooperative basis in accordance with section 12.1;
any common shares of the bank that are to be converted into shares of the federal credit union according to the bank’s conversion proposal are deemed to be shares of the federal credit union to which are attached the rights, privileges and restrictions set out in this Act.
any common shares of the bank that are not to be converted into shares of the federal credit union according to the bank’s conversion proposal are deemed to be membership shares of the federal credit union to which are attached the rights, privileges and restrictions set out in this Act; and
the holders of the common shares of the bank are deemed to be the members of the federal credit union;
generally, respecting the conversion of a bank into a federal credit union.
respecting the by-laws that must be made or repealed, or the amendments that must be made to by-laws, to give effect to a conversion proposal to become a federal credit union; and
respecting conversion proposals to become a federal credit union, including the information to be contained in them;
respecting applications under section 216.01, including their form and the information to be contained in them;
The Minister may, on any terms and conditions that the Minister considers appropriate, exempt a bank from any requirement of this Act or the regulations if the bank is applying for the approval of a proposal to convert itself into a federal credit union and
A regulation made under subsection (1) may provide that the Superintendent may, on any terms and conditions that the Superintendent considers appropriate, exempt a bank from any requirements of that regulation.
A regulation made under subsection (1) may provide for different provisions respecting a bank that is subject to an order under paragraph 39.13(1)(a) of the Canada Deposit Insurance Corporation Act or is a bridge institution within the meaning of that Act.
Regulations made under paragraph (1)(b) must provide that a conversion proposal must provide that at least one common share held by every holder of common shares is converted into a membership share.
The Governor in Council may make regulations
is subject to an order under paragraph 39.13(1)(a) of the Canada Deposit Insurance Corporation Act or is a bridge institution within the meaning of that Act.
the Minister is of the opinion that the bank is, or is about to be, in financial difficulty and that the exemption would help to facilitate an improvement in the financial condition of the bank; or
authorization to make the application.
confirmation of any by-law or of any amendment to or repeal of a by-law that is necessary to implement the conversion proposal; and
approval of a conversion proposal that meets the requirements of the regulations and that has been approved by the Superintendent;
The Minister may require the federal credit union to provide the Minister with any additional information that he or she considers necessary.
Before a federal credit union makes an application under section 216.08, the directors of the federal credit union must obtain from the members by special resolution and, if the federal credit union has issued shares, from the shareholders, by separate special resolution,
For the purposes of subsection 216.09(1), the holders of shares of a class or series of shares of the federal credit union are entitled to vote separately as a class or series in respect of any matter referred to in that subsection.
For the purposes of subsection 216.09(1), each share of the federal credit union carries the right to vote in respect of any matter referred to in that subsection whether or not it otherwise carries the right to vote.
the conversion is in the best interests of the financial system in Canada, including the best interests of the cooperative financial system in Canada.
the conversion is fair and reasonable to the members and shareholders, if any; and
the conversion of the federal credit union into a bank with common shares may reasonably be expected to be achieved under the terms of the conversion proposal;
the federal credit union’s conversion proposal was approved by special resolution of the members and a separate special resolution of the shareholders, if any;
there are no reasonable grounds for believing that the issuance of the letters patent would cause the bank with common shares to be in contravention of subsection 485(1), any regulation made under subsection 485(2) or any order made under subsection 485(3);
generally, respecting the conversion of a federal credit union into a bank with common shares.
prohibiting, except for those issued as a result of the implementation of a conversion proposal, the issuance or provision during the period set out in the regulations of shares, share options or rights to acquire shares, of a bank that has been converted from a federal credit union into a bank with common shares to
respecting restrictions on any fee, compensation or other consideration that may be paid, in respect of the conversion of a federal credit union into a bank with common shares, to any director, officer or employee of the federal credit union or to any entity with which a director, officer or employee of the federal credit union is associated;
authorizing the Superintendent to
concerning the conversion of membership shares and shares, if any, of a federal credit union into common shares or other shares;
concerning the fair and equitable treatment of members and shareholders, if any, under a federal credit union’s conversion proposal to become a bank with common shares;
respecting, for the purposes of a proposal to become a bank with common shares, the value of the converting federal credit union and of its membership shares and shares, if any, and authorizing the Superintendent to specify a day as of which those values must be estimated;
respecting the by-laws that must be made or repealed, or the amendments that must be made to by-laws, to give effect to a conversion proposal to become a bank with common shares;
respecting conversion proposals to become a bank with common shares, including the information to be contained in them;
respecting applications under section 216.08, including their form and the information to be contained in them;
set the rules under which the information sessions must be held;
require a federal credit union that proposes to become a bank with common shares to hold one or more information sessions for its members and shareholders, if any, and to take other measures to assist its members and shareholders, if any, in forming a reasoned judgment on the proposal, and
any person who was a director, officer or employee of the federal credit union during the year preceding the effective date of conversion of the federal credit union; and
any director, officer or employee of the bank, or
The Minister may, on any terms and conditions that the Minister considers appropriate, exempt a federal credit union from any requirement of this Act or the regulations if the federal credit union is applying for the approval of a proposal to convert itself into a bank with common shares and
A regulation made under subsection (1) may provide that the Superintendent may, on any terms and conditions that the Superintendent considers appropriate, exempt a federal credit union from any requirements of that regulation.
A regulation made under subsection (1) may provide for different provisions respecting a federal credit union that is subject to an order under paragraph 39.13(1)(a) of the Canada Deposit Insurance Corporation Act or is a bridge institution within the meaning of that Act.
The Governor in Council may make regulations
the federal credit union is subject to an order under paragraph 39.13(1)(a) of the Canada Deposit Insurance Corporation Act or is a bridge institution within the meaning of that Act.
the Minister is of the opinion that the federal credit union is, or is about to be, in financial difficulty and that the exemption would help to facilitate an improvement in the financial condition of the federal credit union; or
change the province in which the head office of the bank is situated.
change the name of the bank; or
increase or decrease the number of directors or the minimum or maximum number of directors, subject to subsection 159(1) and section 168;
revoke, diminish or enlarge any authority conferred under paragraphs (f) and (g);
authorize the directors to change the rights, privileges, restrictions and conditions attached to unissued shares of any series;
authorize the directors to divide any class of unissued shares into series and fix the maximum number of shares, if any, in each series and the rights, privileges, restrictions and conditions attached thereto;
divide a class of shares, whether issued or unissued, into series and fix the maximum number of shares, if any, in each series and the rights, privileges, restrictions and conditions attached thereto;
change the shares of any class or series, whether issued or unissued, into a different number of shares of the same class or series or into the same or a different number of shares of other classes or series;
change the designation of any or all of the bank’s shares, and add, change or remove any rights, privileges, restrictions and conditions, including rights to accrued dividends, in respect of any or all of the bank’s shares, whether issued or unissued;
create new classes of shares;
change the maximum number, if any, of shares of any class that the bank is authorized to issue;
Letters patent issued under subsection (4) become effective on the day stated in the letters patent.
If the name of a bank or the province in Canada in which the head office of the bank is situated is changed under this section, the Superintendent may issue letters patent to amend the bank’s incorporating instrument accordingly.
A by-law, or an amendment to or a repeal of a by-law, made under subsection (1) is not effective until it is confirmed or confirmed as amended by the shareholders under subsection (2) and, in the case of a by-law respecting a change to the name of the bank, approved by the Superintendent.
The directors shall submit a by-law, or an amendment to or a repeal of a by-law, that is made under subsection (1) to the shareholders, and the shareholders may, by special resolution, confirm, amend or reject the by-law, amendment or repeal.
The directors of a bank that is not a federal credit union may make, amend or repeal any by-laws, in the manner set out in subsections (2) and (3) and sections 218 to 222, to
effect an exchange or create a right of exchange of all or part of the shares of another class into the shares of that class.
make any class of shares having rights or privileges inferior to the shares of that class equal or superior to the shares of that class; or
create a new class of shares equal or superior to the shares of that class;
increase the rights or privileges of any class of shares having rights or privileges equal or superior to the shares of that class;
add, change or remove the rights, privileges, restrictions or conditions attached to the shares of that class and, without limiting the generality of the foregoing,
effect an exchange, reclassification or cancellation of all or part of the shares of that class;
increase or decrease any maximum number of authorized shares of that class, or increase any maximum number of authorized shares of a class having rights or privileges equal or superior to the shares of that class;
add, remove or change prejudicially conversion privileges, options, voting, transfer or pre-emptive rights, or rights to acquire securities of the bank, or sinking fund provisions;
reduce or remove a dividend preference or a liquidation preference, or
add, remove or change prejudicially redemption rights,
remove or change prejudicially rights to accrued dividends or rights to cumulative dividends,
Subsections (1) and (2) apply whether or not the shares of a class otherwise carry the right to vote.
The holders of a series of shares of a class are entitled to vote separately as a series under subsection (1) if that series is affected by an addition or amendment to the by-laws in a manner different from other shares of the same class.
The holders of shares of a class or, subject to subsection (2), of a series are, unless the by-laws otherwise provide in the case of an amendment to the by-laws referred to in paragraph (a), (b) or (e), entitled to vote separately as a class or series on a proposal to amend the by-laws to
Notice of a meeting of shareholders at which a proposal to amend the incorporating instrument or to make, amend or repeal the by-laws of a bank is to be considered must set out the proposal.
Subject to subsection (2), a director or a shareholder who is entitled to vote at an annual meeting of shareholders of a bank may, in accordance with sections 143 and 144, make a proposal to make an application referred to in section 215 or to make, amend or repeal the by-laws referred to in subsection 217(1) of the bank.
Despite subsection (1), if the amalgamated bank would be a bank with equity of twelve billion dollars or more, the Minister shall not issue letters patent referred to in that subsection unless the amalgamated bank is
Despite subsection (1), if one of the applicants is a bank named in Schedule I as that Schedule read immediately before the day section 184 of the Financial Consumer Agency of Canada Act comes into force, other than a bank in respect of which the Minister has specified that subsection 378(1) no longer applies, the Minister shall not issue letters patent referred to in subsection (1) unless
On the joint application of two or more local cooperative credit societies that have applied under subsection 33(4) to be continued as federal credit unions, the Minister may issue letters patent amalgamating and continuing the applicants as one federal credit union.
On the joint application of one or more federal credit unions and one or more local cooperative credit societies that have applied under subsection 33(3) to be continued as federal credit unions, the Minister may issue letters patent amalgamating and continuing the applicants as one federal credit union.
On the joint application of two or more federal credit unions, the Minister may issue letters patent amalgamating and continuing the applicants as one federal credit union.
On the joint application of two or more bodies corporate incorporated by or under an Act of Parliament, including banks that are not federal credit unions and bank holding companies, the Minister may issue letters patent amalgamating and continuing the applicants as one bank, other than a federal credit union.
the amalgamated bank would be controlled by a widely held bank holding company that, at the time the application was made, controlled
the amalgamated bank would be a widely held bank; or
any other applicant that is a bank named in Schedule I as that Schedule read immediately before the day section 184 of the Financial Consumer Agency of Canada Act comes into force, other than a bank in respect of which the Minister has specified that subsection 378(1) no longer applies.
the applicant, or
controlled, within the meaning of paragraph 3(1)(d), by a widely held insurance holding company, or by an eligible Canadian financial institution, as defined in subsection 370(1), other than a bank, or by an eligible foreign institution, as defined in subsection 370(1), that controlled one of the applicants at the time the application was made.
controlled, within the meaning of paragraphs 3(1)(a) and (d), by a widely held bank, or by a widely held bank holding company, that controlled one of the applicants at the time the application was made; or
widely held;
If shares or membership shares of one of the applicants are held by or on behalf of another of the applicants, other than shares or membership shares held in the capacity of a personal representative or by way of security, the amalgamation agreement must provide for the cancellation of those shares or membership shares when the amalgamation becomes effective without any repayment of capital in respect of them, and no provision may be made in the agreement for the conversion of those shares or membership shares into shares or membership shares of the amalgamated bank.
Every amalgamation agreement shall set out the terms and means of effecting the amalgamation and, in particular,
Each applicant proposing to amalgamate shall enter into an amalgamation agreement.
the proposed effective date of the amalgamation.
details of any other matter necessary to perfect the amalgamation and to provide for the subsequent management and operation of the amalgamated bank; and
the proposed by-laws of the amalgamated bank;
the manner of payment of money in lieu of the issue of fractional shares of the amalgamated bank or of any other body corporate that are to be issued in the amalgamation;
if any shares or membership shares of an applicant are not to be converted into shares or other securities, or into membership shares, of the amalgamated bank, the amount of money or securities that the holders of those shares are to receive in addition to or in lieu of shares or other securities, or membership shares, of the amalgamated bank;
the manner in which the shares or membership shares of each applicant are to be converted into shares or other securities, or into membership shares, of the amalgamated bank;
the name and place of ordinary residence of each proposed director of the amalgamated bank;
if the amalgamated bank is to be a federal credit union, a statement that the amalgamated bank will be organized and carry on business on a cooperative basis in accordance with section 12.1;
the name of the amalgamated bank and the province in which its head office is to be situated;
On the issuance of letters patent amalgamating and continuing two or more federal credit unions as one federal credit union, the members of the federal credit unions become members of the amalgamated federal credit union.
An amalgamation agreement may provide that, at any time before the issue of letters patent of amalgamation, the agreement may be terminated by the directors of an applicant even if the agreement has been approved by the shareholders — or the members and shareholders, if any — of all or any of the applicant banks or bodies corporate.
Subject to subsection (3), an amalgamation agreement is approved when the shareholders of each applicant bank or body corporate have approved the amalgamation by special resolution or, if an applicant is a federal credit union or a local cooperative credit society, the members and shareholders, if any, have approved the amalgamation by separate special resolutions.
The holders of shares of a class or series of shares of each applicant are entitled to vote separately as a class or series in respect of an amalgamation agreement if the agreement contains a provision that, if it were contained in a proposed amendment to the by-laws or incorporating instrument of the applicant, would entitle those holders to vote separately as a class or series.
Each share of an applicant carries the right to vote in respect of an amalgamation agreement whether or not it otherwise carries the right to vote.
The directors of each applicant must submit an amalgamation agreement for approval to a meeting of the shareholders of the applicant — or, if the applicant is a federal credit union or a local cooperative credit society, to a meeting of its members and to a meeting of its shareholders, if any.
the resolutions provide that
the amalgamation is approved by a resolution of the directors of the bank and of each amalgamating subsidiary; and
no securities will be issued by the amalgamated bank in connection with the amalgamation.
the letters patent of amalgamation and the by-laws of the amalgamated bank will be the same as the incorporating instrument and the by-laws of the amalgamating bank that is the holding body corporate, and
the shares of each amalgamating subsidiary will be cancelled without any repayment of capital in respect thereof,
Two or more bodies corporate incorporated by or under an Act of Parliament, none of which is a federal credit union, may amalgamate and continue as one bank, without complying with sections 224 to 226 if
A bank, other than a federal credit union, may, without complying with sections 224 to 226, amalgamate with one or more bodies corporate that are incorporated by or under an Act of Parliament if the body or bodies corporate, as the case may be, are wholly-owned subsidiaries of the bank and
the resolutions provide that
the amalgamation is approved by a resolution of the directors of each of the applicants; and
the applicants are all wholly-owned subsidiaries of the same holding body corporate;
at least one of the applicants is a bank;
the stated capital of the amalgamating banks and bodies corporate whose shares are cancelled will be added to the stated capital of the amalgamating bank whose shares are not cancelled.
the letters patent of amalgamation and the by-laws of the amalgamated bank will be the same as the incorporating instrument and the by-laws of the amalgamating bank whose shares are not cancelled, and
the shares of all applicants, except those of one of the applicants that is a bank, will be cancelled without any repayment of capital in respect thereof,
Before issuing letters patent of amalgamation continuing the applicants as one bank, the Minister shall take into account all matters that the Minister considers relevant to the application, including
If two or more bodies corporate, none of which is a bank, apply for letters patent under subsection (1), sections 23 to 26 apply in respect of the application with any modifications that the circumstances require.
No application for the issue of letters patent under subsection (1) may be made unless
Subject to subsection (2), unless an amalgamation agreement is terminated in accordance with subsection 226(5), the applicants shall, within three months after the approval of the agreement in accordance with subsection 226(4) or the approval of the directors in accordance with subsection 227(1) or (2), jointly apply to the Minister for letters patent of amalgamation continuing the applicants as one bank.
the application is supported by satisfactory evidence that the applicants have complied with the requirements of this Part relating to amalgamations.
notice of intention to make such an application has been published at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of each applicant is situated; and
the best interests of the financial system in Canada, including, if the amalgamated bank will be a federal credit union, the best interests of the cooperative financial system in Canada.
if the amalgamated bank will be a federal credit union, that it will be organized and carry on business on a cooperative basis in accordance with section 12.1; and
the opinion of the Superintendent regarding the extent to which the proposed corporate structure of the amalgamated bank and its affiliates may affect the supervision and regulation of the amalgamated bank, having regard to
the impact of any integration of the operations and businesses of the applicants on the conduct of those operations and businesses;
whether the amalgamated bank will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;
the reputation of the applicants for being operated in a manner that is consistent with the standards of good character and integrity;
the business record and experience of the applicants;
the soundness and feasibility of the plans of the applicants for the future conduct and development of the business of the amalgamated bank;
the sources of continuing financial support for the amalgamated bank;
the nature and degree of supervision and regulation applying to the proposed financial services activities to be carried out by the affiliates of the amalgamated bank;
the nature and extent of the proposed financial services activities to be carried out by the amalgamated bank and its affiliates, and
The Superintendent shall cause to be published in the Canada Gazette notice of the issuance of letters patent pursuant to subsection (1).
Where letters patent are issued pursuant to this section, section 28 applies with such modifications as the circumstances require in respect of the issue of the letters patent.
In the case of an application made under subsection 223(1.2) or (1.3), the Minister shall not issue letters patent of amalgamation unless the Minister has issued, under subsection 35(1), letters patent continuing as a federal credit union each applicant that was a local cooperative credit society.
Where an application has been made to the Minister in accordance with section 228, the Minister may issue letters patent of amalgamation continuing the applicants as one bank.
An appeal from an order of a court under this section lies in the same manner as, and to the same court to which, an appeal may be taken from any other order of the court.
If a bank or any director, officer, employee or agent of a bank is contravening or has failed to comply with any term or condition made in respect of the issuance of letters patent of amalgamation, the Minister may, in addition to any other action that may be taken under this Act, apply to a court for an order directing the bank or the director, officer, employee or agent to comply with the term or condition, cease the contravention or do any thing that is required to be done, and on the application the court may so order and make any other order it thinks fit.
the letters patent of amalgamation are the incorporating instrument of the amalgamated bank.
[Repealed, 2001, c. 9, s. 87]
if any director or officer of an applicant continues as a director or officer of the amalgamated bank, any disclosure by that director or officer of a material interest in any contract made to the applicant shall be deemed to be disclosure to the amalgamated bank; and
any conviction against, or ruling, order or judgment in favour of or against, an applicant may be enforced by or against the amalgamated bank;
any civil, criminal or administrative action or proceeding pending by or against an applicant may be continued to be prosecuted by or against the amalgamated bank;
any existing cause of action, claim or liability to prosecution is unaffected;
the amalgamated bank continues to be liable for the obligations of each applicant;
the property of each applicant continues to be the property of the amalgamated bank;
the amalgamation of the applicants and their continuance as one bank becomes effective;
Any deemed disclosure under paragraph (1)(g) shall be recorded in the minutes of the first meeting of directors of the amalgamated bank.
On the day provided for in the letters patent issued under section 229
maintain outside Canada any records or registers required by this Act to be maintained in Canada.
acquire and hold assets that a bank is not otherwise permitted by this Act to acquire or hold if one or more of the amalgamating bodies corporate were obliged, at the time the application for the letters patent was made, to acquire those assets; and
hold assets that a bank is not otherwise permitted by this Act to hold if the assets were held by one or more of the amalgamating bodies corporate at the time the application for the letters patent was made;
[Repealed, 1994, c. 47, s. 16]
continue to have issued and outstanding debt obligations the issue of which is not authorized by this Act if the debt obligations were outstanding at the time the application for the letters patent was made;
engage in a business activity specified in the order that a bank is not otherwise permitted by this Act to engage in and that one or more of the amalgamating bodies corporate was engaging in at the time application for the letters patent was made;
The Minister shall not grant to a bank any permission
Subject to subsection (4), the Minister may, by order on the recommendation of the Superintendent, renew a permission granted by order under subsection (1) with respect to any matter described in any of paragraphs (1)(b) to (e) for any further period or periods that the Minister considers necessary.
The permission granted under any of paragraphs (1)(a) to (f) shall be expressed to be granted for a period specified in the order not exceeding
Notwithstanding any other provision of this Act or the regulations, the Minister may, by order, on the recommendation of the Superintendent, grant to a bank in respect of which letters patent were issued under subsection 229(1) permission to
if the bank is a federal credit union and an undertaking to cease engaging in the activity has been given under subsection 973.02(1), the cessation date set out in the undertaking in respect of the activity;
if the activity is conducted under an agreement existing on the date of issue of the letters patent, the expiry of the agreement, or
with respect to any matter described in any of paragraphs (1)(d) to (f), two years.
with respect to any matter described in paragraph (1)(b), ten years; and
with respect to any matter described in paragraph (1)(a), 30 days after the date of issue of the letters patent or
with respect to matters described in paragraphs (1)(d) and (e), that purports to be effective more than ten years after the date of issue of the letters patent.
with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the date of the approval for the bank to commence and carry on business, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the bank that the bank will not be able at law to redeem at the end of the ten years the outstanding debt obligations to which the permission relates; and
Notwithstanding anything in this Act, the consideration for a sale referred to in subsection (1) may be cash or fully paid securities of the purchasing financial institution or authorized foreign bank or in part cash and in part fully paid securities of the purchasing financial institution or authorized foreign bank or any other consideration that is provided for in the sale agreement.
An agreement of purchase and sale (in subsection (3), section 233, subsections 234(1) and (4) and section 236 referred to as a “sale agreement”) shall set out the terms of, and means of effecting, the sale of assets referred to in subsection (1).
A bank may sell all or substantially all of its assets to a financial institution incorporated by or under an Act of Parliament or to an authorized foreign bank in respect of its business in Canada if the purchasing financial institution or authorized foreign bank assumes all or substantially all of the liabilities of the bank.
A sale agreement is approved when the shareholders and the holders of each class or series of shares entitled to vote separately as a class or series under subsection (3) of the selling bank have approved the sale by special resolution and, if the selling bank is a federal credit union, the members have also approved the sale by a separate special resolution.
The holders of shares of a class or series of shares of a selling bank are entitled to vote separately as a class or series in respect of a sale referred to in subsection 232(1) only if the shares of the class or series are affected by the sale in a manner different from the shares of another class or series.
Each share of a selling bank carries the right to vote in respect of a sale referred to in subsection 232(1) whether or not the share otherwise carries the right to vote.
The directors of a selling bank must submit a sale agreement for approval to a meeting of shareholders, or, if the bank is a federal credit union, to a meeting of members and shareholders of the bank and, subject to subsection (3), to the holders of each class or series of shares of the bank.
Where an application has been made to the Minister in accordance with subsections (1) and (2), the Minister may approve the sale agreement to which the application relates.
A sale agreement has no force or effect until it has been approved by the Minister.
No application for approval under subsection (1) may be made unless
Subject to subsection (2), unless a sale agreement is abandoned in accordance with section 235, the selling bank shall, within three months after the approval of the sale agreement in accordance with subsection 234(4), apply to the Minister for approval of the sale agreement.
the application is supported by satisfactory evidence that the selling bank has complied with the requirements of sections 232 to 235 and this section.
notice of intention to make such an application has been published at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of the selling bank is situated; and
A bank shall send to the Superintendent, within fifteen days after any change of address of its head office, a notice of the change of address.
The directors of a bank may change the address of the head office within the province specified in the incorporating instrument or by-laws.
A bank shall at all times have a head office in the province specified in its incorporating instrument or by-laws.
particulars from Schedule I or II that are applicable to the bank as they are from time to time amended and published in the Canada Gazette.
particulars of exceptions granted under section 39, 55 or 231 that are from time to time applicable to the bank; and
particulars of any authorizations, conditions and limitations established by the Superintendent pursuant to section 53 or subsection 54(1) that are from time to time applicable to the bank;
the information referred to in paragraphs 632(1)(a), (c) and (e) to (h) contained in all returns provided to the Superintendent pursuant to section 632;
minutes of meetings and resolutions of shareholders and members;
its incorporating instrument and the by-laws of the bank and all amendments thereto;
For the purposes of paragraph (1)(b) and subsection (2),
In addition to the records described in subsection (1), a bank shall prepare and maintain adequate
A bank shall prepare and maintain records containing
records showing, for each customer of the bank, on a daily basis, particulars of the transactions between the bank and that customer and the balance owing to or by the bank in respect of that customer and, if the bank is a federal credit union, whether the customer is a member of the federal credit union.
records containing minutes of meetings and resolutions of the directors and any committee thereof; and
corporate accounting records;
in the case of a body corporate amalgamated and continued as a bank under this Act, records includes similar records required by law to be maintained by the body corporate before it was so amalgamated.
in the case of a body corporate continued as a bank under this Act, records includes similar records required by law to be maintained by the body corporate before it was so continued; and
Every shareholder and every member of a bank is entitled, on request made not more frequently than once in each calendar year, to receive, free of charge, one copy of the by-laws of the bank.
A bank may make the information contained in records referred to in subsection 238(1) available to persons by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing the records in intelligible written form within a reasonable time.
Shareholders, members and creditors of a bank and their personal representatives may examine the records referred to in subsection 238(1) during the usual business hours of the bank and may take extracts from them free of charge or have copies of them made on payment of a reasonable fee. If the bank is a distributing bank, any other person may on payment of a reasonable fee examine those records during the usual business hours of the bank and take extracts from them or have copies of them made.
The records described in section 238, other than those described in paragraph 238(2)(c), shall at all reasonable times be open to inspection by the directors.
Subject to subsection 245(1.1), subsection (1) does not apply to a bank that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.
Subsection (1) does not apply in respect of records of a branch of the bank outside Canada or in respect of customers of such a branch.
Where any of the records described in section 238 are not kept at the head office of a bank, the bank shall notify the Superintendent of the place where the records are kept.
The records described in section 238 shall be kept at the head office of the bank or at such other place in Canada as the directors think fit.
A bank or its agent shall provide a supplemental list of shareholders required under subsection (5)
A person requiring a bank to supply a basic list may, if the person states in the accompanying affidavit that supplemental lists are required, request the bank or its agent, on payment of a reasonable fee, to provide supplemental lists of shareholders or members setting out any changes from the basic list in the names and addresses of the shareholders or members, as the case may be, and the number of shares owned by each shareholder, or the number of membership shares owned by each member, as the case may be, for each business day following the date to which the basic list is made up.
A basic list of shareholders or members of a bank consists of a list of shareholders or members that is made up to a date not more than ten days before the receipt of the affidavit referred to in subsection (2) and that sets out
A shareholder, member or creditor of a bank or their personal representative — or, if the bank is a distributing bank, any person — is entitled to a basic list of shareholders or members of the bank.
A request under subsection (1) must be accompanied by an affidavit containing
A person who is entitled to a basic list of shareholders or members of a bank (in this section referred to as the “applicant”) may request the bank to furnish the applicant with a basic list within ten days after receipt by the bank of the affidavit referred to in subsection (2) and, on payment of a reasonable fee by the applicant, the bank must comply with the request.
an undertaking that the basic list and any supplemental lists obtained pursuant to subsections (5) and (6) will not be used except as permitted under section 242,
the name and address for service of the entity, if the applicant is an entity, and
the name and address of the applicant,
the address of each shareholder or member as shown in the records of the bank.
the number of shares owned by each shareholder, or the number of membership shares owned by each member, as the case may be; and
the names of the shareholders or members, as the case may be, of the bank;
within ten days following the day to which the supplemental list relates, where the information relates to changes that took place on or after the date the basic list was provided.
within ten days following the date the basic list is provided, where the information relates to changes that took place prior to that date; and
any other matter relating to the affairs of the bank.
an offer to acquire shares of the bank; or
an effort to influence the voting of shareholders or members of the bank;
may be entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.
may be in a bound or loose-leaf form or in a photographic film form; or
Notwithstanding section 246, a bank may destroy any register or other record referred to in subsection (1) at any time after the register or other record has been converted to another form.
Registers and records maintained in one form may be converted to any other form.
A register or other record required or authorized by this Act to be prepared and maintained by a bank
ensure that unauthorized persons do not have access to or use of information in
facilitate detection and correction of inaccuracies in, and
prevent falsification of entries in,
prevent loss or destruction of,
A bank shall without delay comply with any order issued under subsection (1) or (1.1).
Where a bank referred to in subsection 239(3.1) or 251(3) maintains records referred to in section 238 or the central securities register at a place outside Canada, the Superintendent may, in the case referred to in paragraph (a), and must, in the case referred to in paragraph (b), by order, direct the bank to maintain a copy of those records or register at any place in Canada as the directors think fit
If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for a bank to maintain, in another country, copies of records referred to in section 238 or of its central securities register or members register or for a bank to process, in another country, information or data relating to the preparation and maintenance of those records or of its central securities register or members register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for a bank to do any of those activities in another country — the Superintendent must direct the bank to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada.
if the Superintendent is advised by the Minister that the Minister is of the opinion that it is not in the national interest for the bank not to maintain a copy of those records or register at any place in Canada.
if the Superintendent is of the opinion that he or she does not have immediate, direct, complete and ongoing access to those records or register; or
the members register referred to in subsection 254.1(1).
the central securities register referred to in subsection 248(1); and
any record of the bank referred to in paragraph 238(2)(a) or (b);
the records of the bank referred to in subsection 238(1);
Nothing in this section affects the operation of any statute of limitation or prescription or relieves the bank from any obligation to the Bank of Canada in respect of any deposit or instrument in respect of which section 438 applies.
Copies of the signature cards and signing authorities referred to in subsection (2) may be kept in any manner or form referred to in paragraphs 243(1)(a) and (b) and any such copies, or prints therefrom, are admissible in evidence in the same manner and to the same extent as the original signature cards and signing authorities.
A bank shall retain all signature cards and signing authorities or copies thereof relating to any deposit or instrument in respect of which the bank has paid an amount to the Bank of Canada pursuant to section 438 until the Bank of Canada notifies the bank that they need no longer be retained.
A bank shall retain
the date and particulars of the issue and transfer of each security.
the number of securities held by each security holder; and
the names, alphabetically arranged, and latest known addresses of the persons who are security holders, and the names and latest known addresses of the persons who have been security holders;
A bank or its agent shall provide the supplementary information within
A person who wishes to examine a central securities register, take extracts from it or have copies of it made may on payment of a reasonable fee, if they state in the accompanying affidavit that supplementary information is required, request the bank or its agent to provide supplementary information setting out any changes made to the register.
A person who wishes to examine the central securities register, take extracts from it or have copies of it made shall provide the bank with an affidavit containing their name and address — or if they are an entity, the name and address for service of the entity — and with an undertaking that the information contained in the register will not be used except in the same way as a list of shareholders may be used under section 242. In the case of an entity, the affidavit is to be sworn by a director or officer of the entity or a person acting in a similar capacity.
The bank may make the information contained in the central securities register available by any mechanical or electronic data processing system or other information storage device that is capable of reproducing it in intelligible written form within a reasonable time.
Shareholders and creditors of a bank and their personal representatives — and, if the bank is a federal credit union, its members and their personal representatives — may examine the central securities register during the usual business hours of the bank and may take extracts from it free of charge or have copies of it made on payment of a reasonable fee. If the bank is a distributing bank, any other person may, on payment of a reasonable fee, examine the central securities register during the usual business hours of the bank and take extracts from it or have copies of it made.
For the purposes of subsection (1), “central securities register” includes similar registers required by law to be maintained by a bank that was in existence immediately prior to the day that subsection comes into force or by a body corporate continued, or amalgamated and continued, as a bank under this Act before the continuance, amalgamation or coming into force of that subsection, as the case may be.
A bank shall maintain a central securities register in which it shall record the securities, within the meaning of section 81, issued by it in registered form, showing in respect of each class or series of securities
10 days after the day to which the supplementary information relates if the changes take place on or after the day on which the central securities register is examined.
10 days after the day on which the central securities register is examined if the changes take place before that day; and
Subject to subsection 245(1.1), subsection (1) does not apply to a bank that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.
A branch securities register of a bank may be kept at any place in or outside Canada designated by the directors of the bank.
The central securities register of a bank shall be maintained by the bank at its head office or at any other place in Canada designated by the directors of the bank.
Particulars of each issue or transfer of a security registered in a branch securities register of a bank shall also be kept in the central securities register of the bank.
A branch securities register shall only contain particulars of the securities issued or transferred at the branch for which that register is established.
A federal credit union, its agent or a trustee within the meaning of section 294 is not required to produce a cancelled membership share certificate in registered form after six years from the day on which it is cancelled.
A federal credit union may appoint an agent to maintain its members register and each of its branch members registers.
A federal credit union may establish as many branch members registers as it considers necessary.
an instrument referred to in subsection 69(1) or a like instrument, irrespective of its form, after the date of its expiration.
a cancelled security certificate in bearer form or an instrument referred to in subsection 69(1) that is cancelled or a like cancelled instrument in bearer form after the date of its cancellation; or
a cancelled security certificate in registered form or an instrument referred to in subsection 69(1) that is cancelled or a like cancelled instrument in registered form after six years from the date of its cancellation;
the date and particulars of the issue and transfer of each membership share.
the number of membership shares held by each member; and
the names, alphabetically arranged, and latest known addresses of the members and former members of the federal credit union;
A federal credit union or its agent must provide the supplementary information within
A person who wishes to examine a members register, take extracts from it or have copies of it made may, on payment of a reasonable fee, if they state in the accompanying affidavit that supplementary information is required, request the federal credit union or its agent to provide supplementary information setting out any changes made to the register.
A person who wishes to examine the members register, take extracts from it or have copies of it made must provide the federal credit union with an affidavit containing their name and address — or, if they are an entity, the name and address for service of the entity — and an undertaking that the information contained in the register will not be used except in the same way as a list of shareholders or members may be used under section 242. In the case of an entity, the affidavit is to be sworn by a director or officer of the entity or a person acting in a similar capacity.
The federal credit union may make the information contained in the members register available by any mechanical or electronic data processing system or other information storage device that is capable of reproducing it in intelligible written form within a reasonable time.
Members, shareholders and creditors of a federal credit union, and their personal representatives, may examine the members register during the usual business hours of the federal credit union and may take extracts from it free of charge or have copies of it made on payment of a reasonable fee. If the federal credit union is a distributing bank, any other person may, on payment of a reasonable fee, examine the members register during the usual business hours of the bank and take extracts from it or have copies of it made.
For the purposes of subsection (1), “members register” includes similar registers required by law to be maintained by a body corporate that was continued, or amalgamated and continued, as a federal credit union before the continuance or amalgamation and continuance.
A federal credit union must maintain a members register in which it must record
10 days after the day to which the supplementary information relates if the changes take place on or after the day on which the members register is examined.
10 days after the day on which the members register is examined if the changes take place before that day; and
A branch members register of a federal credit union may be kept at any place in or outside Canada designated by the directors of the federal credit union.
The members register of a federal credit union is to be maintained by the federal credit union at its head office or at any other place in Canada designated by the federal credit union’s directors.
Particulars of each issue or transfer of a membership share registered in a branch members register of a federal credit union must also be kept in the members register of the federal credit union.
A branch members register must contain only particulars of the membership shares issued or transferred at the branch for which that register is established.
A document executed on behalf of a bank is not invalid merely because a corporate seal is not affixed to it.
A bank may adopt a corporate seal and change one that it adopted.
put means an option, transferable by delivery, to deliver a specified number or amount of shares at a fixed price within a specified time; (option de vente)
officer, in relation to a bank, means
insider[Repealed, 2005, c. 54, s. 55]
distributing bank[Repealed, 2005, c. 54, s. 55]
call means an option, transferable by delivery, to demand delivery of a specified number or amount of shares at a fixed price within a specified time but does not include an option or right to acquire shares of the body corporate that granted the option or right to acquire; (option d’achat)
business combination means an acquisition of all or substantially all of the assets of one body corporate by another, an amalgamation of two or more bodies corporate or any similar reorganization between two or more bodies corporate; (regroupement d’entreprises)
affiliate means a body corporate that is affiliated with another body corporate within the meaning of subsection 6(2); (groupe)
any natural person who performs functions for the bank similar to those performed by a person referred to in paragraph (a) of the definition officer in section 2; (dirigeant d’une banque)
an officer as defined in paragraph (a) of the definition officer in section 2, or
[Repealed, 2005, c. 54, s. 55]
For the purposes of this section and sections 266 to 272, a person controls a body corporate when the person controls the body corporate within the meaning of section 3, determined without regard to paragraph 3(1)(d).
In this section and sections 266 to 272,
[Repealed, 2005, c. 54, s. 56]
respecting the submission or publication of an insider report.
respecting the form and content of an insider report; and
defining insider for the purposes of sections 266 and 267;
a person employed or retained by the bank.
a director or officer of a body corporate that enters into a business combination with the bank; or
a director or officer of a subsidiary of the bank;
a director or officer of the bank;
No insider may knowingly, directly or indirectly, buy or sell a call or put in respect of a security of a bank or of any of the bank’s affiliates.
Despite subsection (2), an insider may sell a security that they do not own if they own another security that is convertible into the security that was sold or they own an option or right to acquire the security that was sold, and if within 10 days after the sale they
No insider may knowingly sell, directly or indirectly, a security of a distributing bank or of any of the distributing bank’s affiliates if the insider does not own or has not fully paid for the security.
In this section, insider means with respect to a distributing bank
transfer the convertible security, option or right to the purchaser.
exercise the conversion privilege, option or right and deliver the security so acquired to the purchaser; or
a prescribed person.
a person who receives material confidential information from a person who is and who they know or ought reasonably to have known is a person described in this subsection, including in this paragraph, or subsection (3) or (4); or
a person who received material confidential information concerning the bank while they were a person described in any of paragraphs (a) to (f);
a person who engages in or proposes to engage in any business or professional activity with or on behalf of the bank;
a person, other than a person described in paragraph (f), who is employed or retained by the bank or by a person described in paragraph (f);
a person who beneficially owns directly or indirectly, or who exercises control or direction over or has a combination of ownership, control and direction in respect of, shares of the bank carrying more than the prescribed percentage of the voting rights attached to all of the bank’s outstanding shares not including shares held by the person as underwriter while those shares are in the course of a distribution to the public;
a director or officer of the bank or of any person described in paragraph (b), (d) or (f);
an affiliate of the bank;
the bank;
The insider is accountable to the bank for any benefit or advantage received or receivable by the insider as a result of a purchase or sale described in subsection (6) unless they establish the circumstances described in paragraph (6)(a).
An insider of a bank who purchases or sells a security of the bank with knowledge of confidential information that if it were generally known might reasonably be expected to materially affect the value of any of the securities of the bank is liable to compensate the seller or purchaser of the security, as the case may be, for any loss suffered by them as a result of the purchase or sale unless the insider establishes that
In subsection (4), associate means with respect to a person
An insider of a person referred to in subsection (3), or the person’s affiliate or associate, is an insider of the bank referred to in that subsection. Paragraphs (1)(b) to (i) apply in making this determination except that references to “bank” are to be read as references to “person described in subsection (3)”.
For the purposes of this section and subsection 271.1(1), a person who proposes to make a take-over bid as defined in the regulations for securities of a bank or to enter into a business combination with a bank is an insider of the bank with respect to material confidential information obtained from the bank.
For the purposes of this section, each of the following is deemed to be a security of a bank:
In addition to subsection (1), in this section and sections 271.1 and 272, insider with respect to a bank that is a federal credit union means a member of the federal credit union who holds more than the prescribed percentage of the membership shares of the federal credit union.
In this section and sections 271.1 and 272, insider with respect to a bank means
a security of another entity, the market price of which varies materially with the market price of the securities of the bank.
a put, call, option or other right or obligation to purchase or sell a security of the bank; and
a membership share of the bank, if the bank is a federal credit union;
if that relative has the same residence as the person, a relative of the person or of their spouse or common-law partner.
a child of the person or of their spouse or common-law partner; or
a spouse or common-law partner of the person;
a trust or estate in which the person has a substantial beneficial interest or in respect of which they serve as a trustee or a liquidator of the succession or in a similar capacity;
a partner of the person acting on behalf of the partnership of which they are partners;
a body corporate that the person directly or indirectly controls, determined without regard to paragraph 3(1)(d), or of which they beneficially own shares or securities currently convertible into shares carrying more than 10% of the voting rights under all circumstances or by reason of the occurrence of an event that has occurred and is continuing or a currently exercisable option or right to purchase the shares or convertible securities;
the purchase or sale of the security took place in the prescribed circumstances.
the information was known or ought reasonably to have been known by the seller or purchaser; or
the insider reasonably believed that the information had been generally disclosed;
if the insider is a person described in subsection 271(3) or (4), the disclosure of the information was necessary to effect the take-over bid or business combination.
if the insider is not a person described in subsection 271(3) or (4), the disclosure of the information was necessary in the course of their business; or
the information was known or ought reasonably to have been known by the person who alleges that they suffered the loss;
the insider reasonably believed that the information had been generally disclosed;
The insider is accountable to the bank for any benefit or advantage received or receivable by them as a result of a disclosure of information as described in subsection (1) unless they establish the circumstances described in paragraph (1)(a), (c) or (d).
An insider of a bank who discloses confidential information with respect to the bank that has not been generally disclosed and that if it were generally known might reasonably be expected to materially affect the value of any of the securities of the bank is liable to compensate any person who subsequently sells securities of the bank to or purchases them from any person who received the information unless the insider establishes that
if the plaintiff is a seller, the average market price of the security over the 20 trading days immediately following general disclosure of the information, less the price that they received for the security.
if the plaintiff is a purchaser, the price that they paid for the security less the average market price of the security over the 20 trading days immediately following general disclosure of the information; and
An action to enforce a right created by subsection 271(6) or (7) or section 271.1 may be commenced only within two years after discovery of the facts that gave rise to the cause of action.
If more than one insider is liable under subsection 271(6) or 271.1(1) with respect to the same transaction or series of transactions, their liability is joint and several, or solidary.
The court may assess damages under subsection 271(6) or 271.1(1) in accordance with any measure of damages that it considers relevant in the circumstances. However, in assessing damages in respect of a security of a distributing bank, the court shall consider the following:
The Governor in Council may make regulations respecting the distribution of securities of a bank that is not a federal credit union, including
No person, including a bank, shall distribute securities of a bank that is not a federal credit union except in accordance with the regulations made under subsection (2).
exempting any class of distribution of securities from the application of subsection (1).
respecting the manner of disclosure and the form of the information that is to be disclosed; and
respecting the information that is to be disclosed by such a bank before the distribution of any of its securities, including the information that is to be included in a prospectus;
The Governor in Council may make regulations respecting the distribution of securities of a federal credit union, including
No person, including a bank, shall distribute securities of a federal credit union except in accordance with the regulations made under subsection (2).
exempting any class of distribution of securities from the application of subsection (1).
respecting the manner of disclosure and the form of the information that is to be disclosed; and
respecting the information that is to be disclosed by a federal credit union before the distribution of any of its securities, including the information that is to be included in a prospectus;
An order under subsection (1) may contain any conditions or limitations that the Superintendent deems appropriate.
On application by a bank or any person proposing to make a distribution, the Superintendent may, by order, exempt that distribution from the application of any regulations made under subsection 273(2) or 273.1(2) if the Superintendent is satisfied that the bank or federal credit union, as the case may be, has disclosed or is about to disclose, in compliance with the laws of the relevant jurisdiction, information relating to the distribution that in form and content substantially complies with the requirements of those regulations.
holders of shares that following the squeeze-out transaction would be entitled to consideration of greater value or to superior rights or privileges than those available to other holders of shares of the same class.
affiliates of the bank; and
A bank may not make a payment to a dissenting shareholder under this section if there are reasonable grounds for believing that the bank is or the payment would cause the bank to be in contravention of a regulation referred to in subsection 485(1) or (2) or of an order made under subsection 485(3).
If subsection (25) applies, a dissenting shareholder may by written notice delivered to the bank within 30 days after receiving notice under subsection (23)
If subsection (25) applies, the bank shall within 10 days after an order is made under subsection (21) notify each dissenting shareholder that it is unable to lawfully pay dissenting shareholders for their shares.
The court may allow a reasonable rate of interest on the amount payable to each dissenting shareholder from the date the action approved by the resolution from which the shareholder dissents becomes effective until the date of payment.
The final order of the court is to be rendered against the bank in favour of each dissenting shareholder for the value of the shares as fixed by the court.
The court may appoint one or more appraisers to assist the court to fix a fair value for the shares of the dissenting shareholders.
On an application to a court under subsection (14) or (15), the court may determine whether any other person is a dissenting shareholder and is to be joined as a party and the court shall then fix a fair value for the shares of all dissenting shareholders.
On an application to a court under subsection (14) or (15),
A dissenting shareholder is not required to give security for costs in an application made under subsection (14) or (15).
An application under subsection (14) or (15) is to be made to a court having jurisdiction where the bank’s head office is situated or, if the bank carries on business in the province in which the dissenting shareholder resides, in that province.
If a bank fails to apply to a court under subsection (14), a dissenting shareholder may apply to a court for the same purpose within a further period of 20 days or within any further period that the court may allow.
If a bank fails to make an offer under subsection (11) or if a dissenting shareholder fails to accept an offer, the bank may, within 50 days after the day on which the action approved by the resolution from which the shareholder dissents becomes effective or within any further period that a court may allow, apply to the court to fix a fair value for the shares of any dissenting shareholder.
Subject to subsection (25), a bank shall pay for the shares of a dissenting shareholder within 10 days after the day on which an offer made under subsection (11) is accepted, but the offer lapses if the bank does not receive an acceptance within 30 days after the day on which the offer is made.
Every offer made under subsection (11) for shares of the same class or series is to be on the same terms.
A bank shall, no later than seven days after the later of the day on which the action approved by the resolution from which the shareholder dissents becomes effective and the day on which the bank received the notice referred to in subsection (6), send to each dissenting shareholder who sent a notice
On sending a notice under subsection (6), a dissenting shareholder ceases to have any rights as a shareholder other than to be paid the fair value of their shares as determined under this section. However, the shareholder’s rights are reinstated as of the date the notice was sent if
A bank or its transfer agent shall endorse on any share certificate received in accordance with subsection (7) a notice that the holder is a dissenting shareholder under this section and shall without delay return the share certificates to the dissenting shareholder.
A dissenting shareholder who fails to comply with subsection (7) has no right to make a claim under this section.
A dissenting shareholder shall within 30 days after sending a notice under subsection (6) send the certificates representing the shares in respect of which they dissent to the bank or its transfer agent.
A dissenting shareholder shall within 20 days after receiving the notice referred to in subsection (5) — or, if they do not receive it, within 20 days after learning that the resolution was adopted by the shareholders — send to the bank a written notice containing
The bank shall within 10 days after the day on which the shareholders adopt the resolution send to each shareholder who sent an objection under subsection (4) notice that the resolution was adopted. If it is necessary for the Minister or Superintendent to approve the transaction within the meaning of subsection 973(1) before it becomes effective, the bank shall send notice within 10 days after the approval. Notice is not required to be sent to a shareholder who voted for the resolution or one who has withdrawn their objection.
A dissenting shareholder shall send to the bank, at or before any meeting of shareholders at which a resolution referred to in subsection (2) is to be voted on by the shareholders, a written objection to the resolution unless the bank did not give notice to the shareholder of the purpose of the meeting and their right to dissent.
A dissenting shareholder may claim under this section only with respect to all of the shares of a class held on behalf of any one beneficial owner and registered in the name of the dissenting shareholder.
In addition to any other right that the shareholder may have, but subject to subsection (25), a shareholder who complies with this section is, when the action approved by the resolution from which the shareholder dissents becomes effective, entitled to be paid by the bank the fair value of the shares in respect of which the shareholder dissents, determined as of the close of business on the day before the resolution was adopted by the shareholders.
A holder of shares of a bank may dissent if the bank resolves to carry out a going-private transaction or squeeze-out transaction that affects those shares.
a demand for payment of the fair value of those shares.
the number and class of shares in respect of which they dissent; and
their name and address;
the directors revoke under section 220 the special resolution that was made in respect of the going-private transaction or squeeze-out transaction.
the bank fails to make an offer in accordance with subsection (11) and the shareholder withdraws the notice; or
the shareholder withdraws the notice before the bank makes an offer under subsection (11);
if subsection (25) applies, a notice that it is unable to lawfully pay dissenting shareholders for their shares.
a written offer to pay for their shares in an amount considered by the directors of the bank to be the fair value, accompanied by a statement showing how the fair value was determined; or
the bank shall notify the Superintendent of the date and place of the application and the Superintendent may appear and be heard in person or by counsel.
the bank shall notify each of them of the date, place and consequences of the application and their right to appear and be heard in person or by counsel; and
all dissenting shareholders whose shares have not been purchased by the bank are to be joined as parties and are bound by the decision of the court;
retain their status as a claimant against the bank, to be paid as soon as the bank is able to lawfully pay them or, in a liquidation, to be ranked subordinate to the rights of the bank’s creditors but in priority to its shareholders.
withdraw their notice of dissent, in which case the bank is deemed to consent to the withdrawal and the shareholder is reinstated to their full rights as a shareholder; or
take-over bid means an offer made by an offeror at approximately the same time to all of the shareholders of a distributing bank to acquire all of the shares of a class of issued shares, and includes an offer by a distributing bank to repurchase all of the shares of a class. (offre d’achat visant à la mainmise)
offeror means a person, other than an agent, who makes a take-over bid, and includes two or more persons who, directly or indirectly,
offeree bank means a bank the shares of which are the object of a take-over bid; (banque pollicitée)
offeree means a person to whom a take-over bid is made; (pollicité)
exempt offer[Repealed, 2005, c. 54, s. 58]
dissenting offeree means a holder of a share who does not accept a take-over bid or a subsequent holder of the share who acquires it from the first-mentioned holder; (pollicité opposant)
associate of the offeror means
affiliate means a body corporate that is affiliated with another body corporate within the meaning of subsection 6(2); (groupe)
a relative of the offeror or of the offeror’s spouse or common-law partner, if that relative has the same residence as the offeror; (associé du pollicitant)
a child of the offeror or of the offeror’s spouse or common-law partner, or
a spouse or common-law partner of the offeror,
a trust or estate in which the offeror has a substantial beneficial interest or in respect of which they serve as a trustee or a liquidator of the succession or in a similar capacity,
a partner of the offeror acting on behalf of the partnership of which they are partners,
a body corporate that an offeror, directly or indirectly, controls, determined without regard to paragraph 3(1)(d), or of which an offeror beneficially owns shares or securities currently convertible into shares carrying more than 10 per cent of the voting rights under all circumstances or by reason of the occurrence of an event that has occurred and is continuing, or a currently exercisable option or right to purchase the shares or the convertible securities,
intend to exercise jointly or in concert voting rights attached to shares for which a take-over bid is made; (pollicitant)
make take-over bids jointly or in concert, or
A take-over bid is deemed to be dated as of the date on which it is sent.
For the purposes of this section and sections 284 to 293, a person controls a body corporate when the person controls the body corporate within the meaning of section 3, determined without regard to paragraph 3(1)(d).
In this section and sections 284 to 293,
a dissenting offeree must send the dissenting offeree’s shares to which the take-over bid relates to the offeree bank within twenty days after the dissenting offeree receives the offeror’s notice.
a dissenting offeree who does not notify the offeror in accordance with paragraph 286(b) is deemed to have elected to transfer the shares to the offeror on the same terms on which the offeror acquired the shares from the offerees who accepted the take-over bid; and
a dissenting offeree is required to elect
the offeror is bound to take up and pay for or has taken up and paid for the shares of the offerees who accepted the take-over bid;
offerees holding not less than 90 per cent of the shares of any class of shares to which the take-over bid relates, other than shares held at the date of the take-over bid by or on behalf of the offeror or an affiliate or associate of the offeror, have accepted the take-over bid;
to demand payment of the fair value of the dissenting offeree’s shares in accordance with sections 289 to 292 by notifying the offeror within twenty days after receipt of the offeror’s notice;
to transfer the dissenting offeree’s shares to the offeror on the same terms on which the offeror acquired the shares from the offerees who accepted the take-over bid, or
Concurrently with sending the offeror’s notice under subsection (1), the offeror shall send to the offeree bank a notice of adverse claim in accordance with subsection 129(1) with respect to each share held by a dissenting offeree.
An offeror may acquire shares held by a dissenting offeree by sending by registered mail within sixty days after the date of termination of the take-over bid and in any event within one hundred and eighty days after the date of the take-over bid, an offeror’s notice to each dissenting offeree and to the Superintendent stating that
A dissenting offeree who does not notify the offeror in accordance with paragraph 286(b) is deemed to have elected to transfer the shares to the offeror on the same terms as those on which the offeror acquired shares from the offerees who accepted the take-over bid.
elect to transfer the shares to the offeror on the same terms as those on which the offeror acquired shares from the offerees who accepted the take-over bid or to demand payment of the fair value of the shares in accordance with sections 289 to 292 by notifying the offeror.
send to the offeree bank the share certificates representing the shares to which the take-over bid relates; and
A bank that is making a take-over bid to repurchase all of the shares of a class is deemed to hold in a fiduciary capacity for the dissenting shareholders the money that it would have had to pay, and the other consideration that it would have had to transfer, to a dissenting offeree if the dissenting offeree had elected to transfer their shares in accordance with paragraph 286(b). The bank shall within 20 days after a notice is sent under subsection 285(1) deposit the money in a separate account in another deposit-taking financial institution in Canada and place any other consideration in the custody of another deposit-taking financial institution in Canada.
An offeree bank shall deposit the money received under subsection (1) in a separate account in another deposit-taking financial institution in Canada and the offeree bank shall place any other consideration in the custody of another deposit-taking financial institution in Canada.
An offeree bank is deemed to hold in a fiduciary capacity for the dissenting offerees the money or other consideration it receives under subsection (1).
Within 20 days after the offeror sends a notice under subsection 285(1), the offeror shall pay the money, or transfer the other consideration, to the offeree bank that the offeror would have had to pay or transfer to a dissenting offeree if the dissenting offeree had elected to transfer their shares in accordance with paragraph 286(b).
if the payment or transfer required by subsection 287(1) is made and the money or other consideration is deposited as required by subsections 287(2) and (3) or by section 287.1, send to each dissenting offeree who has not sent share certificates as required under paragraph 286(a) a notice stating that
give to each dissenting offeree who elects to transfer shares under paragraph 286(b) and who sends the share certificates as required under paragraph 286(a) the money or other consideration to which they are entitled, disregarding fractional shares, which may be paid for in money; and
if the payment or transfer required by subsection 287(1) is made, issue to the offeror a share certificate in respect of the shares that were held by the dissenting offerees;
the offeree bank will, subject to sections 289 to 292, send that money or other consideration to that offeree without delay after receiving the share certificates.
the offeree bank or its designated person holds in a fiduciary capacity for that offeree the money or other consideration to which they are entitled as payment for or in exchange for the shares, and
their shares have been cancelled,
A dissenting offeree is not required to give security for costs in an application made under subsection (1) or (2).
An application under subsection (1) or (2) shall be made to a court having jurisdiction in the place at which the head office of the bank is situated or in the province in which the dissenting offeree resides if the bank carries on business in that province.
If an offeror fails to apply to a court under subsection (1), a dissenting offeree may apply to a court for the same purpose within a further period of twenty days.
If a dissenting offeree has elected to demand payment of the fair value of their shares under paragraph 286(b), the offeror may, within 20 days after it has paid the money or transferred the other consideration under subsection 287(1), apply to a court to fix the fair value of the shares of that dissenting offeree.
the offeror shall notify each affected dissenting offeree of the date, place and consequences of the application and of the dissenting offeree’s right to appear and be heard in person or by counsel at the hearing of the application.
all dissenting offerees who have made elections to demand payment under paragraph 286(b) and whose shares have not been acquired by the offeror shall be joined as parties and are bound by the decision of the court; and
In connection with proceedings under subsection 289(1) or (2), a court may make any order it thinks fit and, without limiting the generality of the foregoing, may
The final order of a court shall be made against the offeror in favour of each dissenting offeree and for the amount for each dissenting offeree’s shares as fixed by the court.
A court may in its discretion appoint one or more appraisers to assist the court in fixing a fair value for the shares of a dissenting offeree.
On an application to a court under subsection 289(1) or (2), the court may determine whether any other person is a dissenting offeree who should be joined as a party, and the court shall then fix a fair value for the shares of all dissenting offerees.
order that any money payable to a shareholder who cannot be found is to be paid to the Minister.
allow a reasonable rate of interest on the amount payable to each dissenting offeree from the date the dissenting offeree sends the share certificates required under section 286 until the date of payment; or
order that the money or other consideration is to be held in trust by a person other than the offeree bank;
fix the amount of money or other consideration that is deemed to be held in a fiduciary capacity under subsection 287(2) or section 287.1;
if the shareholder did not receive an offer under the take-over bid, within 90 days after the later of
within 90 days after the date of termination of the take-over bid; or
the day on which the shareholder learned of the take-over bid.
the date of termination of the take-over bid, and
If the shareholder requires the offeror to acquire shares, the offeror shall acquire them on the same terms as those on which the offeror acquires shares from offerees who accept the take-over bid.
If a shareholder who holds shares of an offeree bank does not receive the notice referred to in subsection 285(1), the shareholder may require the offeror to acquire the shares
trustee means any person appointed as trustee under the terms of a trust indenture to which a bank is a party, and includes any successor trustee; (fiduciaire)
trust indenture means any deed, indenture or other instrument, including any supplement or amendment thereto, made by a bank under which the bank issues subordinated indebtedness and in which a person is appointed as trustee for the holders of the subordinated indebtedness issued thereunder. (acte de fiducie)
issuer means a bank that has issued, is about to issue or is in the process of issuing subordinated indebtedness; (émetteur)
event of default means, in relation to a trust indenture, an event specified in the trust indenture on the occurrence of which the principal, interest and other moneys payable thereunder become or may be declared to be payable before maturity, but the event is not an event of default until all the conditions set out in the trust indenture in connection with the giving of notice of the event have been satisfied or the period of time for giving the notice has elapsed; (cas de défaut)
A trustee shall, within ninety days after the trustee becomes aware that a material conflict of interest exists,
No person shall be appointed as trustee if at the time of the appointment there is a material conflict of interest between the person’s role as trustee and any other role of the person.
resign from office.
eliminate the conflict of interest; or
a body corporate that is incorporated by or under an Act of the legislature of a province and authorized to carry on business as a trustee.
a trust company pursuant to subsection 57(2) of the Trust and Loan Companies Act; or
the aggregate principal amount of subordinated indebtedness outstanding
the principal amount of outstanding subordinated indebtedness owned by each such holder, and
the names and addresses of the registered holders of the outstanding subordinated indebtedness,
No person shall use a list obtained under this section except in connection with
The statutory declaration required under subsection (1) must state
Where the person requiring the trustee to provide a list under subsection (1) is an entity, the statutory declaration required under that subsection shall be made by a director or an officer of the entity or a person acting in a similar capacity.
On the demand of a trustee, the issuer of subordinated indebtedness shall provide the trustee with the information required to enable the trustee to comply with subsection (1).
A holder of subordinated indebtedness issued under a trust indenture may, on payment to the trustee of a reasonable fee and on delivery of a statutory declaration to the trustee, require the trustee to provide, within fifteen days after the delivery to the trustee of the statutory declaration, a list setting out
that the list will not be used except as permitted by subsection (5).
the name and address of the person requiring the trustee to provide the list and, if the person is an entity, the address for service thereof; and
any other matter relating to the subordinated indebtedness or the affairs of the issuer or guarantor thereof.
an offer to acquire subordinated indebtedness; or
an effort to influence the voting of the holders of subordinated indebtedness;
the satisfaction and discharge of the trust indenture,
the issue, certification and delivery of subordinated indebtedness under the trust indenture, or
The evidence of compliance referred to in subsection (3) shall include a statement by the person giving the evidence
The following documents constitute evidence of compliance for the purposes of subsections (1) and (2):
On the demand of a trustee, the issuer or guarantor of subordinated indebtedness issued or to be issued under a trust indenture shall provide the trustee with evidence of compliance with the conditions in the trust indenture by the issuer or guarantor in respect of any act to be done by the trustee at the request of the issuer or guarantor.
An issuer or a guarantor of subordinated indebtedness issued or to be issued under a trust indenture shall, before undertaking
an opinion or report of the auditors of the issuer or guarantor, or such other accountant as the trustee selects, that the conditions of the trust indenture have been complied with, if the trust indenture requires compliance with conditions that are subject to review by auditors.
an opinion of legal counsel that the conditions of the trust indenture requiring review by legal counsel have been complied with, if the trust indenture requires compliance with conditions that are subject to review by legal counsel; and
a statutory declaration or certificate made by a director or an officer of the issuer or guarantor stating that the conditions referred to in subsections (1) and (2) have been complied with;
declaring that the person has made such examination or investigation as the person believes necessary to enable the statements to be made or the opinions contained or expressed therein to be given.
describing the nature and scope of the examination or investigation on which the person based the certificate, statement or opinion; and
declaring that the person has read and understands the conditions of the trust indenture referred to in subsections (1) and (2);
At least once in each twelve month period beginning on the date of the trust indenture and at any other time on the demand of a trustee, the issuer or guarantor of subordinated indebtedness issued under a trust indenture shall provide the trustee with a certificate stating that the issuer or guarantor has complied with all requirements contained in the trust indenture that, if not complied with, would, with the giving of notice, lapse of time or otherwise, constitute an event of default, or, if there has been failure to so comply, giving particulars thereof.
On the request of a trustee, the issuer or guarantor of subordinated indebtedness issued under a trust indenture shall provide the trustee with evidence in such form as the trustee requires of compliance with any condition thereof relating to any action required or permitted to be taken by the issuer or guarantor under the trust indenture.
exercise the care, diligence and skill of a reasonably prudent trustee.
act honestly and in good faith with a view to the best interests of the holders of the subordinated indebtedness issued under the trust indenture; and
Notwithstanding subsection (1), a trustee is not liable if the trustee relies in good faith on statements contained in a statutory declaration, certificate, opinion or report that complies with this Act or the trust indenture.
In exercising a trustee’s powers and discharging a trustee’s duties, the trustee shall
Despite subsection (1), the financial year of a bank named in Schedule I as that Schedule read immediately before the day section 184 of the Financial Consumer Agency of Canada Act comes into force ends on the expiration of the thirty-first day of October in each year unless the bank elects in its by-laws to have its financial year end on the thirty-first day of December in each year.
If a bank, after the first day of July in any year, obtains an order approving the commencement and carrying on of business, the first financial year of the bank ends, at the election of the bank in its by-laws, on the expiration of the thirty-first day of October or the thirty-first day of December in the next calendar year.
The financial year of a bank ends, at the election of the bank in its by-laws, on the expiration of the thirty-first day of October or the thirty-first day of December in each year.
the financial year, if any, immediately preceding the financial year referred to in subparagraph (i);
the financial year immediately preceding the meeting, and
any further information respecting the financial position of the bank and the results of its operations required by the by-laws of the bank to be placed before the shareholders or members at the annual meeting.
the report of the auditor or auditors of the bank; and
a comparative annual financial statement (in this Act referred to as an “annual statement”) relating separately to
The Governor in Council may make regulations respecting subsidiaries that are not required to be listed for the purposes of paragraph (3)(a).
The financial statements referred to in subsection (1), paragraph (3)(b) and subsection 310(1) shall, except as otherwise specified by the Superintendent, be prepared in accordance with generally accepted accounting principles, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada. A reference in any provision of this Act to the accounting principles referred to in this subsection shall be construed as a reference to those generally accepted accounting principles with any specifications so made.
A bank shall include with its annual statement
With respect to each of the financial years to which it relates, the annual statement of a bank must contain the prescribed statements and any information that is in the opinion of the directors necessary to present fairly, in accordance with the accounting principles referred to in subsection (4), the financial position of the bank as at the end of the financial year to which it relates and the results of the operations and changes in the financial position of the bank for that financial year.
The directors of a bank must place before the shareholders or members, as the case may be, at every annual meeting
the percentage of the voting rights attached to all the outstanding voting shares of the subsidiary that is carried by the aggregate of any voting shares of the subsidiary beneficially owned by the bank and by other subsidiaries of the bank;
the book value of the aggregate of any shares of the subsidiary beneficially owned by the bank and by other subsidiaries of the bank, and
its name and the address of its head or principal office,
such other information as the Governor in Council may, by order, require in such form as may be prescribed.
in the case of a federal credit union, a statement that sets out
a list of the subsidiaries of the bank, other than subsidiaries that are not required to be listed by the regulations and subsidiaries acquired pursuant to section 472 or pursuant to a realization of security in accordance with section 473 and which the bank would not otherwise be permitted to hold, showing, with respect to each subsidiary,
whether the federal credit union was organized and carrying on business on a cooperative basis at the end of the financial year in accordance with section 12.1; and
the percentage of its members who are natural persons at the end of the financial year, and
the percentage of financial services that during the financial year were transacted with members on the basis of the gross revenue of the federal credit union for the financial year,
the number of its members at the end of the financial year,
one director, if the signature required by paragraph (a) is that of a director, or two directors if the signature required by that paragraph is that of an officer who is not a director.
the chief executive officer or, in the event of that officer’s absence or inability to act, any other officer of the bank authorized by the directors to sign in the stead of the chief executive officer; and
A bank shall not publish copies of an annual statement unless it is approved and signed in accordance with subsection (1).
The directors of a bank shall approve the annual statement and their approval shall be evidenced by the signature or a printed or otherwise mechanically reproduced facsimile of the signature of
A bank shall give the Superintendent and the person seeking to examine the statements referred to in subsection (1) notice of an application to a court under subsection (4), and the Superintendent and the person may appear and be heard in person or by counsel at the hearing of the application.
Within fifteen days after a refusal under subsection (3), the bank shall apply to a court for an order barring the right of the person concerned to make an examination under subsection (2) and the court shall either order the bank to permit the examination or, if it is satisfied that the examination would be detrimental to the bank or to any other body corporate the financial statements of which would be subject to examination, bar the right and make any further order it thinks fit.
A bank may refuse to permit an examination under subsection (2) by any person.
Subject to this section, the shareholders and members of a bank and their personal representatives may, on request, examine the statements referred to in subsection (1) during the usual business hours of the bank and may take extracts from those statements free of charge.
A bank shall keep at its head office a copy of the current financial statements of each subsidiary of the bank.
Where a bank is required to comply with subsection (1) and the bank does not comply with that subsection, the annual meeting at which the documents referred to in that subsection are to be considered shall be adjourned until that subsection has been complied with.
A bank is not required to comply with subsection (1) with respect to a person who has informed the bank, in writing, that the person does not wish to receive the annual statement.
A bank must, not later than 21 days before the date of each annual meeting or before the signing of a resolution under paragraph 152(1)(b) in lieu of the annual meeting, send to each shareholder or, in the case of a federal credit union, to each member and shareholder, if any, a copy of the documents referred to in subsections 308(1) and (3), unless that time period is waived by the shareholder or member, as the case may be.
If a bank’s shareholders or members sign a resolution under paragraph 152(1)(b) in lieu of an annual meeting, the bank must send a copy of the documents referred to in subsections 308(1) and (3) to the Superintendent not later than 30 days after the signing of the resolution.
Subject to subsection (2), a bank must send to the Superintendent a copy of the documents referred to in subsections 308(1) and (3) not later than 21 days before the date of each annual meeting of shareholders or members of the bank.
member, in relation to a firm of accountants, means
firm of accountants means a partnership, the members of which are accountants engaged in the practice of accounting, or a body corporate that is incorporated by or under an Act of the legislature of a province and engaged in the practice of accounting; (cabinet de comptables)
an accountant who is an employee of a firm of accountants. (membre)
an accountant who is a partner in a partnership, the members of which are accountants engaged in the practice of accounting, or
The remuneration of the auditor or auditors may be fixed by ordinary resolution of the shareholders or members of the federal credit union but, if not so fixed, must be fixed by the directors.
The shareholders of a bank, or the members of a federal credit union, may, by ordinary resolution at the first meeting of shareholders or members, as the case may be, and at each succeeding annual meeting, appoint two firms of accountants to be the auditors of the bank until the close of the next annual meeting.
The shareholders of a bank, or the members of a federal credit union, must, by ordinary resolution at the first meeting of shareholders or members, as the case may be, and at each succeeding annual meeting, appoint a firm of accountants to be the auditor of the bank until the close of the next annual meeting.
are independent of the bank; and
are ordinarily resident in Canada, and
each have at least five years experience at a senior level in performing audits of a financial institution,
are members in good standing of an institute or association of accountants incorporated by or under an Act of the legislature of a province,
the member of the firm jointly designated by the firm and the bank to conduct the audit of the bank on behalf of the firm is qualified in accordance with paragraph (a).
two or more members thereof are accountants who
In any case where subsection (4) applies and a designation is not made pursuant to that subsection within thirty days after the designated member ceases to conduct the audit of the bank, there shall be deemed to be a vacancy in the office of auditor of the bank.
Where for any reason a member of a firm of accountants designated pursuant to subsection (3) ceases to conduct the audit of the bank, the bank and the firm of accountants may jointly designate another member of the same firm of accountants who has the qualifications described in subsection (1) to conduct the audit of the bank and the bank shall forthwith notify the Superintendent in writing of the designation.
Within fifteen days after appointing a firm of accountants as auditor of a bank, the bank and the firm of accountants shall jointly designate a member of the firm who has the qualifications described in subsection (1) to conduct the audit of the bank on behalf of the firm and the bank shall forthwith notify the Superintendent in writing of the designation.
For the purposes of subsection (2), a business partner of a member of a firm of accountants includes
For the purposes of subsection (1),
A firm of accountants is qualified to be an auditor of a bank if
a member of a firm of accountants is deemed not to be independent of a bank if that member, a business partner of that member or the firm of accountants
independence is a question of fact; and
has been a liquidator, trustee in bankruptcy, receiver or receiver and manager of any affiliate of the bank within the two years immediately preceding the firm’s proposed appointment as auditor of the bank, other than an affiliate that is a subsidiary of the bank acquired pursuant to section 472 or through a realization of security pursuant to section 473.
beneficially owns or controls, directly or indirectly, a material interest in the shares or membership shares of the bank or of any affiliate of the bank, or
is a business partner, director, officer or employee of the bank or of any affiliate of the bank or is a business partner of any director, officer or employee of the bank or of any affiliate of the bank,
a shareholder of the firm or of a business partner of the member.
another member of the firm; and
Any interested person may apply to a court for an order declaring that an auditor of a bank has ceased to be qualified under section 315 and declaring the office of auditor to be vacant.
An auditor that ceases to be qualified under section 315 shall resign forthwith after any member of the firm becomes aware that the firm has ceased to be so qualified.
A vacancy created by the revocation of the appointment of an auditor under subsection (1) may be filled at the meeting at which the appointment was revoked and, if not so filled, shall be filled by the directors under section 319.
The Superintendent may at any time revoke the appointment of an auditor made under subsection (3) or 314(1) or section 319 by notice in writing signed by the Superintendent and sent by registered mail to the auditor and to the bank addressed to the usual place of business of the auditor and the bank.
The shareholders of a bank or the members of a federal credit union may, by ordinary resolution at a special meeting, revoke the appointment of an auditor.
the appointment of the auditor is revoked by the Superintendent or by the shareholders or, if the bank is a federal credit union, by the members.
the auditor resigns; or
The resignation of an auditor becomes effective at the time a written resignation is sent to the bank or at the time specified in the resignation, whichever is later.
An auditor of a bank ceases to hold office when
Where the Superintendent has, pursuant to subsection (2), appointed a firm of accountants to fill a vacancy, the Superintendent shall designate the member of the firm who is to conduct the audit of the bank on behalf of the firm.
Where the directors fail to fill a vacancy in accordance with subsection (1), the Superintendent may fill the vacancy and the auditor so appointed holds office for the unexpired term of office of the predecessor of that auditor.
Subject to subsection 317(3), where a vacancy occurs in the office of auditor of a bank, the directors shall forthwith fill the vacancy, and the auditor so appointed holds office for the unexpired term of office of the predecessor of that auditor.
The Superintendent may attend and be heard at any meeting referred to in subsection (2).
The person who gives notice under subsection (2) must send concurrently a copy of the notice to the bank and the bank must, without delay, send a copy of it to the Superintendent.
If a director, shareholder or member of a bank, whether or not that person is entitled to vote at the meeting, gives written notice, not less than 10 days before the meeting, to an auditor or former auditor of the bank that the director, member or shareholder wishes the auditor’s attendance at the meeting, the auditor or former auditor must attend the meeting, at the expense of the bank, and answer questions relating to the auditor’s or former auditor’s duties as auditor.
The auditor or auditors of a bank are entitled to receive notice of every meeting of shareholders and, if the bank is a federal credit union, every meeting of its members and, at the expense of the bank, to attend and be heard at the meeting on matters relating to the duties of the auditor or auditors.
receives a notice or otherwise learns of a meeting of directors or shareholders, or, if the bank is a federal credit union, of a meeting of members, at which another firm of accountants is to be appointed in its stead, whether because of the auditor’s resignation or revocation of appointment or because the auditor’s term of office has expired or is about to expire,
receives a notice or otherwise learns of a meeting of shareholders, or, if the bank is a federal credit union, of a meeting of members, called for the purpose of revoking the appointment of the auditor, or
resigns,
The bank must send a copy of the statements referred to in subsections (1) and (1.1) without delay to every shareholder, or, if the bank is a federal credit union, to every member, entitled to vote at the annual meeting of shareholders or of members and to the Superintendent.
In the case of a proposed replacement of an auditor whether because of removal or the expiry of their term, the bank shall make a statement of the reasons for the proposed replacement and the proposed replacement auditor may make a statement in which they comment on those reasons.
An auditor of a bank that
Unless subsection (2) applies, an appointment as auditor of a bank is void if subsection (1) has not been complied with.
Notwithstanding subsection (1), a firm of accountants may accept an appointment or consent to be appointed as auditor of a bank if, within fifteen days after a request under that subsection is made, no reply from the other auditor is received.
Where an auditor of a bank has resigned or the appointment of an auditor has been revoked, no firm of accountants shall accept an appointment as auditor of the bank or consent to be an auditor of the bank until the firm of accountants has requested and received from the other auditor a written statement of the circumstances and reasons why the other auditor resigned or why, in the other auditor’s opinion, the other auditor’s appointment was revoked.
The examination of the auditor or auditors referred to in subsection (1) shall, except as otherwise specified by the Superintendent, be conducted in accordance with generally accepted auditing standards, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada.
The auditor or auditors of a bank must make any examination that the auditor or auditors consider necessary to enable the auditor or auditors to report on the annual statement and on other financial statements required by this Act to be placed before the shareholders or, if the bank is a federal credit union, the members, except any annual statements or parts of those statements that relate to the period referred to in subparagraph 308(1)(a)(ii).
provide such information and explanations
permit access to such records, assets and security held by the bank or any entity in which the bank has a substantial investment, and
A person who in good faith makes an oral or written communication under subsection (1) or (2) shall not be liable in any civil action arising from having made the communication.
On the request of the auditor or auditors of a bank, the directors of the bank shall, to the extent that they are reasonably able to do so,
On the request of the auditor or auditors of a bank, the present or former directors, officers, employees or agents of the bank shall, to the extent that such persons are reasonably able to do so,
provide the auditor or auditors with the information and explanations so obtained.
obtain from the present or former directors, officers, employees and agents of any entity in which the bank has a substantial investment the information and explanations that such persons are reasonably able to provide and that are, in the opinion of the auditor or auditors, necessary to enable them to perform the duties of the auditor or auditors of the bank; and
The expenses entailed by any examination or audit referred to in any of subsections (1) to (3) are payable by the bank on being approved in writing by the Superintendent.
The Superintendent may direct that a special audit of a bank be made if, in the opinion of the Superintendent, it is so required and may appoint for that purpose a firm of accountants qualified pursuant to subsection 315(1) to be an auditor of the bank.
The Superintendent may, in writing, require that the auditor or auditors of a bank make a particular examination relating to the adequacy of the procedures adopted by the bank for the safety of its creditors and shareholders and, if the bank is a federal credit union, for the safety of its members, or any other examination as, in the Superintendent’s opinion, the public interest may require, and report to the Superintendent.
The Superintendent may, in writing, require that the auditor or auditors of a bank report to the Superintendent on the extent of the procedures of the auditor or auditors in the examination of the annual statement and may, in writing, require that the auditor or auditors enlarge or extend the scope of that examination or direct that any other particular procedure be performed in any particular case, and the auditor or auditors shall comply with any such requirement of the Superintendent and report to the Superintendent thereon.
In each report referred to in subsection (2), the auditor or auditors shall include such remarks as the auditor or auditors consider necessary when
In each report required under subsection (1), the auditor or auditors shall state whether, in the opinion of the auditor or auditors, the annual statement presents fairly, in accordance with the accounting principles referred to in subsection 308(4), the financial position of the bank as at the end of the financial year to which it relates and the results of the operations and changes in the financial position of the bank for that financial year.
The auditor or auditors must, not less than 21 days before the date of the annual meeting of the shareholders of the bank or, if the bank is a federal credit union, of the annual meeting of the members, make a report in writing to the shareholders or members, as the case may be, on the annual statement referred to in subsection 308(1).
the annual statement does not present fairly, in accordance with the accounting principles referred to in subsection 308(4), the financial position of the bank as at the end of the financial year to which it relates or the results of the operations or changes in the financial position of the bank for that financial year.
the annual statement has not been prepared on a basis consistent with that of the preceding financial year; or
the examination has not been made in accordance with the auditing standards referred to in subsection 323(2);
A report of the auditor or auditors made under subsection (1) must be attached to the financial statement to which it relates and a copy of the statement and report must be sent by the directors to the Superintendent, to every shareholder and, if the bank is a federal credit union, to every member and shareholder, if any.
The auditor or auditors of a bank must, if required by the shareholders or, if the bank is a federal credit union, by the members or shareholders, if any, audit and report to the shareholders or members, as the case may be, on any financial statement submitted by the directors to the shareholders or members, and the report must state whether, in their opinion, the financial statement presents fairly the information required by the shareholders or members.
loans owing to the bank by any person the aggregate amount of which exceeds one half of one per cent of the regulatory capital of the bank and in respect of which, in the opinion of the auditor or auditors, loss to the bank is likely to occur,
transactions of the bank that have come to the attention of the auditor or auditors and that in the opinion of the auditor or auditors have not been within the powers of the bank, and
Where the auditor or auditors of a bank make a report under subsection (1),
It is the duty of the auditor or auditors of a bank to report in writing to the chief executive officer and chief financial officer of the bank any transactions or conditions that have come to the attention of the auditor or auditors affecting the well-being of the bank that in the opinion of the auditor or auditors are not satisfactory and require rectification and, without restricting the generality of the foregoing, the auditor or auditors shall, as occasion requires, make a report to those officers in respect of
the auditor or auditors shall, at the time of transmitting the report to the chief executive officer and chief financial officer, provide the audit committee of the bank and the Superintendent with a copy.
the report shall be incorporated in the minutes of that meeting; and
the report shall be presented to the first meeting of the directors following its receipt;
the auditor or auditors shall transmit the report, in writing, to the chief executive officer and chief financial officer of the bank;
Subsection (1) does not apply in respect of any particular subsidiary where the bank, after having consulted its auditor or auditors, is of the opinion that the total assets of the subsidiary are not a material part of the total assets of the bank.
Subsection (1) applies in the case of a subsidiary that carries on its operations in a country other than Canada unless the laws of that country do not permit the appointment of an auditor of the bank as the auditor of that subsidiary.
A bank shall take all necessary steps to ensure that each of its subsidiaries has as its auditor the auditor or one of the auditors of the bank.
If so requested by a member of the audit committee, the auditor or auditors shall attend every meeting of the audit committee held during the member’s term of office.
The auditors of a bank are entitled to receive notice of every meeting of the committee designated under paragraph 157(2)(e), if that committee is to perform the duties set out in section 195.1 in that meeting, of the audit committee and of the conduct review committee and, at the expense of the bank, to attend and be heard at that meeting.
The chief internal auditor of a bank or any officer or employee of the bank acting in a similar capacity shall, at the request of the auditor or auditors of the bank and on receipt of reasonable notice, meet with the auditor or auditors.
The auditor or auditors of a bank or a member of the audit committee may call a meeting of the audit committee.
When under subsection (2) the auditor or auditors or former auditor or auditors of a bank inform the directors of an error or misstatement in an annual statement or other financial statement, the directors shall
If the auditor or auditors or former auditor or auditors of a bank are notified or become aware of an error or misstatement in an annual statement or other financial statement on which the auditor or auditors reported and in the opinion of the auditor or auditors the error or misstatement is material, the auditor or auditors or former auditor or auditors shall inform each director of the bank accordingly.
A director or an officer of a bank shall forthwith notify the audit committee and the auditor or auditors of the bank of any error or misstatement of which the director or officer becomes aware in an annual statement or other financial statement on which the auditor or auditors or any former auditor or auditors have reported.
otherwise inform the shareholders, and, if the bank is a federal credit union, its members, and the Superintendent of the error or misstatement.
prepare and issue a revised annual statement or financial statement; or
A complainant under subsection (1) shall give the Superintendent notice of the application and the Superintendent may appear and be heard in person or by counsel at the hearing of the application.
No action may be brought and no intervention in an action may be made under subsection (1) by a complainant unless the court is satisfied that
Subject to subsection (2), a complainant or the Superintendent may apply to a court for leave to bring an action under this Act in the name and on behalf of a bank or any of its subsidiaries, or to intervene in an action under this Act to which the bank or a subsidiary of the bank is a party, for the purpose of prosecuting, defending or discontinuing the action on behalf of the bank or the subsidiary.
it appears to be in the interests of the bank or the subsidiary that the action be brought, prosecuted, defended or discontinued.
the complainant is acting in good faith; and
the complainant has, not less than 14 days before bringing the application or as otherwise ordered by the court, given notice to the directors of the bank or the bank’s subsidiary of the complainant’s intention to apply to the court under subsection (1) if the directors of the bank or the bank’s subsidiary do not bring, diligently prosecute or defend or discontinue the action;
an order requiring the bank or the subsidiary to pay reasonable legal fees incurred by the Superintendent or the complainant in connection with the action.
an order directing that any amount adjudged payable by a defendant in the action be paid, in whole or in part, directly to the following instead of to the bank or the subsidiary:
an order giving directions for the conduct of the action;
an order authorizing the Superintendent, the complainant or any other person to control the conduct of the action;
if the bank is a federal credit union, former and present members or security holders of the federal credit union or former and present security holders of the subsidiary; and
if the bank is not a federal credit union, former and present security holders of the bank or subsidiary, or
Notwithstanding subsection (1), the court may not make any order in relation to any matter that would, under this Act, require the approval of the Minister or the Superintendent.
In connection with an action brought or intervened in under subsection 334(1), the court may at any time make any order it thinks fit including, without limiting the generality of the foregoing,
An application made or an action brought or intervened in under subsection 334(1) or section 338 shall not be stayed, discontinued, settled or dismissed for want of prosecution without the approval of the court given on such terms as the court thinks fit and, if the court determines that the interests of any complainant might be substantially affected by any stay, discontinuance, settlement or dismissal, the court may order any party to the application or action to give notice to the complainant.
An application made or an action brought or intervened in under subsection 334(1) or section 338 need not be stayed or dismissed by reason only that it is shown that an alleged breach of a right or duty owed to the bank or its subsidiary has been or might be approved by the shareholders or members of the bank, or by the shareholders of the subsidiary, but evidence of approval by the shareholders or the members, as the case may be, may be taken into account by the court in making an order under section 335.
In an application made or an action brought or intervened in under subsection 334(1) or section 338, the court may at any time order the bank or its subsidiary to pay to the complainant interim costs, including legal fees and disbursements, but the complainant may be held accountable by the court for those interim costs on final disposition of the application or action.
A complainant is not required to give security for costs in any application made or any action brought or intervened in under subsection 334(1) or section 338.
In connection with an application under this section, the court may make any order it thinks fit including, without limiting the generality of the foregoing,
An applicant under this section shall give the Superintendent notice of the application and the Superintendent may appear and be heard in person or by counsel at the hearing of the application.
If the name of a person is alleged to be or to have been wrongly entered or retained in, or wrongly deleted or omitted from, the securities register, the members register or any other record of a bank, the bank, a security holder of the bank, a member of the bank or any aggrieved person may apply to a court for an order that the register or record be rectified.
an order compensating a party who has incurred a loss.
an order determining the right of a party to the proceedings to have the party’s name entered or retained in, or deleted or omitted from, the register or records of the bank, whether the issue arises between two or more security holders or alleged security holders, or two or more members or alleged members, or between the bank and any security holder or alleged security holder or member or alleged member; and
an order restraining a bank from calling or holding a meeting of shareholders or members, or paying a dividend or patronage allocation, before the rectification;
an order requiring the register or other record of the bank to be rectified;
Any proceedings taken under this Part to dissolve or to liquidate and dissolve a bank shall be stayed if the bank is at any time found to be insolvent within the meaning of the Winding-up and Restructuring Act.
Subsection (2) and sections 341 to 368 do not apply to a bank that is insolvent within the meaning of the Winding-up and Restructuring Act.
in the case of a federal credit union, a special resolution of the members and a separate special resolution of the shareholders, if any.
in the case of a bank that is not a federal credit union, a special resolution of the shareholders or, if there are no shareholders, by a resolution of all the directors; or
A bank in respect of which letters patent are issued under subsection (2) ceases to exist on the day stated in the letters patent.
Where the Minister has received an application under subsection (1) and is satisfied that all the circumstances so warrant, the Minister may issue letters patent dissolving the bank.
A bank that has no property and no liabilities may apply to the Minister for letters patent dissolving the bank if it is authorized by
may, if the bank is a federal credit union, be initiated by way of a proposal made by a member in accordance with section 144.1.
may, if the bank is not a federal credit union, be initiated by way of a proposal made by a shareholder who is entitled to vote at an annual meeting of shareholders in accordance with sections 143 and 144; or
may be proposed by its directors;
A notice of any meeting at which the voluntary liquidation and dissolution of a bank is to be proposed must set out the terms of the proposal.
The voluntary liquidation and dissolution of a bank, other than a bank referred to in subsection 342(1),
if, in the case of a federal credit union, it is authorized by a special resolution of the members and, if the federal credit union has issued one or more classes of shares, by separate special resolution of each class of shareholders whether or not those shareholders are otherwise entitled to vote.
if, in the case of a bank that is not a federal credit union, it is authorized by a special resolution of the shareholders or, if the bank has issued more than one class of shares, by special resolution of each class of shareholders whether or not those shareholders are otherwise entitled to vote; or
Where the Minister has approved an application made pursuant to section 344 with respect to a bank, the bank shall
Where the Minister has approved an application made pursuant to section 344 with respect to a bank, the bank shall not carry on business except to the extent necessary to complete its voluntary liquidation.
Where the Minister is satisfied on the basis of an application made pursuant to section 344 that the circumstances warrant the voluntary liquidation and dissolution of a bank, the Minister may, by order, approve the application.
No action directed toward the voluntary liquidation and dissolution of a bank shall be taken by a bank, other than as provided in sections 343 and 344, until an application made by the bank pursuant to section 344 has been approved by the Minister.
after giving the notice required under paragraphs (a) and (b) and adequately providing for the payment or discharge of all its obligations, distribute its remaining property, either in money or in kind, among its shareholders, according to their respective rights, or its members, as the case may be.
proceed to collect its property, dispose of property that is not to be distributed in kind to its shareholders or members, as the case may be, discharge all its obligations and do all other acts required to liquidate its business; and
publish notice of the approval once a week for four consecutive weeks in the Canada Gazette and once a week for two consecutive weeks in one or more newspapers in general circulation in each province in which the bank transacted any business within the preceding twelve months;
cause notice of the approval to be sent to each known claimant against and creditor of the bank;
A bank in respect of which letters patent are issued under subsection (1) is dissolved and ceases to exist on the day stated in the letters patent.
Unless a court has made an order in accordance with subsection 347(1), the Minister may, if satisfied that the bank has complied with subsection 345(4) and that all the circumstances so warrant, issue letters patent dissolving the bank.
Where a person, other than the Superintendent, makes an application under subsection (1), the person shall give the Superintendent notice of the application and the Superintendent may appear and be heard in person or by counsel at the hearing of the application.
An application under subsection (1) to a court to supervise a voluntary liquidation shall state the reasons, verified by an affidavit of the applicant, why the court should supervise the liquidation.
The Superintendent or any interested person may, at any time during the liquidation of a bank, apply to a court for an order for the continuance of the voluntary liquidation under the supervision of the court in accordance with this section and sections 348 to 360 and on such application the court may so order and make any further order it thinks fit.
The supervision of the liquidation of a bank by the court pursuant to an order made under subsection 347(1) commences on the day the order is made.
When a court makes an order under subsection 347(1), the liquidation of the bank shall continue under the supervision of the court.
after the liquidator has rendered the liquidator’s final account to the court, an order directing the bank to apply to the Minister for letters patent dissolving the bank.
on the application of any director, officer, shareholder, member, incorporator, creditor or the liquidator,
an order disposing of any property belonging to creditors, shareholders, members and incorporators who cannot be found;
subject to sections 356 to 358, an order approving any proposed, interim or final distribution to shareholders or members, as the case may be, or incorporators, in money or in property;
after notice has been given to all interested parties, an order relieving the liquidator from any omission or default on such terms as the court thinks fit and confirming any act of the liquidator;
on the application of a creditor, an inspector or the liquidator, an order giving directions on any matter arising in the liquidation;
with the concurrence of the Superintendent, an order providing for the disposal or destruction of the documents, records or registers of the bank;
an order approving the payment, satisfaction or compromise of claims against the bank and the retention of assets for that purpose, and determining the adequacy of provisions for the payment, discharge or transfer of any obligation of the bank, whether liquidated, unliquidated, future or contingent;
an order determining and enforcing the duty or liability of any present or former director, officer, shareholder or member
an order, at any stage of the proceedings, restraining the directors and officers of the bank from
an order determining the validity of any claims made against the bank;
an order determining the notice to be given to any interested person, or dispensing with notice to any person;
an order appointing inspectors or referees, specifying their powers, fixing their remuneration and replacing inspectors or referees;
an order appointing a liquidator, with or without security, fixing a liquidator’s remuneration and replacing a liquidator;
an order to liquidate;
collecting or receiving any debt or other property of the bank, and from paying out or transferring any property of the bank, except as permitted by the court;
exercising any of their powers, or
for an obligation of the bank;
to the bank, or
an order to the liquidator to restore to the bank all of its remaining property; and
an order continuing or discontinuing the liquidation proceedings, or
an order staying the liquidation proceedings on such terms and conditions as the court thinks fit,
the powers of the directors, shareholders and members are vested in the liquidator and cease to be vested in the directors, shareholders and members, except as specifically authorized by the court.
the bank continues in existence but shall cease to carry on business, except the business that is, in the opinion of the liquidator, required for an orderly liquidation; and
A liquidator may delegate any of the powers vested by paragraph (1)(b) to the directors, shareholders or members, if any.
Where a court makes an order for the liquidation of a bank,
after the final accounts are approved by the court, distribute any remaining property of the bank among the shareholders, incorporators or members, according to their respective rights.
deliver to the court and to the Superintendent, at least once in every twelve month period after the liquidator’s appointment or more often as the court requires, the annual statement of the bank prepared in accordance with subsection 308(1) or prepared in such manner as the liquidator thinks proper or as the court requires; and
if at any time the liquidator determines that the bank is unable to pay or adequately provide for the discharge of its obligations, apply to the court for directions;
maintain separate lists of members and of each class of creditors, shareholders and other persons having claims against the bank;
keep accounts of the moneys received and paid out by the liquidator in the course of the liquidation of the bank;
open and maintain a trust account for the moneys received by the liquidator in the course of the liquidation of the bank;
take into custody and control the property of the bank;
forthwith after appointment publish notice thereof once a week for four consecutive weeks in the Canada Gazette and once a week for two consecutive weeks in one or more newspapers in general circulation in each province in which the bank has transacted any business within the preceding twelve months, requiring
forthwith after appointment give notice thereof to the Superintendent and to each claimant and creditor of the bank known to the liquidator;
any person having a claim against the bank, whether liquidated, unliquidated, future or contingent, to present particulars thereof in writing to the liquidator not later than sixty days after the first publication of the notice;
any person possessing property of the bank to deliver it to the liquidator at the time and place specified in the notice, and
any person indebted to the bank to render an account and pay to the liquidator at the time and place specified in the notice any amount owing,
A liquidator may
A liquidator shall
do all other things necessary for the liquidation of the bank and distribution of its property.
settle or compromise any claims by or against the bank; and
borrow money on the security of the property of the bank;
do all acts and execute documents in the name and on behalf of the bank;
sell by public auction or private sale any property of the bank;
carry on the business of the bank as required for an orderly liquidation;
bring, defend or take part in any civil, criminal or administrative action or proceeding in the name and on behalf of the bank;
retain lawyers, notaries, accountants, appraisers and other professional advisers;
a report of a person whose profession lends credibility to a statement made by them.
financial statements of the bank represented to the liquidator by an officer of the bank or in a written report of the auditor or auditors of the bank fairly to reflect the financial condition of the bank; or
Where an examination conducted pursuant to subsection (1) discloses that a person has concealed, withheld or misappropriated any property of the bank, the court may order that person to restore the property or pay compensation to the liquidator.
Where a liquidator has reason to believe that any property of the bank is in the possession or under the control of a person or that a person has concealed, withheld or misappropriated any such property, the liquidator may apply to the court for an order requiring that person to appear before the court at the time and place designated in the order and to be examined.
for an extension of time, setting out the reasons therefor.
for approval of the final accounts of the liquidator and for an order permitting the distribution, in money or in kind, of the remaining property of the bank to its shareholders, or members, if any, or to the incorporators, according to their respective rights; or
The liquidator shall publish the notice required under subsection (3) in the Canada Gazette and once a week for two consecutive weeks in one or more newspapers in general circulation in each province in which the bank has transacted any business within the preceding twelve months or as otherwise directed by the court.
A liquidator must give notice of their intention to make an application under subsection (1) to the Superintendent, to each inspector appointed under section 349, to each shareholder of the bank or, if there are no shareholders, to each incorporator and to any person who provided a security or fidelity bond for the liquidation. If the bank is a federal credit union, the liquidator must also give the notice to each member of the federal credit union.
If a liquidator fails to make the application required by subsection (1), a shareholder of the bank or, if there are no shareholders of the bank, an incorporator — or, if the bank is a federal credit union, a member or shareholder of the federal credit union or, if there are no members or shareholders, an incorporator — may apply to the court for an order for the liquidator to show cause why a final accounting and distribution should not be made.
Within one year after the appointment of a liquidator and after paying or making adequate provision for all claims against the bank, the liquidator shall apply to the court
discharging the liquidator except in respect of the duty of a liquidator under subsection (2).
directing the custody or disposal of the documents, records and registers of the bank; and
directing the bank to apply to the Minister for letters patent dissolving the bank;
The liquidator shall forthwith send a certified copy of the order referred to in subsection (1) to the Superintendent.
If the court approves the final accounts rendered by a liquidator, the court shall make an order
If an order is made by a court under paragraph (3)(b), the court
On an application under subsection (1) or (2) , the court may order
If in the course of the liquidation of a federal credit union the members resolve, or the liquidator proposes, to exchange all or substantially all of the remaining property of the federal credit union for securities of another entity that are to be distributed to the members or to members and shareholders — or to distribute all or part of the remaining property of the federal credit union to the members or to members and shareholders in kind — a member or shareholder may apply to the court for an order requiring the distribution of the remaining property of the federal credit union to be in money.
If in the course of the liquidation of a bank that is not a federal credit union the shareholders resolve, or the liquidator proposes, to exchange all or substantially all of the remaining property of the bank for securities of another entity that are to be distributed to the shareholders or to the incorporators — or to distribute all or part of the remaining property of the bank to the shareholders or to the incorporators in kind — a shareholder or incorporator may apply to the court for an order requiring the distribution of the remaining property of the bank to be in money.
the claim of any person applying under this section to be satisfied by a distribution in money.
all of the remaining property of the bank to be converted into and distributed in money; or
must render a final order against the bank in favour of the person for the amount of the share of the bank’s property attributable to the person.
may in its discretion appoint one or more appraisers to assist the court in fixing a fair value in accordance with paragraph (a); and
must fix a fair value on the share of the property of the bank attributable to the person;
A bank in respect of which letters patent are issued under subsection (1) is dissolved and ceases to exist on the date of the issuance of the letters patent.
On an application made pursuant to an order under paragraph 358(1)(a), the Minister may issue letters patent dissolving the bank.
any property that would have been available to satisfy any judgment or order if the bank had not been dissolved remains available for that purpose.
a civil, criminal or administrative action or proceeding may be brought against the bank within two years after its dissolution as if the bank had not been dissolved; and
a civil, criminal or administrative action or proceeding commenced by or against the bank before its dissolution may be continued as if the bank had not been dissolved;
Service of a document on a bank after its dissolution may be effected by serving the document on a person shown as a director in the incorporating instrument of the bank or, if applicable, in the latest return sent to the Superintendent under section 632.
Notwithstanding the dissolution of a bank under this Part,
If the plaintiff establishes a claim in an action under subsection (3), the court may refer the proceedings to a referee or other officer of the court who may
A court may order an action referred to in subsections (1) and (2) to be brought against the persons who were shareholders, members or incorporators as a class, subject to any conditions that the court thinks fit.
An action to enforce liability under subsection (1) may not be commenced except within two years after the date of the dissolution of the bank.
Despite the dissolution of a bank, a shareholder, member or incorporator to whom any of its property has been distributed is liable to any person claiming under subsection 362(1) to the extent of the amount received by that shareholder, member or incorporator on the distribution.
direct payment of the amounts so determined.
determine, subject to subsection (1), the amount that each person who was a shareholder, member or incorporator must contribute towards satisfaction of the plaintiff’s claim; and
add as a party to the proceedings each person found by the plaintiff to have been a shareholder, member or incorporator;
Payment by a liquidator or a bank to the Minister under subsection (1) discharges the liquidator and the bank in respect of which the payment is made from all liability for the amount so paid, and payment by the Minister to the Bank of Canada under subsection (3) discharges the Minister from all liability for the amount so paid.
The Minister shall pay to the Bank of Canada all amounts paid to the Minister under subsection (1) and shall provide the Bank of Canada with any document, record or register received by the Minister under subsection (2).
If a liquidator or a bank makes a payment to the Minister under subsection (1) with respect to a creditor, shareholder, member or incorporator, the liquidator or bank must concurrently forward to the Minister all documents, records and registers in the possession of the liquidator or bank that relate to the entitlement of the creditor, shareholder, member or incorporator.
Despite the Winding-up and Restructuring Act, if the business of a bank is being wound up, the liquidator or the bank must pay to the Minister on demand and in any event before the final winding-up of that business any amount that is payable by the liquidator or the bank to a creditor, shareholder, member or incorporator of the bank to whom payment of that amount has not, for any reason, been made.
The liability of the Bank of Canada under subsection (1) may be enforced by action against the Bank of Canada in the court in the province in which the debt or instrument was payable.
Subject to section 22 of the Bank of Canada Act, where payment has been made to the Bank of Canada of an amount under subsection 366(3), the Bank of Canada, if payment is demanded by a person who, but for subsection 366(4), would be entitled to receive payment of that amount from the liquidator, the bank or the Minister, is liable to pay to that person at its head office an amount equal to the amount so paid to it, with interest thereon for the period, not exceeding ten years, from the day on which the payment was received by the Bank of Canada until the date of payment to the person, at such rate and computed in such manner as the Minister determines.
the payment of any fines and penalties for which the bank is liable shall be a last charge on the assets of the bank.
subordinated indebtedness of the bank and all other liabilities that by their terms rank equally with or subordinate to such subordinated indebtedness shall be a fourth charge on the assets of the bank; and
the payment of the deposit liabilities of the bank and all other liabilities of the bank, except the liabilities referred to in paragraphs (d) and (e), shall be a third charge on the assets of the bank;
the payment of any amount due to Her Majesty in right of a province, in trust or otherwise, except indebtedness evidenced by subordinated indebtedness, shall be a second charge on the assets of the bank;
the payment of any amount due to Her Majesty in right of Canada, in trust or otherwise, except indebtedness evidenced by subordinated indebtedness, shall be a first charge on the assets of the bank;
Priorities within each of paragraphs (1)(a) to (e) shall be determined in accordance with the laws governing priorities and, where applicable, by the terms of the indebtedness and liabilities referred to therein.
Nothing in subsection (1) prejudices or affects the priority of any holder of any security interest in any property of a bank.
In the case of the insolvency of a bank,
the trustee of any trust for the administration of a fund to which Her Majesty in either of those rights contributes and of which an official or entity that is an agent of Her Majesty in either of those rights is a trustee, and
an official or entity performing a function or duty in connection with the administration, management or investment of a fund established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons, or moneys derived from such a fund, or
an official or entity performing a function or duty in connection with the administration or management of the estate or property of a natural person,
in relation to the government of a foreign country or any political subdivision thereof, a person empowered to perform a function or duty on behalf of the government of the foreign country or political subdivision, other than a function or duty in connection with the administration or management of the estate or property of a natural person; (mandataire)
in relation to Her Majesty in right of Canada or of a province, any agent of Her Majesty in either of those rights and includes a municipal or public body empowered to perform a function of government in Canada or any entity empowered to perform a function or duty on behalf of Her Majesty in either of those rights, but does not include
foreign institution means an entity that is
eligible foreign institution means
eligible financial institution means an eligible Canadian financial institution or an eligible foreign institution; (institution financière admissible)
eligible Canadian financial institution means a Canadian financial institution that is a body corporate and that is widely held; (institution financière canadienne admissible)
eligible agent means an agent or agency of Her Majesty in right of Canada or of a province or an agent or agency of a government of a foreign country or any political subdivision of a foreign country
agent means
whose decisions with respect to the assets of the fund referred to in paragraph (b) are not influenced in any significant way by, as the case may be, Her Majesty in right of Canada or of the province or the government of the foreign country or the political subdivision; (mandataire admissible)
that controls the assets of an investment fund in a manner intended to maximize long-term risk-adjusted returns and that fund is
whose mandate is publicly available;
established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons; and
one to which, as the case may be, Her Majesty in right of Canada or of a province or the government of a foreign country or political subdivision contributes, or
a foreign institution that, in the opinion of the Minister,
a foreign bank that, in the opinion of the Minister, after consultation with the Superintendent, is regulated as or like a bank, according to the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business, or
is widely held; (institution étrangère admissible)
is, with respect to its provision of financial services, regulated in the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business, and
incorporated or formed otherwise than by or under an Act of Parliament or the legislature of a province. (institution étrangère)
engaged in the trust, loan or insurance business, the business of a cooperative credit society or the business of dealing in securities, and
[Repealed, 2001, c. 9, s. 96]
In this Part,
For the purposes of subsection (1), a person who beneficially owns shares or membership shares of a bank is associated with another person who beneficially owns shares or membership shares of the bank if
For the purpose of determining ownership of a bank, if two persons who each beneficially own shares or membership shares of a bank are associated with each other, those persons are deemed to be a single person who beneficially owns the aggregate number of shares and membership shares of the bank beneficially owned by them.
both persons are associated within the meaning of paragraphs (a) to (j) with the same person.
both persons are central cooperative credit societies that are members of the same federation of cooperative credit societies, and both persons and the federation of cooperative credit societies are incorporated or organized by or pursuant to legislation enacted by the same legislative body; or
one person is a central cooperative credit society, the other person is a federation of cooperative credit societies of which the first is a member, and both persons are incorporated or organized by or pursuant to legislation enacted by the same legislative body;
both persons are local cooperative credit societies that are members of the same central cooperative credit society;
one person is a local cooperative credit society and the other person is a central cooperative credit society of which the first person is a member;
both persons are trustees of any trusts for the administration of funds to which Her Majesty in right of a particular province contributes and of which no official or entity that is an agent of Her Majesty in right of that province is a trustee;
both persons are trustees of any trusts for the administration of funds to which Her Majesty in right of Canada contributes and of which no official or entity that is an agent of Her Majesty in such right is a trustee;
each person is an entity owned or controlled by Her Majesty in right of Canada or in right of a province that is not an agent of Her Majesty and is not empowered to perform a function or duty on behalf of Her Majesty;
each person is an official, a trustee or an entity referred to in subparagraphs (a)(ii) and (iii) of the definition agent in subsection 370(1);
each person is an agent of Her Majesty in right of Canada or in right of a province;
one person is Her Majesty in right of Canada and the other person is Her Majesty in right of a province or one person is Her Majesty in right of a province and the other person is Her Majesty in right of another province;
For the purposes of subsection (1), a person is associated with another person if
Despite section 371, for the purpose of determining ownership of a bank by an eligible agent, where two persons, at least one of whom is an eligible agent, are associated with each other, those persons are deemed to be a single eligible agent who beneficially owns the aggregate number of shares of the bank beneficially owned by them.
one person is a government of a foreign country or any political subdivision of a foreign country and the other person is its agent or agency.
one person is Her Majesty in right of a province and the other person is an agent or agency of Her Majesty in right of that province; or
one person is Her Majesty in right of Canada and the other person is an agent or agency of Her Majesty in that right;
each person is an agent or agency of a government of the same foreign country or a political subdivision of the same foreign country;
each person is an agent or agency of Her Majesty in right of the same province;
each person is an agent or agency of Her Majesty in right of Canada;
[Repealed, 2001, c. 9, s. 98]
where the person has a significant interest in a class of shares or in membership shares of the bank, the acquisition would increase the significant interest of the person in that class or in the membership shares, as the case may be.
the acquisition would cause the person to have a significant interest in any class of shares or in membership shares of the bank, as the case may be; or
[Repealed, 1999, c. 28, s. 18]
If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares or in membership shares of a bank, the entity is deemed to be acquiring a significant interest in that class of shares or in membership shares, as the case may be, through an acquisition for which the approval of the Minister is required under subsection (1).
Subject to this Part, no person, or entity controlled by a person, shall, without the approval of the Minister, purchase or otherwise acquire any share or membership share of a bank or purchase or otherwise acquire control of any entity that holds any share or membership share of a bank if
Subsection (1) does not apply to an entity that controls, within the meaning of paragraph 3(1)(d), the bank with equity of twelve billion dollars or more if the entity is controlled, within the meaning of that paragraph, by
Subsection (1) does not apply to an entity that controls, within the meaning of paragraphs 3(1)(a) and (d), the bank with equity of twelve billion dollars or more if the entity is controlled, within the meaning of those paragraphs, by a widely held bank to which subsection (2) applies, or a widely held bank holding company to which subsection (3) applies, that controls the bank.
Subsection (1) does not apply to any of the following that controls, within the meaning of paragraph 3(1)(d), the bank with equity of twelve billion dollars or more if it controlled, within the meaning of that paragraph, the bank on the day the bank’s equity reached twelve billion dollars and it has controlled, within the meaning of that paragraph, the bank since that day:
Subsection (1) does not apply to a widely held bank holding company that controls, within the meaning of paragraphs 3(1)(a) and (d), the bank with equity of twelve billion dollars or more if
Subsection (1) does not apply to a widely held bank that controls, within the meaning of paragraphs 3(1)(a) and (d), the bank with equity of twelve billion dollars or more if it controlled, within the meaning of those paragraphs, the bank on the day the bank’s equity reached twelve billion dollars and it has controlled, within the meaning of those paragraphs, the bank since that day.
Subsection (1) does not apply in respect of a person who is a major shareholder of a federal credit union.
No person may be a major shareholder of a bank with equity of twelve billion dollars or more.
the bank was a subsidiary of another bank that was continued under section 684 as the bank holding company and the bank holding company has continued to control, within the meaning of those paragraphs, the bank since the day it came into existence as a bank holding company.
the bank holding company acquired control, within the meaning of those paragraphs, of the bank under section 677 or 678 and the bank holding company has continued to control, within the meaning of those paragraphs, the bank since the day the bank holding company acquired control; or
the bank holding company controlled, within the meaning of those paragraphs, the bank on the day the bank’s equity reached twelve billion dollars and it has controlled, within the meaning of those paragraphs, the bank since that day;
an eligible foreign institution.
an eligible Canadian financial institution, other than a bank; or
a widely held insurance holding company;
an eligible foreign institution to which subsection (4) applies that controls the bank.
an eligible Canadian financial institution to which subsection (4) applies, other than a bank, that controls the bank; or
a widely held insurance holding company to which subsection (4) applies that controls the bank;
If general market conditions so warrant and the Minister is satisfied that the person has used the person’s best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which the person must comply with that subsection.
Subsection (1) does not apply to an entity that controls, within the meaning of paragraph 3(1)(d), the amalgamated bank if the entity is controlled, within the meaning of that paragraph, by any of the following:
Subsection (1) does not apply to an entity that controls, within the meaning of paragraphs 3(1)(a) and (d), the amalgamated bank if the entity is controlled, within the meaning of those paragraphs, by a widely held bank or widely held bank holding company to which subsection (2) applies that controls the amalgamated bank.
Subsection (1) does not apply to any of the following that controlled, within the meaning of paragraph 3(1)(d), one of the applicants for the letters patent of amalgamation if it has controlled, within the meaning of that paragraph, the amalgamated bank since the effective date of those letters patent:
Subsection (1) does not apply to a widely held bank or a widely held bank holding company that controlled, within the meaning of paragraphs 3(1)(a) and (d), one of the applicants for the letters patent of amalgamation and that has controlled, within the meaning of those paragraphs, the amalgamated bank since the effective date of those letters patent.
Subsection (1) does not apply in respect of a person who is a major shareholder of a federal credit union.
Despite section 374, if a bank with equity of twelve billion dollars or more was formed as the result of an amalgamation, a person who is a major shareholder of the bank on the effective date of the letters patent of amalgamation shall do all things necessary to ensure that the person is no longer a major shareholder of the bank on the day that is one year after that day or on the day that is after any shorter period specified by the Minister.
an eligible foreign institution.
an eligible Canadian financial institution, other than a bank; or
a widely held insurance holding company;
an eligible foreign institution to which subsection (3) applies that controls the amalgamated bank.
an eligible Canadian financial institution to which subsection (3) applies, other than a bank, that controls the amalgamated bank; or
a widely held insurance holding company to which subsection (3) applies that controls the amalgamated bank;
If general market conditions so warrant and the Minister is satisfied that the person has used the person’s best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which the person must comply with that subsection.
Subsection (1) does not apply if any of subsections 374(2) to (6) applies to the person in respect of the bank.
Subsection (1) does not apply in respect of a person who is a major shareholder of a federal credit union.
If a person is a major shareholder of a bank with equity of less than twelve billion dollars and the bank’s equity reaches twelve billion dollars or more, the person shall do all things necessary to ensure that the person is not a major shareholder of the bank on the day that is three years after the day the bank’s equity reached twelve billion dollars.
the other bank or the entity that controls the other bank does not have any major shareholder other than the widely held bank or any entity that the widely held bank controls.
the widely held bank no longer controls the other bank; or
If general market conditions so warrant and the Minister is satisfied that the widely held bank has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
Subsection (1) does not apply in respect of a bank with equity of less than two hundred and fifty million dollars or any other amount that is prescribed.
Subsection (1) does not apply in respect of a federal credit union that controls a bank.
If a widely held bank with equity of twelve billion dollars or more controls another bank and a person becomes a major shareholder of the other bank or of any entity that also controls the other bank, the widely held bank must do all things necessary to ensure that, on the day that is one year after the person became a major shareholder of the other bank or entity that controls the other bank,
the other bank or the entity that controls the other bank does not have any major shareholder other than the widely held bank or any entity that the widely held bank controls.
the widely held bank no longer controls the other bank; or
If general market conditions so warrant and the Minister is satisfied that the widely held bank has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
Subsection (1) does not apply in respect of a federal credit union that controls a bank.
Despite subsection 376(1), if a widely held bank with equity of twelve billion dollars or more controls a bank (in this subsection referred to as the “other bank”) in respect of which that subsection does not apply by reason of subsection 376(2) and the equity of the other bank reaches two hundred and fifty million dollars or more or any other amount that is prescribed and on the day the equity of the other bank reaches two hundred and fifty million dollars or more, or the prescribed amount, as the case may be, a person is a major shareholder of the other bank or of any entity that also controls the other bank, the widely held bank must do all things necessary to ensure that, on the day that is three years after that day,
Subsection (1) does not apply in respect of a person who has a significant interest in any class of shares of a federal credit union.
No person who has a significant interest in any class of shares of a widely held bank with equity of twelve billion dollars or more may have a significant interest in any class of shares of a subsidiary of the widely held bank that is a bank or a bank holding company.
Subsection (1) does not apply in respect of a person who has a significant interest in any class of shares of a federal credit union.
No person who has a significant interest in any class of shares of a bank may have a significant interest in any class of shares of any widely held bank with equity of twelve billion dollars or more, or of any widely held bank holding company with equity of twelve billion dollars or more, that controls the bank.
Subsection (1) does not apply if any of subsections 374(2) to (6) applies to the person in respect of the bank.
Subsection (1) does not apply in respect of a person who controls a federal credit union.
No person shall control, within the meaning of paragraph 3(1)(d), a bank with equity of twelve billion dollars or more.
If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(d), a bank with equity of less than twelve billion dollars, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the bank through an acquisition for which the approval of the Minister is required under subsection (1).
Subsection (1) does not apply in respect of a person who acquires control of a federal credit union.
No person shall, without the approval of the Minister, acquire control, within the meaning of paragraph 3(1)(d), of a bank with equity of less than twelve billion dollars.
The Minister may grant the approval only if
No person shall, without the approval of the Minister, control, within the meaning of paragraph 3(1)(a.1) or (d), a federal credit union.
the applicant for the approval has given an undertaking under subsection 973.02(1) to cease to control the federal credit union on a date specified by the Minister.
the control is in relation to a federal credit union that is being incorporated or a body corporate that is being continued as a federal credit union; and
No person who controls a bank or who is a major shareholder of a bank, and no entity affiliated with that person, may
No person may control or be a major shareholder of a bank if the person or an entity affiliated with the person
Subsection (1) ceases to apply to a bank with equity of less than twelve billion dollars if the Minister specifies that it no longer applies to the bank.
If a bank to which subsection (1) applies is an applicant for letters patent of amalgamation and the letters patent are issued in respect of the application, the amalgamated bank is deemed to be a bank to which that subsection applies.
A bank that was named in Schedule I as that Schedule read immediately before October 24, 2001 and that had equity of less than five billion dollars on that day is deemed, for the purposes of sections 138, 156.09, 374, 376, 376.01, 376.1, 376.2, 377, 380 and 382, subsection 383(2), section 385 and subsection 396(2), to be a bank with equity of twelve billion dollars or more.
engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in.
has control of or has a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in; or
engage in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in.
control or have a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in; or
the person has a significant interest in a class of shares or in membership shares of the bank and the transfer or issue of the share or membership share would increase the significant interest of the person in that class of shares or in membership shares.
the transfer or issue of the share or membership share would cause the person to have a significant interest in any class of shares or in membership shares of the bank; or
On application by a federal credit union, the Superintendent may exempt any class of shares of the federal credit union the aggregate book value of which is not more than 30 per cent of the aggregate book value of all the outstanding shares and membership shares of the federal credit union from the application of sections 373 and 379.
Subsection (1) does not apply in respect of a federal credit union.
On application by a bank, other than a bank with equity of twelve billion dollars or more, the Superintendent may exempt any class of non-voting shares of the bank the aggregate book value of which is not more than 30 per cent of the aggregate book value of all the outstanding shares of the bank from the application of sections 373 and 379.
The Governor in Council may make regulations
Subsection (1) does not apply if the purchase or other acquisition of shares or the acquisition of control referred to in that subsection would
If the person referred to in subsection (1) is an eligible agent or an entity controlled by an eligible agent, then the Minister may reduce the percentage referred to in subsection (2) or (3).
If a person has a significant interest in a class of shares of a bank and the person’s percentage of that class has decreased after the date of the most recent purchase or other acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares of the bank, or of control of an entity that held shares of that class of shares of the bank, for which approval was given by the Minister, the percentage for the purposes of subsection (1) is the percentage that is the lesser of
Subject to subsection (3) and for the purpose of subsection (1), the percentage is 5 percentage points in excess of the significant interest of the person in that class of shares of the bank on the later of June 1, 1992 and the day of the most recent purchase or acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares of the bank, or of control of an entity that held shares of that class of shares of the bank, for which approval was given by the Minister.
Subsection (1) does not apply in respect of a person who has a significant interest in any class of shares of a federal credit union.
Despite sections 373 and 379, the approval of the Minister is not required in respect of a bank with equity of less than twelve billion dollars if a person with a significant interest in a class of shares of the bank, or an entity controlled by a person with a significant interest in a class of shares of the bank, purchases or otherwise acquires shares of that class, or acquires control of any entity that holds any share of that class, and the number of shares of that class purchased or otherwise acquired, or the acquisition of control of the entity, as the case may be, would not increase the significant interest of the person in that class of shares of the bank to a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever is applicable.
10 percentage points in excess of the lowest significant interest of the person in that class of shares of the bank at any time after the later of June 1, 1992 and the day of the most recent purchase or other acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares of the bank, or of control of an entity that held shares of that class of shares of the bank, for which approval was given by the Minister.
5 percentage points in excess of the significant interest of the person in that class of shares of the bank on the later of June 1, 1992 and the day of the most recent purchase or other acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares of the bank, or of control of an entity that held shares of that class of shares of the bank, for which approval was given by the Minister, and
result in an increase in a significant interest in a class of shares of the bank by an entity controlled by the person by a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever applies, and the increase is not exempted by the regulations.
result in the acquisition of a significant interest in a class of shares of the bank by an entity controlled by the person and the acquisition of that investment is not exempted by the regulations; or
if the person controls the bank but the voting rights attached to the aggregate of any voting shares of the bank beneficially owned by the person and by entities controlled by the person do not exceed 50 per cent of the voting rights attached to all of the outstanding voting shares of the bank, cause the voting rights attached to that aggregate to exceed 50 per cent of the voting rights attached to all of the outstanding voting shares of the bank;
result in the acquisition of control of the bank by the person referred to in that subsection;
exempting from the application of paragraph (4)(d) an increase in a significant interest in a class of shares of the bank by an entity controlled by the person by a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever applies.
exempting from the application of paragraph (4)(c) the acquisition of a significant interest in a class of shares of the bank by an entity controlled by the person; and
The Governor in Council may make regulations
Subsection (1) does not apply if the purchase or other acquisition of shares or membership shares or the acquisition of control referred to in that subsection would
If a person has a significant interest in a class of shares or in membership shares of a federal credit union and the person’s percentage of that class of shares, or of membership shares, has decreased after the date of the most recent purchase or other acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares, or of membership shares, of the federal credit union, or of control of an entity that held shares of that class of shares, or membership shares, as the case may be, of the federal credit union, for which approval was given by the Minister, the percentage for the purposes of subsection (1) is the percentage that is the lesser of
Subject to subsection (3) and for the purpose of subsection (1), the percentage is 5 percentage points in excess of the significant interest of the person in that class of shares or in the membership shares of the federal credit union on the day of the most recent purchase or acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares, or of membership shares, of the federal credit union, or of control of an entity that held shares of that class of shares, or membership shares, of the federal credit union, for which approval was given by the Minister.
Despite sections 373 and 379, the approval of the Minister is not required in respect of a federal credit union if a person with a significant interest in a class of shares, or in membership shares, of the federal credit union, or an entity controlled by a person with a significant interest in a class of shares, or in membership shares, of the federal credit union, purchases or otherwise acquires shares of that class, or membership shares, or acquires control of any entity that holds any share of that class, or any membership share, and the number of shares of that class, or the number of membership shares, purchased or otherwise acquired, or the acquisition of control of the entity, as the case may be, would not increase the significant interest of the person in that class of shares or in the membership shares of the federal credit union to a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever is applicable.
10 percentage points in excess of the lowest significant interest of the person in that class of shares or in membership shares of the federal credit union at any time after the day of the most recent purchase or other acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares, or of membership shares, of the federal credit union, or of control of an entity that held shares of that class of shares, or membership shares, of the federal credit union, for which approval was given by the Minister.
5 percentage points in excess of the significant interest of the person in that class of shares or in membership shares of the federal credit union on the day of the most recent purchase or other acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares, or of membership shares, of the federal credit union, or of control of an entity that held shares of that class of shares, or membership shares, of the federal credit union, for which approval was given by the Minister, and
result in an increase in a significant interest in a class of shares, or in membership shares, of the federal credit union by an entity controlled by the person by a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever applies, and the increase is not exempted by the regulations.
result in the acquisition of a significant interest in a class of shares, or in membership shares, of the federal credit union by an entity controlled by the person and the acquisition of that investment is not exempted by the regulations; or
result in the acquisition of control of the federal credit union by the person referred to in that subsection;
exempting from the application of paragraph (4)(c) an increase in a significant interest in a class of shares, or in membership shares, of the federal credit union by an entity controlled by the person by a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever applies.
exempting from the application of paragraph (4)(b) the acquisition of a significant interest in a class of shares, or in membership shares, of the federal credit union by an entity controlled by the person; and
a person, other than an eligible agent, who controls, within the meaning of paragraph 3(1)(a), the bank acquires additional shares of the bank.
the Superintendent has, by order, directed the bank to increase its capital and shares or membership shares of the bank are issued and acquired in accordance with the terms and conditions, if any, that may be specified in the order; or
Paragraph (1)(a) does not apply in respect of a bank with equity of twelve billion dollars or more.
Despite sections 373 and 379, the approval of the Minister is not required if
the purchase or other acquisition of up to a specified number or percentage of shares or membership shares of a bank within a specified period.
the purchase or other acquisition of any number or percentage of shares or membership shares of a bank that may be required in a particular transaction or series of transactions; or
shares none of which is beneficially owned by a person who is a major shareholder of the bank in respect of the voting shares of the bank or by any entity that is controlled by a person who is a major shareholder of the bank in respect of such shares.
shares of one or more classes of shares that are listed and posted for trading on a recognized stock exchange in Canada; and
If a bank to which section 385 applies becomes a bank with equity of twelve billion dollars or more, that section continues to apply to the bank until no person is a major shareholder of the bank, other than a person to whom subsections 374(2) to (6) apply.
If general market conditions so warrant and the Minister is satisfied that a bank has used its best efforts to be in compliance with this section on the day determined under subsection (2), the Minister may specify a later day as the day from and after which the bank must comply with subsection (1).
The day referred to in subsection (1) is
Subsection (1) does not apply in respect of a federal credit union.
Every bank with equity of two billion dollars or more but less than twelve billion dollars shall, from and after the day determined under this section in respect of that bank, have, and continue to have, voting shares that carry at least 35 per cent of the voting rights attached to all of the outstanding voting shares of the bank and that are
in any other case, the day that is three years after the day of the first annual meeting of the shareholders of the bank held after the equity of the bank first reaches two billion dollars.
if the bank had equity of two billion dollars or more but less than twelve billion dollars on the day the bank came into existence, the day that is three years after that day; and
For the purposes of subsections (1) and (2), total assets, in respect of a bank, has the meaning given that expression by the regulations.
For the purposes of subsection (1), the average total assets of a bank in a three month period is to be computed by adding the total assets of the bank as calculated for the month end of each of the three months in the period and by dividing the sum by three.
Unless an exemption order with respect to the bank is granted under section 388, if a bank fails to comply with section 385 in any month, the Minister may, by order, require the bank not to have, until it complies with that section, average total assets in any three month period ending on the last day of a subsequent month exceeding the bank’s average total assets in the three month period ending on the last day of the month immediately before the month specified in the order.
Subsections 386(2) and (3) apply for the purposes of subsection (3).
If a bank fails to comply with section 385 on the day referred to in subsection (2), the bank shall not, until it complies with that section, have average total assets in any three month period ending on the last day of a subsequent month exceeding the bank’s average total assets in the three month period ending on the last day of the month immediately before the day referred to in subsection (2) or any later day that the Minister may, by order, specify.
If an exemption order granted under this section in respect of a bank expires, the bank shall comply with section 385 as of the day the exemption order expires.
On application by a bank, the Minister may, if the Minister considers it appropriate to do so, by order exempt the bank from the requirements of section 385, subject to any terms and conditions that the Minister considers appropriate.
the conversion of any convertible securities into voting shares of the bank.
the exercise of any option to acquire voting shares of the bank; or
a redemption or purchase of voting shares of the bank;
a distribution to the public of voting shares of the bank;
If, as the result of an event that has occurred and is continuing, shares of a bank acquire voting rights in such number as to cause the bank to no longer be in compliance with section 385, section 386 does not apply in respect of that bank until the expiration of six months after the day the bank ceased to be in compliance with section 385 or any later day that the Minister may, by order, specify.
If a bank fails to comply with section 385 as the result of any of the following, section 386 does not apply in respect of the bank until the expiration of six months after the day it failed to comply with section 385:
Subsection (1) applies only if the person referred to in that subsection provides the Minister with an undertaking satisfactory to the Minister to do all things necessary so that, within three years after the acquisition, or any other period that the Minister may specify, the bank has voting shares that carry at least 35 per cent of the voting rights attached to all of the outstanding voting shares of the bank and that are
Subject to subsection (2) and sections 379 and 391, section 385 does not apply in respect of a bank if a person acquires control of the bank through the purchase or other acquisition of all or any number of the shares of the bank by the person or by any entity controlled by the person.
shares none of which is beneficially owned by a person who is a major shareholder of the bank in respect of the voting shares of the bank or by any entity that is controlled by a person who is a major shareholder of the bank in respect of such shares.
shares of one or more classes of shares that are listed and posted for trading on a recognized stock exchange in Canada; and
that are subject to an agreement entered into by the particular person, or any entity controlled by the particular person, pertaining to the exercise of the voting rights.
that may be exercised by a member of a federal credit union if the bank is a federal credit union; or
that are attached to shares of the bank beneficially owned by the particular person or any entity controlled by the particular person;
Despite subsection (1), if a person contravenes subsection 374(1) by reason only that, as a result of an event that has occurred and is continuing and is not within the control of the person, shares of the bank beneficially owned by the person or by any entity controlled by the person acquire voting rights in such number so as to cause the person to be a major shareholder of the bank, the Minister may, after consideration of the circumstances, permit the person and any entity controlled by the person to exercise voting rights, in person or by proxy, in respect of any class of voting shares of the bank beneficially owned by them that do not in aggregate exceed 20 per cent of the voting rights attached to that class of voting shares.
Subsection (1) ceases to apply in respect of a person when, as the case may be,
If, with respect to any bank, a particular person contravenes section 372, subsection 373(1), 374(1) or 375(1), section 376.1 or 376.2, subsection 377(1) or section 377.1 or 377.2 or fails to comply with an undertaking referred to in subsection 390(2) or with any term or condition imposed under section 397, no person, and no entity controlled by the particular person, shall, in person, by proxy or by delegate, exercise any voting rights
if the person failed to comply with a term or condition imposed under section 397, the person complies with the term or condition.
if the person failed to comply with an undertaking referred to in subsection 390(2), the bank complies with section 385; or
the person ceases to control the bank within the meaning of paragraph 3(1)(d);
the shares or membership shares to which the contravention relates have been disposed of;
If general market conditions so warrant and the Minister is satisfied that the bank or the bank holding company has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
Despite sections 374 and 377, a widely held bank or a widely held bank holding company may be a major shareholder of a bank with equity of twelve billion dollars or more and cease to control, within the meaning of paragraphs 3(1)(a) and (d), the bank if it has entered into an agreement with the Minister to do all things necessary to ensure that it is not a major shareholder of the bank on the expiration of the day specified in the agreement.
If general market conditions so warrant and the Minister is satisfied that the institution or insurance holding company has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
Despite sections 374 and 377, an eligible foreign institution, an eligible Canadian financial institution, other than a bank, or a widely held insurance holding company may be a major shareholder of a bank with equity of twelve billion dollars or more and cease to control, within the meaning of paragraph 3(1)(d), the bank if it has entered into an agreement with the Minister to do all things necessary to ensure that it is not a major shareholder of the bank on the expiration of the day specified in the agreement.
it is not a major shareholder of the bank.
it does not control, within the meaning of paragraph 3(1)(d), the bank; and
If general market conditions so warrant and the Minister is satisfied that the body corporate has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
If a body corporate that is an eligible financial institution other than a bank controls, within the meaning of paragraph 3(1)(d), a bank with equity of twelve billion dollars or more and the body corporate subsequently ceases to be an eligible financial institution, the body corporate must do all things necessary to ensure that, on the day that is one year after the day it ceased to be an eligible financial institution,
If, with respect to any particular transaction, this Part applies to more than one person, any one of those persons may make the application to the Minister for approval on behalf of all of those persons.
An application for an approval of the Minister required under this Part must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require.
the best interests of the financial system in Canada, including, if the bank is a federal credit union, the best interests of the cooperative financial system in Canada.
the opinion of the Superintendent regarding the extent to which the proposed corporate structure of the applicant or applicants and their affiliates may affect the supervision and regulation of the bank, having regard to
the impact of any integration of the businesses and operations of the applicant or applicants with those of the bank on the conduct of those businesses and operations;
whether the bank will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;
the character and integrity of the applicant or applicants or, if the applicant or any of the applicants is a body corporate, its reputation for being operated in a manner that is consistent with the standards of good character and integrity;
the business record and experience of the applicant or applicants;
the soundness and feasibility of the plans of the applicant or applicants for the future conduct and development of the business of the bank;
the nature and sufficiency of the financial resources of the applicant or applicants as a source of continuing financial support for the bank;
the nature and degree of supervision and regulation applying to the proposed financial services activities to be carried out by the affiliates of the bank; and
the nature and extent of the proposed financial services activities to be carried out by the bank and its affiliates, and
[Repealed, 1994, c. 47, s. 19]
The Minister shall not approve a transaction that would cause a bank to become a subsidiary of a foreign bank within the meaning of any of paragraphs (a) to (f) of the definition foreign bank in section 2 that is a non-WTO Member foreign bank unless the Minister is satisfied that treatment as favourable for banks to which this Act applies exists or will be provided in the jurisdiction in which the foreign bank principally carries on business, either directly or through a subsidiary.
Subject to subsection 377.2(1), the Minister is to take into account only paragraph (1)(d) if the application is in respect of a transaction that would result in the applicant or applicants holding more than 10 per cent but no more than 30 per cent of any class of the outstanding shares, or of membership shares, of a federal credit union.
Except for an application by an eligible agent for an approval under section 373, and subject to subsection 377(1), the Minister shall take into account only paragraph (1)(d) if the application is in respect of a transaction that would result in the applicant or applicants holding
Subject to subsection (2), if an application for an approval under section 373 is made, the Minister, in determining whether or not to approve the transaction, shall take into account all matters that the Minister considers relevant to the application, including
more than 10 per cent but no more than 30 per cent of any class of the outstanding non-voting shares of such a bank.
more than 10 per cent but no more than 20 per cent of any class of the outstanding voting shares of a widely held bank with equity of twelve billion dollars or more that is not a federal credit union; or
If, in the opinion of the Superintendent, an application filed under this Part is incomplete, the Superintendent shall send a notice to the applicant specifying the information required by the Superintendent to complete the application.
If, in the opinion of the Superintendent, an application filed under this Part contains all the required information, the Superintendent shall without delay refer the application to the Minister and send a receipt to the applicant certifying the date on which the completed application was received by the Superintendent.
if the Minister is not satisfied that the transaction to which the application relates should be approved, a notice to that effect, advising the applicant of the right to make representations to the Minister in respect of the matter.
a notice approving the transaction to which the application relates; or
If the Minister considers it appropriate to do so, the Minister may extend the period referred to in subsection (2) for one or more periods of forty-five days.
If the Minister is unable to complete the consideration of an application within the period referred to in subsection (1), the Minister shall
Subject to subsections (4) and 400(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 398(1) in the following cases:
Subject to subsections (2) and (3) and 400(1), the Minister shall, within a period of thirty days after the certified date referred to in subsection 398(1), send to the applicant
an application is made for the approval referred to in subsection 401.2(3).
the application is made by an eligible agent or an entity controlled by an eligible agent; or
the application involves the acquisition of control of a bank;
within a further period of thirty days after the date of the sending of the notice referred to in paragraph (a) or within any other further period that may be agreed on by the applicant and the Minister, send a notice referred to in paragraph (1)(a) or (b) to the applicant.
within that period, send a notice to that effect to the applicant; and
If, after receipt of the notice sent in accordance with subsection 399(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister must provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
If, after receipt of the notice referred to in paragraph 399(1)(b), the applicant advises the Minister that the applicant wishes to make representations, the Minister must provide the applicant with a reasonable opportunity within a period of thirty days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
Subject to this Act, a federal credit union may by by-law impose, change or remove restrictions on the issue, transfer or ownership of its membership shares, or shares of any class of the shares of the federal credit union, in order to prevent a person from having a significant interest in the membership shares or shares of that class.
If the Minister does not send a notice under subsection 399(1) or (3) or 401(1) within the period provided for in those subsections, the Minister is deemed to have approved the transaction to which the application relates.
Within a period of forty-five days after the expiration of the period for making representations referred to in subsection 400(2), the Minister shall, in the light of any such representations and having regard to the matters to be taken into account, send a notice to the applicant indicating whether or not the Minister approves the transaction to which the application relates.
Within a period of thirty days after the expiration of the period for making representations referred to in subsection 400(1), the Minister shall, in the light of any such representations and having regard to the matters to be taken into account, send a notice to the applicant indicating whether or not the Minister approves the transaction to which the application relates.
the government of a foreign country or any political subdivision of a foreign country, or any agent or agency of a foreign government.
Her Majesty in right of Canada or of a province or any agent or agency of Her Majesty in either of those rights; or
Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 977.
No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the bank concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
If a bank or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the bank beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order.
If an approval referred to in subsection (3) is revoked, the bank shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent.
The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 396(1)(a) to (h).
The application for the approval referred to in subsection (3) must be made jointly by the bank and the eligible agent.
Despite subsection (1), a bank may, with the Minister’s approval, record in its securities register the issue of any share of the bank to an eligible agent.
Subsection (2) does not permit a bank to record in its securities register or members register a transfer or issue of any share or membership share of the bank to a foreign bank that is a foreign bank by reason only of paragraph (f) of the definition foreign bank in section 2.
Despite subsection (1), a bank may record in its securities register or members register a transfer or issue of any share or membership share of the bank to a foreign bank, or to a foreign institution, that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share or membership share that is transferred or issued is beneficially owned by the foreign bank or foreign institution or by an entity controlled by the foreign bank or foreign institution.
No bank is to record in its securities register or members register a transfer or issue of any share or membership share of the bank to
the government of a foreign country or any political subdivision thereof, or any agency thereof.
Her Majesty in right of Canada or of a province or any agency of Her Majesty in either of those rights; or
If an approval referred to in subsection 401.2(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the bank that is beneficially owned by the eligible agent.
Subsection (1) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 401.2(3).
Subsections (1) and (2) do not apply to a foreign bank, or to a foreign institution, that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share referred to in subsection (1), or, in the case of a federal credit union, a membership share, is beneficially owned by the foreign bank or foreign institution or by an entity controlled by the foreign bank or foreign institution.
Despite subsection 79.2(2), a member of a federal credit union must not, in person or by delegate, vote as a member of the federal credit union if the member is, or is an entity controlled by,
Despite section 148, no person shall, in person or by proxy, exercise any voting rights attached to any share of a bank that is beneficially owned by
the government of a foreign country or any political subdivision thereof, or any agency thereof.
Her Majesty in right of Canada or of a province or any agency of Her Majesty in either of those rights; or
take any other action that is necessary for any of those persons to cease controlling, within the meaning of paragraph 3(1)(a.1), the federal credit union.
dispose of any number of membership shares of the bank beneficially owned by any of those persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by that person that is specified in the order; or
dispose of any number of shares of the bank beneficially owned by any of those persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by that person that is specified in the order;
If subsection 402(1) applies, the Minister may, on application by the bank, permit the bank to apply to be continued as a body corporate under any Act of Parliament referred to in subsection 39.1(1) or 39.2(1) instead of, or in addition to, issuing an order under subsection 402(1).
[Repealed, 2001, c. 9, s. 99]
Any person with respect to whom a direction has been made under subsection (1) may, within thirty days after the date of the direction, appeal the matter in accordance with section 977.
No direction shall be made under subsection (1) unless the Minister has provided each person to whom the direction relates and the bank concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
If, with respect to any bank, a person contravenes section 372 or subsection 373(1), 374(1) or 375(1) or section 376.1 or 376.2, subsection 377(1) or section 377.1 or 377.2 or fails to comply with an undertaking referred to in subsection 390(2) or with any terms and conditions imposed under section 397, the Minister may, if the Minister considers it in the public interest to do so, by order, direct that person and any person controlled by that person to
dispose of any number of membership shares of the bank held or beneficially owned by any of the persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by the person that is specified in the order.
dispose of any number of shares of the bank held or beneficially owned by any of the persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by the person that is specified in the order; or
If a direction has been made under subsection (1) or (4) for reasons related to national security, the Minister shall, within 30 days after the day on which the direction was made, notify
Any person with respect to whom a direction has been made under subsection (1) may, within 30 days after the day on which the direction was made, appeal the matter in accordance with section 977.
A temporary direction ceases to have effect on the earlier of
If, in the Minister’s opinion, the length of time required for representations to be made under subsection (3) might be prejudicial to the public interest, the Minister may make a temporary direction to suspend any of the rights under Part VI attached to any of the shares referred to in paragraph (1)(a) or the membership shares referred to in paragraph (1)(b).
No direction shall be made under subsection (1) unless the Minister has provided each person to whom the direction relates and the bank concerned with a reasonable opportunity to make representations.
A direction made under subsection (1) may also suspend any of the rights under Part VI attached to the shares referred to in paragraph (1)(a) or the membership shares referred to in paragraph (1)(b) until the shares or membership shares are disposed of in accordance with the direction.
If the Minister is of the opinion that a person’s holding or beneficial ownership of shares or membership shares of a bank poses a threat to the integrity or security of the bank or the financial system in Canada or a threat to national security, the Minister may, by order, direct that person and any person controlled by that person to
if a direction is made under subsection (1) in respect of the shares or membership shares, the day on which that direction takes effect.
the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified in the temporary direction, and
the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.
the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act; and
An appeal from an order of a court under this section lies in the same manner as, and to the same court to which, an appeal may be taken from any other order of the court.
A court may, on an application under subsection (1), make any order that the circumstances require to give effect to the terms of the direction, including requiring the bank concerned to sell the shares, or to redeem, purchase or transfer to another member the membership shares, that are the subject-matter of the direction.
If a person fails to comply with a direction made under subsection 401.2(7), 402(1) or 402.2(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
any other information that the directors consider relevant for the purposes of this Part;
the beneficial ownership of the share or membership share, and
determine the circumstances in which a declaration referred to in paragraph (a) is to be required, the form of the declaration and the times at which it is to be submitted.
require any person who wishes to have a transfer of a share or membership share registered in the name of, or to have a share or membership share issued to, that person to submit a declaration referred to in paragraph (a) as though the person were the holder of that share or membership share; and
require any person in whose name a share or membership share of the bank is held to submit a declaration setting out
If, under this section, a declaration is required to be submitted by a shareholder, member or other person in respect of the issue or transfer of any share or membership share, a bank may refuse to issue the share or membership share or register the transfer unless the required declaration is submitted.
As soon as possible after receipt by a bank of a direction under subsection (2),
The Superintendent may, by order, direct a bank to obtain from any person in whose name a share or membership share of the bank is held a declaration setting out the name of every entity controlled by that person and containing information concerning
The directors of a bank may make such arrangements as they deem necessary to carry out the intent of this Part and, in particular, but without limiting the generality of the foregoing, may
such other related matters as are specified by the Superintendent.
the ownership or beneficial ownership of the share or membership share; and
every person who is requested by the bank to provide a declaration containing information referred to in subsection (1) or (2) shall comply with the request.
the bank shall comply with the direction; and
For greater certainty, the business of banking includes
Subject to this Act, a bank shall not engage in or carry on any business other than the business of banking and such business generally as appertains thereto.
issuing payment, credit or charge cards and, in cooperation with others including other financial institutions, operating a payment, credit or charge card plan.
providing investment counselling services and portfolio management services; and
acting as a financial agent;
providing any financial service;
provide identification, authentication or verification services.
act as receiver, liquidator or sequestrator; and
act as a custodian of property;
engage in the sale of
promote merchandise and services to the holders of any payment, credit or charge card issued by the bank;
engage, under prescribed terms and conditions, if any are prescribed, in specialized business management or advisory services;
with the prior written approval of the Minister, develop, design, hold, manage, manufacture, sell or otherwise deal with data transmission systems, information sites, communication devices or information platforms or portals that are used
outside Canada or, with the prior written approval of the Minister, in Canada, engage in any of the following activities, namely,
provide prescribed bank-related data processing services;
hold, manage and otherwise deal with real property;
any other information that the Minister may, by order, specify,
information that relates to the business of a permitted entity, as defined in subsection 464(1), or
information that is primarily financial or economic in nature,
designing, developing, manufacturing or selling, as an ancillary activity to any activity referred to in any of subparagraphs (i) to (iii) that the bank is engaging in, computer equipment integral to the provision of information services related to the business of financial institutions or to the provision of financial services;
designing, developing or marketing computer software, and
providing advisory or other services in the design, development or implementation of information management systems,
collecting, manipulating and transmitting
for a prescribed purpose or in prescribed circumstances;
to provide information that relates to the business of a permitted entity, as defined in subsection 464(1), or
to provide information that is primarily financial or economic in nature,
tickets in respect of a lottery sponsored by the federal government or a provincial or municipal government or an agency of any such government or governments;
urban transit tickets, and
tickets, including lottery tickets, on a non-profit public service basis in connection with special, temporary and infrequent non-commercial celebrations or projects that are of local, municipal, provincial or national interest,
The Governor in Council may make regulations
Except as authorized by or under this Act, a bank shall not deal in goods, wares or merchandise or engage in any trade or other business.
In addition, a bank may
respecting the circumstances in which banks may be exempted from the requirement to obtain the approval of the Minister before carrying on a particular activity referred to in paragraph (1)(c) or (c.1).
imposing terms and conditions in respect of
respecting what a bank may or may not do with respect to the carrying on of the activities referred to in paragraphs (1)(c) to (c.2);
the carrying on of the activities referred to in any of paragraphs (1)(c) to (c.2); and
the provision of services referred to in paragraph 409(2)(c), and
the provision of financial services referred to in paragraph 409(2)(a) that are financial planning services,
refer any person to any such financial institution or entity.
act as agent for any person in respect of the provision of any service that is provided by a financial institution, a permitted entity as defined in subsection 464(1) or a prescribed entity and may enter into an arrangement with any person in respect of the provision of that service; or
The Governor in Council may make regulations respecting the disclosure of
Subject to section 416, a bank may
whether any commission is being earned by a bank when acting as agent pursuant to subsection (1).
the name of the principal for whom a bank is acting as agent pursuant to subsection (1); and
a trustee for a trust.
an executor, administrator or official guardian or a guardian, tutor, curator, judicial adviser or committee of a mentally incompetent person; or
the order approving the commencement and carrying on of business by the bank authorizes it to accept deposits solely in accordance with subsection (3).
it has been authorized under subsection 26.03(1) of that Act to accept deposits without being a member institution, as defined in section 2 of that Act; or
it is a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act;
[Repealed, 2018, c. 27, s. 319]
The Governor in Council may make regulations
For the purpose of subsection (3), deposit has the meaning that would be given to it by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits.
For the purpose of subsection (3), the rate of exchange that shall be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada shall be determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act.
A bank referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after the bank receives the authorization referred to in that paragraph, A/B ≤ 0.01 where A is the sum of all amounts each of which is the sum of all the deposits held by the bank at the end of a day in the preceding 30 days each of which deposits is less than $150,000 and payable in Canada; and B is the sum of all amounts each of which is the sum of all deposits held by the bank at the end of a day in those preceding 30 days and payable in Canada.
[Repealed, 2001, c. 9, s. 102]
A bank shall not accept deposits in Canada unless
prescribing terms and conditions with respect to the acceptance of those deposits.
prescribing the deposits referred to in subsection (5); and
The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a bank referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.
In this section, deposit has the meaning assigned to that term by subsection 413(5).
Subject to the regulations, a bank referred to in paragraph 413(1)(b) or (c) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.
The Governor in Council may make regulations
Subject to the regulations, no bank referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank, unless the bank clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.
Subsection (1) only applies in respect of premises or any portion of premises on which both the bank and the member institution carry on business with the public and to which the public has access.
Subject to the regulations, no bank referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank.
respecting the circumstances in which, and the conditions under which, a bank referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3).
respecting the circumstances in which, and the conditions under which, a bank referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and
the person on whose behalf the bank has undertaken to guarantee the payment or repayment has an unqualified obligation to reimburse the bank for the full amount of the payment or repayment to be guaranteed.
the sum of money is a fixed sum of money with or without interest thereon; and
The Governor in Council may make regulations imposing terms and conditions in respect of guarantees permitted by this section.
Paragraph (1)(a) does not apply where the person on whose behalf the bank has undertaken to guarantee the payment or repayment is a subsidiary of the bank.
A bank shall not guarantee on behalf of any person the payment or repayment of any sum of money unless
the debt obligation is issued under a registered program as defined in section 21.5 of that Act.
the bank is a registered issuer as defined in section 21.5 of that Act other than one whose right to issue covered bonds has been suspended; and
the debt obligation is a covered bond as defined in section 21.5 of the National Housing Act;
The Governor in Council may make regulations exempting any type of debt obligation from the application of subsection (1).
It is prohibited for a bank to issue a debt obligation in relation to which the amounts of principal and interest owing are guaranteed to be paid from loans or other assets held by an entity that is created and organized for the principal purpose of holding those loans or other assets and with the intention of legally isolating those loans or other assets from the bank, unless
In this section, eligible financial contract has the same meaning as in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act.
In this section, derivative means an option, swap, futures contract, forward contract or other financial or commodity contract or instrument whose market price, value, delivery obligations, payment obligations or settlement obligations are derived from, referenced to or based on an underlying interest, including a price, rate, index, value, variable, event, probability or thing.
The Governor in Council may make regulations respecting a bank’s activities in relation to derivatives and eligible financial contracts.
In this section, benchmark means a price, estimate, rate, index or value that is
The Governor in Council may make regulations respecting a bank’s activities in relation to benchmarks.
used for reference for any purpose, including
made available to the public, either free of charge or on payment; and
determined from time to time by reference to an assessment of one or more underlying interests;
measuring the performance of financial instruments.
determining the value of financial instruments or the price at which they may be bought or sold, and
determining the interest payable, or other sums that are due, under loan agreements or other financial contracts or instruments,
In this section, business of insurance includes
[Repealed, 1997, c. 15, s. 45]
Nothing in this section precludes a bank from
The Governor in Council may make regulations respecting the matters referred to in subsection (1) and regulations respecting relations between banks and
A bank shall not act in Canada as agent for any person in the placing of insurance and shall not lease or provide space in any branch in Canada of the bank to any person engaged in the placing of insurance.
A bank shall not undertake the business of insurance except to the extent permitted by this Act or the regulations.
insurance agents or insurance brokers.
entities that undertake the business of insurance; or
obtaining group insurance for its employees or the employees of any bodies corporate in which it has a substantial investment pursuant to section 468.
requiring insurance to be placed by a borrower for the security of the bank; or
the issuance of any debt obligation, any of whose terms and conditions are established on the basis of mortality considerations, under which the issuer is obliged to make periodic payments.
the issuance of any annuity if the liability in respect of the annuity is contingent on the death of a person; and
Subsection (1) does not apply in respect of
A bank shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan.
a loan secured by a mortgage where
the acquisition by the bank from an entity of securities issued or guaranteed by the entity that are secured on any residential property, whether in favour of a trustee or otherwise, or the making of a loan by the bank to the entity against the issue of such securities; or
a loan if repayment of the amount of the loan that exceeds the maximum amount set out in subsection (1) is guaranteed or insured by a government agency or a private insurer approved by the Superintendent;
a loan made or guaranteed under the National Housing Act or any other Act of Parliament by or pursuant to which a different limit on the value of property on the security of which the bank may make a loan is established;
the mortgage secures payment of an amount payable to the bank for the property.
the mortgage is taken back by the bank on a property disposed of by the bank, including where the disposition is by way of a realization of a security interest, and
[Repealed, 2018, c. 27, s. 320]
The Governor in Council may make regulations
Subject to any regulations made under subsection (2), a bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the bank of the insurance or guarantee.
respecting any other matters necessary to carry out the purposes of subsection (1).
respecting, in relation to insurance or a guarantee against default on a loan made by a bank in Canada on the security of residential property,
respecting the circumstances in which a bank is exempt from the application of subsection (1);
respecting the determination of the actual cost to a bank for the purposes of subsection (1);
the payments or benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not accept from an insurer or the insurer’s affiliates; and
the arrangements into which the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not enter, and
Sections 419 and 419.1 do not apply in respect of a security interest created by a bank to secure an obligation of the bank to the Bank of Canada or the Canada Deposit Insurance Corporation.
The Governor in Council may make regulations and the Superintendent may make guidelines respecting the creation by a bank of security interests in its property to secure obligations of the bank and the acquisition by the bank of beneficial interests in property that is subject to security interests.
A bank shall comply with an order made under subsection (2) within the time specified in the order.
The Superintendent may, by order, direct a bank to amend its policies as specified in the order.
The directors of a bank shall establish and the bank shall adhere to policies regarding the creation of security interests in property of the bank to secure obligations of the bank and the acquisition by the bank of beneficial interests in property that is subject to security interests.
For the purposes of subsection (1), general partnership means any partnership other than a limited partnership.
Except with the approval of the Superintendent, a bank may not be a general partner in a limited partnership or a partner in a general partnership.
[Repealed, 1994, c. 47, s. 25]
No non-WTO Member bank subsidiary shall have any branch in Canada, other than its head office and one branch, without the approval of the Minister.
In section 422.2, non-WTO Member bank subsidiary means a bank that is a subsidiary of a foreign bank and that is not controlled by a WTO Member resident.
[Repealed, 1993, c. 44, s. 27]
[Repealed, 2001, c. 9, s. 109]
warehouse receipt includes
unperfected, in relation to a security interest, means that the security interest has not been registered in a public register maintained under the law under which the security interest is created, or has not been perfected or published by any other means recognized by that law, where the registration or other means of perfection or publication would have made the security interest effective against third parties or would have determined priorities in rank in respect of rights in, on or in respect of the property that is subject to the security interest; (non parfaite)
products of the sea, lakes and rivers includes fish of all kinds, marine and freshwater organic and inorganic life and any substances extracted or derived from any water, but does not include products of aquaculture; (produits aquatiques)
products of the quarry and mine includes stone, clay, sand, gravel, metals, ores, coal, salt, precious stones, metalliferous and non-metallic minerals and hydrocarbons, whether obtained by excavation, drilling or otherwise; (produits des carrières et des mines)
products of the forest includes
products of aquaculture includes all cultivated aquatic plants and animals; (produits aquicoles)
products of agriculture includes
minerals includes base and precious metals, coal, salt and every other substance that is an article of commerce obtained from the earth by any method of extraction, but does not include hydrocarbons or any animal or vegetable substance other than coal; (substances minérales)
manufacturer means any person who manufactures or produces by hand, art, process or mechanical means any goods, wares and merchandise and, without restricting the generality of the foregoing, includes a manufacturer of logs, timber or lumber, maltster, distiller, brewer, refiner and producer of petroleum, tanner, curer, packer, canner, bottler and a person who packs, freezes or dehydrates any goods, wares and merchandise; (fabricant)
livestock includes
hydrocarbons means solid, liquid and gaseous hydrocarbons and any natural gas whether consisting of a single element or of two or more elements in chemical combination or uncombined and, without restricting the generality of the foregoing, includes oil-bearing shale, tar sands, crude oil, petroleum, helium and hydrogen sulphide; (hydrocarbures)
grain includes wheat, oats, barley, rye, corn, buckwheat, flax, beans and all kinds of seeds; (grain)
goods, wares and merchandise includes products of agriculture, products of aquaculture, products of the forest, products of the quarry and mine, products of the sea, lakes and rivers, and all other articles of commerce; (effets, denrées ou marchandises)
forestry producer means a person whose business consists in whole or in part of forestry and includes a producer of maple products; (sylviculteur)
forestry implements means tools, implements, apparatus, appliances and machines of any kind not usually affixed to real property, for use in forestry, and includes vehicles for use in forestry; (matériel sylvicole mobilier)
forestry equipment means implements, apparatus, appliances and machinery of any kind usually affixed to real property, for use in a forest; (matériel sylvicole immobilier)
forestry means the conservation, cultivation, improvement, harvesting and rational utilization of timber stands and the resources contained therein and obtainable therefrom, and includes the operation of a sugar bush; (sylviculture)
forest means land in Canada covered with timber stands or that, formerly so covered, is not put to any use inconsistent with forestry, and includes a sugar bush; (forêt)
fishing vessel means any ship or boat or any other description of vessel for use in fishing and equipment, apparatus and appliances for use in the operation thereof and forming part thereof, or any share or part interest therein; (bateau de pêche)
fishing equipment and supplies means equipment, apparatus, appliances and supplies for use in the operation of a fishing vessel and not forming part thereof, or for use in fishing, and, without restricting the generality of the foregoing, includes detachable engines and machinery, lines, hooks, trawls, nets, anchors, traps, bait, salt, fuel and stores; (engins et fournitures de pêche)
fishing means fishing for or catching fish by any method; (pêche)
fisherman means a person whose business consists in whole or in part of fishing; (pêcheur)
fish includes shellfish, crustaceans and marine animals; (poisson)
farmer includes the owner, occupier, landlord and tenant of a farm; (agriculteur)
farm electric system means all machinery, apparatus and appliances for the generation or distribution of electricity on a farm whether or not affixed to real property; (installation électrique de ferme)
farm means land in Canada used for the purpose of farming, which term includes livestock raising, dairying, bee-keeping, fruit growing, the growing of trees and all tillage of the soil; (ferme)
crops growing or produced on the farm means all products of the farm; (récoltes sur pied ou produites à la ferme)
bill of lading includes all receipts for goods, wares and merchandise accompanied by an undertaking
aquatic seedstock means aquatic plants and animals that at any stage of their development are purchased or collected by an aquaculturist for cultivation; (stock aquicole de départ)
aquatic plants and animals means plants and animals that, at most stages of their development or life cycles, live in an aquatic environment; (organismes animaux et végétaux aquatiques)
aquatic broodstock means any aquatic plants and animals used to produce aquatic seedstock; (stock géniteur aquicole)
aquaculturist includes the owner, occupier, landlord and tenant of an aquaculture operation; (aquiculteur)
aquaculture operation means any premises or site where aquaculture is carried out; (exploitation aquicole)
aquaculture means the cultivation of aquatic plants and animals; (aquiculture)
aquacultural stock growing or produced in the aquaculture operation means all products of the aquaculture operation; (stock en croissance ou produits de l’exploitation aquicole)
aquacultural implements means tools, implements, apparatus, appliances and machines of any kind not usually affixed to real property, for use in an aquaculture operation, and includes net pen systems, vehicles and boats for use in aquaculture; (instruments aquicoles ou matériel aquicole mobilier)
aquacultural equipment means implements, apparatus, appliances and machinery of any kind usually affixed to real property for use in an aquaculture operation, but does not include an aquacultural electric system; (installations aquicoles ou matériel aquicole immobilier)
aquacultural electric system means all machinery, apparatus and appliances for the generation or distribution of electricity in an aquaculture operation, whether or not affixed to real property; (installation électrique aquicole)
agricultural implements means tools, implements, apparatus, appliances and machines of any kind not usually affixed to real property, for use on or in connection with a farm, and vehicles for use in the business of farming and, without restricting the generality of the foregoing, includes plows, harrows, drills, seeders, cultivators, mowing machines, reapers, binders, threshing machines, combines, leaf tobacco tying machines, tractors, movable granaries, trucks for carrying products of agriculture, equipment for bee-keeping, cream separators, churns, washing machines, spraying apparatus, portable irrigation apparatus, incubators, milking machines, refrigerators and heating and cooking appliances for farming operations or use in the farm home of a kind not usually affixed to real property; (instruments agricoles ou matériel agricole mobilier)
agricultural equipment means implements, apparatus, appliances and machinery of any kind usually affixed to real property, for use on a farm, but does not include a farm electric system; (installations agricoles ou matériel agricole immobilier)
to deliver to a place other than the place where the goods, wares and merchandise were received a like quantity of goods, wares and merchandise of the same or a similar grade or kind; (connaissement)
to move the goods, wares and merchandise from the place where they were received to some other place, by any means whatever, or
swine, poultry, bees and fur-bearing animals; (bétail)
cattle, sheep, goats and other ruminants, and
horses and other equines,
honey, livestock (whether alive or dead), dairy products, eggs and all other indirect products of the soil; (produits agricoles)
grain, hay, roots, vegetables, fruits, other crops and all other direct products of the soil, and
maple products; (produits de la forêt)
skins and furs of wild animals, and
boards, laths, shingles, deals, staves and all other lumber, bark, wood chips and sawdust and Christmas trees,
logs, pulpwood, piling, spars, railway ties, poles, pit props and all other timber,
receipts given by any person for any hydrocarbons received by the person as bailee, whether the person’s obligation to restore requires delivery of the same hydrocarbons or may be satisfied by delivery of a like quantity of hydrocarbons of the same or a similar grade or kind. (récépissé d’entrepôt)
Lake Shippers’ Clearance Association receipts and transfer certificates, British Columbia Grain Shippers’ Clearance Association receipts and transfer certificates, and all documents recognized by the Canada Grain Act as elevator receipts, and
receipts given by any person in charge of logs or timber in transit from timber limits or other lands to the place of destination of the logs or timber,
receipts given by any person who is the owner or keeper of a harbour, cove, pond, wharf, yard, warehouse, shed, storehouse or other place for the storage of goods, wares and merchandise, for goods, wares and merchandise delivered to the person as bailee, and actually in the place or in one or more of the places owned or kept by the person, whether or not that person is engaged in other business,
any receipt given by any person for goods, wares and merchandise in the person’s actual, visible and continued possession as bailee thereof in good faith and not as the owner thereof,
For the purposes of sections 426 to 436, each thing included in the following terms as defined in subsection (1), namely,
For the purposes of sections 426 to 436,
products of the sea, lakes and rivers,
products of the quarry and mine, and
products of the forest,
products of aquaculture,
products of agriculture,
livestock,
crops growing or produced on the farm,
aquacultural stock growing or produced in the aquaculture operation,
the equipment and casing used or to be used in extracting, mining or producing or seeking to extract, mine or produce, and storing any such, hydrocarbons or minerals,
the estate or interest of any person in or to any such hydrocarbons or minerals, rights, licences, permits and lands whether the estate or interest is entire or partial, and
the rights, licences or permits of any person to obtain and remove any such hydrocarbons or minerals and to enter on, occupy and use lands from or on which any of such hydrocarbons or minerals are or may be extracted, mined or produced,
hydrocarbons or minerals in, under or on the ground, in place or in storage,
Notwithstanding anything in this Act, where the bank holds any security covering hydrocarbons or minerals, it may take in lieu of that security, to the extent of the quantity covered by the security taken, any security covering or entitling it to the delivery of the same hydrocarbons or minerals or hydrocarbons or minerals of the same or a similar grade or kind.
When making a loan or an advance on the security provided for by this section, a bank may take, on any property covered by the security, any further security it sees fit.
Subsections (8) and (9) do not apply if the law of the appropriate province does not permit the registration or filing of the tendered document or if any law enacted by or under the authority of Parliament, governing the ownership and disposal of the property that is the subject of security given under this section, does not provide by specific reference to this section for the registration or filing of the tendered document.
Every registrar or officer in charge of the proper land registry or land titles or other office to whom a document mentioned in paragraph (8)(c), (d) or (e) is tendered shall register or file the document according to the ordinary procedure for registering or filing within that office documents that evidence liens or charges against, or cautions, caveats or memorials in respect of claims to, interests in or rights in respect of any such property and subject to payment of the like fees.
The rights and powers of a bank in respect of the property covered by security given under this section do not have priority over an interest or a right acquired in, on or in respect of the property unless, prior to
The priority referred to in subsection (7) does not extend over the claim of any unpaid vendor who had a lien on the equipment or casing, or of any person who has a security interest in the property that was unperfected at the time the bank acquired its security in the property, if the bank acquired its security with knowledge of that unpaid vendor’s lien or that other person’s security interest.
Subject to subsections (8), (9) and (10), all the rights and powers of a bank in respect of the property covered by security given under this section have priority over all rights subsequently acquired in, on or in respect of the property and also over the claim of any mechanics’ lien holder, of any unpaid vendor of equipment or casing or of any person who had a security interest in that property that was unperfected at the time the bank acquired its security in the property.
Unless a person by whom property was given to a bank as security has agreed otherwise, a sale pursuant to subsection (3) shall be made by public auction after
A sale pursuant to subsection (3) of any property given to a bank as security vests in the purchaser all the right and title in and to such property that the person giving the security had when the security was given and that that person thereafter acquired.
Where a bank exercises any right conferred on it by subsection (3) in relation to property given to it as security, the bank shall provide to the person entitled thereto any surplus proceeds resulting from the exercise of the right that remain after payment of all loans and advances, together with interest and expenses, in relation to which the property was given as security.
Any security given under this section vests in the bank, in addition to and without limitation of any other rights or powers vested in or conferred on it, full power, right and authority, through its officers, employees or agents, in the event of
Security under this section may be given by signature and delivery to the bank, by or on behalf of the person giving the security, of an instrument in the prescribed form or in a form to the like effect, and shall affect the property described in the instrument giving the security
A bank may lend money and make advances on the security of any or all of the following, namely,
of which that person becomes the owner at any time thereafter before the release of the security by the bank, whether or not the property is in existence at the time of the delivery,
of which the person giving the security is the owner at the time of the delivery of the instrument, or
failure to care for, maintain, protect or preserve the property covered by the security,
non-payment of any loan or advance as security for the payment of which the bank has taken the security, or
publication of an advertisement of the sale, at least two days prior to the sale, in at least two newspapers published in or nearest to the place where the sale is to be made.
notice of the time and place of the sale has been sent by registered mail to the recorded address of the person by whom the property was given as security at least ten days prior to the sale; and
a caution, caveat or memorial in respect of the rights of the bank.
a copy of the instrument giving the security, certified by an officer or employee of the bank to be a true copy, or
an original of the instrument giving the security,
the registration or filing of the deed or other instrument evidencing such interest or right, or of a caution, caveat or memorial in respect thereof,
the registration of such interest or right, or
to any forestry producer, on the security of fertilizer, pesticide, forestry equipment, forestry implements or products of the forest, but security taken under this paragraph is not effective in respect of any such property that, at the time the security is taken, by any statutory law that is then in force, is exempt from seizure under writs of execution and the forestry producer is prevented from giving as security for money lent to the forestry producer,
to any fisherman, on the security of fishing vessels, fishing equipment and supplies or products of the sea, lakes and rivers, but security taken under this paragraph is not effective in respect of any such property that, at the time the security is taken, by any statutory law that is then in force, is exempt from seizure under writs of execution and the fisherman is prevented from giving as security for money lent to the fisherman, and
to any farmer for
to any aquaculturist for
to any farmer for the purchase or installation of agricultural equipment or a farm electric system, on the security of that agricultural equipment or farm electric system,
to any aquaculturist for the purchase or installation of aquacultural equipment or an aquacultural electric system, on the security of that aquacultural equipment or aquacultural electric system,
to any farmer for the purchase of agricultural implements, on the security of those agricultural implements,
to any aquaculturist for the purchase of aquacultural implements, on the security of those aquacultural implements,
to any farmer or to any person engaged in livestock raising, on the security of feed or livestock, but security taken under this paragraph is not effective in respect of any livestock that, at the time the security is taken, by any statutory law that is then in force, is exempt from seizure under writs of execution and the farmer or other person engaged in livestock raising is prevented from giving as security for money lent to the farmer or other person,
to any aquaculturist on the security of aquatic plants and animals, but security taken under this paragraph is not effective in respect of any aquatic plants and animals that, at the time the security is taken, by any statutory law that is then in force, are exempt from seizure under writs of execution and the aquaculturist is prevented from giving as security for money lent to the aquaculturist,
to any farmer
to any aquaculturist
to any farmer, on the security of crops growing or produced on the farm or on the security of agricultural equipment or agricultural implements,
to any aquaculturist, on the security of aquacultural stock growing or produced in the aquaculture operation or on the security of aquacultural equipment or aquacultural implements,
to any person engaged in business as a manufacturer, on the security of goods, wares and merchandise manufactured or produced by that person or procured for such manufacture or production and of goods, wares and merchandise used in or procured for the packing of goods, wares and merchandise so manufactured or produced,
to any wholesale or retail purchaser or shipper of, or dealer in, products of agriculture, products of aquaculture, products of the forest, products of the quarry and mine, products of the sea, lakes and rivers or goods, wares and merchandise, manufactured or otherwise, on the security of such products or goods, wares and merchandise and of goods, wares and merchandise used in or procured for the packing of such products or goods, wares and merchandise,
for the purchase of feed, veterinary drugs, biologicals or vaccines, on the security of the feed, veterinary drugs, biologicals or vaccines and any aquatic stock to be grown in the aquaculture operation on which the feed, veterinary drugs, biologicals or vaccines are to be used,
for the purchase of pesticide, on the security of the pesticide and any aquatic stock to be grown from the site on which the pesticide is to be used, and
for the purchase of aquatic broodstock or aquatic seedstock, on the security of the aquatic broodstock or aquatic seedstock and any aquatic stock to be grown therefrom,
for the purchase of fertilizer or pesticide, on the security of the fertilizer or pesticide and any crop to be grown from land on which, in the same season, the fertilizer or pesticide is to be used,
for the purchase of seed grain or seed potatoes, on the security of the seed grain or seed potatoes and any crop to be grown therefrom, and
any works for the improvement or development of an aquaculture operation for which a loan, as defined in the Canada Small Business Financing Act, or a business improvement loan, as defined in the Small Business Loans Act, may be made,
the construction, repair or alteration of or making of additions to any building or structure in an aquaculture operation, and
the erection or construction of fencing or works for drainage in an aquaculture operation for the holding, rearing or protection of aquatic plants and animals or for the supply of water to such plants and animals or the disposal of effluent from them,
the alteration or improvement of an aquacultural electric system,
the repair or overhaul of an aquacultural implement, aquacultural equipment or an aquaculture electric system,
any purpose for which a loan as defined in the Canadian Agricultural Loans Act may be made,
[Repealed, 2009, c. 15, s. 13]
the construction, repair or alteration of or making of additions to any building or structure on a farm,
the erection or construction of fencing or works for drainage on a farm,
the alteration or improvement of a farm electric system,
the repair or overhaul of an agricultural implement, agricultural equipment or a farm electric system,
[Repealed, 1997, c. 15, s. 47]
Despite subsection (2) and despite the fact that a notice of intention by a person giving security on property under this section has been registered under this section, if, under the Bankruptcy and Insolvency Act, a bankruptcy order is made against, or an assignment is made by, that person,
The Governor in Council may, for the purposes of this section, make regulations
In subsections (4) and (6),
The following provisions apply where security on property is given to a bank under this section:
Where security on any property is given to a bank under any of paragraphs (1)(c) to (p), the bank, in addition to and without limitation of any other rights or powers vested in or conferred on it, has full power, right and authority, through its officers, employees or agents, in the case of
Delivery of a document giving security on property to a bank under the authority of this section vests in the bank in respect of the property therein described
A bank may lend money and make advances
if the property
if the property is property on which security is given under paragraph (1)(a), (b), (g), (h), (i), (j) or (o), under paragraph (1)(c) or (m) consisting of aquacultural implements, under paragraph (1)(d) or (n) consisting of agricultural implements or under paragraph (1)(p) consisting of forestry implements, the same rights and powers as if the bank had acquired a warehouse receipt or bill of lading in which that property was described, or
of which that person becomes the owner at any time thereafter before the release of the security by the bank, whether or not the property is in existence at the time of the delivery,
of which the person giving security is the owner at the time of the delivery of the document, or
is property on which security is given under paragraph (1)(p) consisting of forestry equipment,
is property on which security is given under paragraph (1)(n) consisting of agricultural equipment, or
is property on which security is given under paragraph (1)(m) consisting of aquacultural equipment,
is property on which security is given under any of paragraphs (1)(e), (f), (k) and (l),
is property on which security is given under paragraph (1)(d) consisting of crops or agricultural equipment,
is property on which security is given under paragraph (1)(c) consisting of aquacultural stock growing or produced in the aquaculture operation or aquacultural equipment,
seizure of any property covered by the security,
any attempt, without the consent of the bank, to dispose of any property covered by the security, or
failure to care for any property on which security is given under any of paragraphs (1)(i) to (p),
failure to care for or harvest any aquatic stock growing or produced in the aquaculture operation or to care for any aquatic plants and animals covered by the security,
failure to care for or harvest any crop or to care for any livestock covered by the security,
non-payment of any of the loans or advances for which the security was given,
evidence of registration in an agency of a notice of intention or a certificate of release and of the place, date, time and serial number, if any, of its registration may be given by the production of a copy of the notice of intention or certificate of release duly certified by the agent to be a true copy thereof without proof of the signature or of the official character of the agent.
any person desiring to ascertain whether a notice of intention given by a person is registered in an agency may inquire by sending a prepaid telegram or written communication addressed to the agent, and it is the duty of the agent, in the case of a written inquiry, only if it is accompanied by the payment of the fee prescribed pursuant to subsection (6), to make the necessary examination of the information contained in the system of registration and of the relevant documents, if any, and to reply to the inquirer stating the name of the bank mentioned in any such notice of intention, which reply shall be sent by mail unless a telegraphic reply is requested, in which case it shall be sent at the expense of the inquirer; and
every person, on payment of the fee prescribed pursuant to subsection (6), is entitled to have access through the agent to any system of registration, notice of intention or certificate of release kept by or in the custody of the agent;
registration of a notice of intention may be cancelled by registration in the appropriate agency in which the notice of intention was registered of a certificate of release signed on behalf of the bank named in the notice of intention stating that every security to which the notice of intention relates has been released or that no security was given to the bank, as the case may be;
the rights and powers of the bank in respect of property covered by the security are void as against creditors of the person giving the security and as against subsequent purchasers or mortgagees in good faith of the property covered by the security unless a notice of intention signed by or on behalf of the person giving the security was registered in the appropriate agency not more than three years immediately before the security was given;
system of registration means all registers and other records required by subsection (4) to be prepared and maintained and any such system may be in a bound or loose-leaf form or in a photographic film form, or may be entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time. (archives)
principal place of business means
notice of intention means a notice of intention in the prescribed form or in a form to the like effect, and includes a notice of intention registered before the day this Part comes into force, in the form and registered in the manner required by the law in force at the time of the registration of the notice of intention; (préavis)
appropriate agency means
agent means the officer in charge of an agency, and includes any person acting for that officer; (agent)
agency means, in a province, the office of the Bank of Canada or its authorized representative but does not include its Ottawa office, and in Yukon, the Northwest Territories and Nunavut means the office of the clerk of the court of each of those territories respectively; (agence)
and in respect of any notice of intention registered before the day this Part comes into force, means the office in which registration was required to be made by the law in force at the time of such registration; (agence appropriée)
if that person has no place of business, the agency for the province in which the person resides,
if that person has more than one place of business in Canada and the places of business are not in the same province, the agency for the province in which is located the principal place of business of that person, or
the agency for the province in which is located the place of business of the person by whom or on whose behalf a notice of intention is signed,
in the case of any other body corporate, the place at which a civil process in the province in which the loans or advances will be made can be served on the body corporate; (principal établissement)
in the case of a body corporate incorporated by or under an Act of Parliament or the legislature of a province, the place where, according to the body corporate’s charter, memorandum of association or by-laws, the head office of the body corporate in Canada is situated, and
respecting any other matter necessary for the maintenance and operation of a system of registration.
requiring the payment of fees relating to the system of registration and prescribing the amounts thereof; and
respecting the practice and procedure for the operation of a system of registration, including registration of notices of intention, the cancellation of such registrations and access to the system of registration;
claims of a grower or producer of products of agriculture for money owing by a manufacturer to the grower or producer for such products that were grown or produced by the grower or producer on land owned or leased by the grower or producer and that were delivered to the manufacturer during the period of six months immediately preceding the making of the order or assignment to the extent of the lesser of
claims for wages, salaries or other remuneration owing in respect of the period of three months immediately preceding the making of the order or assignment, to employees of the person employed in connection with the business or farm in respect of which the property covered by the security was held or acquired by the person, and
the prescribed amount
the total amount of the claims of the grower or producer therefor, and
A bank may assign to any person all or any of its rights and powers in respect of any property on which security has been given to it under paragraph 427(1)(i), (j), (k), (l), (m), (n), (o) or (p), whereupon that person has all or any of the assigned rights and powers of the bank under that security.
Where payment or satisfaction of any debt, liability, loan or advance in respect of which a bank has taken security under section 426, 427 or 435 is guaranteed by a third person and the debt, liability, loan or advance is paid or satisfied by the guarantor, the guarantor is subrogated in and to all of the powers, rights and authority of the bank under the security that the bank holds in respect thereof under sections 426, 427 and 435 and this section.
Where goods, wares and merchandise are manufactured or produced from goods, wares and merchandise, or any of them, mentioned in or covered by any warehouse receipt or bill of lading acquired and held by a bank or any security given to a bank under section 427, the bank has the same rights and powers in respect of the goods, wares and merchandise so manufactured or produced, as well during the process of manufacture or production as after the completion thereof, and for the same purposes and on the same conditions as it had with respect to the original goods, wares and merchandise.
Subject to section 427 and this section and any agreement between the bank and the person by whom the property was given as security, where, pursuant to subsection 427(3), a bank takes possession of or seizes property given as security to the bank, the bank shall, as soon as is reasonably practical having regard to the nature of the property, sell the property or so much thereof as will enable it to satisfy the debt, liability, loan or advance, with interest and expenses, in relation to which the property was given as security.
In connection with any sale of property by a bank pursuant to subsections (7) and (8) or pursuant to any agreement between the bank and the person by whom the security was given, the bank shall act honestly and in good faith and shall deal with the property in a timely and appropriate manner having regard to the nature of the property and the interests of the person by whom the security was given and, in the case of a sale pursuant to an agreement, shall give the person by whom the security was given reasonable notice of the sale except where the property is perishable and to do so might result in a substantial reduction in the value of the property.
Any sale of property by a bank under subsections (7) and (8) vests in the purchaser all the right and title in and to the property that the person from whom security was taken under section 435 had when the security was given or that the person from whom security was taken under section 427 had when the security was given and that the person acquired thereafter.
The power of sale referred to in subsection (7) shall, unless the person by whom the security mentioned in that subsection was given has agreed to the sale of the property otherwise than as herein provided or unless the property is perishable and to comply with the following provisions might result in a substantial reduction in the value of the property, be exercised subject to the following provisions, namely,
In the event of non-payment of any debt, liability, loan or advance, as security for the payment of which a bank has acquired and holds a warehouse receipt or bill of lading or has taken any security under section 427, the bank may sell all or any part of the property mentioned therein or covered thereby and apply the proceeds against that debt, liability, loan or advance, with interest and expenses, returning the surplus, if any, to the person by whom the security was given.
A copy of the document giving the security described in subsection (5), certified by an officer of the bank, may be recorded or registered under the Canada Shipping Act, 2001 as if it were a mortgage given under that Act and, on the recording or registration of the document, the bank, in addition to and without limitation of any other rights or powers vested in or conferred on it, has all the rights and powers in respect of the vessel that it would have if the security were a mortgage recorded or registered under that Act.
If security has been given to a bank under paragraph 427(1)(o) on a fishing vessel that is recorded or registered under the Canada Shipping Act, 2001, the rights and powers of the bank do not have priority over any rights that are subsequently acquired in the vessel and are recorded or registered under that Act unless a copy of the document giving the security, certified by an officer of the bank to be a true copy, has been recorded or registered under that Act in respect of the vessel before the recording or registration under that Act of those rights.
Every registrar or officer in charge of the proper land registry or land titles office to whom a document mentioned in paragraph (3)(c), (d) or (e) is tendered shall register or file the document according to the ordinary procedure for registering or filing within that office documents that evidence liens or charges against, or cautions, caveats or memorials in respect of claims to, or interests or rights in respect of, real property and subject to payment of the like fees, but subsection (3) and this subsection do not apply if the provincial law does not permit such registration or filing of the tendered document.
Where security has been given to a bank under paragraph 427(1)(c) or (m) consisting of aquacultural equipment, under paragraph 427(1)(d) or (n) consisting of agricultural equipment, under paragraph 427(1)(k) consisting of aquacultural equipment or an aquacultural electric system, under paragraph 427(1)(l) consisting of agricultural equipment or a farm electric system or under paragraph 427(1)(p) consisting of forestry equipment that is or has become affixed to real property, the rights and powers of the bank do not have priority over any interest or right acquired in, on or in respect of the real property after that property has become affixed thereto unless, prior to
The priority referred to in subsection (1) does not extend over the claim of any unpaid vendor who had a lien on the property, or of any person who has a security interest in the property that was unperfected at the time the bank acquired its warehouse receipt, bill of lading or security, if the bank acquired it with knowledge of that unpaid vendor’s lien or that other person’s security interest.
If security is given to the bank under paragraph 427(1)(c) or (m) consisting of aquacultural equipment, under paragraph 427(1)(d) or (n) consisting of agricultural equipment, under paragraph 427(1)(k) consisting of aquacultural equipment or an aquacultural electric system, under paragraph 427(1)(l) consisting of agricultural equipment or a farm electric system or under paragraph 427(1)(p) consisting of forestry equipment, the priority referred to in subsection (1) exists even if the property is or becomes affixed to real property.
All the rights and powers of a bank in respect of the property mentioned in or covered by a warehouse receipt or bill of lading acquired and held by the bank, and the rights and powers of the bank in respect of the property covered by security given to the bank under section 427 that are the same as if the bank had acquired a warehouse receipt or bill of lading in which that property was described, have, subject to subsection 427(4) and subsections (3) to (6) of this section, priority over all rights subsequently acquired in, on or in respect of that property, and also over the claim of any unpaid vendor or of any person who has a security interest in that property that was unperfected at the time the bank acquired its security in the property.
a caution, caveat or memorial in respect of the rights of the bank.
a copy of the document giving the security, certified by an officer or employee of the bank to be a true copy, or
an original of the document giving the security,
the registration or filing of the deed or other instrument evidencing the interest or right, or of a caution, caveat or memorial in respect thereof,
the registration of the interest or right, or
publication of an advertisement of the sale, at least two days prior to the sale, in at least two newspapers published in or nearest to the place where the sale is to be made stating the time and place thereof; and
notice of the time and place of the sale has been sent by registered mail to the recorded address of the person by whom the security was given, at least ten days prior to the sale in the case of any such property other than products of the forest, and at least thirty days prior to the sale in the case of any such property consisting of products of the forest, and
every sale of livestock shall be made by public auction not less than five days after
every sale of such property other than livestock shall be by public auction after
posting of a notice in writing of the time and place of the sale, in or at the post office nearest to the place where the sale is to be made,
publication of an advertisement of the time and place of the sale in a newspaper, published in or nearest to the place where the sale is to be made, and
on the written promise or agreement that a warehouse receipt or bill of lading or security under section 427 would be given to the bank, in which case the debt, liability, loan or advance may be contracted or made before or at the time of or after that acquisition,
at the time of the acquisition thereof by the bank, or
A bank may
A bank shall not acquire or hold any warehouse receipt or bill of lading, or any security under section 427, to secure the payment of any debt, liability, loan or advance unless the debt, liability, loan or advance is contracted or made
when it holds any security whatever covering grain, take in lieu of that security, to the extent of the quantity covered by the security taken, a bill of lading or warehouse receipt for, or any document entitling it under the Canada Grain Act to the delivery of, the same grain or grain of the same grade or kind.
when it holds any security under section 427 on grain in any elevator, take a bill of lading covering the same grain or grain of the same grade or kind shipped from that elevator, in lieu of that security, to the extent of the quantity shipped; and
surrender any bill of lading or warehouse receipt held by it and receive in exchange therefor any security that may be taken under this Act;
on the receipt of any property for which it holds a bill of lading, or any security under section 427, surrender the bill of lading or security, store the property and take a warehouse receipt therefor, or ship the property, or part of it, and take another bill of lading therefor;
on the shipment of any property for which it holds a warehouse receipt or any security under section 427, surrender the receipt or security and receive a bill of lading in exchange therefor;
by the bank under a power of sale given to it for that purpose, notice of the sale by auction to the highest bidder having been first given by advertisement for four weeks in a newspaper published in the county or electoral district in which the property is situated,
by a mortgagee or other encumbrancer, having priority over a mortgage or other encumbrance held by the bank, or
under execution, or in insolvency, or under the order or decree of a court, or at a sale for taxes, as belonging to any debtor to the bank,
Nothing in any charter, Act or law shall be construed as ever having been intended to prevent or as preventing a bank from acquiring and holding an absolute title to and in any mortgaged or hypothecated real property, whatever the value thereof, or from exercising or acting on any power of sale contained in any mortgage given to or held by the bank, authorizing or enabling it to sell or convey any property so mortgaged.
A bank may acquire and hold an absolute title in or to real property affected by a mortgage or hypothec securing a loan or an advance made by the bank or a debt or liability to the bank, either by the obtaining of a release of the equity of redemption in the mortgaged property, or by procuring a foreclosure, or by other means whereby, as between individuals, an equity of redemption can, by law, be barred, or a transfer of title to real property can, by law, be effected, and may purchase and acquire any prior mortgage or charge on such property.
Any warehouse receipt or bill of lading acquired by a bank under subsection (1) vests in the bank, from the date of the acquisition thereof,
A bank may acquire and hold any warehouse receipt or bill of lading as security for the payment of any debt incurred in its favour, or as security for any liability incurred by it for any person, in the course of its banking business.
all the right and title to the goods, wares and merchandise mentioned therein of the person from whom the goods, wares and merchandise were received or acquired by the bank, if the warehouse receipt or bill of lading is made directly in favour of the bank, instead of to the previous holder or owner of the goods, wares and merchandise.
all the right and title to the warehouse receipt or bill of lading and to the goods, wares and merchandise covered thereby of the previous holder or owner thereof; and
who, by or by the authority of the owner of the goods, wares and merchandise, is possessed of any bill of lading, receipt, order or other document covering the same, such as is used in the course of business as proof of the possession or control of goods, wares and merchandise, or as authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of such a document to transfer or receive the goods, wares and merchandise thereby represented,
to whom the goods, wares and merchandise are, by or by the authority of the owner thereof, consigned, or
entrusted with the possession of the goods, wares and merchandise mentioned therein, by or by the authority of the owner thereof,
For the purposes of this section, a person shall be deemed to be the possessor of goods, wares and merchandise, or a bill of lading, receipt, order or other document,
Where the previous holder of a warehouse receipt or bill of lading referred to in section 435 is a person
for whom, or subject to whose control the goods, wares and merchandise are, or bill of lading, receipt, order or other document is, held by any other person.
who is in actual possession thereof; or
eliminating rights and powers acquired under those sections in relation to aircraft objects.
removing classes of aircraft objects from the application of those sections or reinstating their application to those classes of aircraft objects; and
In subsection (1), aircraft objects has the same meaning as in subsection 2(1) of the International Interests in Mobile Equipment (aircraft equipment) Act.
The Governor in Council may make regulations respecting the application of sections 426 to 436 to aircraft objects, including regulations
pay all or part of the principal of the deposit and all or part of the interest thereon to or to the order of that person.
accept a deposit from any person whether or not the person is qualified by law to enter into contracts; and
Subsection (3) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the bank has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made.
A bank is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject.
Paragraph (1)(b) does not apply if, before payment, the money deposited in the bank pursuant to paragraph (1)(a) is claimed by some other person
A bank may, without the intervention of any other person,
in any other action or proceeding pursuant to which an injunction or order made by the court requiring the bank not to make payment of that money or make payment thereof to some person other than the depositor has been served on the bank,
in any action or proceeding to which the bank is a party and in respect of which service of a writ or other process originating that action or proceeding has been made on the bank, or
in the case of any other deposit, from the day on which the last transaction took place or a statement of account was last requested or acknowledged by the creditor, whichever is later, or
in the case of a deposit made for a fixed period, from the day on which the fixed period terminated, and
a cheque, draft or bill of exchange (including any of those instruments drawn by one branch of a bank on another of its branches but not including an instrument issued in payment of a dividend on the capital of a bank) payable in Canada has been issued, certified or accepted by a bank in Canada and no payment has been made in respect of it for a period of 10 years after the date of issue, certification, acceptance or maturity, whichever is later,
a deposit has been made in Canada that is payable in Canada and in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor during a period of 10 years
Subsection (1) applies only in respect of
The liability of the Bank of Canada under subsection (3) may be enforced by action against the Bank of Canada in the court in the province in which the deposit or instrument was payable.
Subject to section 22 of the Bank of Canada Act, where payment has been made to the Bank of Canada under subsection (1) in respect of any deposit or instrument, and if payment is demanded or the instrument is presented at the Bank of Canada by the person who, but for that section, would be entitled to receive payment of the deposit or instrument, the Bank of Canada is liable to pay, at its agency in the province in which the deposit or instrument was payable, an amount equal to the amount so paid to it together with interest, if interest was payable under the terms of the deposit or instrument,
A bank shall provide the Bank of Canada with copies of signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada.
A bank shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the bank:
If a deposit referred to in paragraph (1)(a) or an instrument referred to in paragraph (1)(b) is not in Canadian currency, then, before paying to the Bank of Canada the amount required by subsection (1), the bank shall convert the amount of the deposit or instrument to Canadian currency at a rate of exchange determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act.
Where
the branch of the bank at which the last transaction took place in respect of the deposit, and the date of that last transaction; and
the outstanding amount of the deposit, and
the recorded address of the depositor,
the name of the depositor in whose name the deposit is held, as well as their date of birth and Social Insurance Number, if they are a natural person,
in the case of an instrument,
in the case of a deposit,
the branch of the bank at which the instrument was issued, certified or accepted.
the name of the place where the instrument was payable, and
the amount and date of the instrument,
the name of the payee of the instrument,
the recorded address of that person,
the name of the person to whom or at whose request the instrument was issued, certified or accepted, as well as their date of birth and Social Insurance Number, if they are a natural person,
at such rate and computed in such manner as the Minister determines.
for a period not exceeding ten years from the day on which the payment was received by the Bank of Canada until the date of payment to the claimant; and
deposits made, and cheques, drafts and bills of exchange issued, certified or accepted, on or after the day on which this section comes into force.
deposits made, and cheques, drafts and bills of exchange issued, certified or accepted, in the ten year period immediately preceding the day on which this section comes into force; and
[Repealed, 2018, c. 27, s. 321]
The notice to be sent during the month of January next following the end of the first nine-year period determined under paragraphs (2)(a) to (c), as the case may be, must also
The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period
A bank shall send, by mail and by electronic means, to each person to whom a deposit referred to in paragraph 438(1)(a) is payable, or to each person to whom or at whose request an instrument referred to in paragraph 438(1)(b) was issued, certified or accepted, at their recorded address and electronic address in so far as they are known to the bank, a notice stating that the deposit or instrument remains unpaid.
in the case of a cheque, draft or bill of exchange, in respect of which the instrument has remained unpaid.
in the case of any other deposit, in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor; and
in the case of a deposit made for a fixed period, after the fixed period has terminated;
include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument.
[Repealed before coming into force, 2008, c. 20, s. 3]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
one of the following documents, namely,
an affidavit or declaration in writing in form satisfactory to the bank signed by or on behalf of a person claiming by virtue of the transmission stating the nature and effect of the transmission, and
when the claim is based on a notarial will, an authenticated copy thereof,
when the claim is based on a will or other testamentary instrument or on a grant of probate thereof or on such a grant and letters testamentary or other document of like import or on a grant of letters of administration or other document of like import, purporting to be issued by any court or authority in Canada or elsewhere, an authenticated copy or certificate thereof under the seal of the court or authority without proof of the authenticity of the seal or other proof, or
Nothing in subsection (1) shall be construed to prevent a bank from refusing to give effect to a transmission until there has been delivered to the bank such documentary or other evidence of or in connection with the transmission as it may deem requisite.
Where the transmission of a debt owing by a bank by reason of a deposit, of property held by a bank as security or for safe-keeping or of rights with respect to a safety deposit box and property deposited therein takes place because of the death of a person, the delivery to the bank of
if no branch has been identified or agreed on as provided in paragraph (a), the branch that is designated as the branch of account with respect thereto by the bank by notice in writing to the depositor.
the branch the address or name of which appears on the specimen signature card or other signing authority signed by a depositor with respect to the deposit account or that is designated by agreement between the bank and the depositor at the time of opening of the deposit account; or
The indebtedness of a bank by reason of a deposit in a deposit account in the bank shall be deemed for all purposes to be situated at the place where the branch of account is situated.
Notwithstanding subsection (2), a bank may permit either occasionally or as a regular practice, the person to whom the bank is indebted by reason of a deposit in a deposit account in the bank to withdraw moneys owing by reason of that deposit at a branch of the bank other than the branch of account or to draw cheques or other orders for the payment of such moneys at a branch other than the branch of account.
The amount of any debt owing by a bank by reason of a deposit in a deposit account in the bank is payable to the person entitled thereto only at the branch of account and the person entitled thereto is not entitled to demand payment or to be paid at any other branch of the bank.
For the purposes of this Act, the branch of account with respect to a deposit account is
an enforcement notice in respect of a support order or support provision.
an instrument purporting to assign, perfect or otherwise dispose of an interest in the property or the deposit account; or
an order or injunction made by a court;
a writ or process originating a legal proceeding or issued in or pursuant to a legal proceeding;
The following definitions apply in this section.
The Governor in Council may make regulations
Subsection (3) does not apply in respect of an enforcement notice in respect of a support order or support provision until the second business day following the day of service referred to in that subsection.
Subsections (1) and (2) do not apply in respect of an enforcement notice in respect of a support order or support provision if
Despite subsections (1) and (2), a notice, demand, order or other document issued with respect to a customer of a bank constitutes notice to the bank and fixes the bank with knowledge of its contents and, where applicable, is binding on property belonging to the customer and in the possession of the bank or on money owing to the customer by reason of an account in the bank, if it is sent to the branch of the bank referred to in subsection (1) or (2), an office of the bank referred to in paragraph (3)(a) or any other office agreed to by the bank and the Minister of National Revenue and it relates to
Any notification sent to a bank with respect to a customer of the bank, other than a document referred to in subsection (1) or (3), constitutes notice to the bank and fixes the bank with knowledge of its contents only if sent to and received at the branch of the bank that is the branch of account of an account held in the name of that customer.
Subject to subsections (3) and (4), the following documents are binding on property belonging to a person and in the possession of a bank, or on money owing to a person by reason of a deposit account in a bank, only if the document or a notice of it is served at the branch of the bank that has possession of the property or that is the branch of account in respect of the deposit account, as the case may be:
the administration of an Act of the legislature of a province or legislation made by an aboriginal government, where the Minister or the Minister of National Revenue has entered into a tax collection agreement under an Act of Parliament with the government of the province or the aboriginal government.
the administration of an Act of Parliament by the Minister of National Revenue; or
the order or provision can be enforced under the laws of that province.
the enforcement notice, accompanied by a written statement containing the information required by the regulations, is served at an office of a bank designated in accordance with the regulations in respect of a province; and
respecting the information that must accompany enforcement notices in respect of support orders and support provisions.
prescribing the manner in which a bank shall publicize the locations of designated offices of the bank; and
respecting the designation by a bank, for the purpose of subsection (3), of a place in any province for the service of enforcement notices in respect of support orders and support provisions;
support provision means a provision of an agreement relating to the payment of maintenance or family financial support. (disposition alimentaire)
support order means an order or judgment or interim order or judgment for family financial support. (ordonnance alimentaire)
enforcement notice, in respect of a support order or support provision, means a garnishee summons or other instrument issued under the laws of a province for the enforcement of the support order or support provision. (avis d’exécution)
designated office means a place designated in accordance with regulations made for the purpose of subsection (3). (bureau désigné)
specialized financing entity means a specialized financing entity as defined in the regulations. (entité s’occupant de financement spécial)
real property brokerage entity means an entity that is primarily engaged in
prescribed subsidiary means a subsidiary that is one of a prescribed class of subsidiaries. (filiale réglementaire)
permitted entity means an entity in which a bank is permitted to acquire a substantial investment under section 468. (entité admissible)
mutual fund entity means an entity
mutual fund distribution entity means an entity whose principal activity is acting as a selling agent of units, shares or other interests in a mutual fund and acting as a collecting agent in the collection of payments for any such interests if
motor vehicle means a motorized vehicle designed to be used primarily on a public highway for the transportation of persons or things, but does not include
loan includes an acceptance, endorsement or other guarantee, a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit but does not include investments in securities. (prêt ou emprunt)
financial leasing entity means an entity
finance entity means a finance entity as defined in the regulations. (entité s’occupant de financement)
factoring entity means a factoring entity as defined in the regulations. (entité s’occupant d’affacturage)
closed-end fund means an entity whose activities are limited to investing the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities, and whose securities are
business growth fund means Canadian Business Growth Fund (GP) Inc., a corporation incorporated under the Canada Business Corporations Act. (fonds de croissance des entreprises)
liquidated on a fixed future termination date, the proceeds of which are allocated to the holders of the securities on a proportional basis. (fonds d’investissement à capital fixe)
traded on an exchange or an over-the-counter market; and
fixed in number and distributed to the public in an offering under a preliminary prospectus, prospectus, short-form prospectus or similar document in accordance with the laws of a province or a foreign jurisdiction;
that, in conducting the activities referred to in paragraph (a) in Canada, does not
the activities of which are limited to the financial leasing of personal property and such related activities as are prescribed and whose activities conform to such restrictions and limitations thereon as are prescribed; and
enter into lease agreements with natural persons in respect of personal household property, as that expression is defined by the regulations. (entité s’occupant de crédit-bail)
enter into lease agreements with persons in respect of any motor vehicle having a gross vehicle weight, as that expression is defined by the regulations, of less than twenty-one tonnes, or
direct its customers or potential customers to particular dealers in the leased property or the property to be leased,
any other special purpose motorized vehicle that contains significant special features that make it suitable for a specific purpose. (véhicule à moteur)
a fire-engine, bus, ambulance or utility truck; or
the existence of a sales commission and service fee in respect of the sale of any such interest is disclosed to the purchaser of the interest before the purchase of the interest. (courtier de fonds mutuels)
the proceeds of the sales of any such interests, less any sales commissions and service fees, are paid to the mutual fund; and
whose securities entitle their holders to receive, on demand, or within a specified period after demand, an amount computed by reference to the value of a proportionate interest in the whole or in a part of its net assets, including a separate fund or trust account of the entity. (entité s’occupant de fonds mutuels)
whose activities are limited to the investing of the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities; and
the provision of consulting or appraisal services in respect of real property. (courtier immobilier)
acting as an agent for vendors, purchasers, mortgagors, mortgagees, lessors or lessees of real property; and
This Part does not apply in respect of
For the purpose of this Part, a member of a bank’s group is any of the following:
The following definitions apply in this Part.
a prescribed entity in relation to the bank.
an entity in which the bank, or an entity referred to in any of paragraphs 468(1)(a) to (f) that controls the bank, has a substantial investment; or
a subsidiary of the bank or of an entity referred to in any of paragraphs 468(1)(a) to (f) that controls the bank;
an entity referred to in any of paragraphs 468(1)(a) to (f) that controls the bank;
the holding of a security interest in securities of an entity.
the holding of a security interest in real property, unless the security interest is prescribed under paragraph 479(a) to be an interest in real property; or
For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.
The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a bank and its subsidiaries hold must not exceed $200,000,000.
If a bank decides to exercise its right under subsection (6), the bank is deemed to be acquiring the control or the substantial investment under the other provision.
Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a bank may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions set out in that other provision are met.
If a bank holds a substantial investment in an entity referred to in paragraph 468(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (5.1), the bank may continue to hold that substantial investment.
No bank shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 468(1)(j).
A bank is deemed not to contravene subsection (1) if the bank acquires control of, or acquires or increases a substantial investment in, an entity solely as the result of an event not within the control of the bank.
A bank is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:
A bank is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:
For greater certainty, a bank is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.
Subject to section 465.1, subsections (4.2) to (4.4) and Part XI, a bank may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.
A bank may, subject to Part XI, acquire control of, or hold, acquire or increase a substantial investment in, an entity other than a permitted entity if it does so in accordance with regulations made under paragraph 467(d) concerning specialized financing.
A bank may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity by way of
A bank may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity other than a permitted entity by way of
Subject to subsections (2) to (4.4), no bank shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.
an acquisition of shares or ownership interests in the entity by
an acquisition of control of an entity referred to in any of paragraphs 468(1)(a) to (j), or of a prescribed entity, that controls or has a substantial investment in the entity; or
an entity controlled by an entity referred to in any of paragraphs 468(1)(a) to (j), or a prescribed entity, that is controlled by the bank.
an entity referred to in any of paragraphs 468(1)(a) to (j), or a prescribed entity, that is controlled by the bank, or
a realization of security permitted by section 473.
an acquisition of shares of a body corporate or of ownership interests in an unincorporated entity permitted by section 472; or
a temporary investment permitted by section 471;
an entity that is engaged in any prescribed activity.
an entity that acts as an insurance broker or agent in Canada; or
an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;
an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;
an entity referred to in any of paragraphs 468(1)(a) to (j);
the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.
all ownership interests that are held by the bank, the bank’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and
concerning specialized financing for the purposes of subsection 466(4).
specifying the classes of persons who are connected with any person for the purposes of paragraph (b); and
respecting the loans and investments, and the maximum aggregate amount of all loans and investments, that may be made or acquired by a bank and its prescribed subsidiaries to or in a person and any persons connected with that person;
respecting the determination of the amount or value of loans, investments and interests for the purposes of this Part;
an entity that is incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province and that is primarily engaged outside Canada in a business that, if carried on in Canada, would be the business of banking, the business of a cooperative credit society, the business of insurance, the business of providing fiduciary services or the business of dealing in securities.
an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province and that is primarily engaged in dealing in securities; or
a cooperative credit society incorporated or formed, and regulated, by or under an Act of the legislature of a province;
a trust, loan or insurance corporation incorporated or formed by or under an Act of the legislature of a province;
an insurance holding company;
an insurance company or a fraternal benefit society incorporated or formed by or under the Insurance Companies Act;
an association to which the Cooperative Credit Associations Act applies;
a body corporate to which the Trust and Loan Companies Act applies;
a bank holding company;
a bank;
If a bank controls, within the meaning of paragraph 3(1)(a), (b) or (c), an entity, subsections (5) and (6) do not apply in respect of any subsequent increases by the bank of its substantial investment in the entity so long as the bank continues to control the entity.
A bank that, under subsection (4), controls an entity may, with the prior written approval of the Superintendent, give up control of the entity while keeping a substantial investment in the entity if
A bank that, under paragraph (4)(b), (c) or (d), controls an entity may not, without the prior written approval of the Minister, give up control, within the meaning of paragraph 3(1)(d), of the entity while it continues to control the entity.
A bank that controls, within the meaning of paragraphs 3(1)(a) and (d), an entity referred to in paragraph (1)(a) or (b) may not give up control, within the meaning of paragraph 3(1)(a) or (d), of the entity while continuing to control, within the meaning of the other paragraph, the entity.
A bank need not control an entity referred to in paragraph (1)(j), or an entity that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province, if the laws or customary business practices of the country under the laws of which the entity was incorporated or formed do not permit the bank to control the entity.
The exception in paragraph (7)(d) does not apply with respect to a deemed acquisition of control under subsection 466(7).
Subsection (6) does not apply in respect of a particular transaction if
Subject to subsection (7) and the regulations, a bank may not acquire control of, or acquire or increase a substantial investment in, an entity referred to in any of paragraphs (1)(g) to (j) and (4)(c) and (d), unless the bank obtains the approval of the Superintendent.
In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval under paragraph (5)(b.1), take into account all matters that he or she considers relevant in the circumstances, including
Subject to the regulations, a bank may not, without the prior written approval of the Minister,
Subject to subsection (8) and the regulations, a bank may not acquire control of, or acquire or increase a substantial investment in,
Despite paragraph (3)(a), a bank may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee for a trust if the entity has been permitted under the laws of a province to act as a trustee for a trust and the following conditions are satisfied:
A bank may not acquire control of, or acquire or increase a substantial investment in, an entity whose business includes any activity referred to in any of paragraphs (2)(a) to (e) if the entity engages in the business of accepting deposit liabilities or if the activities of the entity include
Subject to subsections (3) to (6) and Part XI, a bank may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (j), whose business is limited to one or more of the following:
Subject to subsections (4) to (6) and Part XI, a bank may acquire control of, or acquire or increase a substantial investment in
engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed.
engaging in the activities referred to in the definition closed-end fund, mutual fund distribution entity, mutual fund entity or real property brokerage entity in subsection 464(1); and
engaging in any activity that a bank is permitted to engage in, other than an activity referred to in paragraph (a) or (e), that relates to
engaging in the provision of any services exclusively to any or all of the following, so long as the entity is providing those services to the bank or any member of the bank’s group, namely,
acquiring or holding shares of, or ownership interests in, entities in which a bank is permitted under this Part to hold or acquire;
engaging in any financial service activity that a bank is permitted to engage in under any of paragraphs 409(2)(a) to (d) or any other activity that a bank is permitted to engage in under section 410 or 411;
any prescribed person, if it is doing so under prescribed terms and conditions, if any are prescribed;
any permitted entity in which an entity referred to in subparagraph (iii) has a substantial investment, or
any entity that is primarily engaged in the business of providing financial services,
any member of the bank’s group,
the bank,
if a significant portion of the business of the entity involves an activity referred to in subparagraph (i), the promotion, sale, delivery or distribution of a financial product or financial service that is provided by any other entity that is primarily engaged in the business of providing financial services;
the promotion, sale, delivery or distribution of a financial product or financial service that is provided by the bank or any member of the bank’s group, or
any prescribed activity.
acquiring control of or acquiring or holding a substantial investment in another entity unless
activities that a bank is not permitted to engage in under section 416 if the entity engages in the activities of a finance entity or of any other entity as may be prescribed;
dealing in securities, except as may be permitted under paragraph (2)(e) or as may be permitted to a bank under paragraph 409(2)(c);
activities that a bank is not permitted to engage in under any of sections 412, 417 and 418;
in the case of an entity that is not controlled by the bank, the bank itself would be permitted to acquire a substantial investment in the other entity under subsection (1) or (2), subsection 466(2), paragraph 466(3)(b) or (c) or subsection 466(4); or
in the case of an entity that is controlled by the bank, the bank itself would be permitted under this Part to acquire a substantial investment in the other entity, or
if the entity engages in other business, that business is limited to engaging in one or more of the following:
the entity acts as a trustee only with respect to a closed-end fund or mutual fund entity; and
the provision of investment counselling services and portfolio management services.
any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and
the activities of a mutual fund distribution entity,
the bank is permitted by regulations made under paragraph 474(a) to acquire or increase the substantial investment;
the bank controls, within the meaning of paragraphs 3(1)(a) and (d), the entity or would thereby acquire control, within the meaning of those paragraphs, of the entity, or
an entity whose business includes an activity referred to in paragraph (2)(b), including a specialized financing entity, unless
an entity whose business includes one or more of the activities referred to in paragraph (2)(a) and that engages, as part of its business, in any financial intermediary activity that exposes the entity to material market or credit risk, including a finance entity, a factoring entity and a financial leasing entity, unless
an entity referred to in any of paragraphs (1)(c) to (j), unless
an entity referred to in paragraph (1)(a) or (b), unless
the bank is permitted by regulations made under paragraph 474(a) to acquire or increase the substantial investment;
the bank controls, within the meaning of paragraph 3(1)(d), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, or
the bank is permitted by regulations made under paragraph 474(a) to acquire or increase the substantial investment; or
the bank controls, within the meaning of paragraph 3(1)(d), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, or
subject to prescribed terms and conditions, if any are prescribed, the activities of the entity do not include the acquisition or holding of control of, or the acquisition or holding of shares or other ownership interests in, an entity referred to in any of paragraphs (a) to (c) or an entity that is not a permitted entity.
the bank is permitted by regulations made under paragraph 474(a) to acquire or increase the substantial investment, or
the bank controls, within the meaning of paragraph 3(1)(d), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity,
acquire control of, or acquire or increase a substantial investment in, an entity engaging in an activity prescribed for the purposes of paragraph (2)(f).
acquire control of, or acquire or increase a substantial investment in, an entity that engages in an activity described in paragraph 410(1)(c.1); or
acquire control of, or acquire or increase a substantial investment in, an entity that engages in Canada in an activity described in paragraph 410(1)(c);
acquire control of, or acquire or increase a substantial investment in, an entity whose business includes one or more of the activities referred to in paragraph (2)(d);
acquire control of an entity referred to in paragraph (1)(j) if the bank is a bank with equity of two billion dollars or more and A + B > C where A is the value of the entity’s consolidated assets, as it would have been reported in the entity’s annual financial statements if those statements had been prepared immediately before the acquisition, B is the aggregate of the values of the consolidated assets of all other entities referred to in paragraph (1)(j) that the bank has acquired control of within the preceding 12 months, as the value for each entity would have been reported in its annual financial statements if those statements had been prepared immediately before the acquisition of control of that entity, and C is 10% of the value of the bank’s consolidated assets, as shown in the bank’s last annual statement that was prepared before its first acquisition of control of an entity referred to in paragraph (1)(j) within the preceding 12 months;
acquire control of an entity referred to in paragraph (1)(j) or (4)(c), other than an entity whose activities are limited to the activities of one or more of the following entities, if the control is acquired from an entity referred to in any of paragraphs (1)(a) to (f) that is not a member of the bank’s group:
acquire control of an entity referred to in any of paragraphs (1)(g) to (i) from a person who is not a member of the bank’s group;
a financial leasing entity;
a factoring entity, or
the best interests of the financial system in Canada.
the stability of the financial system in Canada; and
the bank is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and A/B < C where A is the aggregate of the values, as they would have been reported in the bank’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of the shares of, or other ownership interests in, the target entity that the bank or a subsidiary of the bank is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the bank is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, the shares of, or other ownership interests in, the target entity that are held by the bank or a subsidiary of the bank and that were acquired by the bank or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the bank the control of which was acquired by the bank within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii), B is the value of the bank’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and C is 0.005, in the case of a bank with equity of 12 billion dollars or more, or 0.01, in the case of any other bank.
subject to subsection (7.1), the bank is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (4)(c) or (d) and A/B < C where A is the aggregate of the values, as they would have been reported in the bank’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of the target entity’s consolidated assets, the assets of the bank and of any subsidiary of the bank that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and the consolidated assets of any entity referred to in paragraph (4)(c) or (d) the control of which is acquired by the bank at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c), B is the value of the bank’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and C is 0.01, in the case of a bank with equity of 12 billion dollars or more, or 0.02, in the case of any other bank; or
the Minister has approved the transaction under subsection (5) or is deemed to have approved it under subsection 469(1);
the bank is acquiring control of an entity whose activities are limited to the activities of a factoring entity or a financial leasing entity;
the bank is acquiring control of an entity, other than a specialized financing entity, and the only reason for which the bank would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b);
the entity meets the conditions referred to in subparagraph (4)(d)(iii).
the bank is permitted to do so by regulations made under paragraph 474(c); or
If a bank obtains the approval of the Superintendent under subsection 468(6) to acquire control of, or to acquire or increase a substantial investment in, an entity and, through that acquisition or increase the bank indirectly acquires control of, or acquires or increases a substantial investment in, another entity that would require the approval of the Superintendent under that subsection and that indirect acquisition or increase is disclosed to the Superintendent in writing before the approval is obtained, the bank is deemed to have obtained the approval of the Superintendent for that indirect acquisition or increase.
If a bank obtains the approval of the Minister under subsection 468(5) to acquire control of, or to acquire or increase a substantial investment in, an entity and, through that acquisition or increase, the bank indirectly acquires control of, or acquires or increases a substantial investment in, another entity that would require the approval of the Minister under subsection 468(5) or the Superintendent under subsection 468(6) and that indirect acquisition or increase is disclosed to the Minister in writing before the approval is obtained, the bank is deemed to have obtained the approval of the Minister or the Superintendent for that indirect acquisition or increase.
access to information about the entity.
the activities of the entity; and
Despite any other provision of this Part, a bank shall not control a permitted entity, other than an entity referred to in any of paragraphs 468(1)(a) to (f), unless, in the course of the acquisition of control or within a reasonable time after the control is acquired, the bank obtains from the permitted entity an undertaking to provide the Superintendent with reasonable access to the records of the permitted entity.
The Superintendent may enter into an agreement with the appropriate official or public body responsible for the supervision of an entity referred to in any of paragraphs 468(1)(g) to (j) in each province or in any other jurisdiction concerning any matters referred to in paragraphs (1)(a) and (b) or any other matter the Superintendent considers appropriate.
If a bank acquires control of an entity referred to in any of paragraphs 468(1)(g) to (j), the bank shall provide the Superintendent with any undertakings concerning the entity that the Superintendent may require.
If a bank controls a permitted entity, other than an entity referred to in any of paragraphs 468(1)(a) to (f), the bank shall provide the Superintendent with any undertakings that the Superintendent may require regarding
If a bank, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Superintendent would have been required under subsection 468(6) if the bank had acquired the control, or acquired or increased the substantial investment, under section 468, the Superintendent may, on application, permit the bank to retain control of the entity or to continue to hold the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate.
If a bank, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 468(5) if the bank had acquired the control, or acquired or increased the substantial investment, under section 468, the bank must, within 90 days after acquiring control or after acquiring or increasing the substantial investment,
The Superintendent may, in the case of any particular bank that makes an application under this subsection, extend the period of two years, or the other period specified or approved by the Superintendent, that is referred to in subsection (1) or (2) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary.
Despite subsection (1), if a bank that was in existence immediately before June 1, 1992 had an investment in an entity on September 27, 1990 that is a substantial investment within the meaning of section 10 and the bank subsequently increases that substantial investment by way of a temporary investment, the bank shall, within two years, or any other period that is specified or approved by the Superintendent, after increasing the substantial investment, do all things necessary to ensure that its substantial investment in the entity is no greater than it was on September 27, 1990.
Subject to subsection (4), a bank may, by way of a temporary investment, acquire control of, or acquire or increase a substantial investment in, an entity but, within two years, or any other period that may be specified or approved by the Superintendent, after acquiring control or after acquiring or increasing the substantial investment, as the case may be, it shall do all things necessary to ensure that it no longer controls the entity or has a substantial investment in the entity.
do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity.
apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or
all or any of the ownership interests in any entity that is primarily engaged in holding shares of, ownership interests in or assets acquired from the entity or any of its affiliates.
all or any of the shares of a body corporate that is primarily engaged in holding shares of, ownership interests in or assets acquired from the entity or any of its affiliates; or
all or any of the shares or all or any of the ownership interests in any entity that is an affiliate of the entity;
if the entity is an unincorporated entity, all or any of the ownership interests in the entity;
if the entity is a body corporate, all or any of the shares of the body corporate;
If, under subsection (1), a bank acquires control of, or acquires or increases a substantial investment in, an entity that it would otherwise be permitted to acquire or increase under section 468, the bank may retain control of the entity or continue to hold the substantial investment for an indeterminate period, if the approval in writing of the Minister is obtained before the end of the period referred to in subsection (2) or (3), including any extension of it granted under subsection (4).
If a bank acquires any shares or ownership interests under subsection (5), the bank may, on any terms and conditions that the Superintendent considers appropriate, hold those shares or ownership interests for an indeterminate period or for any other period that the Superintendent may specify.
Despite anything in this Part, if a bank has made a loan to, or holds a debt obligation of, the government of a foreign country or an entity controlled by the government of a foreign country and, under the terms of the agreement between the bank and that government or the entity, as the case may be, and any other documents governing the terms of the loan or debt obligation, a default has occurred, the bank may acquire all or any of the shares of, or ownership interests in, that entity or in any other entity designated by that government, if the acquisition is part of a debt restructuring program of that government.
The Superintendent may, in the case of any particular bank that makes an application under this subsection, extend the period referred to in subsection (2) or (3) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary.
Despite subsection (1), if a bank that was in existence immediately before June 1, 1992 had an investment in an entity on September 27, 1990 that is a substantial investment within the meaning of section 10 and the bank later increases that substantial investment by way of an investment made under subsection (1), the bank shall, within five years after increasing the substantial investment, do all things necessary to ensure that its substantial investment in the entity is no greater than it was on September 27, 1990.
If a bank acquires shares or ownership interests in an entity under subsection (1), the bank shall, within five years after acquiring them, do all things necessary to ensure that the bank does not control the entity or have a substantial investment in the entity.
Despite anything in this Part, if a bank or any of its subsidiaries has made a loan to an entity and, under the terms of the agreement between the bank, or any of its subsidiaries, and the entity with respect to the loan and any other documents governing the terms of the loan, a default has occurred, the bank may acquire
an interest in real property
an interest in an unincorporated entity, or
an investment in a body corporate,
If, under subsection (1), a bank acquires control of, or acquires or increases a substantial investment in, an entity that it would otherwise be permitted to acquire or increase under section 468, the bank may retain control of the entity or continue to hold the substantial investment for an indeterminate period if the approval in writing of the Minister is obtained before the end of the period referred to in subsection (2) or (3), including any extension of it granted under subsection (4).
The Superintendent may, in the case of any particular bank that makes an application under this subsection, extend the period referred to in subsection (2) or (3) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary.
Despite subsection (2), if a bank that was in existence immediately before June 1, 1992 had an investment in an entity on September 27, 1990 that is a substantial investment within the meaning of section 10 and the bank later increases that substantial investment by way of a realization of a security interest under subsection (1), the bank shall, within five years after increasing the substantial investment, do all things necessary to ensure that its substantial investment in the entity is no greater than it was on September 27, 1990.
Subject to subsection 73(2), if a bank acquires control of, or acquires a substantial investment in, an entity by way of the realization of a security interest held by the bank or any of its subsidiaries, the bank shall, within five years after the day on which control or the substantial investment is acquired, do all things necessary, or cause its subsidiary to do all things necessary, as the case may be, to ensure that the bank no longer controls the entity or has a substantial investment in the entity.
Despite anything in this Act, a bank may acquire
restricting the ownership by a bank of shares of a body corporate or of ownership interests in an unincorporated entity under sections 468 to 473 and imposing terms and conditions applicable to banks that own such shares or interests.
for the purposes of subsection 468(11), permitting a bank to give up control of an entity; and
for the purposes of subsection 468(5) or (6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the banks or other entities in respect of which either of those subsections does not apply, including prescribing banks or other entities on the basis of the activities they engage in;
for the purposes of subsection 468(4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the banks or other entities in respect of which that subsection does not apply, including prescribing banks or other entities on the basis of the activities they engage in;
for a period of five years after the day on which the loan, investment or interest was acquired, in the case of a loan, investment or interest, other than an interest in real property.
for a period of twelve years following the day on which the interest was acquired, in the case of an interest in real property; and
Subsection (1) does not apply to an investment or interest described in that subsection if the investment or interest is defined by a regulation made under section 479 to be an interest in real property and
The Superintendent may, in the case of any particular bank, extend any period referred to in subsection (1) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary.
Subject to subsection (3), the value of all loans, investments and interests acquired by a bank and any of its prescribed subsidiaries under section 472 or as a result of a realization of a security interest is not to be included in calculating the value of loans, investments and interests of the bank and its prescribed subsidiaries under sections 476 to 478
the bank or the subsidiary acquired the investment or interest under section 472 as a result of a default referred to in that section in respect of a loan that was defined by a regulation made under section 479 to be an interest in real property.
the bank or the subsidiary acquired the investment or interest as a result of the realization of a security interest securing a loan that was defined by a regulation made under section 479 to be an interest in real property; or
all ownership interests in unincorporated entities, other than ownership interests in permitted entities in which the bank has a substantial investment,
all participating shares, excluding participating shares of permitted entities in which the bank has a substantial investment, and
acquire control of an entity that holds shares or ownership interests referred to in paragraph (a),
purchase or otherwise acquire any participating shares of any body corporate or any ownership interests in any unincorporated entity, other than those of a permitted entity in which the bank has, or by virtue of the acquisition would have, a substantial investment, or
interests in real property, or
ownership interests in an unincorporated entity, other than ownership interests in a permitted entity in which the bank has, or by virtue of the acquisition would have, a substantial investment, or
participating shares of a body corporate, other than those of a permitted entity in which the bank has, or by virtue of the acquisition would have, a substantial investment,
all interests of the bank in real property referred to in subparagraph (a)(iii)
all participating shares and ownership interests referred to in subparagraphs (a)(i) and (ii) that are beneficially owned by the bank and its prescribed subsidiaries, and
make an improvement to real property in which the bank or any of its prescribed subsidiaries has an interest
purchase or otherwise acquire
exempting classes of banks from the application of sections 475 to 478.
determining the method of valuing those interests; or
defining the interests of a bank in real property;
Subsection (2) does not apply in respect of an entity in which a bank has a substantial investment permitted by this Part.
If
If, in the opinion of the Superintendent,
The Superintendent may, by order, direct a bank to dispose of, within any period that the Superintendent considers reasonable, any loan, investment or interest made or acquired in contravention of this Part.
the bank or any entity it controls has entered into an arrangement whereby it or its nominee may veto any proposal put before
an investment by a bank or any entity it controls in shares of a body corporate or in ownership interests in an unincorporated entity enables the bank to control the body corporate or the unincorporated entity, or
a similar group or committee of an unincorporated entity,
the board of directors of a body corporate, or
is in default of an undertaking referred to in subsection 470(1) or (2) and the default is not remedied within ninety days after the day of receipt by the bank of a notice from the Superintendent of the default, or
fails to provide or obtain within a reasonable time the undertakings referred to in subsection 470(1), (2) or (4), or
a permitted entity referred to in subsection 470(4) is in default of an undertaking referred to in that subsection and the default is not remedied within ninety days after the day of receipt by the bank of a notice from the Superintendent of the default,
a bank
For the purposes of subsection (1), the total value of all assets that the bank or any of its subsidiaries has transferred during the 12-month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the bank prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the bank if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 308(4), immediately before the transfer of the asset.
For the purposes of subsection (1), the total value of all assets that the bank or any of its subsidiaries has acquired during the period of twelve months referred to in subsection (1) is the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which immediately after the acquisition were included in the annual statement of the bank, the fair market value of the assets of the entity at the date of the acquisition.
For the purposes of “A” in subsection (1), the value of the assets is
[Repealed, 2007, c. 6, s. 43]
Subsection (1) does not apply in respect of
The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not.
A bank shall not, and shall not permit its subsidiaries to, without the approval of the Superintendent, acquire assets from a person or transfer assets to a person if A + B > C where A is the value of the assets; B is the total value of all assets that the bank and its subsidiaries acquired from or transferred to that person in the twelve months ending immediately before the acquisition or transfer; and C is ten per cent of the total value of the assets of the bank, as shown in the last annual statement of the bank prepared before the acquisition or transfer.
fully secured by debt obligations that are guaranteed by any financial institution other than the bank;
fully secured by deposits with any financial institution, including the bank, or
guaranteed by any financial institution other than the bank,
assets acquired or disposed of with the approval of the Superintendent under subsection 494(4).
assets, other than real property, acquired or disposed of under an arrangement that has been approved by the Superintendent under subsection 494(3); or
assets that are acquired or transferred under a transaction that has been approved by the Minister under subsection 678(1) of this Act or subsection 715(1) of the Insurance Companies Act;
shares of, or ownership interests in, an entity for which the approval of the Minister under Part VII or subsection 468(5) is required or the approval of the Superintendent under subsection 468(6) is required;
assets purchased or sold under a sale agreement that is approved by the Minister under section 236;
assets acquired or transferred under a transaction or series of transactions by the bank with another financial institution as a result of the bank’s participation in one or more syndicated loans with that financial institution;
assets that are debt obligations of an entity controlled by the bank;
assets that are debt obligations that are widely distributed, as that expression is defined by the regulations;
assets that are debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in paragraph (b);
assets that are debt obligations issued
assets that are debt obligations that are
the government of a foreign country or any political subdivision of a foreign country, or
a municipality, or
the government of a province,
the Government of Canada,
by a prescribed international agency;
by, or by any agency of,
in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the bank prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the bank if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 308(4), immediately before the transfer.
in the case of assets that are acquired, the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which will be included in the annual statement of the bank after the acquisition, the fair market value of the assets; and
the disposal of an investment made after that date as a result of a commitment made before that date.
the disposal of an investment made before that date; or
the termination of a loan made after that date as a result of a commitment made before that date;
the termination of a loan made before February 7, 2001;
If a designation is made or revoked, the Superintendent shall, as soon as feasible, cause a notice of the designation or revocation, as the case may be, to be published in the Canada Gazette and on the website of the Office of the Superintendent of Financial Institutions.
In making the designation or revoking it, the Superintendent shall take into account all factors that he or she considers relevant, including whether the distress or failure of the bank could have a significant adverse impact on the financial system in Canada.
The Superintendent may, by order, revoke the designation unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so.
The Superintendent may, by order, designate a bank as a domestic systemically important bank unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so.
adequate and appropriate forms of liquidity,
adequate capital, and
The Governor in Council may make regulations and the Superintendent may make guidelines respecting the disclosure by domestic systemically important banks of information in relation to their capacity to absorb losses.
For the purposes of this Part, a senior officer of a body corporate is a person who is
The Governor in Council may make regulations respecting the conditions that domestic systemically important banks must meet in issuing, originating or amending prescribed shares or liabilities.
Where an appraisal of any asset held by a bank or any of its subsidiaries has been made by the Superintendent and the value determined by the Superintendent to be the appropriate value of the asset varies materially from the value placed by the bank or subsidiary on the asset, the Superintendent shall send to the bank, the auditor or auditors of the bank and the audit committee of the bank a written notice of the appropriate value of the asset as determined by the Superintendent.
A bank shall comply with an order made under subsection (3) or (3.1) within the time that is specified in the order.
Before making an order under subsection (3.1) or varying or revoking such an order, the Superintendent shall consult with the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act.
If the Superintendent becomes aware that a domestic systemically important bank is not maintaining its minimum capacity to absorb losses, the Superintendent shall notify the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act and may, by order, take any measures that he or she considers appropriate, including
Notwithstanding that a bank is complying with regulations or guidelines made under subsection (2), the Superintendent may, by order, direct the bank
The Governor in Council may make regulations and the Superintendent may make guidelines respecting the maintenance by banks of adequate capital and adequate and appropriate forms of liquidity and the maintenance by domestic systemically important banks of the minimum capacity to absorb losses.
The amount set under subsection (1.2) consists of capital, prescribed shares and prescribed liabilities, which have the value determined in accordance with any criteria the Superintendent considers appropriate.
If an order is made under subsection (1.2), the Superintendent shall, in writing and without delay, inform the bank that is subject to the order and shall, as soon as feasible, cause the order to be published in the Canada Gazette and on the website of the Office of the Superintendent of Financial Institutions.
Despite subsection (1.2), if, before the order is made, the Minister advises the Superintendent that the Minister is of the opinion that the amount provided for by the Superintendent is not in the public interest, the Superintendent shall provide for another amount in accordance with that subsection.
For each domestic systemically important bank, the Superintendent shall, by order made after consulting with the other members of the committee established under subsection 18(1) of the Office of the Superintendent of Financial Institutions Act, provide for the amount that constitutes the bank’s minimum capacity to absorb losses.
If the bank is a domestic systemically important bank, it shall also maintain the minimum capacity to absorb losses that is provided for under subsection (1.2) and shall comply with any regulations in relation to that requirement.
A bank shall, in relation to its operations, maintain
to provide additional liquidity in such forms and amounts as the Superintendent may require.
to increase its capital; or
limiting or prohibiting the opening of new branches by the bank.
limiting or prohibiting reductions of the bank’s stated capital; and
limiting or prohibiting purchases by the bank, or redemptions, of the bank’s shares, subordinated indebtedness or prescribed liabilities;
limiting or prohibiting discretionary payments in respect of the bank’s shares or subordinated indebtedness;
limiting or prohibiting acquisitions of assets by the bank;
limiting the growth of the bank’s total assets;
any other officer reporting directly to the body corporate’s board of directors, chief executive officer or chief operating officer.
the head of the unit of the body corporate that provides legal services or human resources services to the body corporate; or
the head of the strategic planning unit of the body corporate;
a natural person who performs functions for the body corporate similar to those performed by a person referred to in paragraph (b);
the chief executive officer, chief operating officer, president, secretary, treasurer, controller, chief financial officer, chief accountant, chief auditor or chief actuary of the body corporate;
a director of the body corporate who is a full-time employee of the body corporate;
[Repealed, 1997, c. 15, s. 68]
is a person, or forms part of a class of persons, designated under subsection (3) or (4) as, or deemed under subsection (5) to be, a related party of the bank.
is an entity in which the spouse or common-law partner, or a child who is less than eighteen years of age, of a person who controls the bank has a substantial investment; or
is an entity in which a person who controls the bank has a substantial investment;
is an entity that is controlled by a person referred to in any of paragraphs (a) to (c);
is the spouse or common-law partner, or a child who is less than eighteen years of age, of a person described in paragraph (a) or (b);
is a director or senior officer of the bank or of a body corporate that controls the bank or is acting in a similar capacity in respect of an unincorporated entity that controls the bank;
is a person who has a significant interest in a class of shares or in membership shares of the bank;
For the purposes of paragraph (1)(d), controlled means “controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(d)”.
For the purpose of determining whether an entity or a person has a substantial investment for the purposes of paragraph (1)(e) or (f), the references to “control” and “controlled” in section 10 shall be construed as references to “control, within the meaning of section 3, determined without regard to paragraph 3(1)(d)” and “controlled, within the meaning of section 3, determined without regard to paragraph 3(1)(d)”, respectively.
The Superintendent may, by order, designate a class of non-voting shares of a bank for the purpose of this subsection. If a class of non-voting shares of a bank is so designated, a person is deemed, notwithstanding paragraph (1)(a), not to be a related party of the bank if the person would otherwise be a related party of the bank only because the person has a significant interest in that class.
Where, in contemplation of a person becoming a related party of a bank, the bank enters into a transaction with the person, the person is deemed for the purposes of this Part to be a related party of the bank in respect of that transaction.
Where a person is designated as a related party of a bank pursuant to subsection (3), the Superintendent may also designate any entity in which the person has a substantial investment and any entity controlled by such an entity to be a related party of the bank.
For the purposes of this Part, the Superintendent may, with respect to a particular bank, designate as a related party of the bank
Where an entity in which a bank has a substantial investment would, but for this subsection, be a related party of the bank only because a person who controls the bank controls the entity or has a substantial investment in the entity, and the person does not control the entity or have a substantial investment in the entity otherwise than through the person’s controlling interest in the bank, the entity is not a related party of the bank.
For the purposes of this Part, a person is a related party of a bank where the person
any person who is a party to any agreement, commitment or understanding referred to in section 9 if the bank referred to in that section is the particular bank.
any person or class of persons whose direct or indirect interest in or relationship with the bank or a related party of the bank might reasonably be expected to affect the exercise of the best judgment of the bank in respect of a transaction; or
Where a holding body corporate of a bank is, because of subsection (4), not a related party of the bank, any entity in which the holding body corporate has a substantial investment is not a related party of the bank if no related party of the bank has a substantial investment in the entity otherwise than through the control of the holding body corporate.
A holding body corporate of a bank is not a related party of the bank if the holding body corporate is a Canadian financial institution that is referred to in any of paragraphs (a) to (d) of the definition financial institution in section 2.
Nothing in paragraph (2)(c) exempts from the application of this Part the payment by a bank of fees or other remuneration to a person for
This Part does not apply in respect of
This Part does not apply in respect of any transaction entered into prior to the coming into force of this Part but, after the coming into force of this Part, any modification of, addition to, or renewal or extension of a prior transaction is subject to this Part.
with the approval in writing of the Superintendent, in exchange for shares of another body corporate;
by way of consideration in accordance with the terms of a sale agreement under Part VI, or
in accordance with the terms of an amalgamation or conversion under Part VI,
in exchange for shares, or membership shares, however designated, of a body corporate that has been continued as a bank under Part III,
as a share or membership share dividend,
in accordance with any provisions for the conversion of other issued and outstanding membership shares or securities of the bank into shares of that class of shares, or into membership shares,
if a bank is controlled by a widely held bank holding company or a widely held insurance holding company, transactions approved by the Superintendent that are entered as part of, or in the course of, a restructuring of the holding company or of any entity controlled by it.
transactions approved by the Minister under subsection 678(1) of this Act or subsection 715(1) of the Insurance Companies Act; or
transactions that consist of the payment or provision by a bank to persons who are related parties of the bank of salaries, fees, stock options, pension benefits, incentive benefits or other benefits or remuneration in their capacity as directors, officers or employees of the bank;
the payment of dividends or patronage allocations by a bank;
the issue of shares of any class of shares, or of membership shares, of a bank when fully paid for in money or when issued
duties outside the ordinary course of business of the bank.
the provision of services referred to in paragraph 495(1)(a); or
taking a security interest in the securities of the related party.
taking an assignment of or otherwise acquiring a loan made by a third party to the related party; and
making an investment in any securities of the related party;
making a guarantee on behalf of the related party;
For the purposes of this Part, security of a related party includes an option, transferable by delivery, to demand delivery of a specified number or amount of shares of the related party at a fixed price within a specified time.
For the purposes of this Part, loan includes a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit, but does not include investments in securities or the making of an acceptance, endorsement or other guarantee.
For the purposes of this Part, the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit, is part of the transaction, and not a separate transaction.
For the purposes of this Part, entering into a transaction with a related party of a bank includes
Subsection (2) does not apply in respect of transactions entered into by an entity that is controlled by a bank if the transaction is a prescribed transaction or is one of a class of prescribed transactions.
Subsection (2) does not apply where an entity that is controlled by a bank is a financial institution incorporated or formed under the laws of a province and is subject to regulation and supervision, satisfactory to the Minister, regarding transactions with related parties of the bank.
Without limiting the generality of subsection (1), a bank is deemed to have indirectly entered into a transaction in respect of which this Part applies where the transaction is entered into by an entity that is controlled by the bank.
Except as provided in this Part, a bank shall not, directly or indirectly, enter into any transaction with a related party of the bank.
the loan is a loan permitted by section 418 made to a related party who is a natural person on the security of a mortgage of the principal residence of that related party.
the loan or guarantee is fully secured by securities of or guaranteed by the Government of Canada or the government of a province; or
goods for use in the ordinary course of business.
assets fully secured by securities of, or securities guaranteed by, the Government of Canada or the government of a province; or
securities of, or securities guaranteed by, the Government of Canada or the government of a province;
A bank may acquire any assets from, or dispose of any assets to, a related party of the bank under a sale agreement that is approved by the Minister under section 236.
A bank may lease assets
Notwithstanding any of the provisions of subsections (1) and (2), a bank may acquire any assets from, or dispose of any assets to, a related party of the bank as part of, or in the course of, a restructuring, if the acquisition or disposition has been approved in writing by the Superintendent.
Notwithstanding any of the provisions of subsections (1) and (2), a bank may, in the normal course of business and pursuant to arrangements that have been approved by the Superintendent in writing, acquire or dispose of any assets, other than real property, from or to a related party of the bank that is a financial institution.
Subject to section 482, a bank may sell any assets of the bank to a related party of the bank if
A bank may purchase or otherwise acquire from a related party of the bank
there is an active market for those assets.
the consideration for the assets is fully paid in money; and
to a related party of the bank
from a related party of the bank for use in the ordinary course of business of the bank, or
involves the provision by the bank of management, advisory, accounting, information processing or other services in relation to any business of the related party.
consists of a written contract for such pension or benefit plans or their management or administration as are incidental to directorships or to the employment of officers or employees of the bank or its subsidiaries; or
consists of a written contract with a financial institution or an entity in which the bank is permitted to have a substantial investment pursuant to section 468 that is a related party of the bank
subject to subsection (4), involves the provision of services normally offered to the public by the bank in the ordinary course of business;
subject to subsection (2), consists of a written contract for the purchase by the bank of services used in the ordinary course of business;
for the referral of any person by the bank to the financial institution or entity, or for the referral of any person by the financial institution or entity to the bank;
for the networking of any services provided by the bank or the financial institution or entity, or
The provision of services, for the purposes of paragraph (1)(b), does not include the making of loans or guarantees.
Despite subsection 489(2), a bank is deemed not to have indirectly entered into a transaction in respect of which this Part applies if the transaction is entered into by an entity that is controlled by the bank and the business of which is limited to the activity referred to in paragraph 468(2)(c) and the transaction is on terms and conditions at least as favourable to the bank as market terms and conditions, as defined in subsection 501(2).
Where a bank has entered into a contract pursuant to paragraph (1)(a) and the contract, when taken together with all other such contracts entered into by the bank, results in all or substantially all of the management functions of the bank being exercised by persons who are not employees of the bank, the Superintendent may, by order, if the Superintendent considers that result to be inappropriate, require the bank, within such time as may be specified in the order, to take all steps necessary to ensure that management functions that are integral to the carrying on of business by the bank are exercised by employees of the bank to the extent specified in the order.
A bank may enter into a transaction with a related party of the bank if the transaction
The bank shall adhere to policies and procedures established under subsection 195(3) when entering into the transaction.
Subject to subsection (2) and sections 495.2 and 495.3, if a widely held bank holding company or a widely held insurance holding company has a significant interest in any class of shares of a bank, the bank may enter into any transaction with the holding company or with any other related party of the bank that is an entity in which the holding company has a substantial investment.
in respect of all transactions of the bank with such related parties of the bank, the prescribed percentage of the bank’s regulatory capital or, if no percentage is prescribed, ten per cent of the bank’s regulatory capital.
in respect of all transactions of the bank with the related party, the prescribed percentage of the bank’s regulatory capital or, if no percentage is prescribed, five per cent of the bank’s regulatory capital; or
The Superintendent may, by order, increase the limit in paragraph (1)(a) or (b) that would otherwise apply to a bank on transactions by the bank with related parties that are financial institutions that are regulated in a manner acceptable to the Superintendent.
If the Superintendent is of the opinion that it is necessary for the protection of the interests of the depositors and creditors of a bank, the Superintendent may, by order,
If a bank enters into a transaction with a related party of the bank with whom the bank may enter into transactions under subsection 495.1(1) and that is not a federal financial institution, the bank shall not directly or indirectly make, take an assignment of or otherwise acquire a loan to the related party, make an acceptance, endorsement or other guarantee on behalf of the related party or make an investment in the securities of the related party if, immediately following the transaction, the aggregate financial exposure, as that expression is defined by the regulations, of the bank would exceed
impose limits on transactions by the bank with related parties with whom the bank may enter into transactions under subsection 495.1(1) that are federal financial institutions.
reduce the limit in paragraph (1)(a) or (b) that would otherwise apply to the bank; and
For the purposes of subsection (1), the total value of all assets that the bank or any of its subsidiaries has transferred during the period of twelve months referred to in subsection (1) is the book value of the assets as stated in the last annual statement of the bank prepared before the transfer or, if the assets are shares of, or ownership interests in, an entity the assets of which were included in the last annual statement of the bank before the transfer, the value of the assets of the entity as stated in the annual statement.
For the purposes of subsection (1), the total value of all assets that the bank or any of its subsidiaries has acquired during the period of twelve months referred to in subsection (1) is the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which immediately after the acquisition were included in the annual statement of the bank, the fair market value of the assets of the entity at the date of the acquisition.
For the purposes of “A” in subsection (1), the value of the assets is
The approval of the Superintendent is not required if
The prohibition in subsection (1) does not apply in respect of assets purchased or otherwise acquired under subsection 494(1), assets sold under subsection 494(2) or any other assets as may be prescribed.
Despite subsection 494(3), a bank shall not, without the approval of the Superintendent and its conduct review committee, directly or indirectly acquire assets from a related party of the bank with whom the bank may enter into transactions under subsection 495.1(1) that is not a federal financial institution, or directly or indirectly transfer assets to such a related party if A + B > C where A is the value of the assets; B is the total value of all assets that the bank directly or indirectly acquired from, or directly or indirectly transferred to, that related party in the 12 months ending immediately before the acquisition or transfer, other than assets acquired by or transferred to the bank under transactions permitted by section 490; and C is five per cent, or the percentage that may be prescribed, of the total value of the assets of the bank, as shown in the last annual statement of the bank prepared before the acquisition or transfer.
the bank or its subsidiary acquires shares of, or ownership interests in, an entity for which the approval of the Minister under Part VII or subsection 468(5) is required or the approval of the Superintendent under subsection 468(6) is required.
the bank purchases or sells assets under a sale agreement that is approved by the Minister under section 236; or
in the case of assets that are transferred, the book value of the assets as stated in the last annual statement of the bank prepared before the transfer or, if the assets are shares of, or ownership interests in, an entity the assets of which were included in the last annual statement of the bank before the transfer, the value of the assets as stated in the annual statement.
in the case of assets that are acquired, the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which will be included in the annual statement of the bank after the acquisition, the fair market value of the assets; and
the spouse or common-law partner, or a child who is less than eighteen years of age, of a director or senior officer of the bank or of an entity that controls the bank; or
a director or a senior officer of the bank or of an entity that controls the bank, or
an entity that is a related party of the bank only because the entity is controlled by
a natural person who is a related party of the bank only because the person is
the spouse or common-law partner, or a child who is less than eighteen years of age, of a director or senior officer referred to in subparagraph (i).
a director or senior officer of the bank or of an entity that controls the bank, or
Notwithstanding section 501, a bank may offer financial services, other than loans or guarantees, to a senior officer of the bank, or to the spouse or common-law partner, or a child who is less than eighteen years of age, of a senior officer of the bank, on terms and conditions more favourable than those offered to the public by the bank if
Notwithstanding section 501, a bank may make a loan referred to in paragraph 491(b) to the spouse or common-law partner of a senior officer of the bank on terms and conditions more favourable than those offered to the public by the bank if those terms and conditions have been approved by the conduct review committee of the bank.
Notwithstanding section 501, a bank may make a loan, other than a margin loan, to a senior officer of the bank on terms and conditions more favourable to the officer than those offered to the public by the bank if those terms and conditions have been approved by the conduct review committee of the bank.
Subsection (2) does not apply in respect of
A bank may, with respect to a related party of the bank referred to in subsection (1) who is a full-time senior officer of the bank, make, take an assignment of or otherwise acquire a loan to the related party only if the aggregate principal amount of all outstanding loans to the related party that are held by the bank and its subsidiaries, together with the principal amount of the proposed loan, does not exceed the greater of twice the annual salary of the related party and $100,000.
Subject to subsection (2) and sections 497 and 498, a bank may enter into any transaction with a related party of the bank if the related party is
margin loans referred to in section 498,
loans referred to in paragraph 491(b), and
the conduct review committee of the bank has approved the practice of making those financial services available on those favourable terms and conditions to senior officers of the bank or to the spouses or common-law partners, or the children under eighteen years of age, of senior officers of the bank.
the financial services are offered by the bank to employees of the bank on those favourable terms and conditions; and
where the related party is an entity, the book value of all investments by the bank and its subsidiaries in the securities of the entity
the sum of all outstanding amounts guaranteed by the bank and its subsidiaries on behalf of the related party, and
the principal amount of all outstanding loans to the related party that are held by the bank and its subsidiaries, other than
make an investment in the securities of the related party
make a guarantee on behalf of the related party, or
make, take an assignment of or otherwise acquire a loan to the related party, including a margin loan referred to in section 498,
where the related party is a full-time senior officer of the bank, loans to the related party that are permitted by subsection 496(2),
loans referred to in paragraph 491(b), and
Loans, guarantees and investments that are referred to in section 490 shall not be included in calculating the aggregate of loans, guarantees and investments referred to in subsections (1) and (2).
A bank shall not, with respect to a related party of the bank referred to in subsection 496(1),
Except with the concurrence of at least two thirds of the directors present at a meeting of the board of directors of the bank, a bank shall not, with respect to a related party of the bank referred to in subsection 496(1),
the book value of all investments by the bank and its subsidiaries in the securities of all entities that are related parties of the bank referred to in subsection 496(1)
the sum of all outstanding amounts guaranteed by the bank and its subsidiaries on behalf of all related parties of the bank referred to in subsection 496(1), and
the principal amount of all outstanding loans to all related parties of the bank referred to in subsection 496(1) that are held by the bank and its subsidiaries, other than
make an investment in the securities of the related party
make a guarantee on behalf of the related party, or
make, take an assignment of or otherwise acquire a loan to the related party, including a margin loan referred to in section 498,
loans permitted by subsection 496(2),
loans referred to in section 491, and
The Superintendent shall not make an order referred to in subsection (1) unless the Superintendent is satisfied that the decision of the bank to enter into the transaction has not been and is not likely to be influenced in any significant way by a related party of the bank and does not involve in any significant way the interests of a related party of the bank.
A bank may enter into a transaction with a related party of the bank if the Superintendent, by order, has exempted the transaction from the provisions of section 489.
For the purposes of subsection (1), market terms and conditions means
Except as provided in subsections 496(4) to (6), any transaction entered into with a related party of the bank shall be on terms and conditions that are at least as favourable to the bank as market terms and conditions.
in respect of any other transaction,
in respect of a service or a loan facility or a deposit facility offered to the public by the bank in the ordinary course of business, terms and conditions that are no more or less favourable than those offered to the public by the bank in the ordinary course of business; and
if the transaction is one that would not reasonably be expected to occur in an open market between parties who are at arm’s length, terms and conditions, including those relating to price, rent or interest rate, that would reasonably be expected to provide the bank with fair value, having regard to all the circumstances of the transaction, and that would be consistent with the parties to the transaction acting prudently, knowledgeably and willingly.
terms and conditions, including those relating to price, rent or interest rate, that might reasonably be expected to apply in a similar transaction in an open market under conditions requisite to a fair transaction between parties who are at arm’s length and who are acting prudently, knowledgeably and willingly, or
A bank and any person who is a director or an officer, employee or agent of the bank may rely on any information contained in any disclosure received by the bank pursuant to subsection (1) or any information otherwise acquired in respect of any matter that might be the subject of such a disclosure and no action lies against the bank or any such person for anything done or omitted in good faith in reliance on any such information.
Where, in respect of any proposed transaction permitted by this Part, other than those referred to in section 490, a bank has reason to believe that the other party to the transaction is a related party of the bank, the bank shall take all reasonable steps to obtain from the other party full disclosure, in writing, of any interest or relationship, direct or indirect, that would make the other party a related party of the bank.
For the purposes of subsection (2), a document purporting to have been issued by the Superintendent, certifying the day on which the Superintendent became aware of the transaction, shall, in the absence of evidence to the contrary, be received in evidence as conclusive proof of that fact without proof of the signature or of the official character of the person appearing to have signed the document and without further proof.
An application under subsection (1) in respect of a particular transaction may only be made within the period of three months following the day the notice referred to in section 505 in respect of the transaction is given to the Superintendent or, if no such notice is given, the day the Superintendent becomes aware of the transaction.
If a bank enters into a transaction that it is prohibited from entering into by this Part, the bank or the Superintendent may apply to a court for an order setting aside the transaction or for any other appropriate remedy, including an order directing that the related party of the bank involved in the transaction account to the bank for any profit or gain realized or that any director or senior officer of the bank who authorized the transaction compensate the bank for any loss or damage incurred by the bank.
specialized financing entity means a Canadian entity that is a specialized financing entity as defined in the regulations. (entité s’occupant de financement spécial)
representative office means an office established to represent a foreign bank in Canada that is not subject to the direction of, or management by, an entity incorporated or formed by or under an Act of Parliament or of the legislature of a province, and the personnel of which are employed directly or indirectly by the foreign bank. (bureau de représentation)
permitted Canadian entity means a Canadian entity that a foreign bank or an entity associated with a foreign bank may control in accordance with section 522.08, or in which a foreign bank or an entity associated with a foreign bank is permitted to acquire a substantial investment in accordance with that section. (entité canadienne admissible)
non-bank affiliate of a foreign bank means a Canadian entity, other than a bank,
limited commercial entity means a Canadian entity that a foreign bank or an entity associated with a foreign bank may control in accordance with subsection 522.09(1) or (2), or in which a foreign bank or an entity associated with a foreign bank is permitted to acquire a substantial investment in accordance with that subsection. (entité à activités commerciales restreintes)
leasing entity means an entity that engages in only
leasing activities means
foreign securities dealer means an entity that is incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province, and that, outside Canada, engages in or carries on the business of dealing in securities. (courtier de valeurs mobilières étranger)
foreign insurance company means a foreign company as defined in subsection 2(1) of the Insurance Companies Act. (société d’assurances étrangère)
foreign cooperative credit society means an entity that is incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province, and that, outside Canada, engages in or carries on the business of a cooperative credit society. (société coopérative de crédit étrangère)
financial services entity means an entity, other than an entity referred to in any of paragraphs 468(1)(a) to (i) or a leasing entity, that engages in activities at least the prescribed portion — or if no portion is prescribed, 10 per cent — of which, determined in the prescribed manner, consists of one or more of the following activities:
financial leasing entity means a Canadian entity that is a financial leasing entity as defined in subsection 464(1). (entité s’occupant de crédit-bail)
finance entity means a Canadian entity that is a finance entity as defined in the regulations. (entité s’occupant de financement)
exemption order[Repealed, 2007, c. 6, s. 48]
designation order[Repealed, 2007, c. 6, s. 48]
designated foreign bank[Repealed, 2007, c. 6, s. 48]
business growth fund means Canadian Business Growth Fund (GP) Inc., a corporation incorporated under the Canada Business Corporations Act. (fonds de croissance des entreprises)
acquiring or holding control of, or becoming a major owner of, an entity referred to in any of paragraphs (a) to (g) or any of paragraphs 468(1)(a) to (j). (entité s’occupant de services financiers)
engaging in any activity referred to in paragraphs (a) to (f) as an agent for another entity referred to in any of those paragraphs or in any of paragraphs 468(1)(a) to (j); or
engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed;
engaging in the activities referred to in the definition closed-end fund, mutual fund distribution entity or mutual fund entity in subsection 464(1);
issuing payment, credit or charge cards and, in cooperation with others, including other financial institutions, operating a payment, credit or charge card plan;
providing investment counselling and portfolio management services;
acting as a financial agent;
providing any financial service;
all other leasing of personal property. (activités de location)
the financial leasing of personal property and the related activities that a financial leasing entity may engage in; and
leasing activities and activities other than those described in paragraphs (a) to (h) of the definition financial services entity. (entité s’occupant de location)
leasing activities; or
but a Canadian entity is not a non-bank affiliate of a foreign bank by reason only that a bank that is a subsidiary of the foreign bank or of the entity associated with a foreign bank controls, or holds a substantial investment in, the Canadian entity. (établissement affilié à une banque étrangère)
that is controlled by a foreign bank or an entity associated with a foreign bank,
in which a foreign bank or an entity associated with a foreign bank holds a substantial investment, or
If the Minister makes an order referred to in paragraph (17)(b) or subsection (18), the Minister shall publish in the Canada Gazette a notice of the making of the order.
The Minister may, by further order, revoke or vary any order referred to in paragraph (17)(b) and any such revocation or variation comes into effect three months after the date the further order is made unless the Minister and the entity to which the order relates agree that the revocation or variation is to take effect at some other time agreed to by them.
The Governor in Council may make regulations
For the purposes of this Part, an entity associated with a foreign bank has, or is deemed to have, a financial establishment in Canada if the entity, the foreign bank or any other entity associated with the foreign bank
For the purposes of this Part, a foreign bank has, or is deemed to have, a financial establishment in Canada if the foreign bank or any entity associated with the foreign bank
For the purposes of this Part, a member of a foreign bank’s group is any of the following:
For the purposes of this Part, the Minister may deem an entity associated with a foreign bank to be a major owner of a Canadian entity if, in the opinion of the Minister, it is reasonable to conclude that under any agreement, commitment or understanding, whether formal or informal, verbal or written, the entity associated with the foreign bank is acting, jointly or in concert, in relation to the shares and ownership interests of the Canadian entity with one or more other persons, such that, if they were one person, they would be a major owner of the Canadian entity.
For the purposes of this Part, the Minister may deem a foreign bank to be a major owner of a Canadian entity if, in the opinion of the Minister, it is reasonable to conclude that under any agreement, commitment or understanding, whether formal or informal, verbal or written,
For the purposes of this Part, the Minister may deem a person to be a major owner of a Canadian entity if, in the opinion of the Minister, it is reasonable to conclude that under any agreement, commitment or understanding, whether formal or informal, verbal or written, the person is acting, jointly or in concert, in relation to the shares or ownership interests of the Canadian entity, with one or more other persons such that, if they were one person, they would be a major owner of the Canadian entity.
For the purposes of this Part, an entity associated with a foreign bank
For the purposes of this Part, a foreign bank
For the purposes of this Part, a person, other than a foreign bank or an entity associated with a foreign bank,
For the purposes of this Part, an entity associated with a foreign bank is deemed to control a Canadian entity if
For the purposes of this Part, a foreign bank is deemed to control a Canadian entity if
For the purposes of this Part, an entity associated with a foreign bank is deemed to hold a substantial investment in a Canadian entity if
For the purposes of this Part, a foreign bank is deemed to hold a substantial investment in a Canadian entity if
For the purposes of this Part, the Minister may deem an entity to be associated with a foreign bank if, in the opinion of the Minister, it is reasonable to conclude that under any agreement, commitment or understanding, whether formal or informal, verbal or written,
For the purposes of this Part,
The following definitions apply in this Part.
the entity and the foreign bank are controlled by the same person;
the entity controls, or is controlled by, the foreign bank, or
a foreign bank may be associated with another foreign bank.
an entity may be associated with more than one foreign bank; and
an entity is associated with a foreign bank if
two or more persons are acting, jointly or in concert, in relation to the shares or ownership interests of the entity and the foreign bank such that, if they were one person, they would control the entity and the foreign bank.
a person who controls the foreign bank is acting, jointly or in concert, in relation to the shares or ownership interests of the entity, with one or more other persons, such that, if they were one person, they would control the entity; or
a person who controls the entity is acting, jointly or in concert, in relation to the shares or ownership interests of the foreign bank, with one or more other persons, such that, if they were one person, they would control the foreign bank;
another entity that is associated with the foreign bank is acting, jointly or in concert, in relation to the shares or ownership interests of the entity, with one or more other persons such that, if they were one person, they would control the entity;
the entity is acting, jointly or in concert, in relation to the shares or ownership interests of the foreign bank, with one or more other persons such that, if they were one person, they would control the foreign bank;
the foreign bank is acting, jointly or in concert, in relation to the shares or ownership interests of the entity, with one or more other persons such that, if they were one person, they would control the entity;
two or more entities associated with the foreign bank
the foreign bank and one or more entities associated with the foreign bank, or
the entity and one or more other entities associated with the foreign bank
the entity and the foreign bank, or
two or more entities associated with the foreign bank
the foreign bank and one or more entities associated with the foreign bank, or
the entity and one or more other entities associated with the foreign bank
the entity and the foreign bank, or
is a major owner of a Canadian entity that is a body corporate if
is a major owner of an unincorporated Canadian entity if the aggregate of any ownership interests, however designated, into which the unincorporated Canadian entity is divided that are beneficially owned by the person and that are beneficially owned by any entities controlled by the person is more than 35 per cent of all of the ownership interests into which the unincorporated Canadian entity is divided; and
the aggregate of the shares of any class of non-voting shares of the Canadian entity that are beneficially owned by the person and that are beneficially owned by any entities controlled by the person is more than 30 per cent of the outstanding shares of that class of non-voting shares of the Canadian entity.
the aggregate of the shares of any class of voting shares of the Canadian entity that are beneficially owned by the person and that are beneficially owned by any entities controlled by the person is more than 20 per cent of the outstanding shares of that class of voting shares of the Canadian entity, or
is a major owner of a Canadian entity that is a body corporate if
is a major owner of an unincorporated Canadian entity if the aggregate of any ownership interests, however designated, into which the unincorporated Canadian entity is divided that are beneficially owned by the foreign bank and that are beneficially owned by any entities associated with the foreign bank is more than 35 per cent of all of the ownership interests into which the unincorporated Canadian entity is divided; and
the aggregate of the shares of any class of non-voting shares of the Canadian entity that are beneficially owned by the foreign bank and that are beneficially owned by any entities associated with the foreign bank is more than 30 per cent of the outstanding shares of that class of non-voting shares of the Canadian entity.
the aggregate of the shares of any class of voting shares of the Canadian entity that are beneficially owned by the foreign bank and that are beneficially owned by any entities associated with the foreign bank is more than 20 per cent of the outstanding shares of that class of voting shares of the Canadian entity, or
is a major owner of a Canadian entity that is a body corporate if
is a major owner of an unincorporated Canadian entity if the aggregate of any ownership interests, however designated, into which the unincorporated Canadian entity is divided that are beneficially owned by the entity associated with the foreign bank, that are beneficially owned by the foreign bank and that are beneficially owned by any other entities associated with the foreign bank is more than 35 per cent of all of the ownership interests into which the unincorporated Canadian entity is divided; and
the aggregate of the shares of any class of non-voting shares of the Canadian entity that are beneficially owned by the entity associated with the foreign bank, that are beneficially owned by the foreign bank and that are beneficially owned by any other entities associated with the foreign bank is more than 30 per cent of the outstanding shares of that class of non-voting shares of the Canadian entity.
the aggregate of the shares of any class of voting shares of the Canadian entity that are beneficially owned by the entity associated with the foreign bank, that are beneficially owned by the foreign bank and that are beneficially owned by any other entities associated with the foreign bank is more than 20 per cent of the outstanding shares of that class of voting shares of the Canadian entity, or
two or more persons are acting, jointly or in concert in relation to the shares or ownership interests of the Canadian entity and in relation to the shares or ownership interests of the foreign bank such that, if they were one person, they would control the foreign bank and be a major owner of the Canadian entity.
the foreign bank is acting, jointly or in concert, in relation to the shares or ownership interests of the Canadian entity, with one or more other persons such that, if they were one person, they would be a major owner of the Canadian entity; or
a prescribed entity, in relation to the foreign bank.
an entity in which the foreign bank or an entity associated with the foreign bank holds a substantial investment; and
an entity associated with the foreign bank;
controls, or is a major owner of,
has received the approval of the Minister under paragraph 522.22(1)(f); or
is a foreign insurance company;
is an authorized foreign bank;
a Canadian entity that is a financial services entity.
a Canadian entity referred to in any of paragraphs 468(1)(a) to (i), or
controls, or is a major owner of,
has received the approval of the Minister under paragraph 522.22(1)(f); or
is a foreign insurance company;
is an authorized foreign bank;
a Canadian entity that is a financial services entity.
a Canadian entity referred to in any of paragraphs 468(1)(a) to (i), or
authorizing the Minister, by order, and subject to any terms and conditions that the Minister considers appropriate, to deem, for the purposes of any provision of this Act, any entity not to be an entity associated with a foreign bank.
respecting the exemption, from the application of any provision of this Act, of any class or classes of entities associated with a foreign bank from the status of being associated with a foreign bank; and
is regulated as a bank or as a deposit-taking institution according to the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business; and
engages in the business of providing financial services and employs, to identify or describe its business, a name that includes the word “bank”, “banque”, “banking” or “bancaire”, either alone or in combination with other words, or any word or words in any language other than English or French corresponding generally to any of those words, or
is a bank according to the laws of the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business,
an entity that is associated with a foreign bank and that is
a foreign bank that
associated with a foreign bank described in any of subparagraphs (a)(i) to (iii) and that foreign bank or any entity controlled by that foreign bank is
controlled by a foreign bank described in any of subparagraphs (a)(i) to (iii), or
a member of a material banking group,
acquiring or holding any share or ownership interest in a Canadian entity and
acquiring or holding control of, or a substantial investment in, a Canadian entity, or
establishing, maintaining or acquiring for use in Canada an automated banking machine, a remote service unit or a similar automated service, or, in Canada, accepting data from such a machine, unit or service other than in circumstances described in section 511 or 512,
maintaining a branch in Canada, other than an office referred to in section 522,
engaging in or carrying on business in Canada, other than holding, managing or otherwise dealing with real property,
the foreign bank, an entity associated with the foreign bank and one or more other entities associated with the foreign bank would, if they were one person, hold control of, or a substantial investment in, the Canadian entity.
an entity associated with the foreign bank holds control of, or a substantial investment in, the Canadian entity, or
The following definitions apply in this section.
Subsections 507(4) to (7) do not apply with respect to the making of any determination relating to control or a substantial investment for the purposes of subparagraph (1)(b)(iii).
Despite subsection (2), the Minister may, subject to any terms and conditions that he or she considers appropriate, exempt an entity from being a member of a material banking group if neither of the ratios determined in accordance with that subsection in relation to that entity exceeds the percentage prescribed for the purposes of this subsection.
For the purposes of this section, an entity is a member of a material banking group if either of the following ratios, expressed as a percentage, is equal to or greater than the percentage prescribed for the purpose of this subsection: A/B or C/D where A is the sum of the total assets of all foreign banks described in any of subparagraphs (1)(a)(i) to (iii) with which the entity is associated, other than the total assets of foreign banks described in any of those subparagraphs whose assets are consolidated into the total assets of any foreign bank described in any of those subparagraphs with which the entity is associated; B is if the entity is not controlled by any person, the total assets of the entity, or in any other case, the sum of the total assets of the entity and of all its affiliates, other than entities whose total assets are consolidated into the total assets of an affiliate of the entity; C is the sum of the total revenue of all foreign banks described in any of subparagraphs (1)(a)(i) to (iii) with which the entity is associated, other than the total revenue of foreign banks described in any of those subparagraphs whose revenue is consolidated into the total revenue of any foreign bank described in any of those subparagraphs with which the entity is associated; and D is if the entity is not controlled by any person, the total revenue of the entity, or in any other case, the sum of the total revenue of the entity and of all its affiliates, other than entities whose total revenue is consolidated into the total revenue of an affiliate of the entity.
This Part applies to
a country or territory that is a WTO Member as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act; or
a jurisdiction in which it carries on business, or
the jurisdiction in which the entity was formed or incorporated,
if its most recently completed financial statements were not prepared in the manner described in paragraph (a), as would have been reported on a consolidated basis in its most recently completed financial statements had they been prepared in accordance with generally accepted accounting principles in Canada. (actif total)
as reported on a consolidated basis in its most recently completed financial statements that were prepared in accordance with generally accepted accounting principles in
total revenue, in respect of an entity, means its total revenue
total assets, in respect of an entity, means the total value of its assets
a country or territory that is a WTO Member as defined in subsection 2(1) of the World Trade Organization Agreement Implementation Act; or
a jurisdiction in which it carries on business, or
the jurisdiction in which the entity was formed or incorporated,
if its most recently completed financial statements were not prepared in the manner described in paragraph (a), as would have been reported on a consolidated basis in its most recently completed financial statements had they been prepared in accordance with generally accepted accounting principles in Canada. (recettes d’exploitation totales)
as reported on a consolidated basis in its most recently completed financial statements that were prepared in accordance with generally accepted accounting principles in
[Repealed, 2007, c. 6, s. 49]
any other business;
any business that a bank is permitted to engage in or carry on under this Act, or
acquire or hold control of, or a substantial investment in, a Canadian entity.
establish, maintain or acquire for use in Canada an automated banking machine, a remote service unit or a similar automated service, or in Canada accept data from such a machine, unit or service; or
maintain a branch in Canada for any purpose;
in Canada, engage in or carry on
Except as may be prescribed, paragraphs 510(1)(a) and (b) do not apply in respect of the holding or managing of, or otherwise dealing with, real property in Canada by a foreign bank or an entity associated with a foreign bank.
Paragraphs (1)(a) and (b) do not apply to a Canadian entity that is an entity associated with a foreign bank and that is held or acquired in accordance with this Part.
Subsection (1) does not apply to
For the purposes of this Part, an entity associated with a foreign bank is deemed to be carrying out or to have carried out anything prohibited by subsection (1) if it is carried out by a nominee or agent of the entity associated with the foreign bank acting as such.
For the purposes of this Part, a foreign bank is deemed to be carrying out or to have carried out anything prohibited by subsection (1) if it is carried out by a nominee or agent of the foreign bank acting as such.
Except as permitted by this Part, a foreign bank or an entity associated with a foreign bank shall not
a Canadian entity that an entity referred to in paragraph (a) controls, or in which such an entity has a substantial investment.
an entity referred to in any of paragraphs 468(1)(a) to (f) that is an entity associated with a foreign bank; or
For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.
The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a foreign bank and the entities associated with it hold must not exceed $200,000,000.
A foreign bank or an entity associated with a foreign bank is prohibited from holding or acquiring a substantial investment in the business growth fund or any Canadian entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:
A foreign bank or an entity associated with a foreign bank is prohibited from holding or acquiring a substantial investment in the business growth fund or any Canadian entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:
For greater certainty, a foreign bank or an entity associated with a foreign bank is prohibited from acquiring control of the business growth fund or any Canadian entity that the business growth fund controls.
Subject to section 510.01 and subsections (2) to (4), a foreign bank or an entity associated with a foreign bank may hold or acquire a substantial investment in the business growth fund or a Canadian entity that the business growth fund controls.
an entity that is engaged in any prescribed activity.
an entity that acts as an insurance broker or agent in Canada; or
an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;
an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;
an entity referred to in any of paragraphs 468(1)(a) to (j);
the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.
all ownership interests that are held by the foreign bank, the entities associated with the foreign bank, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and
if it is a foreign cooperative credit society, engage in the activities referred to in paragraph 510(1)(c) so long as they relate to its business as a cooperative credit society engaged in or carried on by it in accordance with provincial laws relating to cooperative credit societies.
if it is a foreign securities dealer that has also received the approval of the Minister under paragraph 522.22(1)(i), engage in the activities referred to in paragraph 510(1)(c) so long as they relate to its business referred to in paragraph 522.18(1)(b); and
Paragraph 510(1)(c) does not apply to
A foreign bank, or an entity associated with a foreign bank, that has received the approval of the Minister under paragraph 522.22(1)(f) may
any other Canadian entity, other than a limited commercial entity, that is acquired or held by a foreign bank or an entity associated with a foreign bank in accordance with Divisions 4 and 5, and that has received the approval of the Minister under paragraph 522.22(1)(i).
a prescribed Canadian entity, other than a permitted Canadian entity, that is controlled by a Canadian entity referred to in paragraph (a); or
a Canadian entity referred to in any of paragraphs 468(1)(g) to (i);
If a foreign bank or an entity associated with a foreign bank was permitted by section 516 or 517, as that section read immediately before the day on which this subsection came into force, to maintain a branch or engage in or carry on business in Canada that is not permitted by or under this Part, it may continue to maintain that branch or engage in or carry on that business for the period during which it could have done so under that section.
If an entity becomes a foreign bank, or an entity associated with a foreign bank, to which this Part applies and immediately before it became such a foreign bank or such an entity it maintained a branch or engaged in or carried on business in Canada that is not permitted by or under this Part, it may continue to maintain that branch or engage in or carry on that business for a period of six months after the day on which it became such a foreign bank or such an entity, or for any other shorter period that may be specified or approved by the Minister.
If an order has been made under subsection 973.1(1) in respect of a foreign bank or an entity associated with a foreign bank and section 516 or 517 applies to the foreign bank or entity, as the case may be, the period under section 516 or 517 may not extend beyond the expiry of the period referred to in the order made under subsection 973.1(1).
If a foreign bank or an entity associated with a foreign bank was permitted by section 516 or 517, as that section read immediately before the day on which this subsection came into force, to hold control of, or a substantial investment in, a Canadian entity and that holding is not permitted by or under this Part, it may continue to hold control of, or the substantial investment in, the Canadian entity for the period during which it could have done so under that section.
If an entity becomes a foreign bank, or an entity associated with a foreign bank, to which this Part applies and immediately before it became such a foreign bank or such an entity it held control of, or a substantial investment in, a Canadian entity and that control or substantial investment is not permitted by or under this Part, it may continue to hold control of, or a substantial investment in, the Canadian entity for a period of six months after the day on which it became such a foreign bank or such an entity, or for any other shorter period that may be specified or approved by the Minister.
no person shall participate in any arrangement in connection with a guarantee or acceptance prohibited by paragraph (a).
a foreign bank shall not guarantee any securities or accept any bills of exchange or depository bills that are issued by a person resident in Canada and that are intended by the issuer or by any party to the security or bill to be sold or traded in Canada; and
Despite subsection (1), a foreign bank, or an entity associated with a foreign bank, that has received the approval of the Minister under paragraph 522.22(1)(f) may guarantee any securities or accept any bills of exchange or depository bills in relation to its business permitted under paragraph 522.18(1)(a) or (b).
Subsection (1) does not apply in respect of
Subsection (1) does not apply in respect of the guarantee or acceptance by a foreign bank of securities, bills of exchange or depository bills that are issued by
Subject to subsections (2) to (4),
a prescribed entity.
a Canadian entity controlled by a bank that is a subsidiary of the foreign bank or of an entity associated with the foreign bank; or
a Canadian entity in which a bank that is a subsidiary of the foreign bank, or of an entity associated with the foreign bank, holds a substantial investment;
a bank that is a subsidiary of the foreign bank or of an entity associated with the foreign bank;
any other person resident in Canada and guaranteed or accepted by
a non-bank affiliate of the foreign bank;
a prescribed entity;
a Canadian entity referred to in any of paragraphs 468(1)(b) to (i) that is a non-bank affiliate of the foreign bank, or
a Canadian entity referred to in any of paragraphs 468(1)(a) to (i) that is controlled by a bank that is a subsidiary of the foreign bank, or of an entity associated with the foreign bank,
a Canadian entity referred to in any of paragraphs 468(1)(a) to (i) in which a bank that is a subsidiary of the foreign bank, or of an entity associated with the foreign bank, holds a substantial investment,
a bank that is a subsidiary of the foreign bank or of an entity associated with the foreign bank,
a foreign insurance company in relation to its insurance business in Canada.
the business in Canada of an authorized foreign bank; or
represent to the public that any instrument issued by it is a deposit or that any liability incurred by it is a deposit.
engage in the business of acting as an agent for the acceptance of deposit liabilities for a foreign bank or an entity associated with a foreign bank, other than for
engage in the business of accepting deposit liabilities;
an entity referred to in any of paragraphs 468(1)(a), (c), (d) and (h) or a trust or loan corporation referred to in paragraph 468(1)(g); or
a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society, or
an authorized foreign bank,
Subsection (1) does not apply to a non-bank affiliate that is
Despite subsections 510(4) and (5), a non-bank affiliate of a foreign bank shall not, in Canada,
a prescribed entity.
a Canadian entity referred to in paragraph 468(1)(d) or (h); or
a trust or loan corporation incorporated by or under an Act of Parliament or of the legislature of a province;
it is not regulated as a financial institution in Canada.
the liability incurred by it through the borrowing is not a deposit; and
it is not a member institution of the Canada Deposit Insurance Corporation;
Subsection (1) does not apply to a non-bank affiliate that is
Subsection (1) does not apply
The disclosure must be
A non-bank affiliate of a foreign bank that carries on as part of its business the provision of financial services may borrow money in Canada from the public only if it discloses that
in any other manner that may be prescribed.
in a prospectus, information circular or other offering document or a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or
except as may be provided in any regulations, to a borrowing
to a borrowing of a prescribed class or type or to a borrowing in prescribed circumstances or in a prescribed manner; or
through the issue of instruments in denominations of $150,000 or more.
from a person in an amount of $150,000 or more, or
a prescribed entity.
a financial institution referred to in paragraph (g) of the definition financial institution in section 2; or
an entity controlled by a bank holding company or an insurance holding company or in which a bank holding company or an insurance holding company has a substantial investment;
a Canadian entity referred to in any of paragraphs 468(1)(b), (c) or (e) to (g);
represent to the public that any instrument issued by it is a deposit or that any liability incurred by it is a deposit.
engage in the business of acting as an agent for the acceptance of deposit liabilities for a foreign bank or an entity associated with a foreign bank; or
engage in the business of accepting deposit liabilities;
Paragraph (1)(b) does not apply to a foreign securities dealer that has received the approval of the Minister under paragraph 522.22(1)(f) or to a foreign insurance company — or to a prescribed entity — that engages in the business of acting as an agent for the acceptance of deposit liabilities for
Subsection (1) does not apply to
A foreign bank — or an entity that is associated with a foreign bank and that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province — shall not, as part of its business in Canada,
a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society.
a foreign bank that is an authorized foreign bank; or
an entity referred to in paragraph 468(1)(a), (c), (d) or (h) or a trust or loan corporation referred to in paragraph 468(1)(g).
a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society; or
an authorized foreign bank;
it discloses that
it maintains a branch in Canada as permitted by section 522.05 or 522.19 or it engages in or carries on business in Canada as permitted by that section; and
it is not regulated as a financial institution in Canada.
the liability incurred through the borrowing is not a deposit, and
it is not a member institution of the Canada Deposit Insurance Corporation,
Subsection (1) does not apply to
The disclosure is not required in respect of
The disclosure must be
A foreign bank — or an entity that is associated with a foreign bank and that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province — may, as part of its business in Canada, borrow money in Canada from the public only if
in any other manner that may be prescribed.
in a prospectus, information circular or other offering document or a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or
except as may be provided in any regulations, a borrowing
a borrowing of a prescribed class or type or a borrowing in prescribed circumstances or in a prescribed manner; or
through the issue of instruments in denominations of $150,000 or more.
from a person in an amount of $150,000 or more, or
a prescribed entity.
a foreign securities dealer that has received the approval of the Minister under paragraph 522.22(1)(f); or
a foreign insurance company;
a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society;
an authorized foreign bank;
subject to and in accordance with rules that are prescribed in relation to the operation of representative offices and the conduct of their personnel,
subject to any terms and conditions that are attached to the approval, and
Every order made under former paragraph 518(3)(b) or former subsection 521(1) that is in force on the day this Division comes into force continues in force, subject to any further order that the Minister may make varying or revoking it.
[Repealed, 2007, c. 6, s. 72]
A foreign bank or entity associated with a foreign bank shall, at the times and in the form specified by the Superintendent, provide the Superintendent with the information that he or she may require.
The Superintendent must publish in the Canada Gazette a notice of every approval granted for the purpose of section 522.21 or 522.211 and of every revocation of any such approval.
Any regulations made for the purposes of sections 409 to 411 apply for the purposes of paragraph 522.08(1)(a) and subsection 522.22(1) unless otherwise provided in the regulations.
The Governor in Council may make regulations for the purposes of this Part and, in particular, may make regulations
A foreign bank, or an entity that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province and that is associated with a foreign bank may obtain an order under Part XIII of the Insurance Companies Act to insure, in Canada, risks.
A foreign bank may, under Part XII.1, maintain a branch in Canada to carry on business in Canada.
A foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity, other than a permitted Canadian entity or a Canadian entity referred to in any of paragraphs 468(1)(a) to (i), by way of
An entity that is associated with a foreign bank and that is
If the name under which a representative office of a foreign bank is or will be identifying itself in Canada is one referred to in any of paragraphs 530(1)(a) to (e), the Superintendent may, as the case may be,
Subject to the requirements relating to approval set out in Division 5, a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity referred to in any of paragraphs 468(1)(a) to (i).
Despite section 522.05, a foreign bank, or an entity that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province and that is associated with a foreign bank, that does not have a financial establishment in Canada and that outside Canada
A foreign bank, or an entity that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province and that is associated with a foreign bank, that does not have a financial establishment in Canada may maintain a branch in Canada or engage in or carry on business in Canada so long as less than
This Division does not apply in respect of investments acquired and held, branches maintained and businesses engaged in or carried on in accordance with Division 3.
The Superintendent may cancel the registration of a representative office of a foreign bank if
A foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity
with the approval of the Governor in Council and subject to any terms and conditions that are attached to the approval, locate its head office in Canada and, from that office, issue directions and do all other things reasonably necessary for the conduct of its banking business outside Canada.
with the approval of the Superintendent and
For the purposes of subsection (1), the Superintendent and any person acting under the direction of the Superintendent have the same powers and obligations that the Superintendent has in relation to the examination of banks under this Act.
The Superintendent shall, from time to time, make or cause to be made any examination and inquiry into the operation of any representative office of a foreign bank and the conduct of the personnel in that office that the Superintendent considers necessary for the purpose of ascertaining whether the office is being operated, and whether the personnel of the office are conducting themselves, in accordance with the rules prescribed for the purposes of paragraph 522(a).
direct the foreign bank to change the name.
impose restrictions on the use of the name in Canada; or
refuse to grant the approval referred to in paragraph 522(a);
the Superintendent is of the opinion that the foreign bank has failed to comply with a restriction imposed under paragraph 522.011(b) or a direction made under paragraph 522.011(c).
the Superintendent is of the opinion that the representative office is not being operated, or the personnel of that office are not conducting themselves, in accordance with the rules prescribed for the purposes of paragraph 522(a); or
the foreign bank requests the Superintendent to cancel the registration;
If a foreign bank controlled a bank or was a major shareholder of a bank immediately before the establishment of the foreign bank’s head office in Canada under paragraph 522(b), the foreign bank may continue to carry out from the head office in Canada any activities that were carried out from the head office of the foreign bank in relation to the bank before the establishment of the head office in Canada.
If a foreign bank, immediately before the establishment of its head office in Canada under paragraph 522(b), held deposits of, or had loans outstanding to, persons resident in Canada or Her Majesty in right of Canada or a province, the foreign bank may repay those deposits and collect those loans through the head office in Canada.
Subject to subsections (2) and (3), if the head office of a foreign bank is located in Canada under paragraph 522(b), the foreign bank shall not conduct any business from that office with persons resident in Canada or with Her Majesty in right of Canada or a province except for the purpose of acquiring premises, supplies, services and staff for that office.
a Canadian entity that is a financial services entity.
a Canadian entity referred to in any of paragraphs 468(1)(a) to (i); or
An entity that is associated with a foreign bank and that does not have a financial establishment in Canada may acquire or hold control of, or a substantial investment in, a Canadian entity, so long as, by virtue of the acquisition, neither the entity nor the foreign bank, nor any other entity associated with the foreign bank, controls or becomes a major owner of
A foreign bank that does not have a financial establishment in Canada may acquire or hold control of, or a substantial investment in, a Canadian entity, so long as, by virtue of the acquisition, neither the foreign bank nor any entity associated with the foreign bank controls or becomes a major owner of
a Canadian entity that is a financial services entity.
a Canadian entity referred to in any of paragraphs 468(1)(a) to (i); or
the prescribed portion — or if no portion is prescribed, 10 per cent — of its business outside Canada, determined in the prescribed manner, consists of one or more activities referred to in any of
the prescribed portion — or if no portion is prescribed, 10 per cent — of its business in Canada, determined in the prescribed manner, consists of one or more of the activities referred to in any of paragraphs (a) to (g) of the definition financial services entity in subsection 507(1); and
paragraph (h) of that definition, except under prescribed circumstances.
paragraphs (a) to (g) of the definition financial services entity in subsection 507(1), and
engages only in activities other than those referred to in any of
engages only in the activities referred to in the definition leasing entity in subsection 507(1), or
paragraph (h) of that definition, except under prescribed circumstances,
paragraphs (a) to (g) of the definition financial services entity in subsection 507(1), and
any other activity that a bank is permitted to engage in under section 410 or 411;
any financial service activity that a bank is permitted to engage in under any of paragraphs 409(2)(a) to (d), or
engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed.
engaging in the activities referred to in the definition closed-end fund, mutual fund distribution entity, mutual fund entity or real property brokerage entity in subsection 464(1); and
engaging in any activity that a bank is permitted to engage in — or in any other prescribed activity —, other than an activity referred to in paragraph (a) or (e), that relates to
engaging in the provision of any services exclusively to any or all of the following, so long as the Canadian entity is also providing those services to the foreign bank or to any member of the foreign bank’s group, namely,
acquiring or holding shares of, or ownership interests in, entities incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province;
acquiring or holding shares of, or ownership interests in, entities that a foreign bank or an entity associated with a foreign bank is permitted to acquire or hold under this Division or Division 8 — other than limited commercial entities, except in prescribed circumstances;
engaging in
any prescribed person, if it is doing so under prescribed terms and conditions, if any are prescribed;
any entity in which an entity referred to in subparagraph (iii) has a substantial investment and that is
any entity that is primarily engaged in the business of providing financial services,
any member of the foreign bank’s group,
the foreign bank,
a prescribed entity, or
an entity in which a foreign bank or an entity associated with a foreign bank is permitted to acquire a substantial investment under this section and section 522.07, or
an entity in which a bank is permitted to acquire a substantial investment under section 468,
if a significant portion of the business of the Canadian entity involves an activity referred to in subparagraph (i), the promotion, sale, delivery or distribution of a financial product or financial service that is provided by any other entity that is primarily engaged in the business of providing financial services;
the promotion, sale, delivery or distribution of a financial product or financial service that is provided by the foreign bank or by any member of the foreign bank’s group, or
Despite paragraph (2)(a), a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or acquire or increase a substantial investment in, any entity that acts as a trustee for a trust if the entity has been permitted under the laws of a province to act as a trustee for a trust and the following conditions are satisfied:
A foreign bank or an entity associated with a foreign bank may not acquire or hold control of, or a substantial investment in, a Canadian entity whose business includes any activity referred to in any of paragraphs (1)(a) to (e) if the activities of the Canadian entity include
Subject to subsection (2) and the requirements relating to approval set out in Division 5, a foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity, other than an entity referred to in any of paragraphs 468(1)(a) to (i), whose business is limited to one or more of the following:
any prescribed activity.
acquiring or holding control of, or a substantial investment in, another Canadian entity unless
activities that a bank is not permitted to engage in under section 416, if the Canadian entity engages in the activities of a finance entity or of any other entity as may be prescribed;
dealing in securities, except as may be permitted under paragraph (1)(e) or as may be permitted to a bank under paragraph 409(2)(c);
activities that a bank is not permitted to engage in under section 412, 417 or 418;
in the case of a Canadian entity that is not controlled by the foreign bank or the entity associated with a foreign bank, the foreign bank or the entity associated with a foreign bank itself would be permitted to acquire or hold control of, or a substantial investment in, the other Canadian entity under this section, section 522.07, any of paragraphs 522.1(a) or (c) to (e) or Division 8; or
in the case of a Canadian entity that is controlled by the foreign bank or the entity associated with a foreign bank, the foreign bank or the entity associated with a foreign bank itself would be permitted to acquire or hold control of, or a substantial investment in, the other Canadian entity under this section or section 522.07 or 522.1 or Division 8, or
if the entity engages in other business, that business is limited to engaging in one or more of the following:
the entity acts as a trustee only with respect to a closed-end fund or mutual fund entity; and
the provision of investment counselling services and portfolio management services.
any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and
the activities of a mutual fund distribution entity,
in the opinion of the Minister, the Canadian entity engages in or carries on business that is the same as, or similar, related or incidental to, the business outside Canada of the foreign bank or any entity associated with the foreign bank.
the Canadian entity does not engage in any leasing activities; and
the Canadian entity does not engage in more than the prescribed portion of — or if no portion is prescribed, 10 per cent of — the activities referred to in paragraphs 522.08(1)(a) to (f) or in any of paragraphs (a) to (h) of the definition financial services entity in subsection 507(1), determined in the prescribed manner;
the Canadian entity is not an entity referred to in any of paragraphs 468(1)(a) to (i);
A foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity whose business is limited to acquiring or holding shares of, or ownership interests in, limited commercial entities.
Subject to the requirements relating to approval set out in Division 5, an entity that is associated with a foreign bank and that has a financial establishment in Canada may acquire or hold control of, or a substantial investment in, a Canadian entity if
Subject to the requirements relating to approval set out in Division 5, a foreign bank that has a financial establishment in Canada may acquire or hold control of, or a substantial investment in, a Canadian entity if
in the opinion of the Minister, the Canadian entity engages in or carries on business that is the same as, or similar, related or incidental to, the business outside Canada of the entity associated with the foreign bank, the foreign bank or any other entity associated with the foreign bank.
the Canadian entity does not engage in leasing activities; and
the Canadian entity does not engage in more than the prescribed portion of — or if no portion is prescribed, 10 per cent of — the activities referred to in paragraphs 522.08(1)(a) to (f) or in any of paragraphs (a) to (h) of the definition financial services entity in subsection 507(1), determined in the prescribed manner;
the Canadian entity is not an entity referred to in any of paragraphs 468(1)(a) to (i);
if it does so in accordance with regulations made under paragraph 522.23(a) concerning specialized financing.
through a realization of security, as permitted by section 522.15; or
as a result of a default that has occurred under the terms of an agreement with respect to a loan or under any other documents governing the terms of a loan, as permitted by section 522.15;
by way of a temporary investment permitted by section 522.14;
by way of an investment permitted by any of sections 522.11 to 522.13;
an acquisition or holding of shares or ownership interests in the Canadian entity by
an acquisition or holding of the control of a Canadian entity referred to in any of paragraphs 468(1)(a) to (f), or of a prescribed Canadian entity, that controls or has a substantial investment in the Canadian entity; or
a Canadian entity controlled by a Canadian entity referred to in subparagraph (i).
a Canadian entity referred to in any of paragraphs 468(1)(a) to (f), or a prescribed Canadian entity, that is controlled by the foreign bank or the entity associated with the foreign bank, or
If a foreign bank or an entity associated with a foreign bank acquires or holds control of, or a substantial investment in, a Canadian entity under subsection (1), none of the requirements relating to approval set out in Division 5 apply in respect of that acquisition or holding.
A foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity by way of
a Canadian entity controlled by an entity referred to in any of paragraphs 468(1)(g) to (i)
an entity referred to in any of paragraphs 468(1)(g) to (i), or
an acquisition or holding of shares or ownership interests in the Canadian entity by
an acquisition or holding of the control of a Canadian entity referred to in any of paragraphs 468(1)(g) to (i), or of a prescribed Canadian entity, that controls or has a substantial investment in the Canadian entity; or
a Canadian entity controlled by a Canadian entity referred to in subparagraph (i).
a Canadian entity referred to in any of paragraphs 468(1)(g) to (i), or a prescribed Canadian entity, that is controlled by the foreign bank or the entity associated with the foreign bank, or
Within 90 days after acquiring control or a substantial investment under subsection (1) or (5), a foreign bank or an entity associated with a foreign bank shall notify the Minister in writing of the acquisition.
If a foreign bank or an entity associated with a foreign bank holds control of, or a substantial investment in, a Canadian entity as permitted by this Division and the foreign bank or the entity associated with the foreign bank becomes aware of a change in the business, affairs or activities of the Canadian entity that, if the change had taken place before the acquisition of control or the substantial investment, would have caused the entity not to be a limited commercial entity or a Canadian entity referred to in section 522.07 or 522.08 or would have been such that approval for the acquisition would have been required under any of paragraphs 522.22(1)(a) to (e) or (g), the foreign bank or the entity associated with the foreign bank is deemed to have acquired, on the day it becomes aware of the change, a temporary investment in respect of which subsections (1) to (4) apply.
If a foreign bank, or an entity associated with a foreign bank, acquires or holds, by way of a temporary investment, control of, or a substantial investment in, a Canadian entity for which the approval of the Minister would have been required under any of paragraphs 522.22(1)(a) to (e) if the foreign bank or the entity associated with a foreign bank had acquired the control or the substantial investment under section 522.07 or 522.08, the foreign bank or the entity associated with a foreign bank shall, within 90 days after acquiring control, or after acquiring the substantial investment,
On application by a foreign bank, or an entity associated with a foreign bank, the Minister may extend the period referred to in subsection (2) by any further period or periods.
If subsection (1) applies in respect of a foreign bank or an entity associated with a foreign bank, the foreign bank or entity shall do all things necessary to ensure that, within two years after acquiring the control or the substantial investment or within any other period that may be specified or approved by the Minister, it no longer controls or has a substantial investment in the entity.
Subject to sections 522.21 and 522.211, a foreign bank or an entity associated with a foreign bank may, by way of temporary investment, acquire or hold control of, or a substantial investment in, a Canadian entity if the foreign bank or the entity associated with a foreign bank has a financial establishment in Canada or would, by virtue of the temporary investment, have a financial establishment in Canada.
do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the Canadian entity or holds a substantial investment in the Canadian entity.
apply to the Minister for approval to retain control of the Canadian entity or to continue to hold the substantial investment in the Canadian entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or
through the realization of a security interest for any loan or advance made by the foreign bank or the entity associated with the foreign bank, or for any other debt or liability owing to it,
as a result of a default that has occurred under the terms of an agreement with respect to a loan made between the foreign bank — or the entity associated with a foreign bank — and the Canadian entity, or under any other documents governing the terms of the loan, or
If, under subsection (1), a foreign bank or an entity associated with a foreign bank acquires or holds control of, or a substantial investment in, a Canadian entity for which the approval of the Minister is required under Division 5, the foreign bank or entity associated with the foreign bank may retain control of the Canadian entity, or continue to hold the substantial investment, for an indeterminate period if the approval in writing of the Minister is obtained before the end of the period referred to in subsection (1) or of any extension granted under subsection (2).
On application by a foreign bank or an entity associated with a foreign bank, the Minister may extend the period referred to in subsection (1) by any further period or periods.
If a foreign bank or an entity associated with a foreign bank acquires or holds control of, or a substantial investment in, a Canadian entity
that is a foreign securities dealer may, in Canada, engage in or carry on the business of dealing in securities, or the business of providing investment counselling services and portfolio management services, so long as that business is engaged in or carried on in accordance with provincial laws relating to securities dealing or investment counselling and portfolio management.
that is a foreign cooperative credit society may, in Canada, engage in or carry on the business of a cooperative credit society, so long as that business is engaged in or carried on in accordance with provincial laws relating to cooperative credit societies; or
Subject to the requirements relating to approval set out in Division 5, an entity associated with a foreign bank incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province, that engages in or carries on, outside Canada, the business of providing investment counselling services and portfolio management services may engage in or carry on that business in Canada so long as that business in Canada is engaged in or carried on in accordance with provincial laws relating to investment counselling and portfolio management.
Subject to the requirements relating to approval set out in Division 5, a foreign bank — or an entity associated with a foreign bank —
paragraphs (a) to (g) of the definition financial services entity in subsection 507(1);
paragraphs 522.08(1)(a) to (f), and
in the opinion of the Minister, the business in Canada is the same as, or similar, related or incidental to, the business outside Canada of the foreign bank or the entity associated with a foreign bank.
less than the prescribed portion — or if no portion is prescribed, 10 per cent — of its business outside Canada, determined in the prescribed manner, consists of one or more of the activities referred to in any of
less than the prescribed portion — or if no portion is prescribed, 10 per cent — of its business in Canada, determined in the prescribed manner, consists of one or more of the activities referred to in any of
paragraph (h) of that definition, except under prescribed circumstances; and
paragraphs (a) to (g) of the definition financial services entity in subsection 507(1), and
paragraphs 522.08(1)(a) to (f),
A foreign bank — or an entity associated with a foreign bank — that maintains a branch or engages in or carries on any business under subsection (1) may not in Canada engage in any leasing activities.
Subject to the requirements relating to approval set out in Division 5, and subject to subsection (2), a foreign bank, or an entity that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province and that is associated with a foreign bank, that has a financial establishment in Canada may maintain a branch in Canada or engage in or carry on business in Canada, so long as
A foreign bank that was the subject of a designation order under subsection 508(1) as that subsection read immediately before the coming into force of this subsection and whose designation order has not been revoked is deemed to have received the approval of the Minister to have a financial establishment in Canada.
Subsection (1) does not apply if the foreign bank or any entity associated with the foreign bank
A foreign bank may not, without the prior written approval of the Minister, have a financial establishment in Canada.
has already received the approval of the Minister to have a financial establishment in Canada.
controls or is a major owner of a Canadian entity referred to in any of paragraphs 468(1)(a) to (f); or
is a foreign insurance company;
is an authorized foreign bank;
An entity associated with a foreign bank that was the subject of a designation order under subsection 508(1) as that subsection read immediately before the coming into force of this subsection and whose designation order has not been revoked is deemed to have received the approval of the Minister to have a financial establishment in Canada.
Subsection (1) does not apply if the entity associated with a foreign bank, the foreign bank or any other entity associated with the foreign bank
An entity that is associated with a foreign bank may not, without the prior written approval of the Minister, have a financial establishment in Canada.
has already received the approval of the Minister to have a financial establishment in Canada.
controls or is a major owner of a Canadian entity referred to in any of paragraphs 468(1)(a) to (f); or
is a foreign insurance company;
is an authorized foreign bank;
engage in an activity referred to in paragraph 510(1)(c) in the circumstances described in paragraph 513(1)(a) or (2)(c).
maintain a branch or engage in or carry on a business permitted by section 522.19; or
acquire or hold control of, or a substantial investment in, a limited commercial entity;
engage in or carry on a business permitted by paragraph 522.18(1)(a) or (b) or subsection 522.18(2);
acquire or hold control of, or a substantial investment in, a Canadian entity that engages in an activity prescribed for the purposes of paragraph 522.08(1)(f);
acquire or hold control of, or a substantial investment in, a Canadian entity that engages in an activity described in paragraph 410(1)(c.1);
acquire or hold control of, or a substantial investment in, a Canadian entity that engages in Canada in an activity described in paragraph 410(1)(c);
acquire or hold control of, or a substantial investment in, a Canadian entity whose business includes one or more of the activities referred to in paragraph 522.08(1)(d);
acquire control of a Canadian entity whose business includes one or more of the activities referred to in paragraph 522.08(1)(a) and that engages, as part of its business, in any financial intermediary activity that exposes the Canadian entity to material market or credit risk — including a finance entity — if the control is acquired from an entity referred to in any of paragraphs 468(1)(a) to (f) that is not a member of the foreign bank’s group, but does not include a Canadian entity whose activities are limited to the activities of one or more of the following entities:
acquire control of a Canadian entity referred to in any of paragraphs 468(1)(g) to (i) from a person who is not a member of the foreign bank’s group;
a financial leasing entity;
a factoring entity as defined in the regulations, or
Subsection (1) applies regardless of whether or not the approval of the Minister is required under section 522.21 or 522.211.
Nothing in this Part precludes a foreign bank or an entity associated with a foreign bank from acquiring a substantial investment in a Canadian entity if the substantial investment is acquired in the course of a distribution to the public of shares or ownership interests in the Canadian entity by a securities underwriter so long as the securities underwriter holds the substantial investment for no longer than six months.
If the Minister, under paragraph (1)(g), approves the acquisition or holding of control of, or a substantial investment in, a limited commercial entity by a foreign bank or by an entity associated with a foreign bank, the Minister may also authorize the foreign bank or entity associated with a foreign bank to, at any time, acquire and hold control of, or a substantial investment in, another limited commercial entity that engages in activities that are substantially the same as those engaged in by the Canadian entity in respect of which the approval was given.
Subject to the regulations, if a foreign bank or an entity associated with a foreign bank
Subject to subsection (2) and the regulations, a foreign bank or an entity associated with a foreign bank may not, without the prior written approval of the Minister,
through that acquisition or holding, indirectly acquires control of, or a substantial investment in, another Canadian entity that would require the approval of the Minister under any of those paragraphs,
obtains the approval of the Minister under any of paragraphs (1)(a) to (e) and (g) to acquire or hold control of, or a substantial investment in, a Canadian entity, and
defining factoring entity for the purpose of paragraph 522.22(1)(b).
respecting exemptions under subsection 508(3); and
defining any terms in subsection 508(2);
respecting the calculation referred to in subsection 508(2), including regulations respecting the classes of entities associated with a foreign bank, and the classes of foreign banks described in any of subparagraphs 508(1)(a)(i) to (iii) that are associated with a foreign bank, that are to be taken into account in that calculation;
in respect of sections 409 to 411, for the purposes of paragraph 522.08(1)(a), subsection 522.22(1) and section 522.24;
restricting the ownership by foreign banks, or entities associated with foreign banks, of shares in a body corporate or of ownership interests in an unincorporated entity under Division 3 or 4 and imposing terms and conditions applicable to foreign banks, or entities associated with foreign banks, that own such shares or interests;
for the purposes of subsection 522.22(1) or (2), permitting the acquisition or holding of control or the acquisition or holding of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the foreign banks, entities associated with foreign banks or other entities in respect of which either of those subsections does not apply, including prescribing foreign banks, entities associated with foreign banks or other entities on the basis of the activities they engage in;
concerning specialized financing;
The Minister may, by order, direct a foreign bank or an entity associated with a foreign bank, within any period that the Minister considers reasonable, to dispose of assets used in a business or activity engaged in or carried on, or to dispose of the control of an entity or a substantial investment in an entity acquired or held, in contravention of this Part or in contravention of any terms and conditions imposed
If an authorized foreign bank or an entity associated with an authorized foreign bank contravenes any provision of Division 4 or fails to comply with any terms and conditions imposed by any order made for the purpose of any of those provisions, the Minister may, if the Minister considers it in the public interest to do so, revoke the order made under subsection 524(1).
If a foreign bank or an entity associated with a foreign bank contravenes any provision of Division 4 or fails to comply with any terms and conditions imposed by any order made for the purpose of any of those provisions, the Minister may, if the Minister considers it in the public interest to do so, by order, direct the foreign bank or the entity to divest itself of the control of, or a substantial investment in, a bank or bank holding company to which the offence relates.
under subsection 518(4) or 521(1.02), as it read immediately before October 24, 2001.
under subsection 522.26(2); or
a prescribed entity associated with a foreign bank referred to in paragraph (c) of the definition affected foreign bank. (entité visée)
an entity associated with a foreign bank that is an affected foreign bank and that has a financial establishment in Canada; or
affected foreign bank means a foreign bank that
affected entity means
[Repealed, 2007, c. 6, s. 73] (banque étrangère visée)
on or before June 13, 2000, controlled a foreign bank subsidiary as defined in former section 2.
immediately before the day this Division comes into force, was the subject of an order made under subsection 524(1) or former subsection 521(1.06) and whose order has not been revoked; or
Every reference in this Division to a former provision means a reference to that provision as it read immediately before the day this Division comes into force.
The following definitions apply in this Division.
The Minister shall publish in the Canada Gazette a notice of every revocation order.
A revocation order or variation order takes effect three months after the date it is made unless the Minister and the entity to which it relates agree that the order is to take effect at another time.
Every order made under former subsection 507(4) exempting an entity from the status of being associated with a foreign bank or exempting a Canadian entity from being a “non-bank affiliate of a foreign bank” that is in force on the day this Division comes in force continues in force, subject to any further order that the Minister may make varying or revoking it.
Subsection (6) applies so long as
An affected foreign bank or an affected entity that, immediately before the day this Division comes into force, holds, otherwise than by virtue of former paragraph 518(3)(b) or a consent received under former subsection 521(1), control of, or a substantial investment in, a Canadian entity that is not a permitted Canadian entity or a financial services entity may continue to hold control of, or a substantial investment in, the Canadian entity on and after the day this Division comes into force.
Subsections (3) and (4) apply so long as
An affected foreign bank or affected entity that, immediately before the day this Division comes into force, holds, by virtue of former paragraph 518(3)(b), control of, or a substantial investment in, a Canadian entity that is not a permitted Canadian entity or a financial services entity may continue to hold control of, or a substantial investment in, the Canadian entity on and after the day this Division comes into force if any approval of the Minister under that former paragraph has not been revoked before that day, so long as the Canadian entity does not engage in leasing activities.
An affected foreign bank or an affected entity that, immediately before the day this Division comes into force, holds control of, or a substantial investment in, a Canadian entity that is a permitted Canadian entity or an entity referred to in any of paragraphs 468(1)(g) to (i) by virtue of former paragraph 518(3)(b) or a consent received under former subsection 521(1) may continue to hold control of, or a substantial investment in, the Canadian entity on and after the day this Division comes into force if the approval or consent had not been revoked before that day and, if it does so, it is deemed to have received any approval required under paragraphs 522.22(1)(a) to (e) in respect of the Canadian entity.
Subsection (1) applies so long as
An affected foreign bank or affected entity that had received consent under former subsection 521(1) to acquire or hold control of, or a substantial investment in, a Canadian entity that is a financial services entity but is not a permitted Canadian entity or an entity referred to in any of paragraphs 468(1)(a) to (i) may continue to hold control of, or a substantial investment in, the Canadian entity on and after the day this Division comes into force if the consent had not been revoked before that day.
neither the affected foreign bank nor any affected entity in relation to the foreign bank
the Canadian entity restricts its businesses in accordance with any terms and conditions in the consent under former subsection 521(1), or in an undertaking to the Minister or Superintendent, other than a term or condition that limits the size of the Canadian entity’s assets; and
controls or is a major shareholder of a bank or a bank holding company.
is an authorized foreign bank, or
after the coming into force of this Division, the Canadian entity does not change the nature of its businesses as of
within one year after the coming into force of this Division, the affected foreign bank or affected entity discloses to the Minister the nature of its businesses and activities on June 13, 2000; and
after the coming into force of this Division, the Canadian entity restricts its businesses in accordance with any terms and conditions in the Minister’s approval under former paragraph 518(3)(b), or in a consent received under former subsection 521(1), as the case may be, or in an undertaking to the Minister or Superintendent given before the day this Division comes into force, other than a term or condition that limits the size of the Canadian entity’s assets;
any other date after June 13, 2000 and before the coming into force of this Division on which the businesses of the Canadian entity were approved by the Minister.
June 13, 2000, or
neither the affected foreign bank nor any affected entity
the Canadian entity does not engage in leasing activities; and
after the coming into force of this Division, the Canadian entity does not change the nature of its businesses as of June 13, 2000 and its businesses remain in conformity with former paragraph 518(3)(a);
within one year after the coming into force of this Division, the affected foreign bank or affected entity discloses to the Minister the nature of its businesses on June 13, 2000;
controls or is a major shareholder of a bank or a bank holding company.
is an authorized foreign bank, or
the Canadian entity’s principal activity in Canada became an activity described in those subparagraphs.
the foreign bank became a foreign bank or the foreign bank with which the entity is associated became a foreign bank, as the case may be; or
Subsection (1) applies only if the foreign bank or an entity associated with the foreign bank
Despite section 517 and subject to subsection (2), paragraph 510(1)(d) does not apply in respect of the holding of control of, or a substantial investment in, a Canadian entity whose principal activity in Canada is an activity referred to in any of former subparagraphs 518(3)(a)(i) to (v) and that was acquired by a foreign bank or an entity associated with a foreign bank before August 1, 1997 and before
does not control, and is not a major shareholder of, a bank or a bank holding company.
is not an authorized foreign bank; and
the acquisition of control of a Canadian business, within the meaning of that Act, by a foreign bank to which Part XII applies, or by an entity associated with a foreign bank to which that Part applies, that has a financial establishment in Canada, or would have one by virtue of the acquisition.
the establishment of a new Canadian business, within the meaning of that Act, by a foreign bank to which Part XII applies, or by an entity associated with a foreign bank to which that Part applies, that has a financial establishment in Canada, or would have one by virtue of the establishment of the new Canadian business; and
the acquisition of control of a Canadian business, within the meaning of that Act, by an entity referred to in any of paragraphs 468(1)(a) to (f) that is controlled by a foreign bank or by an entity associated with a foreign bank;
the establishment of a new Canadian business, within the meaning of that Act, that is the insurance business in Canada of a foreign insurance company that is a foreign bank to which Part XII does not apply or that is an entity associated with a foreign bank to which that Part does not apply;
the acquisition of control of a Canadian business, within the meaning of that Act, that is an entity referred to in any of paragraphs 468(1)(a) to (f) by a foreign bank or by an entity associated with a foreign bank;
For the purpose of subsection (1), an entity associated with a foreign bank has a financial establishment in Canada if the entity has or is deemed to have a financial establishment in Canada for the purpose of Part XII.
For the purpose of subsection (1), a foreign bank has a financial establishment in Canada if the foreign bank has or is deemed to have a financial establishment in Canada for the purpose of Part XII.
The following definitions apply in subsection (1).
The Investment Canada Act does not apply in respect of any of the following, whether it occurs directly or indirectly:
foreign insurance company means a foreign company as defined in subsection 2(1) of the Insurance Companies Act. (société d’assurances étrangère)
entity associated with a foreign bank means an entity that is or is deemed to be associated with a foreign bank within the meaning of section 507. (entité liée à une banque étrangère)
The assets and liabilities of an authorized foreign bank in respect of its business in Canada, as shown by its books and records, are considered to be the assets and liabilities of the authorized foreign bank in respect of its business in Canada.
This Part applies only in respect of the business in Canada of authorized foreign banks.
An authorized foreign bank shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada.
No authorized foreign bank and no entity affiliated with an authorized foreign bank may
No foreign bank may establish a branch in Canada to carry on business in Canada under this Part if the foreign bank or an entity affiliated with the foreign bank
The Minister may make an order only if the Minister is of the opinion, after consultation with the Superintendent, that
The Minister may make an order only if the Minister is satisfied that, if the application is made by a non-WTO Member foreign bank, treatment as favourable for banks to which this Act applies exists or will be provided in the jurisdiction in which the authorized foreign bank principally carries on business, either directly or through a subsidiary.
The order may be made subject to the restrictions referred to in subsection 540(1) and the requirements referred to in section 627.74.
On application by a foreign bank, the Minister may make an order permitting the foreign bank to establish a branch in Canada to carry on business in Canada under this Part.
the applicant’s principal activity is the provision of
the applicant is a bank in the jurisdiction under whose laws it was incorporated and is regulated in a manner acceptable to the Superintendent; and
services that would be permitted by this Act if they were provided by a bank in Canada.
financial services, or
engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in.
has control of or has a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in; or
engage in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in.
control or have a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity as defined in subsection 464(1) is prohibited from engaging in; or
Subject to the approval of the Governor in Council, the Superintendent may make rules governing the proceedings at public inquiries held under this section.
Within thirty days after receiving the report, the Minister shall make it available to the public.
On receipt of an objection, and if the application for the order has been received, the Superintendent shall, if satisfied that it is necessary and in the public interest to do so, hold or cause to be held a public inquiry into the objection as it relates to the application and, on completion of the inquiry, the Superintendent shall report the findings of the inquiry to the Minister.
On receipt of an objection, the Superintendent shall inform the Minister of it.
A person who objects to the proposed order may, within thirty days after the date of the last publication under subsection (2), submit the objection in writing to the Superintendent.
Before filing an application, a foreign bank applicant shall, at least once a week for a period of four consecutive weeks, publish, in a form satisfactory to the Superintendent, a notice of intention to make the application in the Canada Gazette and in a newspaper in general circulation at or near the place where its principal office is to be situated.
An application for an order under subsection 524(1) shall be filed with the Superintendent, together with any other information, material and evidence that the Superintendent may require.
the best interests of the financial system in Canada.
the impact of any integration of the businesses and operations in Canada of the authorized foreign bank with those of its affiliates in Canada on the conduct of those businesses and operations; and
whether the proposed authorized foreign bank will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;
the reputation of the foreign bank for being operated in a manner that is consistent with the standards of good character and integrity;
the business record and past performance of the foreign bank;
the soundness and feasibility of plans of the foreign bank for the future conduct and development of its business in Canada;
the nature and sufficiency of the financial resources of the foreign bank as a source of continuing financial support for the carrying on of its business in Canada;
the date on which the order becomes effective.
whether the authorized foreign bank is subject to any restrictions and requirements referred to in subsection 524(2); and
the province in which the principal office of the authorized foreign bank is to be situated;
the name of the authorized foreign bank and, where applicable, the name under which it is permitted to carry on business in Canada;
The Superintendent shall cause to be published in the Canada Gazette a notice of the making of the order.
The Minister may impose any terms and conditions in respect of the order that the Minister considers appropriate.
The Minister may set out in the order any provision not contrary to this Act that the Minister considers advisable in order to take into account the particular circumstances of the proposed authorized foreign bank with respect to the carrying on of business in Canada.
An order made under subsection 524(1) shall set out
add or remove the restrictions and requirements referred to in subsection 524(2).
add any provision referred to in subsection 527(2) or any term or condition referred to in subsection 527(3) or change or remove any of those provisions, terms or conditions that are included in the order made under subsection 524(1) or in any other order made under this section; or
[Repealed, 2007, c. 6, s. 75]
Before making an application under subsection (1), the authorized foreign bank must publish a notice of intention to make the application at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper of general circulation at or near the place where its principal office is situated.
On application by an authorized foreign bank, the Superintendent may, by order, change the name under which it is permitted to carry on business in Canada or the province in which its principal office is situated as that name or province is set out in the order made under subsection 524(1) or in any other order made under this section.
On application by an authorized foreign bank, the Minister may, by further order,
maintain outside Canada any records or registers required by this Act to be maintained in Canada.
in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), carry on business in Canada without having to deposit assets having a value of at least five million dollars, as required by subparagraphs 534(3)(a)(ii) and 582(1)(b)(i), if the authorized foreign bank continues to hold a substantial investment in
[Repealed, 2001, c. 9, s. 136]
acquire and hold assets that an authorized foreign bank is not otherwise permitted by this Part to acquire or hold if the authorized foreign bank was obliged, at the time an application for an order under subsection 524(1) was made, to acquire those assets;
hold assets that an authorized foreign bank is not otherwise permitted by this Part to hold, if the assets were held, at the time an application for an order under subsection 524(1) was made, by the authorized foreign bank or an affiliate of the authorized foreign bank;
have liabilities that an authorized foreign bank is not otherwise permitted by this Part to have, if the authorized foreign bank or an affiliate of the authorized foreign bank had those liabilities at the time an application for an order under subsection 524(1) was made;
engage in a business activity specified in the order that an authorized foreign bank is not otherwise permitted by this Part to engage in;
a company to which the Trust and Loan Companies Act applies and the Minister has approved an application for letters patent dissolving the company made under section 349 of that Act; or
a bank that is a subsidiary of a foreign bank and the Minister has approved an application for letters patent dissolving the bank made by the subsidiary under section 344, or
The Minister may not grant to an authorized foreign bank any permission
Subject to subsection (5), the Minister may, on the recommendation of the Superintendent, by order, renew permission granted under subsection (1) with respect to any matter described in paragraphs (1)(b) to (f) for any further period or periods that the Minister considers necessary.
Permission granted under subsection (1) shall be expressed to be granted for a period specified in the order not exceeding
An order under subsection (1) may not be made if the effect of the order would be to permit an authorized foreign bank to
Subject to this section but notwithstanding any other provision of this Act or the regulations, the Minister may, on the recommendation of the Superintendent, by order, grant an authorized foreign bank permission to
have deposit liabilities so as to cause the authorized foreign bank to be in contravention of section 540, in the case of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2).
contravene section 545, in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2); or
with respect to any matter described in any of paragraphs (1)(c) to (g), two years.
with respect to any matter described in paragraph (1)(b), ten years; and
with respect to any activity described in paragraph (1)(a), thirty days after the day on which an order made under subsection 524(1) becomes effective in respect of the authorized foreign bank or, where the activity is conducted pursuant to an agreement existing on that day, on the expiration of the agreement;
with respect to matters described in paragraph (1)(f), that purports to be effective more than seven years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank.
with respect to matters described in paragraphs (1)(c) and (d), that purports to be effective more than ten years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank; and
with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the authorized foreign bank that the authorized foreign bank will not be able at law to redeem or discharge at the end of the ten years any liabilities to which the permission relates;
reserved under section 43 for an existing or proposed bank or for an existing or proposed authorized foreign bank or under section 697 for an existing or proposed bank holding company.
the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any other entity carries on business or is identified; or
the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing trademark, trade name or corporate name of a body corporate, except where
in the opinion of the Superintendent, deceptively misdescriptive;
prohibited by an Act of Parliament;
consent to the use of the trademark, trade name or corporate name is signified to the Superintendent in any manner that the Superintendent may require;
the trademark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name, and
An order made under subsection 524(1) or 528(1.1) may provide for the use of a name that includes a word referred to in section 47 of the Trust and Loan Companies Act.
An order made under subsection 524(1) or 528(1.1) may not provide for the use of a name that is
[Repealed, 1999, c. 28, s. 35]
Where an authorized foreign bank does not comply with a direction under subsection (1) within sixty days after the service of the direction, the Superintendent may revoke the name and assign another name and, until changed in accordance with section 528, that other name is the name of the authorized foreign bank.
If through inadvertence or otherwise an order made under subsection 524(1) or 528(1.1) provides for the use of a name that is prohibited by section 530, the Superintendent may, by order, direct the authorized foreign bank to change the name without delay and the authorized foreign bank shall comply with that direction.
Where an authorized foreign bank carries on business in Canada under a name other than the name set out in the order, the Superintendent may, by order, direct the authorized foreign bank not to use that other name if the Superintendent is of the opinion that the other name is a name referred to in any of paragraphs 530(1)(a) to (e).
Subject to section 531 and subsection (2), an authorized foreign bank may carry on business in Canada under a name other than the name set out in the order made under subsection 524(1) or 528(1.1).
If an order under subsection (1) is not obtained within one year after the day on which the order under subsection 524(1) in respect of the authorized foreign bank becomes effective, the order made under subsection 524(1) is revoked.
The Superintendent shall not make an order under subsection (1) in respect of an authorized foreign bank more than one year after the day on which the order under subsection 524(1) in respect of the authorized foreign bank becomes effective.
The Superintendent shall cause to be published in the Canada Gazette a notice of the making of an order under subsection (1).
On the making of an order under subsection (1), the authorized foreign bank shall publish a notice of the making of the order in a newspaper in general circulation at or near the place where its principal office is to be situated.
In respect of an order made under subsection (1), the Superintendent may at any time, by further order,
The order under subsection (1) may contain any conditions or limitations that the Superintendent considers appropriate that are consistent with this Act and that relate to the carrying on of the business in Canada of the authorized foreign bank.
The assets referred to in paragraph (3)(a) shall be kept with a Canadian financial institution approved by the Superintendent pursuant to a deposit agreement entered into with the prior approval of the Superintendent.
The Superintendent may make the order only if the Superintendent is satisfied that the authorized foreign bank has
An authorized foreign bank may not commence to carry on business in Canada until it is authorized to do so by an order made under subsection (1).
On application by an authorized foreign bank, the Superintendent may make an order approving the commencement and carrying on of business in Canada by the authorized foreign bank.
in any other case, five million dollars or any greater amount that the Superintendent specifies;
in the case of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2), one hundred thousand dollars, or
complied with all other relevant requirements of this Act.
submitted a power of attorney in accordance with subsection 536(2); and
deposited in Canada unencumbered assets of a type approved by the Superintendent, the total value of which, determined in accordance with the accounting principles referred to in subsection 308(4), shall be
amend or revoke any authorization contained in the order or any condition or limitation to which the order is subject,
make the order subject to any conditions or limitations that the Superintendent considers appropriate that are consistent with this Act and that relate to the business in Canada of the authorized foreign bank, or
An authorized foreign bank shall send to the Superintendent, within fifteen days after any change of address of its principal office, a notice of the change of address.
An authorized foreign bank may change the address of its principal office within the province specified in the order made under subsection 524(1) or 528(1.1) with respect to it.
An authorized foreign bank shall at all times have a principal office in the province specified in the order made under subsection 524(1) or 528(1.1) with respect to it.
Where a vacancy occurs in the position of principal officer, the authorized foreign bank shall, without delay, fill the vacancy and submit a copy of the new power of attorney to the Superintendent.
The authorized foreign bank shall provide the principal officer with a power of attorney expressly authorizing the principal officer to receive all notices under the laws of Canada from the Minister or Superintendent and shall without delay submit a copy of the power of attorney to the Superintendent.
An authorized foreign bank shall appoint an employee who is ordinarily resident in Canada to be its principal officer for the purposes of this Part.
[Repealed, 1999, c. 28, s. 35]
An approval may be given under subsection (2) only if
An authorized foreign bank may, with the approval of the Minister, transfer all or substantially all of the liabilities in respect of its business in Canada to another authorized foreign bank in respect of its business in Canada, to a bank or to a body corporate to which the Trust and Loan Companies Act applies.
Subject to subsection (2), an authorized foreign bank shall not transfer all or substantially all of the liabilities in respect of its business in Canada.
the application for approval is supported by evidence satisfactory to the Minister that the requirement of paragraph (a) has been satisfied and that the entity to which the authorized foreign bank intends to make the transfer is an entity referred to in subsection (2).
notice of the authorized foreign bank’s intention to apply for the approval has been published at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the principal office of the transferring authorized foreign bank is situated; and
For greater certainty, the business of banking includes
Subject to this Act, an authorized foreign bank shall not carry on any business in Canada other than the business of banking and any business generally that appertains to the business of banking.
issuing payment, credit or charge cards and, in cooperation with others including other financial institutions, operating a payment, credit or charge card plan.
providing investment counselling services and portfolio management services; and
acting as a financial agent;
providing any financial service;
provide identification, authentication or verification services.
act as receiver, liquidator or sequestrator; and
act as a custodian of property;
engage in the sale of
promote merchandise and services to the holders of any payment, credit or charge card issued by the authorized foreign bank;
engage, under prescribed terms and conditions, if any are prescribed, in specialized business management or advisory services;
with the prior written approval of the Minister, develop, design, hold, manage, manufacture, sell or otherwise deal with data transmission systems, information sites, communication devices or information platforms or portals that are used
with the prior written approval of the Minister, engage in any of the following activities, namely,
provide prescribed bank-related data processing services;
hold, manage and otherwise deal with real property;
any other information that the Minister may, by order, specify,
information that relates to the business of an entity in which a bank is permitted to acquire a substantial investment under section 468 or to the business of a Canadian entity acquired or held under section 522.08, and
information that is primarily financial or economic in nature,
designing, developing, manufacturing or selling, as an ancillary activity to any activity referred to in any of subparagraphs (i) to (iii) that the authorized foreign bank is engaging in, computer equipment integral to the provision of information services related to the business of financial institutions or to the provision of financial services;
designing, developing or marketing computer software, and
providing advisory or other services in the design, development or implementation of information management systems,
collecting, manipulating and transmitting
for a prescribed purpose or in prescribed circumstances;
to provide information that relates to the business of an entity in which a bank is permitted to acquire a substantial investment under section 468 or to the business of a Canadian entity acquired or held under section 522.08, or
to provide information that is primarily financial or economic in nature,
tickets in respect of a lottery sponsored by the federal government or a provincial or municipal government or an agency of any of those governments;
urban transit tickets, and
tickets, including lottery tickets, on a non-profit public service basis in connection with special, temporary and infrequent non-commercial celebrations or projects that are of local, municipal, provincial or national interest,
Regulations made for the purpose of any of sections 409 to 411 apply in respect of authorized foreign banks with any modifications that the circumstances require unless regulations made under subsection 539(3) provide otherwise.
The Governor in Council may make regulations
Except as authorized by or under this Act, an authorized foreign bank shall not deal in Canada in goods, wares or merchandise or engage in any trade or other business.
In addition, an authorized foreign bank may, in Canada,
respecting the circumstances in which authorized foreign banks may be exempted from the requirement to obtain the approval of the Minister before carrying on a particular activity referred to in paragraph (1)(b.1) or (b.2).
imposing terms and conditions in respect of
respecting what an authorized foreign bank may or may not do with respect to the carrying on of the activities referred to in paragraphs (1)(b.1) to (b.3);
the carrying on of the activities referred to in any of paragraphs (1)(b.1) to (b.3); and
the provision of services referred to in paragraph 538(2)(c), and
the provision of financial services referred to in paragraph 538(2)(a) that are financial planning services,
guarantee any securities or accept any bills of exchange or depository bills that are
subject to the regulations, act as an agent for any person in the taking of deposit liabilities; or
except as permitted by subsection (4), engage in the business of accepting deposit liabilities, or otherwise borrow money;
intended by the issuer or any party to be sold or traded.
issued by any person, and
The Governor in Council may make regulations
Paragraph (1)(c) does not apply in respect of
For the purposes of paragraph (1)(a), an authorized foreign bank may
[Repealed, 2018, c. 27, s. 323]
[Repealed, 2018, c. 27, s. 323]
Where subsection 524(2) applies, the authorized foreign bank shall not, in respect of its business in Canada,
a foreign bank described in any of subparagraphs 508(1)(a)(i) to (iii),
a financial institution other than a foreign bank, or
accept deposit liabilities or otherwise borrow money, from prescribed classes of entities referred to in subparagraph (a)(i) or (ii), by means of financial instruments that can be sold to or traded with those classes of entities, in accordance with regulations made pursuant to subsection (6).
accept deposit liabilities or otherwise borrow money from
securities or bills of exchange that can be sold to or traded with prescribed classes of entities referred to in subparagraph (4)(a)(i) or (ii), in accordance with regulations made pursuant to subsection (6).
securities or bills of exchange that are sold to or traded with any entity referred to in subparagraph (4)(a)(i) or (ii) and that cannot be subsequently sold or traded; or
respecting such other matters or things as are necessary to carry out the purposes of this section.
respecting circumstances in which and the conditions under which an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) may act as agent for any person in the taking of deposit liabilities; and
prescribing the terms and conditions respecting any sale or trade of financial instruments, securities or bills of exchange;
prescribing the classes of entities referred to in paragraph (4)(b) or (5)(b);
prescribing the class, type or amount of securities or bills of exchange referred to in paragraph (5)(b);
prescribing the class, type or amount of deposit liabilities or borrowings referred to in paragraph (4)(b);
An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) may, in respect of its business in Canada, guarantee any securities and accept any bills of exchange that are issued by any person and intended by the issuer or any party to be sold or traded.
The following provisions do not apply in respect of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2):
The provisions of this Act that apply in respect of an authorized foreign bank apply in respect of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2), with any modifications that may be required to take into account those restrictions and requirements.
sections 627.68 to 627.72 and 627.85.
sections 545 and 546; and
refer any person to any such financial institution or entity.
act as agent for any person in respect of the provision of any service that is provided by a financial institution, an entity in which a bank is permitted to acquire a substantial investment under section 468 or a Canadian entity acquired or held under section 522.08 and may enter into an arrangement with any person in respect of the provision of that service; or
[Repealed, 1999, c. 28, s. 35]
The Governor in Council may make regulations respecting the disclosure of
Subject to sections 540, 546 and 549, an authorized foreign bank may, in Canada,
whether any commission is being earned by an authorized foreign bank when acting as agent pursuant to subsection (1).
the name of the principal for whom an authorized foreign bank is acting as agent pursuant to subsection (1); and
a trustee for a trust.
an executor, administrator or official guardian or a guardian, tutor, curator, judicial adviser or committee of a mentally incompetent person; or
The Governor in Council may make regulations
[Repealed, 2018, c. 27, s. 325]
[Repealed, 2018, c. 27, s. 325]
For the purpose of subsection (1), deposit has the meaning that would be given to it by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits.
For the purpose of subsection (1), the rate of exchange that shall be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada shall be determined in accordance with any regulations that may be made.
An authorized foreign bank shall, in respect of its business in Canada, ensure that, on each day that is at least thirty days after the date of the order under subsection 534(1) made in respect of it, A/B ≤ 0.01 where A is the sum of all amounts each of which is the sum of all the deposits held by the authorized foreign bank at the end of a day in the preceding thirty days each of which deposits is less than $150,000 and payable in Canada; and B is the sum of all amounts each of which is the sum of all deposits held by the authorized foreign bank at the end of a day in those preceding thirty days and payable in Canada.
[Repealed, 2018, c. 27, s. 325]
[Repealed, 2018, c. 27, s. 325]
prescribing the deposits referred to in subsection (3) and the terms and conditions with respect to the acceptance of those deposits.
respecting the determination of rates of exchange referred to in subsection (2); and
The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, an authorized foreign bank referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.
In this section, deposit has the meaning assigned to that term by subsection 545(3).
Subject to the regulations, an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.
The Governor in Council may make regulations
Subject to the regulations, no authorized foreign bank shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the authorized foreign bank, unless the authorized foreign bank clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.
Subsection (1) only applies in respect of premises or any portion of premises on which both the authorized foreign bank and the member institution carry on business with the public and to which the public has access.
Subject to the regulations, no authorized foreign bank shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the authorized foreign bank.
respecting the circumstances in which, and the conditions under which, an authorized foreign bank may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3).
respecting the circumstances in which, and the conditions under which, an authorized foreign bank may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and
In this section, business of insurance includes
Nothing in this section precludes an authorized foreign bank from
The Governor in Council may make regulations respecting the matters referred to in subsection (1) and regulations respecting relations between authorized foreign banks and
An authorized foreign bank shall not act in Canada as agent for any person in the placing of insurance and shall not lease or provide space in any branch in Canada of the authorized foreign bank to any person engaged in the placing of insurance.
An authorized foreign bank shall not undertake in Canada the business of insurance except to the extent permitted by this Act or the regulations.
insurance agents or insurance brokers.
entities that undertake the business of insurance; or
obtaining group insurance for its employees.
requiring insurance to be placed by a borrower for the security of the authorized foreign bank; or
the issuance of any debt obligation, any of whose terms and conditions are established on the basis of mortality considerations, under which the issuer is obliged to make periodic payments.
the issuance of any annuity if the liability in respect of the annuity is contingent on the death of a person; and
Subsection (1) does not apply in respect of
An authorized foreign bank shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance a loan for that purpose, if the amount of the loan, together with the amount outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan.
a loan secured by a mortgage where
the acquisition by the authorized foreign bank from an entity of securities issued or guaranteed by the entity that are secured on any residential property, whether in favour of a trustee or otherwise, or the making of a loan by the authorized foreign bank to the entity against the issue of those securities; or
a loan if repayment of the amount of the loan that exceeds the maximum amount set out in subsection (1) is guaranteed or insured by a government agency or a private insurer approved by the Superintendent;
a loan made or guaranteed under the National Housing Act or any other Act of Parliament by or under which a different limit on the value of property on the security of which the authorized foreign bank may make a loan is established;
the mortgage secures payment of an amount payable to the authorized foreign bank for the property.
the mortgage is taken back by the authorized foreign bank on a property disposed of by it, including where the disposition is by way of a realization of a security interest, and
[Repealed, 2018, c. 27, s. 326]
The Governor in Council may make regulations
Subject to any regulations made under subsection (2), an authorized foreign bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the authorized foreign bank of the insurance or guarantee.
respecting any other matters necessary to carry out the purposes of subsection (1).
respecting, in relation to insurance or a guarantee against default on a loan made by an authorized foreign bank in Canada on the security of residential property,
respecting the circumstances in which an authorized foreign bank is exempt from the application of subsection (1);
respecting the determination of the actual cost to an authorized foreign bank for the purposes of subsection (1);
the payments or benefits that the authorized foreign bank, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and
the arrangements into which the authorized foreign bank, its representatives and its employees may or may not enter, and
For the purposes of subsection (1), general partnership means any partnership other than a limited partnership.
Except with the approval of the Superintendent, an authorized foreign bank may not, in respect of its business in Canada, be a general partner in a limited partnership or a partner in a general partnership.
No non-WTO Member authorized foreign bank shall have any branch in Canada, other than its principal office and one branch, without the approval of the Minister.
In this section, non-WTO Member authorized foreign bank means an authorized foreign bank that is not controlled by a WTO Member resident.
[Repealed, 1999, c. 28, s. 35]
pay all or part of the principal of the deposit and all or part of the interest on it to or to the order of that person.
accept a deposit from any person whether or not the person is qualified by law to enter into contracts; and
Subsection (3) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the authorized foreign bank has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made.
An authorized foreign bank is not, in respect of its business in Canada, bound to see to the execution of any trust to which a deposit made under the authority of this Act is subject.
Paragraph (1)(b) does not apply if, before payment, the money deposited in the authorized foreign bank pursuant to paragraph (1)(a) is claimed by some other person
Subject to this Part, an authorized foreign bank may, without the intervention of any other person,
in any other action or proceeding pursuant to which an injunction or order made by the court requiring the authorized foreign bank not to make payment of that money or make payment of it to some person other than the depositor has been served on the authorized foreign bank,
in any action or proceeding to which the authorized foreign bank is a party and in respect of which service of a writ or other process originating that action or proceeding has been made on the authorized foreign bank, or
from the day on which the last transaction took place or a statement of account was last requested or acknowledged by the creditor, whichever is later, in the case of any other deposit, or
from the day on which the fixed period terminated, in the case of a deposit made for a fixed period, and
a cheque, draft or bill of exchange (including any of those instruments drawn by one branch of an authorized foreign bank on another of its branches but not including an instrument issued in payment of a dividend on the capital of an authorized foreign bank) payable in Canada has been issued, certified or accepted by an authorized foreign bank in Canada and no payment has been made in respect of it for a period of 10 years after the date of issue, certification, acceptance or maturity, whichever is later,
a deposit has been made in Canada that is payable in Canada and in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor during a period of 10 years
The liability of the Bank of Canada under subsection (3) may be enforced by action against the Bank of Canada in the court in the province in which the deposit or instrument was payable.
Subject to section 22 of the Bank of Canada Act, where payment has been made to the Bank of Canada under subsection (1) in respect of any deposit or instrument, and if payment is demanded or the instrument is presented at the Bank of Canada by the person who, but for that section, would be entitled to receive payment of the deposit or instrument, the Bank of Canada is liable to pay, at its agency in the province in which the deposit or instrument was payable, an amount equal to the amount so paid to it together with interest, if interest was payable under the terms of the deposit or instrument,
An authorized foreign bank shall provide the Bank of Canada with copies of signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada.
An authorized foreign bank shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the authorized foreign bank:
If a deposit referred to in paragraph (1)(a) or an instrument referred to in paragraph (1)(b) is not in Canadian currency, then, before paying to the Bank of Canada the amount required by subsection (1), the authorized foreign bank shall convert the amount of the deposit or instrument to Canadian currency at a rate of exchange determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act.
Where
the branch of the authorized foreign bank at which the last transaction took place in respect of the deposit, and the date of that last transaction; and
the outstanding amount of the deposit, and
the recorded address of the depositor,
the name of the depositor in whose name the deposit is held, as well as their date of birth and Social Insurance Number, if they are a natural person,
in the case of an instrument,
in the case of a deposit,
the branch of the authorized foreign bank at which the instrument was issued, certified or accepted.
the name of the place where the instrument was payable, and
the amount and date of the instrument,
the name of the payee of the instrument,
the recorded address of that person,
the name of the person to whom or at whose request the instrument was issued, certified or accepted, as well as their date of birth and Social Insurance Number, if they are a natural person,
at any rate and computed in any manner that the Minister determines.
for a period not exceeding ten years from the day on which the payment was received by the Bank of Canada until the date of payment to the claimant; and
The notice to be sent during the month of January next following the end of the first nine-year period determined under paragraphs (2)(a) to (c), as the case may be, must also
The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period
An authorized foreign bank shall send, by mail and by electronic means, to each person to whom a deposit referred to in paragraph 557(1)(a) is payable, or to each person to whom or at whose request an instrument referred to in paragraph 557(1)(b) was issued, certified or accepted, at their recorded address and electronic address in so far as they are known to the authorized foreign bank, a notice stating that the deposit or instrument remains unpaid.
in respect of which the instrument has remained unpaid, in the case of a cheque, draft or bill of exchange.
in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor, in the case of any other deposit; and
after the fixed period has terminated, in the case of a deposit made for a fixed period;
include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument.
[Repealed before coming into force, 2008, c. 20, s. 3]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
one of the following, namely,
an affidavit or declaration in writing in form satisfactory to the authorized foreign bank signed by or on behalf of a person claiming by virtue of the transmission stating the nature and effect of the transmission; and
if the claim is based on a notarial will, an authenticated copy of the notarial will.
if the claim is based on a will or other testamentary instrument or on a grant of probate of a will or testamentary instrument or on such a grant and letters testamentary or other document of like import or on a grant of letters of administration or other document of like import, purporting to be issued by any court or authority in Canada or elsewhere, an authenticated copy or certificate of the document under the seal of the court or authority without proof of the authenticity of the seal or other proof, or
Nothing in subsection (1) shall be construed to prevent an authorized foreign bank from refusing to give effect to a transmission until there has been delivered to the authorized foreign bank any documentary or other evidence of or in connection with the transmission that it may consider necessary.
Where the transmission of a debt owing by an authorized foreign bank by reason of a deposit, of property held by an authorized foreign bank as security or for safe-keeping or of rights with respect to a safety deposit box and property deposited in it takes place because of the death of a person, the delivery to the authorized foreign bank of the following is sufficient justification and authority for giving effect to the transmission in accordance with the claim:
if no branch has been identified or agreed on as provided in paragraph (a), the branch that is designated as the branch of account with respect to the deposit account by the authorized foreign bank by notice in writing to the depositor.
the branch the address or name of which appears on the specimen signature card or other signing authority signed by a depositor with respect to the deposit account or that is designated by agreement between the authorized foreign bank and the depositor at the time of opening of the deposit account; or
Subsection (2) does not apply where the business in Canada of the authorized foreign bank is being wound up under the Winding-up and Restructuring Act.
The indebtedness of an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is deemed for all purposes to be situated at the place where the branch of account is situated.
Notwithstanding subsection (2), an authorized foreign bank may permit either occasionally or as a regular practice, the person to whom it is indebted by reason of a deposit in a deposit account in the authorized foreign bank to withdraw money owing by reason of the deposit at a branch of the authorized foreign bank other than the branch of account or to draw cheques or other orders for the payment of the money at a branch other than the branch of account.
The amount of any debt owing by an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is payable to the person entitled to the amount only at the branch of account and the person is not entitled to demand payment or to be paid at any other branch of the authorized foreign bank.
For the purposes of this Act, the branch of account with respect to a deposit account is
an enforcement notice in respect of a support order or support provision.
an instrument purporting to assign, perfect or otherwise dispose of an interest in the property or the deposit account; or
an order or injunction made by a court;
a writ or process originating a legal proceeding or issued in or pursuant to a legal proceeding;
The following definitions apply in this section.
The Governor in Council may make regulations
Subsection (3) does not apply in respect of an enforcement notice in respect of a support order or support provision until the second business day following the day of service referred to in that subsection.
Subsections (1) and (2) do not apply in respect of an enforcement notice in respect of a support order or support provision if
Despite subsections (1) and (2), a notice, demand, order or other document issued with respect to a customer of an authorized foreign bank constitutes notice to the authorized foreign bank and fixes the authorized foreign bank with knowledge of its contents and, where applicable, is binding on property belonging to the customer and in the possession of the authorized foreign bank or on money owing to the customer by reason of an account in the authorized foreign bank, if it is sent to the branch of the authorized foreign bank referred to in subsection (1) or (2), an office of the authorized foreign bank referred to in paragraph (3)(a) or any other office agreed to by the authorized foreign bank and the Minister of National Revenue and it relates to
Any notification sent to an authorized foreign bank with respect to a customer of the authorized foreign bank, other than a document referred to in subsection (1) or (3), constitutes notice to the authorized foreign bank and fixes the authorized foreign bank with knowledge of its contents only if sent to and received at the branch of the authorized foreign bank that is the branch of account of an account held in the name of that customer.
Subject to subsections (3) and (4), the following documents are binding on property belonging to a person and in the possession of an authorized foreign bank, or on money owing to a person by reason of a deposit account in an authorized foreign bank, only if the document or a notice of it is served at the branch of the authorized foreign bank that has possession of the property or that is the branch of account in respect of the deposit account, as the case may be:
the administration of an Act of the legislature of a province or legislation made by an aboriginal government, where the Minister or the Minister of National Revenue has entered into a tax collection agreement under an Act of Parliament with the government of the province or the aboriginal government.
the administration of an Act of Parliament by the Minister of National Revenue; or
the order or provision can be enforced under the laws of that province.
the enforcement notice, accompanied by a written statement containing the information required by the regulations, is served at an office of an authorized foreign bank designated in accordance with the regulations in respect of a province; and
respecting the information that must accompany enforcement notices in respect of support orders and support provisions.
prescribing the manner in which an authorized foreign bank shall publicize the locations of designated offices of the authorized foreign bank; and
respecting the designation by an authorized foreign bank, for the purpose of subsection (3), of a place in any province for the service of enforcement notices in respect of support orders and support provisions;
support provision means a provision of an agreement relating to the payment of maintenance or family financial support. (disposition alimentaire)
support order means an order or judgment or interim order or judgment for family financial support. (ordonnance alimentaire)
enforcement notice, in respect of a support order or support provision, means a garnishee summons or other instrument issued under the laws of a province for the enforcement of the support order or support provision. (avis d’exécution)
designated office means a place designated in accordance with regulations made for the purpose of subsection (3). (bureau désigné)
in any other case, the greater of
in the case of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2), one hundred thousand dollars; and
five per cent of the liabilities of the authorized foreign bank in respect of its business in Canada.
five million dollars, and
The assets referred to in subsection (1) shall be kept with the Canadian financial institution pursuant to a deposit agreement entered into with the prior approval of the Superintendent.
An authorized foreign bank shall maintain on deposit in Canada with a Canadian financial institution approved by the Superintendent unencumbered assets of a type approved by the Superintendent the total value of which determined in accordance with the accounting principles referred to in subsection 308(4) shall equal
If the first financial year of an authorized foreign bank would end less than four months after the authorized foreign bank has obtained an order under subsection 534(1) approving the commencement and carrying on of business in Canada, the first financial year of the authorized foreign bank ends on March 31, June 30, September 30 or December 31, as the case may be, in the next calendar year.
The financial year of an authorized foreign bank in respect of its business in Canada may end on any of March 31, June 30, September 30 or December 31.
In any case where subsection (5) applies and a designation is not made pursuant to that subsection within thirty days after the designated member ceases to conduct the audit, there shall be deemed to be a vacancy in the office of auditor of the authorized foreign bank.
Where for any reason the member designated under subsection (4) to conduct an audit ceases to conduct the audit, the authorized foreign bank and the firm of accountants may jointly designate another member of the same firm who meets the qualifications described in paragraph (2)(a) to conduct the audit and the authorized foreign bank shall without delay notify the Superintendent in writing of the designation.
Within 15 days after the appointment of a firm of accountants as auditor, the authorized foreign bank and the firm shall jointly designate a member of the firm who meets the qualifications described in paragraph (2)(a) to conduct an audit under subsection 592(1) on behalf of the firm and the authorized foreign bank shall without delay notify the Superintendent in writing of the designation.
For the purposes of subsection (3), a business partner of a member of a firm of accountants includes
For the purposes of subsection (2),
A firm of accountants is qualified to be an auditor if
An authorized foreign bank shall appoint a firm of accountants as auditor for its business in Canada and shall notify the Superintendent in writing of the name and address and date of appointment of the auditor without delay after making the appointment.
are independent of the authorized foreign bank; and
are ordinarily resident in Canada, and
have at least five years experience at a senior level in performing audits of a financial institution,
are members in good standing of an institute or association of accountants incorporated by or under an Act of the legislature of a province,
the member of the firm jointly designated by the firm and the authorized foreign bank to conduct the audit of the authorized foreign bank on behalf of the firm is qualified in accordance with paragraph (a).
two or more of its members are accountants who
a member of a firm of accountants is deemed not to be independent of an authorized foreign bank if that member, a business partner of that member or the firm of accountants
independence is a question of fact; and
has been a liquidator, trustee in bankruptcy, receiver or receiver and manager of any affiliate of the authorized foreign bank within the two years immediately preceding the proposed appointment of the firm of accountants as auditor, other than an affiliate that is a subsidiary of the authorized foreign bank acquired under section 522.15.
beneficially owns or controls, directly or indirectly, a material interest in the shares of the authorized foreign bank or of any of its affiliates, or
is a business partner, director, officer or employee of the authorized foreign bank or of any affiliate of the authorized foreign bank or is a business partner of any director, officer or employee of the authorized foreign bank or of any affiliate of the authorized foreign bank,
a shareholder of the firm or of another business partner of the member.
another member of the firm; and
Any interested person may apply to a court for an order declaring that an authorized foreign bank’s auditor has ceased to be qualified under subsection 585(2) and declaring the office of auditor to be vacant.
An auditor that ceases to be qualified under subsection 585(2) shall resign without delay after any member of the firm of accountants becomes aware that the firm has ceased to be qualified.
The Superintendent may at any time revoke the appointment of an auditor made under subsection 585(1) or 589(1) by notice in writing signed by the Superintendent and sent by registered mail to the auditor and to the principal officer of the authorized foreign bank addressed to the usual place of business of the auditor and to the principal office of the authorized foreign bank, respectively.
An authorized foreign bank may at any time revoke the appointment of its auditor.
the appointment of the auditor is revoked by the authorized foreign bank or the Superintendent.
the auditor resigns; or
The resignation of an auditor becomes effective at the time a written resignation is sent to the authorized foreign bank or at the time specified in the resignation, whichever is later.
An auditor ceases to hold office when
Where the Superintendent has appointed a firm of accountants to fill a vacancy, the Superintendent shall designate the member of the firm who is to conduct the audit on behalf of the firm.
Where a vacancy occurs in the office of auditor of an authorized foreign bank under any of sections 585 to 588, the authorized foreign bank shall without delay fill the vacancy and, where it fails to do so, the Superintendent may fill the vacancy.
receives a notice or otherwise learns that another person is to be appointed in the auditor’s stead, whether because of the auditor’s resignation or revocation of appointment or because the auditor’s term of office has expired or is about to expire,
resigns, or
Unless subsection (2) applies, an appointment as auditor of an authorized foreign bank is void if subsection (1) has not been complied with.
Notwithstanding subsection (1), a firm of accountants may accept an appointment or consent to be appointed as auditor of an authorized foreign bank if, within fifteen days after a request under that subsection is made, no reply from the other auditor is received.
Where an auditor of an authorized foreign bank has resigned or the appointment of an auditor has been revoked, no firm of accountants shall accept an appointment or consent to be appointed as auditor of the authorized foreign bank until the firm has requested and received from the other auditor a written statement of the circumstances and reasons why the other auditor resigned or why, in the other auditor’s opinion, the other auditor’s appointment was revoked.
The expenses entailed by any examination, audit or report referred to in any of subsections (4) to (6) are payable by the authorized foreign bank on being approved in writing by the Superintendent.
The Superintendent may direct that a special audit or report be made if, in the opinion of the Superintendent, it is so required and may appoint for that purpose a firm of accountants qualified under subsection 585(2) to be the auditor.
The Superintendent may, in writing, require that the auditor of the authorized foreign bank make a particular examination relating to the adequacy of the procedures adopted by the authorized foreign bank in respect of its business in Canada for the safety of its depositors and creditors, or any other examination that, in the Superintendent’s opinion, the public interest may require, and report to the Superintendent on it.
The Superintendent may, in writing, require that an authorized foreign bank’s auditor report to the Superintendent on the extent of the auditor’s procedures in the examination of the authorized foreign bank’s annual return and may, in writing, require that the auditor enlarge or extend the scope of that examination or direct that any other particular procedure be performed in any particular case, and the auditor shall comply with any requirement of the Superintendent and report to the Superintendent on it.
The auditor’s report shall be filed with the Superintendent within five months after the end of the financial year of the authorized foreign bank.
The auditor’s examination shall, except as otherwise specified by the Superintendent, be conducted in accordance with the auditing standards referred to in subsection 323(2).
The auditor of an authorized foreign bank shall make any examination that the auditor considers necessary to enable the auditor to report on the annual return.
provide any information and explanations
permit access to any records, assets and security held by the authorized foreign bank, or any entity in which the authorized foreign bank has a substantial investment under Part XII, and
A person who in good faith makes an oral or written communication under subsection (1) shall not be liable in any civil action arising from having made the communication.
On the request of the auditor of an authorized foreign bank, the present or former principal officers, directors, officers, employees or representatives of the authorized foreign bank shall, to the extent that they are reasonably able to do so,
In the report, the auditor shall include any remarks that the auditor considers necessary when
In the report, the auditor shall state whether, in the auditor’s opinion, the annual return presents fairly, in accordance with the accounting principles referred to in subsection 308(4), the financial position of the business in Canada of the authorized foreign bank as at the end of the financial year to which it relates and the results of the operations and changes in the financial position of the business in Canada of the authorized foreign bank for that financial year.
The auditor of an authorized foreign bank shall make a report to the principal officer of the authorized foreign bank in writing on the annual return not later than five months after the end of the financial year in respect of which the annual return is prepared.
the annual return does not present fairly, in accordance with the accounting principles referred to in subsection 308(4), the financial position of the business in Canada of the authorized foreign bank as at the end of the financial year to which it relates or the results of the operations or changes in the financial position of the authorized foreign bank for that financial year.
the annual return has not been prepared on a basis consistent with that of the preceding financial year; or
the examination has not been made in accordance with the auditing standards referred to in subsection 592(2);
The auditor shall, at the time of transmitting the report to the principal officer, provide the Superintendent with a copy of it.
It is the duty of the auditor of an authorized foreign bank to report in writing to the principal officer of the authorized foreign bank any transactions or conditions in respect of the business in Canada of the authorized foreign bank that have come to the auditor’s attention affecting the well-being of the authorized foreign bank that in the auditor’s opinion are not satisfactory and require rectification and, without restricting the generality of the foregoing, the auditor shall, as occasion requires, make a report to the principal officer in respect of transactions in respect of the business in Canada of the authorized foreign bank that have come to the auditor’s attention and that in the auditor’s opinion have not been within the powers of the authorized foreign bank.
records containing the name, address and date of appointment of the authorized foreign bank’s auditor.
records containing information set out in Schedule III, as that information exists from time to time, in relation to the authorized foreign bank; and
with respect to its business in Canada, records showing, for each of its customers, on a daily basis, particulars of the transactions with that customer and the balance owing to or by the authorized foreign bank in respect of that customer;
accounting records respecting its business in Canada;
records containing copies of all orders of the Minister or the Superintendent in relation to the authorized foreign bank;
An authorized foreign bank may make the information contained in records referred to in subsection (1) available to persons by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing the records in intelligible written form within a reasonable time.
Creditors in respect of the business in Canada of an authorized foreign bank and their personal representatives may examine a record referred to in any of paragraphs (1)(a), (d) or (e) during the usual business hours of the authorized foreign bank, and may take extracts from it, free of charge, or have copies made of it on payment of a reasonable fee.
Records kept in one form may be converted to any other form and, notwithstanding section 246, an authorized foreign bank may destroy the record at any time after it has been converted.
Records required by this Act to be prepared and maintained by an authorized foreign bank
Where any of the records described in subsection (1) are not kept at the principal office of an authorized foreign bank, the authorized foreign bank shall notify the Superintendent of the place where they are kept.
Subject to subsection 245(1.1), subsection (2) does not apply to an authorized foreign bank that is:
The records described in subsection (1) shall be kept at the principal office of the authorized foreign bank or at any other place in Canada that its principal officer thinks fit.
An authorized foreign bank shall prepare and maintain
a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.
incorporated in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable; or
may be entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.
may be in a bound or loose-leaf form or in a photographic film form; or
the reference in paragraph 246(1)(a) to “records of the bank referred to in subsection 238(1)” shall be read as a reference to “records of the authorized foreign bank” referred to in subsection 597(1)”.
the reference in subsection 245(1.1) to “directors” shall be read as a reference to “principal officer”; and
the reference in subsection 245(1.1) to “subsection 239(3.1)” shall be read as a reference to “subsection 597(2.1)”;
the reference in subsections 245(1) and (1.1) to “records referred to in section 238” shall be read as a reference to “records referred to in subsection 597(1)”;
An order made under subsection 524(1), 528(1) or (1.1) or 534(1) in respect of an authorized foreign bank is deemed to be revoked when the Superintendent authorizes the release of the assets of the authorized foreign bank under subsection (3).
Notwithstanding subsections (1) to (3), the assets on deposit of an authorized foreign bank that is in liquidation may, on the order of any court having jurisdiction under the Winding-up and Restructuring Act, be released to the liquidator.
After the day specified in the notice, the Superintendent may authorize the release of the assets if the Superintendent is satisfied that the authorized foreign bank has discharged, provided for the discharge of, or transferred, all of its liabilities in respect of its business in Canada.
Except as otherwise provided in this Act, the assets may not be released unless
An authorized foreign bank that discontinues its business in Canada may apply in writing to the Superintendent for the release of its assets maintained on deposit under paragraph 534(3)(a) or subsection 582(1).
the authorized foreign bank provides the Superintendent with proof of the publication, for four consecutive weeks, in at least one newspaper of general circulation at or near the place where the principal office of the authorized foreign bank is situated and the Canada Gazette of a notice that it will apply to the Superintendent for the release of its assets on a day specified in the notice, which must be at least six weeks after the date of the notice, and calling on any of its depositors or creditors opposing that release to file their opposition with the Superintendent on or before the day.
the authorized foreign bank discharges, provides for the discharge of, or transfers, all its liabilities in respect of its business in Canada to a bank, to another authorized foreign bank in respect of its business in Canada or to a body corporate to which the Trust and Loan Companies Act applies; and
The annual return shall be prepared in accordance with the accounting principles referred to in subsection 308(4).
[Repealed, 2007, c. 6, s. 97]
An authorized foreign bank, in respect of its business in Canada, shall prepare annually a return of the condition and affairs of the authorized foreign bank as at the end of each financial year, showing its assets and liabilities and its income and expenditures during that financial year together with any other information that the Superintendent considers appropriate.
Subsection (1) does not apply in respect of an entity that is affiliated with an authorized foreign bank where that entity is a financial institution regulated
A person to whom an order is issued shall provide the information or documents specified in the order within the time specified in the order and, where the order does not specify a time, the person shall provide the information or documents within a reasonable time.
The Superintendent may, by order, direct a person who controls an authorized foreign bank or any entity that is affiliated with an authorized foreign bank to provide the Superintendent with any information or documents that may be specified in the order if the Superintendent believes that the production of the information or documents is necessary in order to be satisfied that the provisions of this Act are being duly observed.
by or under an Act of the legislature of a province where the Superintendent has entered into an agreement with the appropriate official or public body responsible for the supervision of financial institutions in that province concerning the sharing of information on those financial institutions.
by or under an Act of Parliament; or
Nothing in subsection (1) prevents the Superintendent from disclosing any information
Subject to section 609, all information regarding the business or affairs of an authorized foreign bank, or regarding a person dealing with an authorized foreign bank, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly.
to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance or to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for the purposes of policy analysis related to the regulation of financial institutions,
to the Canada Deposit Insurance Corporation for purposes related to its operation, and
to any other agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision,
to any government agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision,
The Governor in Council may, for the purposes of subsection (3), make regulations respecting the circumstances in which prescribed supervisory information may be used as evidence.
The disclosure of any prescribed supervisory information, other than under subsection (3) or (4), does not constitute a waiver of the privilege referred to in subsection (1).
Despite subsections (1) and (2) and section 39.1 of the Office of the Superintendent of Financial Institutions Act, a court, tribunal or other body may, by order, require the Minister, the Superintendent or an authorized foreign bank to give oral testimony or to produce any document relating to any prescribed supervisory information in any civil proceedings in relation to the administration or enforcement of this Act that are commenced by the Minister, the Superintendent, the Attorney General of Canada or the authorized foreign bank.
Despite subsection (1),
No person shall by an order of any court, tribunal or other body be required in any civil proceedings to give oral testimony or to produce any document relating to any prescribed supervisory information.
Prescribed supervisory information shall not be used as evidence in any civil proceedings and is privileged for that purpose.
an authorized foreign bank may, in accordance with the regulations, if any, use prescribed supervisory information as evidence in any proceedings in relation to the administration or enforcement of this Act or the Winding-up and Restructuring Act that are commenced by the authorized foreign bank, the Minister, the Superintendent or the Attorney General of Canada.
the Minister, the Superintendent or the Attorney General of Canada may, in accordance with the regulations, if any, use prescribed supervisory information as evidence in any proceedings; and
The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include
For greater certainty, the disclosure by an authorized foreign bank — or by a person who controls an authorized foreign bank or by an entity that is affiliated with an authorized foreign bank — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.
the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).
the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or
has been obtained as a result of an industry-wide or sectoral survey conducted by the Superintendent in relation to an issue or circumstances that could have an impact on the business in Canada of authorized foreign banks.
is contained in returns filed pursuant to the Superintendent’s financial regulatory reporting requirements in respect of authorized foreign banks; or
The Minister shall consult with the Superintendent before making any determination under subsection (1).
The Superintendent shall disclose, at the times and in the manner that the Minister may determine, any information obtained by the Superintendent under this Act that the Minister considers ought to be disclosed for the purposes of the analysis of the business in Canada of an authorized foreign bank and that
its business and affairs for the purposes of the analysis of its business in Canada,
the compensation of its executives, as that expression is defined by the regulations, and
Paragraph (1)(a) does not apply to an authorized foreign bank that is within any class or classes of authorized foreign banks that may be prescribed.
An authorized foreign bank shall make available to the public any information concerning
The Superintendent or a person acting under the Superintendent’s direction
[Repealed, 2023, c. 26, s. 544]
The Superintendent, from time to time, but, in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each authorized foreign bank that the Superintendent considers to be necessary or expedient to determine whether the authorized foreign bank is complying with the provisions of this Act and whether the authorized foreign bank has adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.
may require the directors, officers and the auditor of an authorized foreign bank to provide information and explanations, to the extent that they are reasonably able to do so, in respect of the condition and affairs of the authorized foreign bank or any entity in which it has a substantial investment under Part XII.
has a right of access to any records, cash, assets and security held by or on behalf of an authorized foreign bank; and
The Superintendent may enter into an agreement, called a “prudential agreement”, with an authorized foreign bank for the purposes of implementing any measure designed to protect the interests of its depositors and creditors or establishing adequate policies and procedures to protect it against threats to its integrity or security in relation to its business in Canada.
perform any acts that in the opinion of the Superintendent are necessary to remedy the situation.
cease or refrain from committing the act or pursuing the course of conduct; and
A temporary direction continues to have effect after the expiration of the fifteen day period referred to in subsection (3) if no representations are made to the Superintendent within that period or, if representations have been made, the Superintendent notifies the authorized foreign bank or person that the Superintendent is not satisfied that there are sufficient grounds for revoking the direction.
If, in the opinion of the Superintendent, the length of time required for representations to be made might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) and (b) or subsection (1.1) having effect for a period of not more than 15 days.
Subject to subsection (3), no direction shall be issued under subsection (1) or (1.1) to an authorized foreign bank or person unless the authorized foreign bank or person is provided with a reasonable opportunity to make representations in respect of the matter.
If, in the opinion of the Superintendent, an authorized foreign bank does not have adequate policies and procedures to protect itself against threats to its integrity or security in relation to its business in Canada, the Superintendent may direct the authorized foreign bank to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.
Where, in the opinion of the Superintendent, an authorized foreign bank, or a person with respect to an authorized foreign bank, is committing, or is about to commit, an act that is an unsafe or unsound practice in relation to the business in Canada of the authorized foreign bank, or is pursuing or is about to pursue any course of conduct that is an unsafe or unsound practice in relation to that business, the Superintendent may direct the authorized foreign bank or person to
has omitted to do any thing under this Act that is required to be done by or on the part of the authorized foreign bank or person,
is contravening this Act, or
is contravening or has failed to comply with a prudential agreement entered into under section 614.1 or a direction of the Superintendent made under subsection 615(1), (1.1) or (3),
An appeal from a decision of a court under subsection (1) lies in the same manner, and to the same court, as an appeal from any other order of the court.
Where an authorized foreign bank or a person
require that the assets referred to in paragraph (a) be deposited with a Canadian financial institution approved by the Superintendent under a deposit agreement approved by the Superintendent.
subject to any terms and conditions that the Superintendent considers necessary, direct an authorized foreign bank to maintain in Canada assets of any type and in any amount that the Superintendent may specify; and
are contained in a prudential agreement entered into under section 614.1 or an undertaking given by the authorized foreign bank to the Superintendent; or
have been specified by the Superintendent by way of conditions or limitations in respect of the order approving the commencement and carrying on of business in Canada by the authorized foreign bank, or
that is the subject of a direction made under section 615 or an order made under section 617.
that has been notified by the Superintendent that this section applies to it where the authorized foreign bank is subject to measures designed to protect the interests of its depositors and creditors in respect of its business in Canada, which measures
If an order is made under subsection (4) disqualifying a person from being appointed as principal officer, the person shall not be, and the authorized foreign bank shall not permit the person to be, appointed to that position.
The Superintendent must in writing notify the person concerned and the authorized foreign bank of an order that the Superintendent proposes to make under subsection (4) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
In forming an opinion under subsection (4), the Superintendent must consider whether the interests of the depositors and creditors of the authorized foreign bank in respect of its business in Canada would likely be prejudiced if the person were to take office.
If the Superintendent is of the opinion that, on the basis of the competence, business record, experience, conduct or character of a person, he or she is not suitable to hold the position of principal officer, the Superintendent may, by order, disqualify the person from being appointed to that office.
The information required by subsection (2) shall be provided to the Superintendent at least 30 days prior to the date of the appointment or within any shorter period that the Superintendent may allow.
An authorized foreign bank shall provide the Superintendent with the name of any person who has been selected by the authorized foreign bank for appointment as principal officer, together with such other information about the background, business record and experience of the person as the Superintendent may require.
This section applies only in respect of an authorized foreign bank
because the person has contravened or, by action or negligence, has contributed to the contravention of
on the basis of the competence, business record, experience, conduct or character of the person; or
a prudential agreement entered into under section 614.1 or an undertaking given by the authorized foreign bank to the Superintendent.
a condition or limitation in respect of the order approving the commencement and carrying on of business in Canada by the authorized foreign bank, or
an order made under section 617,
a direction made under section 615,
this Act or the regulations made under it,
A removal order is not stayed by an appeal.
The Federal Court, in the case of an appeal, may dismiss the appeal or set aside the removal order.
The principal officer or the authorized foreign bank may, within 30 days after the date of receipt of notice of the removal order under subsection (5), or within any longer period that the Court allows, appeal the matter to the Federal Court.
The principal officer ceases to hold that office as of the date the removal order is made or any later date specified in the order.
The Superintendent shall, without delay, notify the principal officer and the authorized foreign bank of a removal order or suspension order.
If the Superintendent is of the opinion that the public interest is likely to be prejudiced by the principal officer continuing to exercise the powers or carry out the duties and functions of that office during the period for making representations, the Superintendent may make an order suspending the principal officer. The suspension may not extend beyond 10 days after the expiration of that period.
The Superintendent must in writing notify the principal officer and the authorized foreign bank of any removal order that the Superintendent proposes to make under subsection (1) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
In forming an opinion under subsection (1), the Superintendent must consider whether the interests of the depositors and creditors of the authorized foreign bank in respect of its business in Canada have been or are likely to be prejudiced by the person’s holding office as principal officer.
The Superintendent may, by order, remove a person from office as the principal officer of an authorized foreign bank if the Superintendent is of the opinion that the person is not suitable to hold that office
any other asset in Canada of the authorized foreign bank.
any asset in respect of its business in Canada, including the assets referred to in subsection 582(1) and section 617 and the assets under its administration; and
unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so,
take control, for a period not exceeding sixteen days, of the assets of the authorized foreign bank; or
where control of assets has been taken under paragraph (a), continue the control beyond the sixteen days referred to in that paragraph.
take control, for a period exceeding sixteen days, of the assets of the authorized foreign bank, or
If the Superintendent takes control of the assets of an authorized foreign bank under subparagraph (1)(b)(i) or (ii) or paragraph (2.1)(b) or (c), the Superintendent may appoint one or more persons to assist in the control of the assets.
If the Superintendent has control under subsection (1) or (2.1) of the assets of an authorized foreign bank referred to in that subsection,
If the Superintendent has control under subsection (1) or (2.1) of the assets of an authorized foreign bank referred to in that subsection, the Superintendent may do all things necessary or expedient to protect the rights and interests of the depositors and creditors of the authorized foreign bank in respect of its business in Canada.
Within 30 days after exercising any of the powers under subsection (2.1), the Minister shall notify
If the Minister is considering whether to exercise the powers under paragraph (2.1)(b) or (c), the Superintendent shall notify the authorized foreign bank of the action that is being considered and of its right to make written representations to the Minister within the time specified in the notice, not exceeding 10 days after it receives the notice.
If the Superintendent takes control of the assets of an authorized foreign bank under paragraph (2.1)(a), the Superintendent shall notify the authorized foreign bank that control has been taken at the direction of the Minister.
The Superintendent shall notify an authorized foreign bank of any action proposed to be taken in respect of it under paragraph (1)(b) and of its right to make written representations to the Superintendent within the time specified in the notice, not exceeding ten days after it receives the notice.
Subject to this Act, the Minister may, for reasons related to national security, direct the Superintendent to
Control by the Superintendent under subsection (1) may be taken in respect of an authorized foreign bank where
Subject to this Act, where any of the circumstances described in subsection (2) exist in respect of an authorized foreign bank or the business in Canada of an authorized foreign bank, the Superintendent may
in the opinion of the Superintendent, the continued operation of the authorized foreign bank in Canada would pose a risk to national security.
in the opinion of the Superintendent, the continued operation of the authorized foreign bank in Canada would be materially prejudicial to its integrity or security in relation to its business in Canada; or
in the opinion of the Superintendent, any other state of affairs exists in respect of the authorized foreign bank that may be materially prejudicial to the interests of the authorized foreign bank’s depositors or creditors in respect of its business in Canada or to those of the owners of any assets under the authorized foreign bank’s administration in respect of its business in Canada, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Canada or elsewhere in respect of the authorized foreign bank or its holding body corporate;
the authorized foreign bank has failed to comply with an order of the Superintendent under section 617;
an asset appearing on the books or records of the authorized foreign bank in respect of its business in Canada or held under its administration is not, in the opinion of the Superintendent, satisfactorily accounted for;
the assets of the authorized foreign bank in relation to its business in Canada are not, in the opinion of the Superintendent, sufficient to give adequate protection to the depositors and creditors of the authorized foreign bank in respect of its business in Canada;
[Repealed, 2001, c. 9, s. 170]
the authorized foreign bank in respect of its business in Canada has failed to pay its liabilities or, in the opinion of the Superintendent, will not be able to pay its liabilities as they become due and payable;
the authorized foreign bank has failed to pay its liabilities or, in the opinion of the Superintendent, will not be able to pay its liabilities as they become due and payable;
if control of assets has been taken under paragraph (a), continue the control beyond the 16 days referred to in that paragraph.
take control, for a period exceeding 16 days, of the assets of the authorized foreign bank; or
take control, for a period not exceeding 16 days, of the assets of the authorized foreign bank;
the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.
the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act; and
no person acting on behalf of the authorized foreign bank shall have access to any cash or securities held in Canada by the authorized foreign bank without the prior approval of the Superintendent or a representative designated by the Superintendent.
neither the authorized foreign bank nor any person acting on its behalf shall deal in any way with any of the assets without the prior approval of the Superintendent or a representative designated by the Superintendent; and
Control by the Superintendent under subsection 619(2.1) of the assets of an authorized foreign bank expires on the day on which a notice by the Superintendent is sent to the principal officer of the authorized foreign bank stating that the Minister is of the opinion, on the recommendation of the Superintendent, that corrective measures have been taken in response to the reasons related to national security and that the authorized foreign bank can resume control of its assets.
Control by the Superintendent under subsection 619(1) of the assets of an authorized foreign bank expires on the day on which a notice by the Superintendent is sent to the principal officer of the authorized foreign bank stating that the Superintendent is of the opinion that the circumstances leading to the taking of control of the assets by the Superintendent have been substantially rectified and that the authorized foreign bank can resume control of its assets.
request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the authorized foreign bank.
comply with the request; or
Where any direction is made under subsection (1), the amount for which the authorized foreign bank is liable is a debt due to Her Majesty in right of Canada payable on demand and is recoverable in the Federal Court or any other court of competent jurisdiction.
If control of the assets of an authorized foreign bank has been taken under subparagraph 619(1)(b)(i) or (ii) or paragraph 619(2.1)(b) or (c) and the control expires or is relinquished under section 620 or paragraph 622(a), the Superintendent may direct that the authorized foreign bank be liable for repayment of all or part of the expenses resulting from the taking of control of the assets and assessed against and paid by other authorized foreign banks and by banks under section 23 of the Office of the Superintendent of Financial Institutions Act, together with any interest in respect of the expenses at any rate that is specified by the Superintendent.
the payment of any fines and penalties for which the authorized foreign bank is liable in respect of its business in Canada is a last charge on the assets of the authorized foreign bank.
the payment of the deposit liabilities of the authorized foreign bank and all other liabilities of the authorized foreign bank in respect of its business in Canada, except the liabilities referred to in paragraph (d) and section 625, is a third charge on the assets of the authorized foreign bank; and
the payment of any amount due to Her Majesty in right of a province, in trust or otherwise, in respect of the business in Canada of the authorized foreign bank is a second charge on the assets of the authorized foreign bank;
the payment of any amount due to Her Majesty in right of Canada, in trust or otherwise, in respect of the business in Canada of the authorized foreign bank is a first charge on the assets of the authorized foreign bank;
The Governor in Council may make regulations respecting any matters involving an institution’s dealings, or the dealings of its employees, representatives, agents or other intermediaries, with customers or the public, any matters involving products or services that are the subject of those dealings and any matters involving an institution that is acting in the capacity of a representative, agent or other intermediary for another entity, including regulations
In prescribed circumstances, the Commissioner may, on the request of a member bank, exempt it from the requirement to give a notice under section 627.993 or vary the time and manner in which such a notice is required to be given.
An institution shall, before any amendment that it makes to a term or condition with respect to a registered product takes effect, disclose the amendment to the person to whom the product was issued.
The purpose of sections 627.48 to 627.54 is to enhance the process for dealing with complaints by establishing a regime comprised of a sole external complaints body that discharges its functions and performs its activities in a transparent, effective, timely and fair manner based on the principles of accessibility, accountability, impartiality and independence.
An institution shall, before entering into an agreement with a person for a registered product in Canada, disclose to the person
An institution shall disclose a list of all charges applicable to registered products by
If an optional product or service, other than one provided in relation to a credit agreement, is provided on an ongoing basis by an institution, the institution shall, as part of any disclosure that it is required to make under section 627.95 or 627.96, disclose the information set out in paragraph 627.94(1)(d) and subsection 627.94(2).
If an institution makes an amendment to a term or condition of an agreement referred to in section 627.94 that results in a change to the information that was required to be disclosed under that section, the institution shall, at least 30 days before the day on which the amendment takes effect, disclose that change to the person.
The institution shall, immediately before obtaining a person’s express consent under section 627.42, disclose to the person the information set out in paragraphs 627.94(1)(b) to (e) and subsection 627.94(2) and,
An institution shall not increase any charge or impose a new charge associated with a prepaid payment product that is issued to a natural person unless
An institution that makes a prescribed representation in an advertisement in Canada for a product that may be obtained by a natural person under a credit agreement shall disclose prescribed information in the advertisement.
An institution shall disclose prescribed information with respect to a credit agreement by
An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) and a bank referred to in paragraph 413(1)(b) or (c) shall — in any advertisement in Canada in respect of deposits — disclose, visually or orally, that deposits with it are not insured by the Canada Deposit Insurance Corporation.
An institution shall — in any advertisement in Canada in which it indicates the rate of interest that it offers on a deposit or debt obligation — disclose the manner in which the amount of interest is calculated and any circumstances that will affect the rate of interest, including the balance of a deposit account. The information shall be disclosed in the same manner in which the rate is indicated, whether visually or orally, or both.
For the purposes of sections 627.8 and 627.83, the institution shall disclose the information in the same manner in which the request is made unless otherwise directed by the person.
An institution shall
An institution shall, before any amendment that it makes to a term or condition with respect to a principal-protected note that may have an impact on the interest payable under the note takes effect, disclose the amendment and its potential impact on the interest payable to the person to whom the note was issued. However, if it is not possible to make that disclosure before the time the amendment takes effect, the institution shall do so as soon as possible after that time.
An institution shall, before any amendment that it makes to a term or condition with respect to a deposit-type instrument or a prescribed product takes effect, disclose the amendment and its potential impact on the interest payable to the person to whom the instrument or product was issued.
If a principal-protected note ceases to be linked to an index or reference point that was to be used to determine the interest payable under the note and, as a result, no interest will be paid, the institution shall, without delay, disclose that fact to the person to whom the note was issued.
An institution shall disclose prescribed information with respect to a deposit-type instrument, a principal-protected note or a prescribed product by
An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) shall, before entering into an agreement with a person for the opening of a deposit account in Canada or in respect of a prescribed product that relates to a deposit,
An authorized foreign bank that is subject to this section under an order referred to in subsection 524(2) shall disclose to its customers and to the public that it does not accept deposits in Canada and that it is not a member institution of the Canada Deposit Insurance Corporation.
An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) and a bank referred to in paragraph 413(1)(b) or (c) shall disclose to their customers and to the public that deposits with them are not insured by the Canada Deposit Insurance Corporation.
If there is a change in the rate of interest that is applicable to a deposit account in Canada or in the manner in which the amount of interest for such an account is calculated, an institution shall, without delay, disclose the change
An institution shall disclose to its customers and to the public
A member bank shall disclose to its customers and to the public
An institution shall disclose the voluntary codes of conduct that it has adopted, that are designed to protect the interests of its customers and that are publicly available — and the public commitments that it has made and that are designed to protect the interests of its customers — by
An institution shall disclose to its customers and to the public
An institution shall disclose to its customers and to the public the fact that it shall not, under section 627.04,
If an institution is required under this Division to disclose information in an advertisement, it shall do so by presenting it prominently — as specified in any regulations — within the advertisement.
An institution shall, before any prescribed amendment that it makes to a term or condition of an agreement with a person in respect of a product or service in Canada takes effect, disclose prescribed information to the person or any other person as directed by that person.
An institution shall, before entering into an agreement with a natural person in respect of any product or service in Canada to be provided on an ongoing basis and for which disclosure obligations are not otherwise provided under this Division, disclose to that person
Subject to the regulations, an institution shall, before entering into an agreement with a person by electronic means or by mail in respect of a product or service in Canada, provide the person with the local or toll-free telephone number of a natural person who is an employee or agent of the institution and who is knowledgeable about the terms and conditions of the agreement.
If an institution is required under this Division to disclose information to its customers and to the public, it shall do so by
The Commissioner shall include in the report referred to in section 34 of the Financial Consumer Agency of Canada Act
If an institution or a body corporate is required under sections 627.43 to 627.52 to provide information, it shall do so in a manner, and using language, that is clear, simple and not misleading.
An institution shall provide the external complaints body with all information in its possession or control that relates to a complaint in respect of the institution without delay after the external complaints body notifies it that the complaint has been received.
[Repealed, 2023, c. 26, s. 131]
The external complaints body shall
An institution shall, free of charge and within 135 days after the end of each financial year, make available the following information for that year on each of its websites through which it offers products or services in Canada and provide the information in writing to any person who requests it:
Within 60 days after the end of each quarter, an institution shall submit to the Commissioner in a form satisfactory to him or her, with respect to each complaint received by an officer or employee referred to in paragraph 627.43(1)(c) during that quarter,
The institution shall ensure that the record retained under section 627.44 is accessible to the Commissioner.
An institution shall make, with respect to a complaint referred to in paragraph 627.43(1)(a), a record that is to be retained for a period of at least seven years and that contains
An institution shall not provide an optional product or service to a natural person — other than for business purposes — in an agreement in respect of another product or service.
An institution shall not impose any maintenance charges in respect of a prepaid payment product for the period of 12 months after the day on which the product is activated unless it is
An institution shall not impose an expiry date on the right of a person with whom it entered into an agreement for the issuance of a prepaid payment product to use the funds that are loaded on the product unless it is a promotional product.
In its dealings with a natural person who owes it a debt under a credit agreement entered into other than for business purposes, an institution
If a natural person enters into a credit agreement other than for business purposes with an institution for a loan that is secured by a mortgage on real property and that is to be renewed on a specified day,
An institution shall not make a loan or advance in Canada to a natural person subject to the condition that the person maintain a minimum credit balance with the institution without first obtaining the person’s express consent to do so.
Section 627.21 does not apply in respect of a deposit that is made by an eligible enterprise if the institution has reasonable grounds to believe that there is a material increased credit risk, having regard to the following factors, among others:
An institution shall make the prescribed amount of funds deposited or, if there is no prescribed amount, the first $100 of all funds deposited by a cheque or other instrument into a retail deposit account available for withdrawal
An institution shall make available for withdrawal any funds deposited by cheque or other instrument into a retail deposit account or into a deposit account held by an eligible enterprise
A member bank that refuses to open a retail deposit account for a natural person shall provide the person with
If an institution is acting in the capacity of a representative, agent or other intermediary for another entity in respect of a product or service provided by the entity, the institution shall ensure that an agreement in respect of that product or service complies with the prescribed requirements.
An institution shall not enter into any arrangement or otherwise cooperate with any of its representatives, agents or other intermediaries, with any of its affiliates that are controlled by a bank or a bank holding company and that are a finance entity as defined in subsection 464(1) or other prescribed entity, or with any of the representatives, agents or other intermediaries of such an affiliate, to sell or further the sale of a product or service of the institution or the affiliate unless
Any advertisement in Canada that is made by an institution shall be accurate, clear and not misleading.
The cost of borrowing shall be calculated, in the prescribed manner, on the basis that all obligations of the borrower are fulfilled and shall be expressed as a rate per annum and, in the prescribed circumstances, as an amount in dollars and cents.
Any communication from an institution seeking a person’s express consent shall be made in a manner, and using language, that is clear, simple and not misleading.
An institution shall disclose the following information without delay to a person who makes a request concerning the value of a product referred to in section 627.78 that was issued to the person:
An institution shall ensure that the remuneration of its officers and employees in Canada — and of any person who offers or sells its products or services in Canada — as well as any payment or benefit that the institution offers to them, does not interfere with the person’s ability to comply with the policies and procedures referred to in section 627.06.
An institution shall establish and implement policies and procedures to ensure that the products or services in Canada that it offers or sells to a natural person other than for business purposes are appropriate for the person having regard to their circumstances, including their financial needs.
[Repealed, 2023, c. 26, s. 131]
An institution shall not, in its dealings in Canada with its customers and the public,
If a natural person fails to make a payment when it becomes due under a credit agreement that the person entered into other than for business purposes or fails to comply with any other obligation in the agreement an institution may impose, in addition to interest, other charges for the sole purpose of recovering the costs reasonably incurred
No institution shall communicate or otherwise provide false or misleading information to a customer, the public or the Commissioner.
Sections 627.21 and 627.22 apply only with respect to paper-based cheques or other paper-based instruments deposited in Canada that are
An institution shall ensure that its officers and employees in Canada, and any person who offers or sells the institution’s products or services in Canada, are trained with respect to the policies and procedures that it has established for complying with the consumer provisions.
Priorities within each of paragraphs (1)(a) to (d) shall be determined in accordance with the laws governing priorities and, where applicable, by the terms of the liabilities referred to in those paragraphs.
Nothing in subsection (1) prejudices or affects the priority of any holder of any security interest in any property of an authorized foreign bank.
Subject to sections 72 and 94 of the Winding-up and Restructuring Act, where a winding-up order under that Act is made in respect of an authorized foreign bank,
urban area, on a particular day, means a population centre, as defined in the census dictionary published by Statistics Canada for the purpose of the most recent general census whose results have been published before that day, that has a minimum population of 10,000 natural persons on the basis of that census. (zone urbaine)
undue pressure means any pressure, imposed in the form of a practice or communication or otherwise, that could be reasonably considered to be excessive or persistent in the circumstances. (pressions indues)
rural area means an area located in Canada outside an urban area. (zone rurale)
retail deposit-taking branch means a branch or office in Canada of a financial institution at which the financial institution, through a natural person, opens retail deposit accounts and disburses cash to customers. (succursale de dépôt de détail)
retail deposit account means a personal deposit account that is opened with a deposit of less than $150,000 or of less than any greater prescribed amount. (compte de dépôt de détail)
residential mortgage means a loan made in Canada on the security of residential property that has four or fewer residential units. (hypothèque résidentielle)
registered product means a registered education savings plan, a registered retirement savings plan, a registered retirement income fund, a registered disability savings plan or any other plan, arrangement or fund to which Division G of Part I of the Income Tax Act applies that is provided by an institution to a natural person. (produit enregistré)
promotional product means a prepaid payment product that is purchased by an entity and distributed as part of a promotional, loyalty or award program. (produit promotionnel)
principal-protected note means a financial instrument that is issued in Canada by an institution to a person and that
prepaid payment product means a physical or electronic product that is issued in Canada by an institution, that is or can be loaded with funds and that can be used to make withdrawals or purchase goods or services. (produit de paiement prépayé)
point of service means a physical location to which the public has access and at which an institution carries on business with the public through natural persons in Canada. (point de service)
personal deposit account means a deposit account in the name of one or more natural persons that is kept by that person or those persons other than for business purposes. (compte de dépôt personnel)
personal authentication information means a personal identification number or any other password or information that a borrower creates or adopts to be used to authenticate their identity in relation to a credit card or credit card account. (authentifiant personnel)
optional product or service means a product or service that is provided in Canada by an institution, an affiliate that the institution controls or an agent or representative of the institution or affiliate, for an additional charge, as a supplement to another product or service that is offered or provided by the institution. (produit ou service optionnel)
member bank means a bank that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act. (banque membre)
maintenance charge means a charge in relation to a prepaid payment product that is imposed after the product has been purchased, other than a charge associated with the use of the product or of any service related to it. (frais de tenue de compte)
interest, in relation to an agreement for a deposit-type instrument, a principal-protected note or a prescribed product, includes any return payable by an institution under the agreement. (intérêt)
institution means a bank or an authorized foreign bank. (institution)
eligible enterprise means a business with authorized credit of less than $1,000,000, fewer than 500 employees and annual revenues of less than $50,000,000. (entreprise admissible)
deposit-type instrument means a product that is issued in Canada by an institution, that is related to a deposit and that specifies a fixed investment period and either
credit agreement includes an agreement for a line of credit, a credit card or any other kind of loan that is repayable in Canada. (convention de crédit)
complaint means dissatisfaction, whether justified or not, expressed to an institution with respect to
charge includes interest and, for greater certainty, a fee. (frais)
business day does not include a Saturday or a holiday. (jour ouvrable)
the manner in which a product or service in Canada is offered, sold or provided by the institution. (plainte)
a product or service in Canada that is offered, sold or provided by the institution; or
a variable rate of interest that is calculated on the basis of the institution’s prime lending rate or bankers’ acceptance rate. (instrument de type dépôt)
a fixed rate of interest; or
the exchange rate between any two currencies; and
the market price of a security, commodity, investment fund or other financial instrument, and
A principal-protected note does not include a financial instrument that specifies that the interest or return on the instrument is determined solely on the basis of a fixed rate of interest or return or a variable rate of interest or return that is calculated on the basis of the institution’s prime lending rate or bankers’ acceptance rate. (billet à capital protégé)
provides that the principal amount that the institution is obligated to repay at or before the note’s maturity is equal to or greater than the total paid by the person for the note.
provides for one or more payments to be made by the institution that are determined, in whole or in part, by reference to an index or reference point, including
For greater certainty, a reference to “business purposes” in a provision of this Part is a reference to the business purposes of the natural person referred to in the provision.
The following definitions apply in this Part.
engage in any prescribed conduct.
take advantage of a person; or
impose undue pressure on a person, or coerce a person, for any purpose, including to obtain a product or service from a particular person — including the institution and any of its affiliates — as a condition for obtaining another product or service from the institution;
If a product or service is obtained by a borrower from a particular person as security for a loan from an institution, the institution may require that the product or service meet with its approval. That approval shall not be unreasonably withheld.
For greater certainty, an affiliate of an institution may offer a product or service to a person on more favourable terms or conditions than the affiliate would otherwise offer, if the more favourable terms and conditions are offered on the condition that the person obtain another product or service from the institution.
For greater certainty, an institution may offer a product or service to a person on more favourable terms or conditions than it would otherwise offer, if the more favourable terms and conditions are offered on the condition that the person obtain another product or service from any particular person.
providing the person with a copy of the agreement, if the agreement is for a product or service to be provided on an ongoing basis.
entering into an agreement with the person for it to be provided; and
obtaining the person’s express consent to do so;
Use by the person of the product or service does not constitute express consent for the purpose of subsection (1).
If the consent is given orally, the institution shall provide the person with written confirmation of that consent without delay.
Subject to any regulations, an institution shall not provide a person with a product or service in Canada without first
if it was entered into in any other manner, within the prescribed period or, if there is no prescribed period, until the end of the third business day after the day on which the agreement is entered into.
if it was entered into by mail or orally by telephone, within the prescribed period or, if there is no prescribed period, until the end of the 14th business day after the day on which the agreement is entered into; or
In the event of a cancellation within the applicable period referred to in subsection (1), an institution shall waive any cancellation charge and may recover only
If a person notifies an institution that they are cancelling an agreement within the applicable period referred to in subsection (1), the institution shall
Subsection (1) does not apply to a body corporate, trust or partnership if it is a business that is not an eligible enterprise.
Subject to subsection (1.1), if an institution enters into an agreement with a person in respect of a product or service in Canada — other than a prescribed product or service or a product or service referred to in section 627.11 — to be provided on an ongoing basis, the institution shall allow the person to cancel the agreement,
without delay, refund to the person any amount that it received in respect of the provision of the product or service.
in writing and without delay, acknowledge receipt of the person’s notice of cancellation and confirm what it intends to recover under subsection (3); and
any prescribed amount.
any expense that the institution has reasonably incurred in providing the product or service; and
any amounts related to the person’s use of the product or service prior to the cancellation;
If the person cancels the agreement, the institution shall meet any prescribed requirements.
If an institution enters into an agreement with a person in respect of a retail deposit account, deposit-type instrument, credit card account or any prescribed product or service in Canada, the institution shall allow the person to cancel the agreement in accordance with any prescribed requirements.
the institution discloses the charge or penalty in accordance with this Part.
the agreement in respect of the product or service provides for its imposition; and
the institution has obtained from the person the express consent referred to in paragraph 627.08(1)(a);
Subsection (1) does not preclude the institution from receiving an amount in relation to a product or service that is determined under an order of a court.
An institution shall not impose on a person a charge or penalty in relation to a product or service in Canada unless
if the amount of credit available on the person’s line of credit that is extended — or credit card account that is opened — in Canada other than for business purposes falls below any amount that the person communicates to the institution or, if the person does not communicate an amount, below the prescribed amount or, if there is no prescribed amount, $100.
if the balance of the person’s personal deposit account that is opened in Canada falls below any amount that the person communicates to the institution or, if the person does not communicate an amount, below the prescribed amount or, if there is no prescribed amount, $100; or
The alert shall indicate that the balance of the personal deposit account, or the amount of credit available on the line of credit or credit card account, has fallen below the amount communicated to the institution, below the prescribed amount or below $100, as the case may be, and that, in accordance with the agreement in respect of the product or service, charges or penalties may be imposed for the most recent transaction, or for any subsequent transaction, made on the account or line of credit. The alert shall also indicate what the person may do to avoid charges or penalties and the time within which it is to be done, and include any prescribed information.
Subsection (1) does not apply if the person has opted out, in writing, of receiving the alert or does not provide the contact information required to receive the alert.
An institution shall, without delay, send to a natural person an alert, by electronic means,
the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be, complies with section 979.4 as if it were a bank.
the employees of the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be,
the persons who request or receive the product or service have access to the institution’s procedures established for dealing with complaints under paragraph 627.43(1)(a) as if the product or service had been requested or received from the institution;
the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be, complies, with respect to the product or service, with the consumer provisions that apply to institutions, as if it were an institution, to the extent that those provisions are applicable to its activities;
have access to the procedures established under section 979.3; and
may report particulars under subsection 979.2(1) to the affiliate or the representative, agent or other intermediary of the institution or the affiliate as if they were an employee of a bank, and
any prescribed document, or
foreign passports, and
recent bank account or credit card statements,
recent Canadian public utility bills,
recent statements of benefits from the Government of Canada or the government of a province,
recent notices of tax assessments issued by the Government of Canada or the government of a province or municipality,
identification issued by the Government of Canada or the government of a province,
any document from a reliable source that indicates the person’s name and date of birth, if the person’s identity is also confirmed by a customer in good standing with the member bank or by a natural person of good standing in the community where the point of service or branch is located;
two documents from a reliable source — one of which indicates the person’s name and address and the other the person’s name and date of birth — including
meets any prescribed condition.
if the member bank is a federal credit union and so requests, becomes a member of the bank; and
if the member bank — based on its verification of the circumstances set out in paragraphs 627.18(1)(a) to (d) or of the documents presented by the person or based on any information provided by the person in connection with the request — has reasonable grounds to suspect that the person is misrepresenting their identity, presents to the member bank one piece of identification issued by the Government of Canada or the government of a province that bears the person’s photograph and signature;
if the member bank so requests, consents to the member bank’s verifying whether any of the circumstances set out in paragraphs 627.18(1)(a) to (d) applies to the person, and to the member bank’s verifying the documents presented by the person;
presents to the member bank
A member bank shall not require the natural person to make an initial minimum deposit or maintain a minimum balance.
A member bank shall open a retail deposit account for any natural person who requests it in any prescribed manner and who meets any prescribed condition.
If a natural person who meets the conditions set out in subsection (1) requests the opening of a retail deposit account at a point of service at which the opening of such an account can only be initiated, the member bank is not required to open the account at that point of service; however, the bank shall open the account at another physical location.
Subject to subsection (2), a member bank shall, at any point of service or any branch in Canada at which it opens retail deposit accounts through natural persons, open a retail deposit account on the request, made there in person, of a natural person who
in any prescribed circumstances.
if the request is made at a branch or point of service of a member bank at which the only retail deposit accounts offered are those that are linked to an account at another financial institution; or
if the member bank has reasonable grounds to believe that it is necessary to refuse to open the retail deposit account in order to protect the customers or employees of the member bank from physical harm, harassment or other abuse;
if the member bank has reasonable grounds to believe that the natural person, for the purpose of opening the retail deposit account, knowingly made a material misrepresentation in the information provided to the member bank;
if the natural person has a history of illegal or fraudulent activity in relation to providers of financial services and the most recent instance of such an activity occurred less than seven years before the day on which the request to open a retail deposit account is made;
if the member bank has reasonable grounds to believe that the retail deposit account will be used for illegal or fraudulent purposes;
For greater certainty and for the purpose of paragraph (1)(a), the fact that the natural person is or has been a bankrupt does not, by itself without any evidence of fraud or any other illegal activity in relation to the bankruptcy, constitute reasonable grounds for a member bank to believe that an account for the person will be used for illegal or fraudulent purposes.
Subsections 627.17(1) to (3) do not apply
the information referred to in paragraphs 627.65(a) to (c).
a written statement that indicates that it will not be opening the account; and
issued in Canadian dollars.
drawn on an institution’s branch in Canada; and
not damaged or mutilated to the extent that they are unreadable by cheque-clearing systems;
encoded with magnetic ink to allow for character recognition;
if the deposit is made in any other manner, within the prescribed period or, if there is no prescribed period, no later than five business days after the day of the deposit; and
if the deposit is made in person with an employee at one of the institution’s branches or points of service, within the prescribed period or, if there is no prescribed period, no later than four business days after the day of the deposit, or
in the case of a cheque or other instrument in an amount that is greater than the prescribed amount,
in the case of a cheque or other instrument in an amount that is not greater than the prescribed amount,
if the deposit is made in any other manner, within the prescribed period or, if there is no prescribed period, no later than eight business days after the day of the deposit.
if the deposit is made in person with an employee at one of the institution’s branches or points of service, within the prescribed period or, if there is no prescribed period, no later than seven business days after the day of the deposit, or
on the business day following the day of the deposit, if the deposit is made in any other manner.
immediately, if the deposit is made in person with an employee at one of the institution’s branches or points of service; or
any prescribed factor.
notice of bankruptcy or of creditor action against the enterprise; and
a high number of cheques or other instruments deposited that are returned as dishonoured items from other institutions, which may impact the available balance in the account;
an unexplained change in the history of cheques or other instruments deposited into the account;
a negative change in the credit score or other behaviour scores that may impact the enterprise’s credit risk;
an escalating overdraft balance that is not being reduced by deposits received;
in any prescribed circumstances.
if the cheque or other instrument is deposited at least six months after the date of the cheque or other instrument; or
if the cheque or other instrument has been endorsed more than once;
if the account has been open for fewer than 90 days;
if the institution has reasonable grounds to believe that the deposit is being made for illegal or fraudulent purposes in relation to the depositor’s account;
An institution that relies on subsection (1) as grounds for not complying with section 627.21 or 627.22 shall — immediately, if the deposit is made in person with an employee at one of the institution’s branches or points of service or on request of the depositor if the deposit is made in any other manner — provide the depositor with
Sections 627.21 and 627.22 do not apply
the information referred to in paragraphs 627.65(a) to (c).
a written statement that indicates that it will not be making the funds available; and
any prescribed condition is met.
the amount of the cheque or other instrument is not greater than the prescribed amount; and
the person presents to the member bank
the cheque or other instrument is drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada or in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament, or is any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund;
any document from a reliable source that indicates the person’s name and date of birth, if the person’s identity is also confirmed by a customer in good standing with the member bank or by a natural person of good standing in the community where the branch is located;
one piece of identification that is issued by the Government of Canada or the government of a province and that bears the person’s signature and photograph, or
the documents referred to in subparagraph 627.17(1)(a)(i),
A member bank that refuses to cash for a natural person a cheque or other instrument that meets the conditions set out in paragraphs (1)(a), (c) and (d) shall provide the person with
Subsection (1) does not apply
A member bank shall, at any branch in Canada at which it, through natural persons, opens retail deposit accounts and disburses cash to customers, cash a cheque or other instrument on the request of a natural person made there in person if
in any prescribed circumstances.
if the member bank has reasonable grounds to believe that there has been illegal or fraudulent activity in relation to the cheque or other instrument; or
if there is evidence that the cheque or other instrument has been altered in any way or is counterfeit;
the information referred to in paragraphs 627.65(a) to (c).
a written statement that indicates that it will not be cashing the cheque or other instrument; and
in respect of any cheque or other instrument that is
for cashing any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund; or
for cashing a cheque or other instrument drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada, in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament or in any authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), in respect of its business in Canada;
tendered for deposit to the credit of the Receiver General.
drawn in favour of the Receiver General, the Government of Canada or any department of it or any public officer acting in the capacity of a public officer, and
Nothing in subsection (1) precludes any arrangement between the Government of Canada and an institution concerning
An institution shall not impose a charge
interest to be paid on any or all deposits of the Government of Canada with the institution.
compensation for services performed by the institution for the Government of Canada; or
in the case of a piece of identification issued by the government of a province, usable for identification purposes under the law of the province.
original, valid and not substantially defaced; and
If any document presented by a natural person bears a former name of the person, the person shall present a certificate evidencing the change of name that has occurred or a certified copy of that certificate.
For greater certainty, any documents required to be presented by a natural person under any of sections 627.17 to 627.26 and subsection (2) shall be
If a person makes a prepayment referred to in paragraph (3)(a) or (b), the institution shall refund or credit to the person the prescribed amount of any prescribed charge other than any interest or discount applicable to the loan.
If an institution enters into a credit agreement with a natural person other than for business purposes, the institution shall allow the person
Subsection (1) does not apply in respect of a loan that
An institution shall not make a loan to a natural person that is repayable in Canada, the terms of which prohibit prepayment of the money advanced or any instalment on the money advanced before its due date.
is made for business purposes and has a principal amount of more than the prescribed amount or, if there is no prescribed amount, $100,000.
is secured by a mortgage on real property; or
to prepay a part of the outstanding balance
to prepay the outstanding balance under the agreement, at any time, without incurring any charge or penalty for making the prepayment, or
at any time but only once a month, in any other case; and
on the date of any scheduled payment, if payments are scheduled once a month or more often, or
in the case of any prescribed credit agreement, to prepay any prescribed amount at any prescribed time if the person meets any prescribed requirements.
in the case of a loan for a fixed amount, other than a loan that is secured by a mortgage on real property,
for any prescribed purpose.
in processing a cheque or other instrument that the person used to make a payment under the loan but that was dishonoured; or
in realizing on any security interest taken under the credit agreement or in protecting such a security interest, including the cost of legal services retained for that purpose;
for legal services retained to collect or attempt to collect the payment;
the person’s rights under the agreement continue, and the renewal does not take effect, until the prescribed day.
the institution shall not, during any prescribed period, make a change to the agreement that increases the cost of borrowing; and
provide cheques that are issued on a credit card account that is opened in Canada for a natural person other than for business purposes without first obtaining the person’s express consent to do so.
increase the credit limit on a line of credit that is extended — or a credit card account that is opened — in Canada for a natural person other than for business purposes without first obtaining the person’s express consent to do so; or
Use by the person of the line of credit or the credit card account, or of any service related to the line of credit or credit card account, does not constitute express consent for the purpose of subsection (1).
If the consent is given orally, the institution shall provide the person with written confirmation of the consent not later than the date of the first statement of account that is provided after the date of that consent.
Subject to any regulations, an institution shall not
The unauthorized use of a credit card issued to a borrower in Canada, or of account information of the credit card, by means of the personal authentication information created or adopted in relation to the credit card or credit card account does not by itself establish that the borrower demonstrated gross negligence or, in Quebec, gross fault, in safeguarding the personal authentication information.
If a borrower reports to an institution that a credit card issued to them in Canada, the account information of the credit card or the personal authentication information created or adopted in relation to the credit card or credit card account has been lost or stolen or is otherwise at risk of being used in an unauthorized manner, the borrower shall not be liable for any unauthorized use of the credit card, the account information or the personal authentication information after the report is received.
The maximum liability of a borrower for the unauthorized use of a credit card issued to them in Canada, the account information of the credit card or the personal authentication information created or adopted in relation to the credit card or credit card account is $50, unless the borrower has demonstrated gross negligence or, in Quebec, gross fault, in safeguarding the credit card, the account information or the personal authentication information.
An institution shall not impose interest on purchases of goods or services made during a particular billing cycle on the credit card account if the person pays the outstanding balance owing on the credit card account in full on or before the due date.
If the due date for a minimum payment in respect of the outstanding balance owing on the credit card account does not fall on a business day, the institution shall consider a payment made on the next business day as being made on time.
An institution shall not require a minimum payment in respect of the outstanding balance owing for a particular billing cycle on the credit card account to be made by the person less than 21 days after the last day of that billing cycle.
Subject to any regulations, an institution shall, for a credit card issued in Canada to a natural person other than for business purposes, send a statement of account in respect of each billing cycle to the person. The statement is to be sent without delay after the last day of the billing cycle.
by allocating that payment among those amounts in the same proportion as each amount bears to the outstanding balance owing on the credit card account.
by allocating that payment first to the amount with the highest interest rate and then allocating any remaining portion of the payment to the other amounts in descending order, based on their applicable interest rates; or
For the purpose of paragraph (1)(b), if the payment that the institution allocates to an amount owing on a credit card account contains a fraction of a dollar, the institution may round up that amount to the nearest dollar if the fraction of the dollar is equal to or greater than 50 cents, round down that amount to the nearest dollar if the fraction is less than 50 cents and, if necessary, make corresponding adjustments to the other amounts that are being allocated.
If different interest rates apply to different amounts owing for a particular billing cycle on a credit card account that is opened in Canada by a natural person other than for business purposes, the institution shall allocate any payment made by the person that is greater than the required minimum payment for that billing cycle among those amounts using one of the following methods:
Subsection (1) does not apply if the person would, in any case, have exceeded their credit limit during the period in which the hold was in effect.
An institution shall not impose a charge on a natural person for exceeding their credit limit as a result of a hold on a credit card that was issued in Canada to the person other than for business purposes.
making public, or threatening to make public, the person’s failure to pay; and
using undue pressure, or
using threatening, profane, intimidating or coercive language,
shall comply with any other prescribed debt collection practices.
shall not communicate or attempt to communicate with the person, any member of the person’s family or household, any relative, neighbour, friend or acquaintance of the person or the person’s employer by any means that constitutes harassment, in a manner that constitutes harassment or with a frequency that constitutes harassment, including by
a reloadable product for which the institution has obtained the express consent of the person with whom it entered into an agreement for the issuance of the product to the imposition of the charge.
a promotional product; or
Use by the person of the prepaid payment product does not constitute express consent for the purpose of subsection (1).
An institution shall not impose any overdraft charges in respect of a prepaid payment product without first obtaining the express consent of the person with whom it entered into an agreement for the issuance of the product.
Use by the person of the product or service does not constitute express consent for the purpose of subsections (1) and (2).
If an optional product or service, or a product or service that would have been an optional product or service if it had been provided for an additional charge, is provided to a natural person — other than for business purposes — under a promotional, preferential, introductory or special offer based on a specified number of uses, an institution shall not impose any charges after the last use of the product or service without obtaining, immediately after the last use, the person’s express consent to impose that charge.
If an optional product or service, or a product or service that would have been an optional product or service if it had been provided for an additional charge, is provided to a natural person — other than for business purposes — under a promotional, preferential, introductory or special offer other than an offer referred to in subsection (2), an institution shall not impose any charges for the use of the product or service as of the day on which the person will no longer benefit from the offer without obtaining, within five business days before that day, the person’s express consent to impose that charge.
designate one or more of its officers or employees in Canada to receive and deal with those complaints.
designate one of its officers or employees in Canada to be responsible for implementing those procedures; and
establish procedures that are satisfactory to the Commissioner for dealing, within the prescribed period, with complaints;
An institution shall provide a person who makes a complaint with
An institution shall file a copy of its procedures as amended from time to time with the Commissioner.
An institution shall not use any misleading term with respect to its procedures or designated officers or employees, including any term that suggests that the procedures, officers or employees are independent of the institution — such as the term “ombudsman” or any other term with a similar meaning — or any prescribed term.
An institution shall
any information that is necessary to enable them to meet the requirements of the procedures referred to in paragraph 627.65(a).
the information referred to in paragraphs 627.65(a) to (c); and
a written acknowledgment of the date on which it received the complaint;
any prescribed information.
confirmation that the institution provided the information referred to in paragraphs 627.65(a) to (c) to the person who made the complaint, if the institution did so; and
a description of any compensation provided to the persons referred to in paragraph (c) or (d);
a description of any actions that were taken by the institution to attempt to resolve the complaint;
the date on which the complaint was resolved if, in the institution’s opinion, it was resolved to the satisfaction of the person who made the complaint;
a description of the nature of the complaint and the product or service to which the complaint relates;
the date on which the institution received the complaint;
the contact information provided by the person who made the complaint;
the name of the person who requested or received from the institution the product or service to which the complaint relates;
the name of the person who made the complaint;
if the complaint was made orally,
if the complaint was made in writing, the original version of the complaint;
the details of the complaint if the complaint was not recorded;
the recording or a transcript of the recording if the complaint was recorded, or
any prescribed information.
a copy of the record retained under section 627.44, except the contact information referred to in paragraph 627.44(e) other than the postal code; and
any prescribed information.
the number of complaints that, in the institution’s opinion, were resolved by that officer or employee to the satisfaction of the persons who made them; and
the average length of time taken to deal with the complaints received by that officer or employee;
the number and nature of any complaints that were dealt with by the officer or employee designated by the institution to deal with complaints who holds the most senior position identified for that purpose in the procedures established by the institution;
A designation made under subsection (1) shall be published in the Canada Gazette.
The external complaints body is not an agent of His Majesty.
Every institution shall be a member of the external complaints body.
Before designating a body corporate, the Minister shall take into account all matters that the Minister considers relevant, including whether the body corporate has
The Minister may, on the recommendation of the Commissioner, designate a body corporate incorporated under the Canada Not-for-profit Corporations Act or under a provincial statute equivalent to that Act to be the external complaints body to deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints or that have not been dealt with within the prescribed period referred to in that paragraph.
policies and procedures and terms of reference that would enable it to discharge its functions and perform its activities in a manner that is consistent with the purpose set out in section 627.471 and to comply with paragraphs 627.49(b) to (m).
the reputation required under paragraph 627.49(a); and
meet any prescribed requirement.
submit, every five years, to an evaluation of the performance of its functions and activities that is conducted, at the discretion of the Commissioner, by the Commissioner or a third party in accordance with terms of reference that are established by the external complaints body in consultation with the Commissioner; and
without delay after it is filed with the Commissioner, make the report available on its website free of charge and provide it to any person who requests it;
meet with the Commissioner annually;
within 135 days after the end of each financial year, file a written report with the Commissioner on the performance of its functions and activities for that year, which report is to include
within 60 days after the end of each quarter, meet with the Commissioner to discuss, among other things, complaints, operations and market trends and issues with the potential to impact consumers;
within 60 days after the end of each quarter, submit to the Commissioner, in a form satisfactory to the Commissioner,
within 90 days after making a final recommendation, make a summary of the final recommendation available on its website free of charge, which summary is to include
without delay, inform the Commissioner in writing of cases in which an institution does not comply with a final recommendation;
no later than 120 days after the day on which it has all of the information that it requires to deal with a complaint, make a final written recommendation to the parties;
impartially deal with complaints referred to in paragraph 627.43(1)(a) that have not been resolved by its member institutions to the satisfaction of the persons who made the complaints or that have not been dealt with within the prescribed period referred to in that paragraph;
obtain confirmation from a member institution to which a complaint relates regarding whether the period referred to in paragraph 627.43(1)(a) has ended, unless the person who made the complaint has provided it with the written acknowledgment referred to in paragraph 627.43(4)(a);
if it determines that all or part of a complaint is not within its terms of reference, provide the person who made the complaint with written reasons for that determination, and the name of any entity to whom the person may make a complaint, within 30 days after the day on which it receives the complaint;
inform the Commissioner in writing within 30 days after the day on which it determines that a complaint raises a potential systemic issue;
make information available to consumers about their rights and responsibilities in relation to the external complaints handling regime, respond to their inquiries and requests for information and offer them assistance in making a complaint;
establish the manner of calculating, to the satisfaction of the Commissioner, the fees it charges to each of its member institutions for its services;
establish policies, procedures and terms of reference that are satisfactory to the Commissioner pertaining to, among other things, dealing with complaints and the consultation, at least once a year, of its member institutions and consumers for the purpose of raising concerns about the external complaints body;
make its services available across Canada in both official languages and offer those services free of charge to persons who make complaints to it;
maintain a reputation for being operated in a manner that is consistent with the standards of good character and integrity;
any prescribed information;
the reasons for the final recommendation, and
a description of any compensation provided to the persons referred to in paragraph 627.44(c) or (d),
the name of the institution that received the complaint,
a description of the nature of the complaint that is the subject of the final recommendation,
any prescribed information;
in relation to all investigations completed during the quarter, a copy of the record of the complaint, and
the results of the most recent evaluation referred to in paragraph (l),
all sources of funding for its functions and activities, including the fees charged to each of its member institutions for its services and the manner in which those fees are calculated, and
its constitution, governance and terms of reference, and the identity of its member institutions,
the average and total compensation provided with respect to complaints that it determined were within its terms of reference;
the number of final recommendations that it made in which compensation was recommended, and
the number of complaints for which an institution did not comply with a final recommendation,
the number of complaints that it determined were not within its terms of reference and the reasons for that determination,
the average length of time taken to deal with complaints,
in respect of each of its member institutions, the number and nature of complaints that it received, the number of complaints that it determined were within its terms of reference, the number of final recommendations that it made and the number of complaints that, in its opinion, were resolved to the satisfaction of the persons who made them,
a summary of the results of any consultation with its member institutions and with persons who made complaints to it,
information about
a summary of the information referred to in section 627.47 and the information in the report referred to in paragraph 627.49(j).
the number and nature of complaints that have been made to the Agency; and
the procedures for dealing with complaints established by institutions under paragraph 627.43(1)(a);
Subject to the regulations, an institution that enters into an agreement with a person orally by telephone in respect of a product or service in Canada is deemed to have disclosed in writing the information referred to in subsection (1) if it
If an institution is required under this Division to disclose information, it shall do so in a manner, and using language, that is clear, simple and not misleading, and shall do so in writing, unless otherwise provided for under this Division.
any prescribed information; and
the information or any prescribed portion of the information, and
provides the information in writing to the person without delay after entering into the agreement.
discloses orally to the person, before entering into the agreement by telephone,
on each of its websites through which it offers products or services in Canada; and
at each of its branches in Canada where it offers products or services and at each of its points of service, and
providing the information in writing to any person who requests it.
displaying the information prominently
An institution shall orally draw attention to the information that is required to be disclosed in the information box when
If an institution is required under this Division to disclose information in an application form or before entering into an agreement in respect of a product or service, it shall, at the time of that disclosure, disclose the information that is prescribed by presenting it prominently in a single prominently displayed information box.
a person contacts the institution orally by telephone for the purpose of applying for the product or service.
the institution solicits applications for the product or service from a person orally by telephone; or
any prescribed information.
the information referred to in paragraphs 627.65(a) to (c); and
particulars of the person’s rights and obligations in respect of the product or service;
a list of all charges and penalties applicable to the product or service;
the features of the product or service;
in the case of a product or service that is provided for a term of 30 days or less, five days before the last day of the term.
in the case of a product or service that is provided for a term of more than 30 days, 21 days before, and five days before, the last day of the term; and
The information to be disclosed is the following:
If an institution enters into an agreement with a natural person other than for business purposes in respect of a product or service in Canada — other than a loan that is secured by a mortgage on real property — and the agreement provides that a product or service may be renewed or that, after the end of the term of the product or service, a new product or service may be provided to the person without a further agreement being entered into, the institution shall disclose to the person the information set out in subsection (2),
any prescribed information.
the period within which the institution shall allow the person to cancel the agreement in respect of the product or service that may be renewed, or in respect of the new product or service; and
particulars of the person’s rights and obligations in relation to the product or service on its renewal, or to the new product or service;
any charges or penalties that may be imposed on the person in relation to the product or service on its renewal, or to the new product or service;
the interest rate that will be applicable to the product or service on its renewal, or to the new product or service;
if the period during which the person will benefit from the offer is 30 days or less, five days before the last day of the period.
if the period during which the person will benefit from the offer is more than 30 days, 21 days before, and five days before, the last day of the period; and
The information to be disclosed is the following:
If a natural person accepts, other than for business purposes, a promotional, preferential, introductory or special offer with respect to a product or service other than an optional product or service, the institution shall disclose to the person the information set out in subsection (2),
any prescribed information.
the period within which the institution shall allow the person to cancel the agreement in respect of the product or service after the day on which the person will no longer benefit from the offer; and
particulars of the person’s rights and obligations in relation to the product or service after the day on which the person will no longer benefit from the offer;
any charges or penalties that may be imposed on the person in relation to the product or service after the day on which the person will no longer benefit from the offer;
the interest rate that will be applicable to the product or service after the day on which the person will no longer benefit from the offer;
take advantage of a person.
impose undue pressure on a person, or coerce a person, for any purpose, including to obtain a product or service from a particular person, as a condition for obtaining another product or service from the institution; or
the Agency’s mailing address, website address and telephone number.
the name of the external complaints body and the manner in which that body may be contacted; and
its procedures for dealing with complaints established under paragraph 627.43(1)(a);
on each of its websites through which it offers products or services in Canada; and
at each of its branches in Canada where it offers products or services and at each of its points of service, and
providing the voluntary codes and commitments in writing to any person who requests them.
making the voluntary codes and commitments available
any prescribed information.
the personal identification requirements set out in paragraph 627.25(1)(b); and
the conditions to be met for the opening of a retail deposit account by a natural person under subsections 627.17(1) and (3);
the institution’s policies concerning the maximum period during which the institution may hold funds deposited by cheque or other instrument in any situation to which section 627.21 does not apply.
the maximum periods during which the institution may hold funds deposited by cheque or other instrument before making them available for withdrawal, as set out in section 627.21; and
for a deposit account in Canada other than a personal deposit account,
a list of all charges applicable to personal deposit accounts in Canada with the institution and the usual amount, if any, charged by the institution for services normally provided in Canada to its customers and to the public;
a partial list of those charges and the manner in which information regarding charges not included in the list can be obtained;
a list of all charges applicable to any prescribed services that it provides in respect of the account and the fact that the list sets out all such charges, or
any prescribed information.
in the case of a retail deposit account,
in the case of a personal deposit account, the circumstances in which the institution shall send the person an alert, in accordance with section 627.13;
subject to subsection (2), a list of all charges applicable to the account;
the institution’s policies concerning the maximum period during which the institution may hold funds deposited by cheque or other instrument in any situation to which section 627.21 does not apply; and
the maximum periods during which the institution may hold funds deposited by cheque or other instrument before making them available for withdrawal, as set out in section 627.21, and
the rate of interest and the manner in which the amount of interest is calculated,
If the amount of a charge referred to in paragraph (1)(a) cannot be determined before an agreement is entered into for the opening of a deposit account other than a personal deposit account, the institution shall, without delay after the amount is determined, disclose that amount to the person in whose name the account is kept.
An institution shall, before entering into an agreement with a person for the opening of a deposit account in Canada, disclose to the person
If the change results in a shortened period during which an institution may hold funds deposited by cheque or other instrument, the institution may meet the obligations set out in subsection (1) after the effective date of the change.
An institution shall disclose any changes to the information referred to in paragraph 627.68(c) or (d) to its customers and to the public for a period of at least 60 days ending on the effective date of the change, and disclose any changes to the information referred to in subparagraph 627.69(1)(c)(ii) or (iii) to each person in whose name the retail deposit account is kept and to whom a statement of account is provided — or to any other person as directed by that person — at least 30 days before the effective date of the change.
to the public by displaying it prominently
to the person in whose name the account is kept or to any other person as directed by that person; or
on each of its websites through which it offers deposit accounts in Canada.
at each of its branches in Canada where it offers deposit accounts and at each of its points of service, and
An institution shall, to meet its obligations under subsection (2), also disclose the manner in which further details with respect to the increase or new charge can be obtained.
If there is a person in whose name the account is kept to whom a statement of account is not provided, an institution shall disclose to its customers and to the public any increase referred to in subsection (1) for a period of at least 60 days ending on the effective date of the increase or new charge, and if the increase or new charge is applicable to a personal deposit account, by displaying the increase or new charge prominently at each automated teller machine on which the name of the institution or information identifying the machine with the institution is displayed.
An institution shall disclose to a person to whom a statement of account is provided — or to any other person as directed by that person — any increase to a charge applicable to a personal deposit account in Canada — or applicable to a prescribed service in relation to deposit accounts in Canada, other than personal deposit accounts — or any new charge applicable to a personal deposit account in Canada at least 30 days before the effective date of the increase or new charge.
obtain the person’s signature immediately next to the disclosure statement.
disclose to the person the fact that deposits to the deposit account or in relation to the prescribed product, as the case may be, are not insured by the Canada Deposit Insurance Corporation, as well as any prescribed information; and
A bank referred to in paragraph 413(1)(b) or (c) that shares premises with a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act shall, before entering into an agreement with a person for the opening of a deposit account in Canada or in respect of a prescribed product that relates to a deposit,
A bank referred to in paragraph 413(1)(b) or (c) shall, before entering into an agreement with a person for the opening of a deposit account in Canada or in respect of a prescribed product that relates to a deposit, disclose to the person the fact that deposits to the deposit account or in relation to the prescribed product are not insured by the Canada Deposit Insurance Corporation.
the fact that deposits to the deposit account or in relation to the prescribed product are not insured by the Canada Deposit Insurance Corporation;
the fact that the bank’s business is separate and distinct from that of the member institution, and
obtain from the person a signed declaration stating that
orally explain to the person the information that is to be disclosed under paragraph (a); and
disclose to the person
the person understands all of the information that is to be disclosed under paragraph (a).
the bank has orally explained all the information that is to be disclosed under paragraph (a), and
the person has been given all of the information that is to be disclosed under paragraph (a) and has read it,
on each of its websites through which it offers these products in Canada; and
at each of its branches in Canada and points of service where it offers any of these products, and
providing the information to any person who requests it.
making the information available
any prescribed information.
any other information that could reasonably be expected to affect the person’s decision to enter into the agreement; and
whether the manner in which the product is structured or administered may place the institution in a conflict of interest;
whether the proposed agreement provides that the institution may amend a term or condition with respect to the product and, if so, in what circumstances;
whether the person may cancel their purchase of the product and, if so, how the purchase may be cancelled;
if the product relates to a deposit that is not eligible for deposit insurance coverage by the Canada Deposit Insurance Corporation, the fact that it is not eligible;
any risks associated with the product, including, if applicable, the risk that no interest may accrue;
how interest is accrued and any limitations in respect of the interest payable;
any charges applicable to the product and their impact on the interest payable;
if the rate of interest in respect of the product is fixed, the annual rate of interest or, if the rate of interest is variable,
the term of the product, how and when the principal is to be repaid and how and when the interest, if any, is to be paid;
how the person may obtain the rate of interest from the institution during the investment period;
the prime lending rate or the banker’s acceptance rate in effect when the information is disclosed, and
the prime lending rate or the bankers’ acceptance rate, as the case may be, that is used for the calculation of the rate of interest,
how the rate of interest is determined,
If, after the maturity of a deposit-type instrument issued under an agreement referred to in subsection (1), an institution issues a new deposit-type instrument under that agreement, the institution shall disclose prescribed information to the person without delay after the instrument is issued.
An institution shall, before entering into an agreement with a person for the issuance of a deposit-type instrument, a principal-protected note or a prescribed product, disclose to the person
the last available measure, before the day specified by the person, of the index or reference point on which the interest is determined and how that measure is related to the interest payable under the note;
the net asset value of the note on the day specified by the person and how that value is related to the interest payable under the note, or
in the case of any prescribed product, prescribed information.
in the case of a deposit-type instrument, the amount of the principal and accrued interest on the day on which the request was made; and
in the case of a principal-protected note,
the time at which and the manner in which the value of the note will be calculated, and the fact that the value of the note may differ from the value referred to in subparagraph (i);
the net amount that the person would have received for the redemption or purchase after deducting the amount referred to in subparagraph (ii) from the value of the note referred to in subparagraph (i), and
the amount of any charge or penalty,
the value of the note on the last business day before the day on which the request is made, or the value of the note based on the last available measure of the index or reference point on which the interest is determined,
before redeeming any prescribed product before its maturity on the request of the person to whom it was issued, disclose to that person prescribed information.
before redeeming a deposit-type instrument before its maturity on the request of the person to whom it was issued, disclose to that person the amount of the principal and accrued interest, the amount of any charge or penalty and the net amount payable by the institution on redemption; and
before redeeming or purchasing a principal-protected note before its maturity on the request of the person to whom it was issued, disclose to that person
any prescribed information.
if the advertisement refers to features of the product or the interest payable under it,
how the public may obtain information about the product;
the fact that the product relates to deposits that are not eligible to be insured by the Canada Deposit Insurance Corporation, if that is the case; and
the manner in which interest is to be accrued and any limitations in respect of the interest payable, and
The institution shall, in the advertisements referred to in subsection (3), represent the past market performance fairly and only use realistic assumptions to underlie hypothetical examples.
An institution shall — in any advertisement in Canada for a principal-protected note in which it uses past market performance — disclose, visually or orally, the assumptions underlying any hypothetical examples used in the advertisement to represent that performance, and the fact that past market performance is not an indicator of future market performance.
Subparagraph (1)(b)(ii) does not apply to an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) or a bank referred to in paragraph 413(1)(b) or (c).
An institution shall — in any advertisement in Canada for a product that is a deposit-type instrument, a principal-protected note or a prescribed product — disclose, visually or orally,
on each of its websites through which it offers products or services in Canada; and
at each of its branches in Canada and points of service, and
providing the information to any person who requests it.
making the information available
any prescribed information.
in the case of a line of credit or credit card account, the circumstances in which the institution shall send the person an alert, in accordance with section 627.13; and
any charges or penalties that may be imposed on the person;
particulars of the person’s rights and obligations;
the cost of borrowing, as calculated and expressed in accordance with section 627.9;
An institution shall disclose to the person with whom it has entered into a credit agreement any prescribed information respecting the renewal of the credit agreement.
An institution shall disclose to the person with whom it has entered into a credit agreement
An institution shall, after entering into a credit agreement with a person, disclose prescribed information to the person.
An institution shall disclose in any application forms or related documents that it prepares for the issuance of credit, payment or charge cards
An institution shall, before entering into a credit agreement with a person, other than a person referred to in subsection (1), disclose to the person prescribed information.
An institution shall, before entering into a credit agreement with a natural person other than for business purposes, disclose to the person
any prescribed information; and
the day on which interest begins to accrue and information concerning any grace period that applies, and
the information referred to in paragraph (1)(a),
a list of all non-interest charges,
in the case of a payment or charge card, any prescribed information.
in the case of a credit card,
any prescribed information resulting from the amendment.
any prescribed amendment to the terms or conditions of the credit agreement; and
any prescribed information.
a website address where the information referred to in paragraphs (a) and (d) to (g) can be obtained; and
a statement indicating
if the funds that are loaded on the product are not insured by the Canada Deposit Insurance Corporation, a statement to that effect;
all charges that may be imposed on the person by the issuing institution in respect of the product;
the following restrictions on the use of the product, if imposed by the issuing institution:
a toll-free telephone number that can be used to make inquiries about the prepaid payment product, including its balance and the terms or conditions with respect to the product, and to make complaints;
if it is a promotional product, the day, if any, on which the person’s right to use the funds that are loaded on the product will expire;
the day on which the product expires, if any;
the name of the issuing institution;
any other restriction that could reasonably be expected to affect the person’s decision to enter into the agreement;
the fact that the product cannot be used to make withdrawals, and
the fact that the product is not reloadable,
in the case of any other prepaid payment product, that the person’s right to use the funds that are loaded on the product will not expire;
in the case of a promotional product, either that the person’s right to use the funds that are loaded on the product will not expire, or that that right will expire, along with the expiry date, as the case may be, and
The institution shall disclose the information set out in paragraphs (1)(a) to (d) and (i) by setting it out directly on the prepaid payment product or, if the product is electronic, by disclosing it electronically on the person’s request.
An institution shall, before entering into an agreement with a person for the issuance of a prepaid payment product, disclose to the person
the institution discloses the new or increased charge by
the institution has given the person the opportunity to modify the information referred to in paragraph (a); and
the person has provided the institution with their name and mailing or email address;
displaying a notice on the institution’s website for a period of at least 60 days ending on the effective date of the new or increased charge.
sending a notice to the most recent address provided for the person at least 30 days before the effective date of the new or increased charge, and
the steps required to use the product or service.
the date from which the product or service is available for use and, if different, from which charges apply; and
the conditions under which the person may cancel the agreement;
a list of all charges that will be imposed for the use of the product or service, or the method used for determining the charges and an example to illustrate the method;
the term of the agreement;
a description of the optional product or service;
Before entering into the agreement, the institution shall also disclose
An institution shall, before entering into an agreement with a natural person other than for business purposes for an optional product or service, disclose to the person the following information:
the fact that it shall, without delay on receipt of the notification, refund or credit to the person any amount that it received for any part of the product or service that will be unused from the effective date of the cancellation, to be calculated in accordance with the prescribed formula.
the fact that the cancellation will take effect on the last day of the billing cycle, or 30 days after the institution receives the notification, whichever is earlier; and
the fact that the person may cancel the agreement by notifying the institution that the agreement is to be cancelled;
if consent is to be obtained under subsection 627.42(2), the fact that the person no longer benefits from the offer.
if consent is to be obtained under subsection 627.42(1), the day on which the person will no longer benefit from the offer; and
on each of its websites through which it offers registered products in Canada; and
at each of its branches in Canada and points of service where it offers registered products, and
providing the list to any person who requests it.
making the list available
any prescribed information.
information about how the person will be notified of any increase in those charges and of any new charges applicable to the product; and
information about all charges applicable to the product;
on each of its websites through which it offers residential mortgages in Canada; and
at each of its branches in Canada and points of service where it offers residential mortgages, and
providing the information to any person who requests it.
making the information available
An institution shall, before entering into an agreement under which such a charge is imposed on a person, disclose prescribed information to the person and any other information that could reasonably be expected to have an impact on the person.
If an institution or any of its affiliates imposes a charge for insurance or a guarantee that the institution obtains against default on a loan made in Canada on the security of residential property, the institution shall disclose prescribed information and any other information that could reasonably be expected to have an impact on a borrower by
six months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in a rural area where there is no other retail deposit-taking branch within a travelling distance of 10 km from the branch;
four months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in an urban area or in a rural area where there is another retail deposit-taking branch within a travelling distance of 10 km from the branch, or
give a written notice to each customer of the branch, to the public and to the chairperson, mayor, warden, reeve or other similar chief officer of the municipal or local government body or authority for the area in which the branch is located not later than six months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in a rural area where there is no other retail deposit-taking branch within a travelling distance of 10 km from the branch.
give a written notice to each customer of the branch and to the public not later than four months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in an urban area or in a rural area where there is another retail deposit-taking branch within a travelling distance of 10 km from the branch; and
give a written notice to the Commissioner not later than
The notice shall include prescribed information.
The member bank shall give the notice to the public by
A member bank that closes a retail deposit-taking branch — or that ceases to open retail deposit accounts or to disburse cash to customers through a natural person at a retail deposit-taking branch — shall
if the notice is one that is required under paragraph (1)(c), publishing it in a newspaper in general circulation at or near the place where the branch is located.
displaying it prominently at the branch; and
an area representative or a person from the area submits to the Commissioner a request for the meeting and the request is not frivolous or vexatious.
the member bank has not consulted in the area well enough to ascertain the views of interested persons in the area with regard to the closure of the branch, the cessation of the activity, alternate service delivery by the bank or measures to help the branch’s customers adjust to the closure or the cessation of the activity; and
The Statutory Instruments Act does not apply to rules established under subsection (2).
The Commissioner may establish rules for the convening and conduct of a meeting.
After a notice is given but before the branch is closed or ceases to carry on the activity, the Commissioner shall require the member bank to convene and hold a meeting between representatives of the bank, representatives of the Agency and interested persons in the area affected by the closure of the branch or the cessation of the activity in order to exchange views about the closure of the branch or the cessation of the activity, including alternate service delivery by the bank and measures to help the branch’s customers adjust to the closure or the cessation of the activity, if
a description of the consultations undertaken by the bank and its prescribed affiliates with their customers and the public in relation to
a description of the measures taken by the bank and its prescribed affiliates to provide products and services to low-income persons, senior persons, persons with disabilities and persons who face accessibility, linguistic or literacy challenges, and
the names of the voluntary codes of conduct that it has adopted, that are designed to protect the interests of its customers and that are publicly available — and of any public commitments that it has made and that are designed to protect the interests of its customers — along with the means by which the codes and commitments are made available to its customers and the public,
prescribed information with respect to the contribution of the bank and its prescribed affiliates to the Canadian economy and society and with respect to any other matter,
matters in respect of which the bank has received complaints; and
the identification of trends and emerging issues that may have an impact on their customers or the public, and
the development of new products and services, including the means by which they would be provided,
existing products and services, including the means by which they are provided,
inform its customers and the public, through advertising, making public announcements, posting notices, mailing information or otherwise, about the means by which the statement is made available to them.
file a written statement with the Commissioner that includes, for that financial year,
The bank shall make the statement available free of charge
A bank is not required to include in the statement the information required under subparagraphs (1)(a)(i), (iii) and (iv) with respect to a prescribed affiliate if a company referred to in subsection 489.1(1) of the Insurance Companies Act or subsection 444.2(1) of the Trust and Loan Companies Act has already published that information in its statement published under those subsections.
A bank with equity of $1,000,000,000 or more shall, within 135 days after the end of each financial year,
by providing it to any person who requests it.
on each of its websites through which it offers products or services in Canada; and
credit the excess amount of the charge or penalty or, if it was collected, refund the excess amount if the charge or penalty was greater than the amount of charge or penalty that was provided for in an agreement.
credit the amount of the charge or penalty or, if it was collected, refund the amount if the charge or penalty was not provided for in an agreement; or
The amount referred to in subsections (1) and (2) bears interest from the day on which it was imposed, at a rate equal to the Bank of Canada’s overnight rate on that day, until the day on which the amount is refunded or credited.
An institution shall, if it has provided a person with a product or service without first having obtained from the person the express consent referred to in paragraph 627.08(1)(a), and if it has imposed a charge or penalty on the person in relation to the product or service, credit the amount of the charge or penalty or, if it was collected, refund the amount.
An institution shall, if it has imposed a charge or penalty in relation to a product or service,
[Repealed, 2023, c. 26, s. 133]
respecting the requirements to be met by the external complaints body.
respecting the collection, retention, use or disclosure of information about a customer and the manner in which complaints by the customer in relation to that collection, retention, use or disclosure are to be dealt with; and
requiring a member bank, at any point of service or any branch in Canada at which it opens retail deposit accounts through natural persons, to open, at the request of a natural person who meets the prescribed conditions, a low-cost or no-cost retail deposit account for the person, and prescribing the characteristics of such an account, including the name of the account;
specifying conduct that shall be considered or shall not be considered coercion for the purpose of paragraph 627.04(a);
prescribing the circumstances in which all or part of sections 627.08, 627.17, 627.28, 627.3, 627.31, 627.59, 627.72, 627.89, 627.99, 627.992 and 627.993 do not apply;
prescribing the time at which and the manner in which any information that is required to be filed, disclosed, made available or otherwise provided under this Part is to be filed, disclosed, made available or otherwise provided;
prescribing the manner in which any information that is required to be filed, disclosed, made available or otherwise provided under this Part is to be organized or broken down;
prescribing when documents and information that are required to be disclosed, sent or otherwise provided under this Part are deemed to have been provided;
prescribing the time at which and the manner in which any of the activities referred to in paragraph (e) are to be carried out or any of the services referred to in that paragraph are to be provided;
respecting the names of positions to be used by an institution’s employees, representatives, agents or other intermediaries in their dealings with customers or the public;
prescribing what an institution may, shall or shall not do — including in relation to the imposition of charges or penalties — in carrying out any of the activities that it is permitted to carry out, or in providing any of the services that it is permitted to provide, under section 409 or 538 and any ancillary, related or incidental activities or services;
respecting the rebate or refund of any amounts paid or to be paid in relation to the provision of a product or service;
respecting the content of advertisements and the manner in which it is displayed or communicated;
respecting the training of an institution’s employees, representatives, agents or other intermediaries;
requiring the disclosure of information;
[Repealed, 1997, c. 15, s. 86]
A bank shall provide the Superintendent with such information, at such times and in such form as the Superintendent may require.
the name, address and date of appointment of the auditor or auditors of the bank.
the date of expiration of the term of each director referred to in paragraph (a); and
the name of each committee of the bank on which each director referred to in paragraph (a) serves;
the names of the directors referred to in paragraph (a) who are officers or employees of the bank or any affiliate of the bank, and the positions they occupy;
the affiliation, within the meaning of section 162, with the bank of each director referred to in paragraph (a);
the bodies corporate of which each director referred to in paragraph (a) is an officer or director and the firms of which each director is a member;
the mailing address of each director holding office immediately following the meeting;
the name, residence and citizenship of each director holding office immediately following the meeting;
Where
A bank shall, within thirty days after each annual meeting of the bank, provide the Superintendent with a return showing
a vacancy on the board of directors of the bank occurs or is filled,
a vacancy in the office of auditor of the bank occurs or is filled by another person, or
any information relating to a director or an auditor of a bank shown in the latest return made to the Superintendent under subsection (1), other than information referred to in paragraph (1)(c) or (d), becomes inaccurate or incomplete,
the information referred to in paragraphs 632(1)(a), (c) and (e) to (h) contained in the latest return sent to the Superintendent under section 632.
the incorporating instrument of the bank; and
On the application of a bank that has been incorporated by a special Act of Parliament, the Superintendent may issue a certificate stating that the bank was incorporated by a special Act of Parliament, and may include with the certificate any information in the Superintendent’s possession that relates to the bank’s incorporation.
A statement containing information in the register and purporting to be certified by the Superintendent is admissible in evidence in all courts as proof, in the absence of evidence to the contrary, of the facts stated in the statement without proof of the appointment or signature of the Superintendent.
Persons are entitled to reasonable access to the register and may make copies of or take extracts from the information in it.
The register may be maintained in
The Superintendent shall, in respect of each bank for which an order approving the commencement and carrying on of business has been made, cause a register to be maintained containing a copy of
a system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.
a bound or loose-leaf form or in a photographic film form; or
the bank has adequate policies and procedures to protect itself against threats to its integrity or security.
the provisions of this Act are being duly observed and that the bank is in a sound financial condition; or
Subsection (1) does not apply in respect of an entity that controls a bank or is affiliated with a bank where that entity is a financial institution regulated
Any person to whom a direction has been issued under subsection (1) shall provide the information or documents specified in the order within the time specified in the order and, where the order does not specify a time, the person shall provide the information or documents within a reasonable time.
The Superintendent may, by order, direct a person who controls a bank or any entity that is affiliated with a bank to provide the Superintendent with any information or documents that may be specified in the order if the Superintendent believes that the production of the information or documents is necessary in order to be satisfied that
by or under an Act of the legislature of a province where the Superintendent has entered into an agreement with the appropriate official or public body responsible for the supervision of financial institutions in that province concerning the sharing of information on such financial institutions.
by or under an Act of Parliament; or
Nothing in subsection (1) prevents the Superintendent from disclosing any information
Subject to section 639, all information regarding the business or affairs of a bank or a foreign bank, or regarding a person dealing with a bank or a foreign bank, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly.
to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance or to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for the purposes of policy analysis related to the regulation of financial institutions,
to the Canada Deposit Insurance Corporation for purposes related to its operation, and
to any other agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision,
to any government agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision,
The Governor in Council may, for the purposes of subsection (3), make regulations respecting the circumstances in which prescribed supervisory information may be used as evidence.
The disclosure of any prescribed supervisory information, other than under subsection (3) or (4), does not constitute a waiver of the privilege referred to in subsection (1).
Despite subsections (1) and (2) and section 39.1 of the Office of the Superintendent of Financial Institutions Act, a court, tribunal or other body may, by order, require the Minister, the Superintendent or a bank to give oral testimony or to produce any document relating to any prescribed supervisory information in any civil proceedings in relation to the administration or enforcement of this Act that are commenced by the Minister, the Superintendent, the Attorney General of Canada or the bank.
Despite subsection (1),
No person shall by an order of any court, tribunal or other body be required in any civil proceedings to give oral testimony or to produce any document relating to any prescribed supervisory information.
Prescribed supervisory information shall not be used as evidence in any civil proceedings and is privileged for that purpose.
a bank may, in accordance with the regulations, if any, use prescribed supervisory information as evidence in any proceedings in relation to the administration or enforcement of this Act or the Winding-up and Restructuring Act that are commenced by the bank, the Minister, the Superintendent or the Attorney General of Canada.
the Minister, the Superintendent or the Attorney General of Canada may, in accordance with the regulations, if any, use prescribed supervisory information as evidence in any proceedings; and
The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include
For greater certainty, the disclosure by a bank — or by a person who controls a bank or by an entity that is affiliated with a bank — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.
the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).
the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or
has been obtained as a result of an industry-wide or sectoral survey conducted by the Superintendent in relation to an issue or circumstances that could have an impact on the financial condition of banks.
is contained in returns filed pursuant to the Superintendent’s financial regulatory reporting requirements in respect of banks; or
The Minister shall consult with the Superintendent before making any determination under subsection (1).
The Superintendent shall disclose, at such times and in such manner as the Minister may determine, such information obtained by the Superintendent under this Act as the Minister considers ought to be disclosed for the purposes of the analysis of the financial condition of a bank and that
its business and affairs for the purposes of the analysis of its financial condition,
the compensation of its executives, as that expression is defined by the regulations, and
Paragraph (1)(a) does not apply to a bank that is within such class or classes of banks as may be prescribed.
A bank shall make available to the public such information concerning
The Superintendent or a person acting under the Superintendent’s direction
[Repealed, 2023, c. 26, s. 556]
The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each bank that the Superintendent considers to be necessary or expedient to determine whether the bank is complying with the provisions of this Act, whether the bank is in a sound financial condition and whether the bank has adequate policies and procedures to protect itself against threats to its integrity or security. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.
may require the directors, officers and the auditor or auditors of a bank to provide information and explanations, to the extent that they are reasonably able to do so, in respect of the condition and affairs of the bank or any entity in which the bank has a substantial investment.
has a right of access to any records, cash, assets and security held by or on behalf of a bank; and
The Superintendent may enter into an agreement, called a “prudential agreement”, with a bank for the purposes of implementing any measure designed to maintain or improve its safety and soundness or establishing adequate policies and procedures to protect it against threats to its integrity or security.
perform such acts as in the opinion of the Superintendent are necessary to remedy the situation.
cease or refrain from committing the act or pursuing the course of conduct; and
A temporary direction under subsection (3) continues to have effect after the expiration of the fifteen day period referred to in that subsection if no representations are made to the Superintendent within that period or, if representations have been made, the Superintendent notifies the bank or person that the Superintendent is not satisfied that there are sufficient grounds for revoking the direction.
If, in the opinion of the Superintendent, the length of time required for representations to be made under subsection (2) might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) and (b) or subsection (1.1) having effect for a period of not more than 15 days.
Subject to subsection (3), no direction shall be issued to a bank or person under subsection (1) or (1.1) unless the bank or person is provided with a reasonable opportunity to make representations in respect of the matter.
If, in the opinion of the Superintendent, a bank does not have adequate policies and procedures to protect itself against threats to its integrity or security, the Superintendent may direct the bank to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.
Where, in the opinion of the Superintendent, a bank, or a person with respect to a bank, is committing, or is about to commit, an act that is an unsafe or unsound practice in conducting the business of the bank, or is pursuing or is about to pursue any course of conduct that is an unsafe or unsound practice in conducting the business of the bank, the Superintendent may direct the bank or person to
has omitted to do any thing under this Act that is required to be done by or on the part of the bank or person,
is contravening this Act, or
is contravening or has failed to comply with a prudential agreement entered into under section 644.1 or a direction of the Superintendent made under subsection 645(1), (1.1) or (3),
In sections 647 and 647.1, senior officer means the chief executive officer, secretary, treasurer or controller of a bank or any other officer reporting directly to the bank’s board of directors or chief executive officer.
An appeal from a decision of a court under subsection (1) lies in the same manner, and to the same court, as an appeal from any other order of the court.
Where a bank or person
are contained in a prudential agreement entered into under section 644.1 or an undertaking given by the bank to the Superintendent; or
have been specified by the Superintendent by way of conditions or limitations in respect of the order approving the commencement and carrying on of the bank’s business, or
that is the subject of a direction made under section 645 or an order made under subsection 485(3).
that has been notified by the Superintendent that this section applies to it where the bank is subject to measures designed to maintain or improve its safety and soundness, which measures
Where an order has been made under subsection (4)
The Superintendent must in writing notify the person concerned and the bank of any action that the Superintendent proposes to take under subsection (4) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
In forming an opinion under subsection (4), the Superintendent must consider whether the interests of the depositors and creditors of the bank would likely be prejudiced if the person were to take office or continue to hold office, as the case may be.
If the Superintendent is of the opinion that, on the basis of the competence, business record, experience, conduct or character of a person, he or she is not suitable to hold that position, the Superintendent may, by order,
The information required by subsection (2) shall be provided to the Superintendent
A bank shall provide the Superintendent with the name of
This section applies only in respect of a bank
each person who is newly elected as a director of the bank and who was not proposed for election by anyone involved in the management of the bank,
each person who has been selected by the bank for appointment as a senior officer, and
each person who has been nominated for election or appointment as a member of its board of directors,
in the case of a person referred to in paragraph (2)(c), within fifteen days after the date of the election of the person.
at least thirty days prior to the date or proposed date of the election or appointment or within such shorter period as the Superintendent may allow; or
in the case of a person referred to in paragraph (2)(c), remove the person from office as a director of the bank.
in the case of a person referred to in paragraph (2)(a) or (b), disqualify the person from being elected or appointed as a director of a bank or from being appointed as a senior officer; or
removing a director from office, the person shall not continue to hold, and the bank shall not permit the person to continue to hold, office as a director.
disqualifying a person from being elected or appointed to a position, the person shall not be, and the bank shall not permit the person to be, elected or appointed to the position; or
because the person has contravened or, by action or negligence, has contributed to the contravention of
on the basis of the competence, business record, experience, conduct or character of the person; or
a prudential agreement entered into under section 644.1 or an undertaking given by the bank to the Superintendent.
a condition or limitation in respect of the order approving the commencement and carrying on of the bank’s business, or
an order made under subsection 485(3),
a direction made under section 645,
this Act or the regulations made under it,
A removal order is not stayed by an appeal.
The Federal Court, in the case of an appeal, may dismiss the appeal or set aside the removal order.
The director or senior officer, as the case may be, or the bank may, within 30 days after the date of receipt of notice of the removal order under subsection (5), or within any longer period that the Court allows, appeal the matter to the Federal Court.
The director or senior officer, as the case may be, ceases to hold that office as of the date the removal order is made or any later date specified in the order.
The Superintendent shall, without delay, notify the director or senior officer, as the case may be, and the bank of a removal order or suspension order.
If the Superintendent is of the opinion that the public interest may be prejudiced by the director or senior officer continuing to exercise the powers or carry out the duties and functions of that office during the period for making representations, the Superintendent may make an order suspending the director or senior officer. The suspension may not extend beyond 10 days after the expiration of that period.
The Superintendent must in writing notify the person concerned and the bank of any removal order that the Superintendent proposes to make under subsection (1) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
In forming an opinion under subsection (1), the Superintendent must consider whether the interests of the depositors and creditors of the bank have been or are likely to be prejudiced by the person’s holding office as a director or senior officer.
The Superintendent may, by order, remove a person from office as a director or senior officer of a bank if the Superintendent is of the opinion that the person is not suitable to hold that office
unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so,
take control, for a period not exceeding sixteen days, of the assets of the bank and the assets under its administration; or
take control of the bank.
where control of assets has been taken under paragraph (a), continue the control beyond the sixteen days referred to in that paragraph, or
take control, for a period exceeding sixteen days, of the assets of the bank and the assets under its administration,
If the Superintendent has control under subsection (1) or (1.11) of the assets of a bank referred to in that subsection,
If the Superintendent has control under subsection (1) or (1.11) of the assets of a bank referred to in that subsection, the Superintendent may do all things necessary or expedient to protect the rights and interests of the depositors and creditors of the bank.
Subject to this Act, the Minister may, for reasons related to national security, direct the Superintendent to
Within 30 days after exercising any of the powers under subsection (1.11), the Minister shall notify
If the Minister is considering whether to exercise the powers under any of paragraphs (1.11)(b) to (d), the Superintendent shall notify the bank of the action that is being considered and of its right to make written representations to the Minister within the time specified in the notice, not exceeding 10 days after it receives the notice.
If the Superintendent takes control of the assets of the bank under paragraph (1.11)(a), the Superintendent shall notify the bank that control has been taken at the direction of the Minister.
The Superintendent must notify a bank of any action proposed to be taken in respect of it under paragraph (1)(b) and of its right to make written representations to the Superintendent within the time specified in the notice, not exceeding ten days after it receives the notice.
Control by the Superintendent under subsection (1) may be taken in respect of a bank where
Subject to this Act, where any of the circumstances described in subsection (1.1) exist in respect of a bank, the Superintendent may
in the opinion of the Superintendent, the continued operation of the bank by the directors of the bank or by the officers of the bank responsible for its management would pose a risk to national security.
in the opinion of the Superintendent, the continued operation of the bank by the directors of the bank or by the officers of the bank responsible for its management would be materially prejudicial to its integrity or security; or
in the opinion of the Superintendent, any other state of affairs exists in respect of the bank that may be materially prejudicial to the interests of the bank’s depositors or creditors or the owners of any assets under the bank’s administration, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Canada or elsewhere in respect of the holding body corporate of the bank;
in the opinion of the Superintendent, the bank’s depositors and creditors may be detrimentally affected because all of the common shares or membership shares of the bank must be disposed of under a direction made by the Minister or because there is a prohibition under this Act in respect of the exercise of the right to vote attached to all of the common shares or membership shares of the bank;
the bank’s deposit insurance has been terminated by the Canada Deposit Insurance Corporation;
the bank has failed to comply with an order of the Superintendent under paragraph 485(3)(a);
the regulatory capital of the bank has, in the opinion of the Superintendent, reached a level or is eroding in a manner that may detrimentally affect its depositors or creditors;
any asset appearing on the books or records of the bank or held under its administration is not, in the opinion of the Superintendent, satisfactorily accounted for;
the assets of the bank are not, in the opinion of the Superintendent, sufficient to give adequate protection to the bank’s depositors and creditors;
[Repealed, 2001, c. 9, s. 182]
the bank has failed to pay its liabilities or, in the opinion of the Superintendent, will not be able to pay its liabilities as they become due and payable;
take control of the bank.
if control of assets has been taken under paragraph (a), continue the control beyond the 16 days referred to in that paragraph; or
take control, for a period exceeding 16 days, of the assets of the bank and the assets under its administration;
take control, for a period not exceeding 16 days, of the assets of the bank and the assets under its administration;
the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.
the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act; and
no director, officer or employee of the bank shall have access to any cash or securities held by the bank unless
the bank shall not make, acquire or transfer any loan or make any purchase, sale or exchange of securities or any disbursement or transfer of cash of any kind without the prior approval of the Superintendent or a representative designated by the Superintendent; and
the access is previously authorized by the Superintendent or the Superintendent’s representative.
a representative of the Superintendent accompanies the director, officer or employee, or
If the Superintendent takes control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d), the Superintendent may appoint one or more persons to assist in the management of the bank.
If the Superintendent takes control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d), the Superintendent shall manage the business and affairs of the bank and in doing so the Superintendent
If the Superintendent takes control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d), the powers, duties, functions, rights and privileges of the directors of the bank and of the officers of the bank responsible for its management are suspended. If the bank is a federal credit union, the powers of the members to make, amend or repeal by-laws are also suspended.
has and may exercise any power, right or privilege that any such person had or could have exercised prior to the taking of control.
may perform any of the duties and functions that the persons referred to in subsection (1) were performing prior to the taking of control; and
Control by the Superintendent under subsection 648(1.11) of a bank or of the assets of a bank expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the bank stating that the Minister is of the opinion, on the recommendation of the Superintendant, that corrective measures have been taken in response to the reasons related to national security and that the bank can resume control of its business and affairs.
Control by the Superintendent under subsection 648(1) of a bank or of the assets of a bank expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the bank stating that the Superintendent is of the opinion that the circumstances leading to the taking of control by the Superintendent have been substantially rectified and that the bank can resume control of its business and affairs.
the bank is under the control of the Superintendent under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d).
the assets of the bank are under the control of the Superintendent under subparagraph 648(1)(b)(i) or (ii) or paragraph 648(1.11)(b) or (c); or
request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the bank.
comply with the request; or
Where any direction is made under subsection (1), the amount for which the bank is liable is a debt due to Her Majesty in right of Canada payable on demand and is recoverable in the Federal Court or any other court of competent jurisdiction.
If the Superintendent has taken control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d) and the control expires or is relinquished under section 650 or paragraph 652(a), the Superintendent may direct that the bank be liable for repayment of all or part of the expenses resulting from the taking of control of the bank and assessed against and paid by other banks and by authorized foreign banks under section 23 of the Office of the Superintendent of Financial Institutions Act, together with any interest in respect of the expenses at any rate that is specified by the Superintendent.
If the Commissioner is satisfied that the information will be treated as confidential by the agency, body or person to whom it is disclosed, subsection (1) does not prevent the Commissioner from disclosing it
Subject to subsection (2), information regarding the business or affairs of a bank, authorized foreign bank or external complaints body or regarding persons dealing with any of them that is obtained by the Commissioner or by any person acting under the Commissioner’s direction, in the course of the exercise or performance of powers, duties and functions referred to in subsection 5(1) of the Financial Consumer Agency of Canada Act, and any information prepared from that information, is confidential and shall be treated accordingly.
to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance or to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for the purposes of policy analysis related to the regulation of financial institutions.
to the Canada Deposit Insurance Corporation, for purposes related to its operation; and
to any other agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision;
to any government agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision;
The Commissioner, or a person acting under the Commissioner’s direction, in carrying out his or her duties under this section
The expenses incurred in respect of any special audit are payable by the bank, the authorized foreign bank or the external complaints body that is the subject of the audit.
If a bank, an authorized foreign bank or the external complaints body is the subject of a special audit, it shall provide the Commissioner with the results of the audit.
The Commissioner may direct that a special audit be made in accordance with any terms and conditions that he or she considers appropriate if, in the opinion of the Commissioner, it is required for the purposes of the administration of the Financial Consumer Agency of Canada Act and the consumer provisions, and may appoint for that purpose
The Commissioner, from time to time but at least once in each calendar year, shall make or cause to be made any examination and inquiry that the Commissioner considers necessary for the purposes of satisfying the Commissioner that the applicable consumer provisions are being complied with and, after the conclusion of each examination and inquiry, shall report on it to the Minister.
with respect to the external complaints body, a firm of accountants, as defined in section 313.
with respect to a bank or an authorized foreign bank, a firm of accountants qualified under subsection 315(1); and
may require the directors or officers of a bank, authorized foreign bank or external complaints body to provide information and explanations, to the extent that they are reasonably able to do so, in respect of any matter subject to examination, inquiry or audit under this section.
has a right of access to any records, including electronic records, of a bank, authorized foreign bank or external complaints body; and
A temporary direction under subsection (3) continues to have effect after the end of the 15-day period referred to in that subsection if no representations are made to the Commissioner within that period or, if representations have been made, the Commissioner notifies the bank, authorized foreign bank, person or external complaints body that the Commissioner is not satisfied that there are sufficient grounds for revoking the direction.
If, in the opinion of the Commissioner, the length of time required for representations to be made under subsection (2) might be prejudicial to the public interest, the Commissioner may make a temporary direction with respect to the matters referred to in subsection (1) or (1.1) that has effect for a period of not more than 15 days.
Subject to subsection (3), no direction shall be issued under subsection (1) or (1.1) unless the bank, authorized foreign bank or person or the external complaints body is provided with a reasonable opportunity to make representations in respect of the matter.
If, in the opinion of the Commissioner, the external complaints body fails, or there are reasonable grounds to believe that it will fail, to comply with a compliance agreement or any of paragraphs 627.49(b) to (m) or to discharge its functions and perform its activities in a manner that is consistent with the purpose set out in section 627.471, the Commissioner may direct the external complaints body to comply with them or to so discharge its functions and perform its activities and to perform any act that in the opinion of the Commissioner is necessary to do so.
If, in the opinion of the Commissioner, a bank, authorized foreign bank or person, in conducting the business of the bank or authorized foreign bank, fails to comply, or there are reasonable grounds to believe that the bank, authorized foreign bank or person will fail to comply, with a compliance agreement, a consumer provision or this Part, the Commissioner may direct the bank, authorized foreign bank or person to comply with them and to perform any act that in the opinion of the Commissioner is necessary to do so.
An appeal from a decision of a court under subsection (1) or (1.1) lies in the same manner, and to the same court, as an appeal from any other order of the court.
If the external complaints body contravenes or fails to comply with a compliance agreement, any of paragraphs 627.49(b) to (m) or a direction made under subsection 661.1(1.1) or (3), the Commissioner may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the external complaints body to comply with the compliance agreement or the direction, cease the contravention or do any thing that is required to be done, and on the application the court may so order and make any other order it thinks fit.
If a bank, authorized foreign bank or person, in conducting the business of the bank or authorized foreign bank, contravenes or fails to comply with a compliance agreement or a direction made under subsection 661.1(1) or (3), contravenes this Act or omits to do any thing that is required to be done under this Act by or on the part of the bank, authorized foreign bank or person, the Commissioner may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the bank, authorized foreign bank or person to comply with the compliance agreement or the direction, cease the contravention or do any thing that is required to be done, and on the application the court may so order and make any other order it thinks fit.
any other person who, in the discretion of a court, is a proper person to make an application under section 334, 338 or 989. (plaignant)
a director or an officer, or a former director or officer, of a bank holding company or any of its affiliates; or
a registered holder or beneficial owner, and a former registered holder or beneficial owner, of a security of a bank holding company or any of its affiliates;
subordinated indebtedness means an instrument evidencing an indebtedness of a bank holding company that by its terms provides that the indebtedness will, in the event of the insolvency or winding-up of the bank holding company, be subordinate in right of payment to all liabilities of the bank holding company except those that, by their terms, rank equally with or are subordinate to such indebtedness. (titre secondaire)
complainant, in relation to a bank holding company or any matter concerning a bank holding company, means
A reference in a provision of another Part to a provision that has been made applicable in respect of bank holding companies by this Part is to be read as including a reference to that provision as it has been made applicable in respect of bank holding companies.
A reference in a provision of this Part to a provision in any other Part is deemed to be a reference to that provision as it has been made applicable by this Part in respect of bank holding companies.
The following definitions apply in this Part.
A bank holding company shall establish and adhere to policies and procedures to protect itself against threats to its integrity or security, including foreign interference.
Subject to this Act, a bank holding company has the capacity to carry on its business, conduct its affairs and exercise its powers in any jurisdiction outside Canada to the extent and in the manner that the laws of that jurisdiction permit.
A bank holding company may carry on business throughout Canada.
A bank holding company shall not carry on any business or exercise any power that it is restricted by this Act from carrying on or exercising, or exercise any of its powers in a manner contrary to this Act.
A bank holding company has the capacity of a natural person and, subject to this Act, the rights, powers and privileges of a natural person.
a document issued by any director, officer or representative of the bank holding company with actual or usual authority to issue the document is not valid or not genuine.
a person held out by the bank holding company as a director, officer or representative of the bank holding company has not been duly appointed or has no authority to exercise the powers and perform the duties that are customary in the business of the bank holding company or usual for a director, officer or representative; or
the place named in the incorporating instrument or by-laws of the bank holding company is not the place where the head office of the bank holding company is situated;
the persons named as directors of the bank holding company in the most recent return sent to the Superintendent under section 951 are not the directors of the bank holding company;
the bank holding company’s incorporating instrument or any by-laws of the bank holding company have not been complied with;
Subsection (1) does not apply in respect of a person who has or ought to have knowledge of a situation described in that subsection by virtue of their relationship to the bank holding company.
No bank holding company and no guarantor of an obligation of a bank holding company may assert against a person dealing with the bank holding company or against a person who has acquired rights from the bank holding company that
If Parliament dissolves on the day set out in subsection (1) or on any day within the six-month period before that day or on any day within an extension ordered under subsection (2), bank holding companies may continue to carry on business until the end of the 180th day after the first day of the first session of the next Parliament.
The order is not a regulation for the purposes of the Statutory Instruments Act. However, it shall be published in Part II of the Canada Gazette.
The Governor in Council may, by order, extend by up to six months the time during which bank holding companies may continue to carry on business. No more than one order may be made under this subsection.
Subject to subsections (2) and (4), bank holding companies shall not carry on business after June 30, 2025.
an entity, other than a foreign institution or any subsidiary of a foreign institution, that is controlled by the government of a foreign country or any political subdivision thereof.
an agency of the government of a foreign country or any political subdivision thereof; or
the government of a foreign country or any political subdivision thereof;
Her Majesty in right of Canada or in right of a province, an agency of Her Majesty in either of those rights, or an entity controlled by Her Majesty in either of those rights;
the best interests of the financial system in Canada.
the impact of any integration of the businesses and operations of the applicant or applicants with those of the bank holding company and its affiliates on the conduct of those businesses and operations; and
whether the bank holding company will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;
the character and integrity of the applicant or applicants or, if the applicant or any of the applicants is a body corporate, its reputation for being operated in a manner that is consistent with the standards of good character and integrity;
the business record and experience of the applicant or applicants;
the soundness and feasibility of the plans of the applicant or applicants for the future conduct and development of the business of the bank that is proposed to be its subsidiary;
the nature and sufficiency of the financial resources of the applicant or applicants as a source of continuing financial support for the bank that is proposed to be its subsidiary;
the date that the bank holding company came, or is to come, into existence.
the province in which the head office of the bank holding company is to be situated; and
the name of the bank holding company;
The Minister may impose such terms and conditions in respect of the issuance of letters patent incorporating a bank holding company as the Minister considers necessary or appropriate.
The Minister may set out in the letters patent incorporating a bank holding company any provision not contrary to this Act that the Minister considers advisable in order to take into account the particular circumstances of the proposed bank holding company.
There shall be set out in the letters patent incorporating a bank holding company
If, under a provision included in the letters patent incorporating a bank holding company, a share exchange is deemed to have taken place, the bank holding company shall, within ninety days after the issuance of the letters patent, make provision for the issue of share certificates representing shares of the bank holding company and for the exchange of those certificates for share certificates representing the shares of the bank that were outstanding on the effective date of the letters patent.
No provision described in subsection (1) may be included in letters patent issued under section 671 unless the application for the letters patent is accompanied by evidence that the request for the provision was approved by a special resolution of the shareholders of the bank at a shareholders’ meeting called to consider the application.
Despite subsection (3), no share of a bank holding company that is deemed to be issued under a provision included in the letters patent incorporating a bank holding company may subsequently be transferred or voted contrary to this Act.
An exchange of shares of a bank referred to in subsection (1) under a provision included in the letters patent incorporating a bank holding company does not deprive a person who was a holder of shares of the bank immediately before the exchange of any right or privilege with respect to the shares or relieve the person of any liability in respect of the shares, but that right or privilege must be exercised in accordance with this Act.
Shares of a bank holding company deemed to be issued under subsection (1) are subject to the same designation, rights, privileges and restrictions or conditions and, subject to any agreement to the contrary, to the same charges, encumbrances and other restrictions as the shares of the bank for which they are exchanged and the shares of the bank, on the issuance of the letters patent, become the property of the bank holding company free and clear of any charge, encumbrance or other restriction.
If, under section 671, the Minister issues letters patent incorporating a bank holding company on the application of a bank, there may, on the request of the bank, and with the approval of the Minister, be included in the letters patent of incorporation of the bank holding company a provision deeming shares of the bank holding company to be issued, on a share for share basis, to all shareholders of the bank in exchange for all the issued and outstanding shares of the bank.
despite any provision of the Act specified in regulations made under paragraph 2(e), give any approval that the Minister considers necessary.
include in the letters patent of the bank holding company issued under section 671, 684 or 809 any provision the Minister considers necessary; or
The Governor in Council may make regulations
On application, made in accordance with the regulations, by a bank to give effect to a proposal to incorporate a bank holding company as the holding body corporate of the bank, to continue a body corporate as a bank holding company of the bank or to amalgamate two or more bodies corporate and continue those bodies corporate as a bank holding company of the bank — and to make any other fundamental change to or in respect of the bank, including an exchange of any or all of the shares of the bank for shares of the bank holding company — , the Minister may, to give effect to the proposal,
specifying provisions of the Act for the purpose of paragraph (1)(b).
respecting the approval, confirmation or authorization, if any, of all or any portion of proposals to which subsection (1) applies, including the approval of shareholders and including the terms and conditions of those approvals, confirmations or authorizations and their effect; and
respecting the procedures to be followed by a bank that makes an application under subsection (1);
respecting proposals to which subsection (1) applies, including the information to be contained in the proposals and the times within which the transactions involved in them must occur;
respecting applications referred to in subsection (1), including their form and the information to be contained in them, and authorizing the requesting of additional information in respect of such applications;
A body corporate incorporated otherwise than by or under an Act of Parliament may, if so authorized by the laws of the jurisdiction where it is incorporated, apply to the Minister for letters patent continuing the body corporate as a bank holding company under this Part.
A body corporate incorporated under the Canada Business Corporations Act or any other Act of Parliament, including a bank but not including a federal credit union, may apply to the Minister for letters patent continuing the body corporate as a bank holding company under this Part.
A copy of the special resolution referred to in subsection (2) shall be filed with the application.
Where a body corporate applies for letters patent under subsection 682(1) or (2), the application must be duly authorized by a special resolution.
Where a body corporate applies for letters patent under subsection 682(1) or (2), sections 672 to 675 apply in respect of the application, with such modifications as the circumstances require.
Where letters patent are issued to a body corporate under subsection (1), section 676 applies in respect of the issue of letters patent, with such modifications as the circumstances require.
On the application of a body corporate under subsection 682(1) or (2), the Minister may, subject to this Division, issue letters patent continuing the body corporate as a bank holding company under this Part.
the letters patent are deemed to be the incorporating instrument of the continued bank holding company.
the body corporate becomes a bank holding company as if it had been incorporated under this Part; and
The Superintendent shall cause to be published in the Canada Gazette a notice of the issuance of letters patent continuing a body corporate as a bank holding company under this Part.
Where a body corporate is continued as a bank holding company under this Part, the Superintendent shall without delay send a copy of the letters patent to the appropriate official or public body in the jurisdiction in which the body corporate was authorized to apply to be continued under this Part.
the by-laws of the body corporate, except those that are in conflict with this Act, continue as the by-laws of the bank holding company.
a person who, on the day the body corporate becomes a bank holding company, was the holder of a security issued by the body corporate is not deprived of any right or privilege available to the person at that time in respect of the security or relieved of any liability in respect thereof, but any such right or privilege may be exercised only in accordance with this Act; and
a conviction against, or any ruling, order or judgment in favour of or against the body corporate may be enforced by or against the bank holding company;
a civil, criminal or administrative action or proceeding pending by or against the body corporate may continue to be prosecuted by or against the bank holding company;
an existing cause of action or claim by or against the body corporate or any liability of the body corporate to prosecution is unaffected;
the bank holding company continues to be liable for the obligations of the body corporate;
the property of the body corporate continues to be the property of the bank holding company;
maintain outside Canada any records or registers required by this Act to be maintained in Canada.
acquire and hold assets that a bank holding company is not otherwise permitted by this Act to acquire or hold if the body corporate continued as the bank holding company was obliged, at the time the application for the letters patent was made, to acquire those assets; and
hold assets that a bank holding company is not otherwise permitted by this Act to hold if the assets were held by the body corporate continued as the bank holding company at the time the application for the letters patent was made;
continue to have issued and outstanding debt obligations the issue of which is not authorized by this Act if the debt obligations were outstanding at the time the application for the letters patent was made;
engage in a business activity specified in the order that a bank holding company is not otherwise permitted by this Act to engage in and that the body corporate continued as the bank holding company was engaging in at the time the application for the letters patent was made;
The Minister shall not grant to a bank holding company any permission
Subject to subsection (4), the Minister may, on the recommendation of the Superintendent, by order, renew a permission granted by order under subsection (1) with respect to any matter described in paragraphs (1)(b) to (d) for such further period or periods as the Minister considers necessary.
The permission granted under subsection (1) shall be expressed to be granted for a period specified in the order not exceeding
Notwithstanding any other provision of this Act or the regulations, the Minister may, on the recommendation of the Superintendent, by order, grant to a bank holding company in respect of which letters patent were issued under subsection 684(1) permission to
with respect to any matter described in any of paragraphs (1)(c) to (e), two years.
with respect to any matter described in paragraph (1)(b), ten years; and
with respect to any activity described in paragraph (1)(a), thirty days after the effective date of the letters patent or, where the activity is conducted pursuant to an agreement existing on the effective date of the letters patent, the expiration of the agreement;
with respect to matters described in paragraphs (1)(c) and (d), that purports to be effective more than ten years after the effective date of the letters patent.
with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the effective date of the letters patent, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the bank holding company that the bank holding company will not be able at law to redeem at the end of the ten years the outstanding debt obligations to which the permission relates; and
No approval referred to in subsection (1) may be given to a bank holding company unless the Minister is satisfied that the application of the bank holding company has been authorized by a special resolution.
A bank holding company may apply to be continued only as a body corporate under any other Act of Parliament or any Act of the legislature of a province, and it may do so only with the approval in writing of the Minister.
Except for the sole purpose of winding up its affairs, a bank holding company without a bank subsidiary that has no other subsidiary that fails to make an application under subsection (2) within the time provided for in that subsection ceases to exist on the expiration of that period.
A bank holding company without a bank subsidiary must, within 30 days after becoming a bank holding company without a bank subsidiary, apply to be continued under subsection 689(1).
For the purpose of this section, bank holding company without a bank subsidiary means a bank holding company that does not, at any time within one year after it came into existence, have a subsidiary that is a bank or that does not, for a period of one year, have a subsidiary that is a bank.
that is reserved under section 43 for a bank or an authorized foreign bank or a proposed bank or proposed authorized foreign bank or under section 697 for another bank holding company or a proposed bank holding company.
that is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any entity carries on business or is identified; or
that is the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing
that is, in the opinion of the Superintendent, deceptively misdescriptive;
that is prohibited by an Act of Parliament;
corporate name of a body corporate,
trademark or trade name, or
subject to any terms and conditions that may be prescribed, carry on business under or identify itself by a name, other than its corporate name, that is substantially the same as the corporate name of the affiliated entity or that is another name under which or with which the affiliated entity carries on business or otherwise identifies itself.
be incorporated with, or change its name to, substantially the same name as that of the affiliated entity; or
The Governor in Council may make regulations respecting the use of the abbreviations “bhc” or “spb” in the name of bank holding companies.
Where a bank holding company is carrying on business under or identifying itself by a name other than its corporate name, the Superintendent may, by order, direct the bank holding company not to use that other name if the Superintendent is of the opinion that that other name is a name referred to in any of paragraphs 693(a) to (e).
Subject to subsection (5) and section 832, a bank holding company may carry on business under or identify itself by a name other than its corporate name.
A bank holding company may identify itself outside Canada by its name in any language and the bank holding company may use and be legally designated by any such form of its name outside Canada.
Despite any other provision of this Act and subject to the regulations, every bank holding company shall have as part of its name, the abbreviations “bhc” or “spb”.
The name of a bank holding company may be set out in its letters patent in an English form, a French form, an English form and a French form or in a combined English and French form, and the bank holding company may use and be legally designated by any such form.
on an application to change its name, is granted a name
comes into existence or is continued with a name, or
Where a bank holding company has been directed under subsection (1) to change its name and has not, within sixty days after the service of the direction, changed its name to a name that is not prohibited by this Part, the Superintendent may revoke the name of the bank holding company and assign to it a name and, until changed in accordance with section 215 or 217, the name of the bank holding company is thereafter the name so assigned.
If through inadvertence or otherwise a bank holding company
the province in which the head office of the bank holding company is situated.
the name of every bank holding company; and
deal with any other matters necessary to organize the bank holding company.
make banking arrangements; and
appoint an auditor to hold office until the first meeting of shareholders;
appoint officers;
authorize the issue of shares of the bank holding company;
adopt forms of share certificates and corporate records;
make by-laws;
An incorporator or a director named in the application for letters patent may call the meeting referred to in subsection (1) by giving, subject to subsection 770(2), no fewer than five days notice of the purpose, time and place of the meeting to each director of the bank holding company.
After letters patent incorporating a bank holding company are issued, a meeting of the directors of the bank holding company shall be held at which the directors may, subject to this Division,
The shareholders of a bank holding company shall, by resolution at the meeting of shareholders called pursuant to subsection (1),
After the meeting referred to in subsection 700(1) is held, the directors of the bank holding company shall without delay call a meeting of the shareholders of the bank holding company.
appoint an auditor to hold office until the close of the first annual meeting of shareholders.
subject to section 756, elect directors to hold office for a term expiring not later than the close of the third annual meeting of shareholders following the election; and
approve, amend or reject any by-law made by the directors of the bank holding company;
If a right of a holder of a share with nominal or par value of a body corporate continued as a bank holding company under this Part, other than a voting right, was stated or expressed in terms of the nominal or par value of the share immediately before the body corporate was continued under this Part, that right is deemed, after the continuance, to be the same right stated or expressed without reference to the nominal or par value of the share.
Where a body corporate is continued as a bank holding company under this Part, shares with nominal or par value issued by the body corporate before it was so continued are deemed to be shares without nominal or par value.
Shares of a bank holding company shall be in registered form and shall be without nominal or par value.
Subject to this Part and the by-laws of the bank holding company, shares of a bank holding company may be issued at such times and to such persons and for such consideration as the directors of the bank holding company may determine.
the right to receive the remaining property of the bank holding company on dissolution.
the right to receive dividends declared on those shares; and
the right to vote at all meetings of shareholders except where only holders of a specified class of shares are entitled to vote;
A body corporate continued as a bank holding company under this Part that is not in compliance with subsection (2) on the date letters patent continuing it as a bank holding company are issued shall, within twelve months after that date, redesignate its shares to comply with that subsection.
No bank holding company shall designate more than one class of its shares as “common shares” or any variation of that term.
A bank holding company shall have one class of shares, to be designated as “common shares”, which are non-redeemable and in which the rights of the holders thereof are equal in all respects, and those rights include
the maximum number, if any, of shares of any class that the bank holding company is authorized to issue.
the rights, privileges, restrictions and conditions attaching to the shares of each class; and
A by-law referred to in subsection (1) is not effective until it is confirmed or confirmed with amendments by special resolution of the shareholders at the meeting referred to in subsection (2).
Where a by-law referred to in subsection (1) is made, the directors of the bank holding company shall submit the by-law to the shareholders at the next meeting of shareholders.
The by-laws of a bank holding company may provide for more than one class of shares and, if they so provide, shall set out
authorize the directors to do anything referred to in paragraph (a).
fix the maximum number of shares in each series and determine the designation, rights, privileges, restrictions and conditions attaching to them; and
If the directors exercise their authority under paragraph (1)(b), the directors shall, before the issue of shares of the series, send to the Superintendent particulars of the series of shares and a copy of the by-law that granted the authority to the directors.
No rights, privileges, restrictions or conditions attached to a series of shares authorized under this section confer on the series a priority in respect of dividends or return of capital over any other series of shares of the same class that are then outstanding.
Where voting rights are attached to any series of a class of shares, the shares of every other series of that class shall have the same voting rights.
If any cumulative dividend or amounts payable on return of capital in respect of a series of shares are not paid in full, the shares of all series of the same class participate rateably in respect of accumulated dividends and return of capital.
The by-laws of a bank holding company may, subject to any limitations set out in them, authorize the issue of any class of shares in one or more series and may
When issuing shares, a bank holding company may provide that any aspect of the shares relating to money or involving the payment of or the liability to pay money be in a currency other than the currency of Canada.
No share of any class of shares of a bank holding company shall be issued until it is fully paid for in money or, with the approval of the Superintendent, in property.
Where a bank holding company that has issued any outstanding shares of more than one class or series proposes to add to a stated capital account that it maintains in respect of a class or series of shares an amount that was not received by the bank holding company as consideration for the issue of shares, the addition must be approved by special resolution unless all the issued and outstanding shares are of not more than two classes of convertible shares referred to in subsection 720(4).
On the issuance of a share, a bank holding company shall not add to the stated capital account in respect of the share an amount greater than the amount of the consideration it receives for the share.
Despite subsection (2), a bank holding company may, subject to subsection (4), record in the stated capital account maintained for the shares of a class or series any part of the consideration it receives in an exchange if it issues shares
A bank holding company shall record in the appropriate stated capital account the full amount of any consideration it receives for any shares it issues.
A bank holding company shall maintain a separate stated capital account for each class and series of shares it issues.
property of a person who immediately before the exchange dealt with the bank holding company at arm’s length within the meaning of that expression in the Income Tax Act if the person, the bank holding company and all of the holders of shares in the class or series of shares so issued consent to the exchange;
shares of or another interest in a body corporate that immediately before the exchange or because of it did not deal with the bank holding company at arm’s length within the meaning of that expression in the Income Tax Act, or
property of a person who immediately before the exchange did not deal with the bank holding company at arm’s length within the meaning of that expression in the Income Tax Act,
to shareholders of an amalgamating body corporate who receive the shares in addition to or instead of securities of the amalgamated bank holding company.
under an agreement referred to in subsection 804(1); or
in exchange for
the amount of the contributed surplus of the bank holding company that is attributable to those shares.
the aggregate amount paid up on the shares of each class and series of shares immediately before the body corporate was so continued, and
Any amount unpaid in respect of a share issued by a body corporate before it was continued as a bank holding company under this Part and paid after it was so continued shall be recorded in the stated capital account maintained by the bank holding company for the shares of that class or series.
The amount of any contributed surplus recorded in the stated capital account pursuant to paragraph (1)(b) shall be deducted from the contributed surplus account of the bank holding company.
Where a body corporate is continued as a bank holding company under this Part, the bank holding company shall record in the stated capital account maintained for each class and series of shares then outstanding an amount that is equal to the aggregate of
Notwithstanding the existence of a pre-emptive right, a shareholder of a bank holding company has no pre-emptive right in respect of shares to be issued
Notwithstanding the existence of a pre-emptive right, a shareholder of a bank holding company has no pre-emptive right in respect of shares of a class to be issued
Where the by-laws of a bank holding company so provide, no shares of any class shall be issued unless the shares have first been offered to the shareholders holding shares of that class, and those shareholders have a pre-emptive right to acquire the offered shares in proportion to their holdings of the shares of that class, at such price and on such terms as those shares are to be offered to others.
pursuant to the exercise of conversion privileges, options or rights previously granted by the bank holding company.
as a share dividend; or
for a consideration other than money;
where, to the knowledge of the directors of the bank holding company, the offer of shares to a shareholder whose recorded address is in a country other than Canada ought not to be made unless the appropriate authority in that country is provided with information in addition to that submitted to the shareholders at the last annual meeting.
where the issue of shares to the shareholder is prohibited by this Part; or
in the securities to which the conversion privileges, options or rights are attached.
in the documents that evidence the conversion privileges, options or rights; or
Where a bank holding company has granted privileges to convert any securities issued by the bank holding company into shares, or into shares of another class or series, or has issued or granted options or rights to acquire shares, if the by-laws limit the number of authorized shares, the bank holding company shall reserve and continue to reserve sufficient authorized shares to meet the exercise of such conversion privileges, options and rights.
Conversion privileges, options and rights to acquire securities of a bank holding company may be made transferable or non-transferable, and options and rights to acquire such securities may be made separable or inseparable from any securities to which they are attached.
A bank holding company may issue conversion privileges, options or rights to acquire securities of the bank holding company, and shall set out the conditions thereof
permit any of its subsidiaries to hold any ownership interests of any unincorporated entity that controls the bank holding company.
permit any of its subsidiaries to hold any shares of the bank holding company or of any body corporate that controls the bank holding company; or
hold any ownership interests of any unincorporated entity that controls the bank holding company;
hold shares of the bank holding company or of any body corporate that controls the bank holding company;
A bank holding company may accept from any shareholder a share of the bank holding company surrendered to it as a gift, but may not extinguish or reduce a liability in respect of an amount unpaid on any such share except in accordance with section 718.
A bank holding company shall not make any payment to purchase or redeem any shares issued by it if there are reasonable grounds for believing that the bank holding company is, or the payment would cause the bank holding company to be, in contravention of any regulation referred to in subsection 949(1) or (2) or any direction made pursuant to subsection 949(3).
Subject to subsection (2) and to its by-laws, a bank holding company may, with the consent of the Superintendent, purchase, for the purpose of cancellation, any shares issued by it, or redeem any redeemable shares issued by it at prices not exceeding the redemption price thereof calculated according to a formula stated in its by-laws or the conditions attaching to the shares.
A bank holding company may permit its subsidiaries to hold by way of a security interest shares of the bank holding company or of any body corporate that controls the bank holding company, or any ownership interests of any entity that controls the bank holding company, if the security interest is nominal or immaterial when measured by criteria established by the bank holding company that have been approved in writing by the Superintendent.
A bank holding company may permit its subsidiaries to hold, in the capacity of a personal representative, shares of the bank holding company or of any body corporate that controls the bank holding company or ownership interests in any unincorporated entity that controls the bank holding company, but only if the subsidiary does not have a beneficial interest in the shares or ownership interests.
If a bank holding company permits any of its subsidiaries to acquire shares of the bank holding company under the purported authority of subsection (1) and one or more of the conditions prescribed for the purposes of subsections (1) and (2) were not met, are not met or cease to be met, as the case may be, then, despite section 665 and subsection 710(2), the bank holding company must comply with the prescribed requirements.
After a subsidiary has acquired shares under the purported authority of subsection (1), the conditions prescribed for the purposes of this subsection must be met.
A bank holding company may permit any of its subsidiaries to acquire shares of the bank holding company through the issuance of those shares by the bank holding company to the subsidiary if the conditions prescribed for the purposes of this subsection are met before the subsidiary acquires the shares.
If a subsidiary of a bank holding company, through the realization of security, acquires any shares of the bank holding company or of any body corporate that controls the bank holding company or any ownership interests in an unincorporated entity that controls the bank holding company, the bank holding company shall cause its subsidiary to, within six months after the day of the realization, sell or otherwise dispose of the shares or ownership interests.
Subject to subsection (2), where a bank holding company purchases shares of the bank holding company or fractions thereof or redeems or otherwise acquires shares of the bank holding company, the bank holding company shall cancel those shares.
In addition to evidence of the passing of a special resolution to reduce the stated capital of a bank holding company and of the publication thereof, statements showing
No approval to reduce the stated capital of a bank holding company may be given by the Superintendent unless application therefor is made within three months after the time of the passing of the special resolution and a copy of the special resolution, together with a notice of intention to apply for approval, has been published in the Canada Gazette.
Subsection (4) does not apply if
A special resolution to reduce the stated capital of a bank holding company has no effect until it is approved in writing by the Superintendent.
A special resolution to reduce the stated capital of a bank holding company shall specify the stated capital account or accounts from which the reduction of stated capital effected by the special resolution will be deducted.
A bank holding company shall not reduce its stated capital by special resolution if there are reasonable grounds for believing that the bank holding company is, or the reduction would cause the bank holding company to be, in contravention of any regulation referred to in subsection 949(1) or (2) or any direction made pursuant to subsection 949(3).
The stated capital of a bank holding company may be reduced by special resolution.
there is to be no return of capital to shareholders as a result of the reduction.
the reduction in the stated capital is made solely as a result of changes made to the accounting principles referred to in subsection 308(4); and
the reason why the bank holding company seeks the reduction of capital
the bank holding company’s assets and liabilities, and
the results of the voting by class of shares of the bank holding company,
the number of the bank holding company’s shares issued and outstanding,
This section does not affect any liability that arises under section 794.
An action to enforce a liability imposed by subsection (1) may not be commenced more than two years after the date of the act complained of.
No person holding shares in the capacity of a personal representative and registered on the records of the bank holding company as a shareholder and therein described as the personal representative of a named person is personally liable under subsection (1), but the named person is subject to all the liabilities imposed by that subsection.
Where any money or property was paid or distributed to a shareholder or other person as a consequence of a reduction of capital made contrary to section 718, a creditor of the bank holding company may apply to a court for an order compelling the shareholder or other person to pay the money or deliver the property to the bank holding company.
Shares issued by a bank holding company and converted into shares of another class or series, or changed under subsection 217(1) into shares of another class or series, become issued shares of the class or series of shares into which the shares have been converted or changed.
For the purposes of subsection (3) and subject to the bank holding company’s by-laws, where a bank holding company issues two classes of shares and there is attached to each class a right to convert a share of one class into a share of the other class and a share is so converted, the amount of stated capital attributable to a share in either class is the aggregate of the stated capital of both classes divided by the number of outstanding shares of both classes immediately before the conversion.
On a conversion of outstanding shares of a bank holding company into shares of another class or series, or on a change of outstanding shares of the bank holding company into shares of another class or series, the bank holding company shall
A bank holding company shall adjust its stated capital account or accounts in accordance with any special resolution referred to in section 718.
On a purchase, redemption or other acquisition by a bank holding company of shares or fractions thereof issued by it, the bank holding company shall deduct from the stated capital account maintained for the class or series of shares so purchased, redeemed or otherwise acquired an amount equal to the result obtained by multiplying the stated capital in respect of the shares of that class or series by the number of shares of that class or series so purchased, redeemed or otherwise acquired and dividing by the number of shares of that class or series outstanding immediately before the purchase, redemption or other acquisition.
record the result obtained under paragraph (a) and any additional consideration received pursuant to the conversion or change in the stated capital account maintained or to be maintained for the class or series of shares into which the shares have been converted or changed.
deduct from the stated capital account maintained for the class or series of shares converted or changed an amount equal to the result obtained by multiplying the stated capital of the shares of that class or series by the number of shares of that class or series converted or changed, and dividing by the number of outstanding shares of that class or series immediately before the conversion or change; and
record the result obtained under paragraph (a) and any additional consideration received for the conversion in the stated capital account maintained or to be maintained for the class or series of shares into which the debt obligation has been converted.
deduct from the liabilities of the bank holding company the nominal value of the debt obligation being converted; and
The directors of a bank holding company shall not declare and a bank holding company shall not pay a dividend if there are reasonable grounds for believing that the bank holding company is, or the payment would cause the bank holding company to be, in contravention of any regulation referred to in subsection 949(1) or (2) or any direction made pursuant to subsection 949(3).
If shares of a bank holding company are issued in payment of a dividend, the bank holding company shall record in the stated capital account maintained or to be maintained for the shares of the class or series issued in payment of the dividend the declared amount of the dividend stated as an amount of money.
The directors of a bank holding company shall notify the Superintendent of the declaration of a dividend at least 15 days before the day fixed for its payment.
The directors of a bank holding company may declare and a bank holding company may pay a dividend by issuing fully paid shares of the bank holding company or options or rights to acquire fully paid shares of the bank holding company and, subject to subsection (4), the directors of a bank holding company may declare and a bank holding company may pay a dividend in money or property, and where a dividend is to be paid in money, the dividend may be paid in a currency other than the currency of Canada.
When issuing subordinated indebtedness, a bank holding company may provide that any aspect of the subordinated indebtedness relating to money or involving the payment of or the liability to pay money in relation thereto be in a currency other than that of Canada including, without restricting the generality of the foregoing, the payment of any interest thereon.
A person shall not in any prospectus, advertisement, correspondence or literature relating to any subordinated indebtedness issued or to be issued by a bank holding company refer to the subordinated indebtedness otherwise than as subordinated indebtedness.
A bank holding company shall not issue subordinated indebtedness unless the subordinated indebtedness is fully paid for in money or, with the approval of the Superintendent, in property.
the reference to “section 71 or 77” in subsection 97(3) is to be read as a reference to “section 715 or 720”.
the reference to “subsections 137(5) to (7) and sections 138 to 141 and 145” in subsection 93(1) is to be read as a reference to “subsections 726(5) to (7) and sections 727 to 730 and 734”; and
references to “this Part” in those sections are to be read as references to “this Division”;
references to “Part VII” in those sections are to be read as references to “Division 7 of Part XV”;
references to “this Act” in those sections are to be read as references to “this Part”;
references to “bank” in those sections are to be read as references to “bank holding company”;
The Governor in Council may make regulations respecting the manner of and conditions for participating in a meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting.
Unless the by-laws provide otherwise, any person who is entitled to attend a meeting of shareholders may participate in the meeting by means of a telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting if the bank holding company makes one available. A person who is participating in a meeting by one of those means is deemed for the purposes of this Part to be present at the meeting.
Meetings of shareholders of a bank holding company shall be held at the place within Canada provided for in the by-laws of the bank holding company or, in the absence of any such provision, at the place within Canada that the directors determine.
may at any time call a special meeting of shareholders.
shall, after the meeting called pursuant to subsection 701(1), call the first annual meeting of shareholders of the bank holding company, which meeting must be held not later than six months after the end of the first financial year of the bank holding company, and subsequently call an annual meeting of shareholders, which meeting must be held not later than six months after the end of each financial year; and
If a record date is fixed and unless notice of the record date is waived in writing by every holder of a share of the class or series affected whose name is set out in the securities register at the close of business on the day on which the directors fix the record date, notice of the record date shall be given within the prescribed period by
If no record date is fixed,
The directors may in advance fix a record date, that is within the prescribed period, for the determination of shareholders for any purpose, including for a determination of which shareholders are entitled to
The Superintendent is entitled to appear and be heard in person or by counsel at any hearing concerning the application.
The bank holding company shall give notice of the application to the Superintendent before any hearing concerning the application and shall provide the Superintendent with a copy of any order that is issued.
Despite subsection (1), the bank holding company may apply to the court for an order extending the time for calling an annual meeting.
The directors of a bank holding company
vote at a meeting of shareholders.
receive notice of a meeting of shareholders; or
participate in a liquidation distribution;
receive payment of a dividend;
if no notice is given, the day on which the meeting is held; and
at the close of business on the day immediately preceding the day on which the notice is given, or
the record date for the determination of shareholders for any other purpose, other than to establish a shareholder’s right to vote, is at the close of business on the day on which the directors pass a resolution in respect of that purpose.
the record date for the determination of shareholders who are entitled to receive notice of a meeting of shareholders is
written notice to each stock exchange in Canada on which the bank holding company’s shares are listed for trading.
advertisement in a newspaper in general circulation in the place where the bank holding company’s head office is situated and in each place in Canada where the bank holding company has a transfer agent or where a transfer of its shares may be recorded; and
the Superintendent.
the auditor of the bank holding company; and
each director;
each shareholder entitled to vote at the meeting;
In addition to the notice required under subsection (1), where any class of shares of a bank holding company is publicly traded on a recognized stock exchange in Canada, notice of the time and place of a meeting of shareholders shall be published once a week for at least four consecutive weeks before the date of the meeting in a newspaper in general circulation in the place where the head office of the bank holding company is situated and in each place in Canada where the bank holding company has a transfer agent or where a transfer of the bank holding company’s shares may be recorded.
A bank holding company with equity of twelve billion dollars or more shall set out in the notice of a meeting the number of eligible votes, as defined under subsection 156.09(1), that may be cast at the meeting as of the record date for determining those shareholders entitled to receive the notice of meeting, or if there are to be separate votes of shareholders at the meeting, the number of eligible votes, as defined in that subsection, in respect of each separate vote to be held at the meeting.
In the case of a bank holding company that is not a distributing bank holding company, notice may be sent within any shorter period specified in its by-laws.
Notice of the time and place of a meeting of shareholders of a bank holding company shall be sent within the prescribed period to
Failure to receive a notice of a meeting of shareholders does not deprive a shareholder of the right to vote at the meeting.
A notice of a meeting is not required to be sent to shareholders who are not registered on the records of the bank holding company or the bank holding company’s transfer agent on the record date fixed under paragraph 726(5)(c) or determined under paragraph 726(6)(a).
If a meeting of shareholders is adjourned by one or more adjournments for a total of thirty days or more, notice of the continuation of the meeting shall be given as for an original meeting but, unless the meeting is adjourned by one or more adjournments for a total of more than ninety days, subsection 156.04(1) does not apply.
If a meeting of shareholders is adjourned for less than thirty days, it is not necessary, unless the by-laws otherwise provide, to give notice of the adjourned meeting, other than by announcement at the earliest meeting that is adjourned.
Notice of a meeting of shareholders at which special business is to be transacted must
All matters dealt with at a special meeting of shareholders and all matters dealt with at an annual meeting of shareholders, except consideration of the financial statements, report of the auditor, election of directors, remuneration of directors and reappointment of the incumbent auditor, are deemed to be special business.
contain the text of any special resolution to be submitted to the meeting.
state the nature of the special business in sufficient detail to permit a shareholder to form a reasoned judgment thereon; and
Attendance at a meeting of shareholders is a waiver of notice of the meeting, except when a person attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.
A shareholder and any other person entitled to attend a meeting of shareholders may in any manner waive notice of a meeting of shareholders.
discuss at the meeting any matter in respect of which they would have been entitled to submit a proposal.
submit to the bank holding company notice of any matter that they propose to raise at the meeting (in this section and section 733 referred to as a “proposal”); and
No bank holding company or person acting on behalf of a bank holding company incurs any liability by reason only of circulating a proposal or statement in compliance with subsections (2) and (3).
If a person who submits a proposal fails to continue to hold or own shares in accordance with paragraph (1.1)(a) or, as the case may be, does not continue to have the support of persons who are in the aggregate the registered holders or beneficial owners of the prescribed number of shares in accordance with paragraph (1.1)(b) until the end of the meeting, the bank holding company is not required to set out any proposal submitted by that person in or attach it to a management proxy circular for any meeting held within the prescribed period after the day of the meeting.
A bank holding company is not required to comply with subsections (2) and (3) if
A proposal may include nominations for the election of directors if it is signed by one or more registered holders or beneficial owners of shares representing in the aggregate not less than 5% of the shares of the bank holding company or 5% of the shares of a class of its shares entitled to vote at the meeting at which the proposal is to be presented.
At the request of the person who submits a proposal, the bank holding company shall set out in the management proxy circular or attach to it the person’s statement in support of the proposal and their name and address. The statement and proposal together are not to exceed the prescribed maximum number of words.
A bank holding company that solicits proxies shall set out in the management proxy circular required by subsection 156.05(1) or attach to it any proposal submitted for consideration at a meeting of shareholders.
If the bank holding company requests within the prescribed period that a person provide proof that they are eligible to submit a proposal, the person shall within the prescribed period provide proof that they meet the requirements of subsection (1.1).
The information provided under subsection (1.2) does not form part of a proposal or of the supporting statement referred to in subsection (3) and is not to be included for the purpose of the prescribed maximum number of words referred to in subsection (3).
A proposal is to be accompanied by the following information:
To be eligible to submit a proposal a person shall
Subject to subsections (1.1) and (1.2), a registered holder or beneficial owner of shares that may be voted at an annual meeting of shareholders may
have the support of persons who, in the aggregate and including or not including the person who submits the proposal, have for at least the prescribed period been the registered holders or beneficial owners of at least the prescribed number of the bank holding company’s outstanding shares.
for at least the prescribed period be the registered holder or beneficial owner of at least the prescribed number of the bank holding company’s outstanding shares; or
the number of shares held or owned by the person and their supporters, if any, and the date that the shares were acquired.
the name and address of the person submitting the proposal and the names and addresses of their supporters, if any; and
the rights conferred by subsections (1) to (4) are being abused to secure publicity.
substantially the same proposal was set out in or attached to a management proxy circular or dissident’s proxy circular relating to, and presented to shareholders at, a meeting of shareholders held within the prescribed period before the receipt of the proposal and did not receive the prescribed minimum amount of support at the meeting; or
the person submitting the proposal failed within the prescribed period before the bank holding company receives their proposal to present, in person or by proxy, at a meeting of shareholders a proposal that at their request had been set out in or attached to a management proxy circular;
it clearly appears that the proposal does not relate in a significant way to the business or affairs of the bank holding company;
it clearly appears that the primary purpose of the proposal is to enforce a personal claim or redress a personal grievance against the bank holding company or its directors, officers or security holders;
the proposal is not submitted to the bank holding company at least the prescribed number of days before the anniversary date of the notice of meeting that was sent to shareholders in respect of the previous annual meeting of shareholders;
An applicant under subsection (2) or (3) shall give the Superintendent written notice of the application and the Superintendent may appear and be heard at the hearing of the application in person or by counsel.
A bank holding company or any person claiming to be aggrieved by a proposal may apply to a court for an order permitting the bank holding company to not attach the proposal to the notice of a meeting, and the court, if it is satisfied that subsection 732(5) applies, may make such order as it thinks fit.
On the application of a person submitting a proposal who claims to be aggrieved by a bank holding company’s refusal under subsection (1), a court may restrain the holding of the meeting at which the proposal is sought to be presented and make any further order that it thinks fit.
If a bank holding company refuses to include a proposal in a management proxy circular, it shall in writing notify the person submitting the proposal of its intention to omit the proposal from the management proxy circular and of the reasons for the refusal. It shall notify the person within the prescribed period after either the day on which it receives the proposal or, if it has requested proof under subsection 732(1.4), the day on which it receives the proof.
if no record date is fixed, on the record date determined under paragraph 726(6)(a).
if a record date is fixed under paragraph 726(5)(c), no later than 10 days after that date; and
A shareholder may examine the list of shareholders
Subject to section 156.09, a shareholder whose name appears on a list prepared under subsection (2) is entitled to vote the shares shown opposite their name.
The bank holding company shall prepare an alphabetical list of shareholders entitled to vote as of the record date showing the number of shares held by each shareholder
A bank holding company shall prepare an alphabetical list of shareholders entitled to receive notice of a meeting showing the number of shares held by each shareholder
if no record date is fixed under paragraph 726(5)(d), no later than 10 days after a record date is fixed under paragraph 726(5)(c) or no later than the record date determined under paragraph 726(6)(a), as the case may be.
if a record date is fixed under paragraph 726(5)(d), no later than 10 days after that date; and
at the meeting of shareholders for which the list was prepared.
during usual business hours at the head office of the bank holding company or at the place where its central securities register is maintained; and
If a quorum is not present at the opening of a meeting of shareholders, the shareholders present may adjourn the meeting to a fixed time and place but may not transact any other business.
If a quorum is present at the opening of a meeting of shareholders, the shareholders present may, unless the by-laws otherwise provide, proceed with the business of the meeting, notwithstanding that a quorum is not present throughout the meeting.
Unless the by-laws otherwise provide, a quorum of shareholders is present at a meeting of shareholders if the holders of a majority of the shares who are entitled to vote at the meeting are present in person or represented by proxyholders.
A natural person authorized under subsection (1) to represent an entity may exercise on behalf of the entity all the powers the entity could exercise if it were a natural person as well as a shareholder.
If an entity is a shareholder of a bank holding company, the bank holding company shall recognize any natural person authorized by a resolution of the directors or governing body or similar authority of the entity to represent it at meetings of shareholders of the bank holding company.
The Governor in Council may make regulations respecting the manner of and conditions for voting at a meeting of shareholders by means of a telephonic, electronic or other communication facility.
Unless the by-laws provide otherwise, any person who is participating in a meeting of shareholders under subsection 725(2) and entitled to vote at that meeting may vote by means of the telephonic, electronic or other communication facility that the bank holding company has made available for that purpose.
Despite subsection (1) and unless the by-laws provide otherwise, any vote referred to in that subsection may be held entirely by means of a telephonic, electronic or other communication facility if the bank holding company makes one available.
A shareholder or proxyholder may demand a ballot either before or after any vote by show of hands.
Unless the by-laws otherwise provide, voting at a meeting of shareholders shall take place by show of hands except when a ballot is demanded by either a shareholder or proxyholder entitled to vote at the meeting.
a resolution in writing dealing with all matters required by this Part to be dealt with at a meeting of shareholders, and signed by all the shareholders entitled to vote at that meeting, satisfies all the requirements of this Part relating to meetings of shareholders.
a resolution in writing signed by all the shareholders entitled to vote on that resolution at a meeting of shareholders is as valid as if it had been passed at a meeting of the shareholders; and
Unless a ballot is demanded, an entry in the minutes of a meeting that the chairperson declared a resolution to be carried or defeated is in the absence of evidence to the contrary proof of that fact without proof of the number or proportion of votes recorded in favour of or against the resolution.
A copy of every resolution referred to in subsection (1) shall be kept with the minutes of the meetings of shareholders.
Except where a written statement is submitted by a director under section 762 or by an auditor under subsection 853(1),
Unless the shareholders otherwise resolve at a meeting called under subsection (4), the bank holding company shall reimburse the shareholders for any expenses reasonably incurred by them in requisitioning, calling and holding the meeting.
A meeting called under this section shall be called as nearly as possible in the manner in which meetings are to be called pursuant to the by-laws and this Part.
If the directors do not call a meeting within twenty-one days after receiving the requisition referred to in subsection (1), any shareholder who signed the requisition may call the meeting.
On receipt of a requisition referred to in subsection (1), the directors shall call a meeting of shareholders to transact the business stated in the requisition, unless
A requisition referred to in subsection (1)
Shareholders who together hold not less than 5 per cent of the issued and outstanding shares of a bank holding company that carry the right to vote at a meeting sought to be held may requisition the directors to call a meeting of shareholders for the purposes stated in the requisition.
may consist of several documents of like form, each signed by one or more shareholders.
must state the business to be transacted at the meeting and must be sent to each director and to the head office of the bank holding company; and
the business of the meeting as stated in the requisition includes matters described in paragraphs 732(5)(b) to (e).
the directors have called a meeting of shareholders and have given notice thereof under section 727; or
a record date has been fixed under paragraph 726(5)(c) and notice of it has been given under subsection 726(7);
the court thinks that the meeting ought to be called, held or conducted within the time or in the manner that it directs for any other reason.
it is impracticable to conduct the meeting in the manner required by this Part or the by-laws; or
it is impracticable to call the meeting within the time or in the manner in which it is to be called;
A meeting called, held and conducted pursuant to this section is for all purposes a meeting of shareholders of the bank holding company duly called, held and conducted.
Without restricting the generality of subsection (1), a court may order that the quorum required by the by-laws or this Part be varied or dispensed with at a meeting called, held and conducted pursuant to this section.
A court may, on the application of a director, a shareholder who is entitled to vote at a meeting of shareholders or the Superintendent, order a meeting to be called, held or conducted in the manner that the court directs if
On an application under subsection (1), a court may make any order it thinks fit including, without limiting the generality of the foregoing,
A bank holding company or a shareholder or director of a bank holding company may apply to a court to resolve any dispute in respect of the election or appointment of a director or an auditor of the bank holding company.
an order determining the voting rights of shareholders and of persons claiming to own shares.
an order requiring a new election or appointment, and including in the order directions for the management of the business and affairs of the bank holding company until a new election is held or the new appointment is made; and
an order declaring the result of the disputed election or appointment;
an order restraining a director or auditor whose election or appointment is challenged from acting pending determination of the dispute;
The Superintendent may appear and be heard in person or by counsel at the hearing of an application referred to in subsection (1).
A person who makes an application under subsection 743(1) or 744(1) shall give notice of the application to the Superintendent before the hearing and shall deliver a copy of the order of the court, if any, to the Superintendent.
the reference to “subsection 138(1.1)” in subsection 156.09(11) is to be read as a reference to “subsection 727(2)”.
the reference to “section 375” in subsection 156.09(4) is to be read as a reference to “section 878”; and
the English version of subsection 156.05(1) is to be read without reference to “or auditors”;
references to “this Part” in those sections are to be read as references to “this Division”;
references to “bank” in those sections are to be read as references to “bank holding company”;
Paragraph (2)(a) does not apply to the directors of a bank holding company if
Without limiting the generality of subsection (1), the directors of a bank holding company shall
Subject to this Act, the directors of a bank holding company shall manage or supervise the management of the business and affairs of the bank holding company.
establish investment and lending policies, standards and procedures in accordance with section 927.
designate a committee of the board of directors to monitor the procedures referred to in paragraph (b); and
establish procedures to resolve conflicts of interest, including techniques for the identification of potential conflict situations and for restricting the use of confidential information;
establish an audit committee to perform the duties referred to in subsections 782(3) and (4);
the audit committee of the financial institution performs for and on behalf of the bank holding company all the functions that would otherwise be required to be performed by the audit committee of the bank holding company under this Part.
all the voting shares of the bank holding company are beneficially owned by a Canadian financial institution described in any of paragraphs (a) to (d) of the definition financial institution in section 2; and
exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances.
act honestly and in good faith with a view to the best interests of the bank holding company; and
No provision in any contract, in any resolution or in the by-laws of a bank holding company relieves any director, officer or employee of the bank holding company from the duty to act in accordance with this Act and the regulations or relieves a director, officer or employee from liability for a breach thereof.
Every director, officer and employee of a bank holding company shall comply with this Act, the regulations, the bank holding company’s incorporating instrument and the by-laws of the bank holding company.
Every director and officer of a bank holding company in exercising any of the powers of a director or an officer and discharging any of the duties of a director or an officer shall
At least one half of the directors of a bank holding company that is a subsidiary of a foreign bank and a majority of the directors of any other bank holding company must be, at the time of each director’s election or appointment, resident Canadians.
A bank holding company shall have at least seven directors.
a person who is an agent or employee of the government of a foreign country or any political subdivision thereof.
a minister of Her Majesty in right of Canada or in right of a province; and
[Repealed, 2013, c. 40, s. 163]
a person who is an officer, director, employee or agent of — or any other person acting on behalf of — an eligible agent within the meaning of subsection 370(1);
a person who is an officer, director or full time employee of an entity that is prohibited by subsection 156.09(9) or section 901 or 914 from exercising voting rights attached to shares of the bank holding company;
a person who is prohibited by subsection 156.09(9) or section 901 or 914 from exercising voting rights attached to shares of the bank holding company;
a person who is not a natural person;
a person who has the status of a bankrupt;
a person who is of unsound mind and has been so found by a court in Canada or elsewhere;
a person who is less than eighteen years of age;
The election or appointment of a person as a director is subject to the following:
A by-law made pursuant to subsection (1) that provides for a minimum and maximum number of directors may provide that the number of directors to be elected at any annual meeting of the shareholders be such number as is fixed by the directors prior to the annual meeting.
Subject to section 217, subsection 749(1) and section 756, the directors of a bank holding company shall, by by-law, determine the number of directors or the minimum and maximum number of directors, but no by-law that decreases the number of directors shortens the term of an incumbent director.
the person was not present at the meeting when the election or appointment took place but
the person was present at the meeting when the election or appointment took place and did not refuse to hold office as a director; or
acted as a director after the election or appointment.
consented in writing to hold office as a director before the election or appointment or within 10 days after it, or
If a director of a bank holding company is elected or appointed for a term of more than one year, the bank holding company shall comply with subsection 749(2) and section 752 at each annual meeting of shareholders during the director’s term of office as if that director were elected or appointed on that date.
If a by-law of a bank holding company provides that the directors be elected for a term of two or three years, it may also provide that the term of office of each director be for the whole of that term, or that, as nearly as may be, one half of the directors retire each year if the term is two years, and that one third of the directors retire each year if the term is three years.
It is not necessary that all directors elected at a meeting of shareholders hold office for the same term.
A director who is not elected for an expressly stated term of office ceases to hold office at the close of the next annual meeting of shareholders following the election of the director.
A director elected for a term of one, two or three years holds office until the close of the first, second or third annual meeting of shareholders, as the case may be, following the election of the director.
Except where this Part or the by-laws of a bank holding company provide for cumulative voting, a bank holding company may, by by-law, provide that the directors be elected for terms of one, two or three years.
If, at any election of directors referred to in subsection (1), two or more persons receive an equal number of votes and there are not sufficient vacancies remaining to enable all the persons receiving an equal number of votes to be elected, the directors who receive a greater number of votes or the majority of them shall, in order to complete the full number of directors, determine which of the persons so receiving an equal number of votes are to be elected.
Except where this Part or the by-laws of a bank holding company provide for cumulative voting, the persons, to the number authorized to be elected, who receive the greatest number of votes at an election of directors of a bank holding company shall be the directors thereof.
the number of directors required by the by-laws may be decreased only if the number of votes cast in favour of a motion to decrease the number of directors is greater than the product of the number of directors required by the by-laws and the number of votes cast against the motion.
a director may be removed from office only if the number of votes cast in favour of a motion to remove the director is greater than the product of the number of directors required by the by-laws and the number of votes cast against the motion; and
each director ceases to hold office at the close of the next annual meeting of shareholders following the director’s election;
if the number of candidates nominated for director exceeds the number of positions to be filled, the candidates who receive the least number of votes shall be eliminated until the number of candidates remaining equals the number of positions to be filled;
if a shareholder has voted for more than one candidate without specifying the distribution of the votes among the candidates, the shareholder is deemed to have distributed the votes equally among the candidates for whom the shareholder voted;
a separate vote of shareholders shall be taken with respect to each candidate nominated for director unless a resolution is passed unanimously permitting two or more persons to be elected by a single vote;
each shareholder entitled to vote at an election of directors has the right to cast a number of votes equal to the number of votes attached to the shares held by the shareholder multiplied by the number of directors to be elected, and the shareholder may cast all such votes in favour of one candidate or distribute them among the candidates in any manner;
there shall be a stated number of directors fixed by by-law and not a minimum and maximum number of directors;
Nothing in this Part precludes the holders of any class or series of shares of a bank holding company from having an exclusive right to elect one or more directors.
Where this Part or the by-laws of a bank holding company provide for cumulative voting, the shareholders of the bank holding company shall
Subsection (2) does not apply to a widely held bank holding company with equity of twelve billion dollars or more or to a widely held bank holding company that controls a bank to which subsection 378(1) applies.
Subsection (2) does not apply if all the voting shares of the bank holding company that are outstanding are beneficially owned by
Where the aggregate of the voting shares beneficially owned by a person and any entities controlled by the person carries more than 10 per cent of the voting rights attached to all the outstanding voting shares of a bank holding company, the directors shall be elected by cumulative voting.
Where this Part or the by-laws provide for cumulative voting,
one or more entities controlled by the same person.
one person and one or more entities controlled by that person; or
one person;
at each succeeding annual meeting,
at the first annual meeting of shareholders held not earlier than ninety days following the date that cumulative voting is required under subsection (2) or provided for in the by-laws, and
Where, at the close of a meeting of shareholders of a bank holding company, the shareholders have failed to elect the number or minimum number of directors required by this Part or the by-laws of a bank holding company, the purported election of directors at the meeting
If, immediately after the time of any purported election or appointment of directors, the board of directors would fail to comply with subsection 749(2) or section 752, the purported election or appointment of all persons purported to be elected or appointed at that time is void unless the directors, within forty-five days after the discovery of the non-compliance, develop a plan, approved by the Superintendent, to rectify the non-compliance.
is void if the directors purported to be elected and those incumbent directors, if any, whose terms did not expire at the close of the meeting, together do not constitute a quorum.
is valid if the directors purported to be elected and those incumbent directors, if any, whose terms did not expire at the close of the meeting, together constitute a quorum; or
where subsection 758(1) or paragraph 758(2)(b) applies, the persons who were the incumbent directors immediately before the meeting.
where paragraph 758(2)(a) applies, the directors referred to in that paragraph; or
Where the directors fail to call a special meeting required by subsection (3), the meeting may be called by any shareholder.
Where subsection (1) or (2) applies, the board of directors referred to in that subsection shall without delay call a special meeting of shareholders to fill the vacancies, where paragraph 758(2)(a) applies, or elect a new board of directors, where subsection 758(1) or paragraph 758(2)(b) applies.
Notwithstanding subsections 754(2) and (3) and paragraphs 756(1)(f) and 760(1)(a), where a plan to rectify the non-compliance referred to in subsection 758(1) has not been approved by the Superintendent by the end of the forty-five day period referred to in that subsection, the board of directors shall, until their successors are elected or appointed, consist solely of the persons who were the incumbent directors immediately before the meeting at which the purported election or appointment referred to in that subsection occurred.
Notwithstanding subsections 754(2) and (3) and paragraphs 756(1)(f) and 760(1)(a), where subsection 758(1) or (2) applies at the close of any meeting of shareholders of a bank holding company, the board of directors shall, until their successors are elected or appointed, consist solely of
when the director is removed from office under section 963 or 964.
when the director is removed under section 761; or
when the director becomes disqualified under section 750 or ineligible to hold office pursuant to subsection 790(2);
when the director dies or resigns;
at the close of the annual meeting at which the director’s term of office expires;
The resignation of a director of a bank holding company becomes effective at the time a written resignation is sent to the bank holding company by the director or at the time specified in the resignation, whichever is later.
A director ceases to hold office
Subject to paragraphs 756(1)(b) to (e), a vacancy created by the removal of a director may be filled at the meeting of the shareholders at which the director is removed or, if not so filled, may be filled under section 765 or 766.
Where the holders of any class or series of shares of a bank holding company have the exclusive right to elect one or more directors, a director so elected may be removed only by a resolution at a meeting of the shareholders of that class or series.
Subject to paragraph 756(1)(g), the shareholders of a bank holding company may by resolution at a special meeting remove any director or all the directors from office.
receives a notice or otherwise learns of a meeting of directors or shareholders at which another person is to be appointed or elected to fill the office of director, whether because of the director’s resignation or removal or because the director’s term of office has expired or is about to expire,
receives a notice or otherwise learns of a meeting of shareholders called for the purpose of removing the director from office, or
resigns,
Where a director resigns as a result of a disagreement with the other directors or the officers of a bank holding company, the director shall submit to the bank holding company and the Superintendent a written statement setting out the nature of the disagreement.
A director who
No bank holding company or person acting on its behalf incurs any liability by reason only of circulating a director’s statement in compliance with subsection (1).
A bank holding company shall without delay on receipt of a director’s statement referred to in subsection 762(1) relating to a matter referred to in paragraph 762(1)(b) or (c), or a director’s statement referred to in subsection 762(2), send a copy of it to each shareholder entitled to receive a notice of meetings and to the Superintendent, unless the statement is attached to a notice of a meeting.
by a vote of the holders of any class or series of shares having an exclusive right to elect one or more directors if the vacancy occurs among the directors elected by the holders of that class or series.
by a vote of the shareholders; or
Notwithstanding sections 764 and 772, where by reason of a vacancy the number of directors or the composition of the board of directors fails to meet any of the requirements of section 749 or section 752, the directors who, in the absence of any by-law, would be empowered to fill that vacancy shall do so forthwith.
Despite section 772 but subject to subsection (2) and sections 764 and 766, a quorum of directors may fill a vacancy among the directors except a vacancy resulting from a change in the by-laws by which the number or the minimum or maximum number of directors is increased or from a failure to elect the number or minimum number of directors provided for in the by-laws.
if there are no such remaining directors and paragraph (b) does not apply, any holder of shares of that class or series may call a meeting of the holders thereof for the purpose of filling the vacancy.
if there are no such remaining directors and, by reason of the vacancy, the number of directors or the composition of the board of directors fails to meet any of the requirements of section 749 or section 752, the other directors may fill that vacancy; and
the remaining directors elected by the holders of that class or series of shares may fill the vacancy except one resulting from an increase in the number or the minimum or maximum number of directors for that class or series or from a failure to elect the number or minimum number of directors provided for in the by-laws for that class or series;
The total number of directors appointed under subsection (1) may not exceed one third of the number of directors elected at the previous annual meeting of shareholders of the bank holding company.
A director appointed under subsection (1) holds office for a term expiring not later than the close of the next annual meeting of shareholders of the bank holding company.
The directors of a bank holding company may appoint one or more additional directors where the by-laws of the bank holding company allow them to do so and the by-laws determine the minimum and maximum numbers of directors.
The notice for the meetings must be given as required by the by-laws.
The directors may meet at any place unless the by-laws provide otherwise.
The directors shall meet at least four times during each financial year.
Notice of an adjourned meeting of directors is not required to be given if the time and place of the adjourned meeting were announced at the original meeting.
A director may in any manner waive notice of a meeting of directors and the attendance of a director at a meeting of directors is a waiver of notice of that meeting except where the director attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.
A notice of a meeting of directors shall specify each matter referred to in section 785 that is to be dealt with at the meeting but, unless the by-laws otherwise provide, need not otherwise specify the purpose of or the business to be transacted at the meeting.
A director who is present at a meeting of directors or of a committee of directors but is not, in accordance with subsection 790(1), present at any particular time during the meeting is considered to be present for the purposes of this section.
The number of directors constituting a quorum at any meeting of directors or a committee of directors shall be
Subject to section 772, the number of directors referred to in subsection (2) constitutes a quorum at any meeting of directors or a committee of directors and, notwithstanding any vacancy among the directors, a quorum of directors may exercise all the powers of the directors.
such greater number of directors than the number calculated pursuant to paragraph (a) as may be established by the by-laws of the bank holding company.
a majority of the minimum number of directors required by this Part for the board of directors or a committee of directors; or
in any other case, a majority of the directors present are resident Canadians.
in the case of a bank holding company that is a subsidiary of a foreign bank, at least one half of the directors present are resident Canadians; or
Despite subsection (1), the directors of a bank holding company may transact business at a meeting of directors without the required proportion of directors who are resident Canadians if
The directors of a bank holding company shall not transact business at a meeting of directors unless
there would have been present the required proportion of directors who are resident Canadians had that director been present at the meeting.
a director who is a resident Canadian unable to be present approves, in writing or by telephonic, electronic or other communications facilities, the business transacted at the meeting; and
A director participating in a meeting by any means referred to in subsection (1) is deemed for the purposes of this Part to be present at that meeting.
Subject to the by-laws of a bank holding company, a meeting of directors or of a committee of directors may be held by means of such telephonic, electronic or other communications facilities as permit all persons participating in the meeting to communicate adequately with each other during the meeting.
Unless a ballot is demanded, an entry in the minutes of a meeting that the chairperson declared a resolution to be carried or defeated is in the absence of evidence to the contrary proof of that fact without proof of the number or proportion of votes recorded in favour of or against the resolution.
A copy of the resolution referred to in subsection (3) shall be kept with the minutes of the proceedings of that committee.
A resolution in writing signed by all the directors entitled to vote on that resolution at a meeting of a committee of directors, other than a resolution of the audit committee in carrying out its duties under subsection 782(3), is as valid as if it had been passed at a meeting of that committee.
A copy of the resolution referred to in subsection (1) shall be kept with the minutes of the proceedings of the directors.
A resolution in writing signed by all the directors entitled to vote on that resolution at a meeting of directors is as valid as if it had been passed at a meeting of directors.
the director sends the director’s dissent by registered mail or delivers it to the head office of the bank holding company immediately after the meeting is adjourned.
the director sends a written dissent to the secretary of the meeting before the meeting is adjourned; or
the director requests that the director’s dissent be entered or the director’s dissent is entered in the minutes of the meeting;
A director of a bank holding company who is not present at a meeting at which a resolution is passed or action taken is deemed to have consented thereto unless, within seven days after the director becomes aware of the resolution, the director
A director of a bank holding company who votes for or consents to a resolution is not entitled to dissent under subsection (1).
A director of a bank holding company who is present at a meeting of directors or a committee of directors is deemed to have consented to any resolution passed or action taken at that meeting unless
sends the director’s dissent by registered mail or delivers it to the head office of the bank holding company.
causes the director’s dissent to be placed with the minutes of the meeting; or
A bank holding company shall attach to the notice of each annual meeting it sends to its shareholders a statement showing, in respect of the financial year immediately preceding the meeting, the total number of directors’ meetings and directors’ committee meetings held during the financial year and the number of those meetings attended by each director.
A bank holding company shall keep a record of the attendance at each meeting of directors and each committee meeting of directors.
The Superintendent may attend and be heard at a meeting referred to in subsection (1).
Where in the opinion of the Superintendent it is necessary, the Superintendent may, by notice in writing, require a bank holding company to hold a meeting of directors of the bank holding company to consider the matters set out in the notice.
If a by-law, or an amendment to or a repeal of a by-law, is rejected by the shareholders, or is not submitted to the shareholders by the directors as required under subsection (2), the by-law, amendment or repeal ceases to be effective from the date of its rejection or the date of the next meeting of shareholders, as the case may be, and no subsequent resolution of the directors to make, amend or repeal a by-law having substantially the same purpose or effect is effective until it is confirmed, or confirmed as amended, by the shareholders.
Unless this Part otherwise provides, a by-law, or an amendment to or a repeal of a by-law, is effective from the date of the resolution of the directors under subsection (1) until it is confirmed, confirmed as amended or rejected by the shareholders under subsection (2) or until it ceases to be effective under subsection (4) and, where the by-law is confirmed, or confirmed as amended, it continues in effect in the form in which it was so confirmed.
The directors shall submit a by-law, or an amendment to or a repeal of a by-law, that is made under subsection (1) to the shareholders at the next meeting of shareholders, and the shareholders may, by resolution, confirm or amend the by-law, amendment or repeal.
Unless this Part otherwise provides, the directors of a bank holding company may by resolution make, amend or repeal any by-law that regulates the business or affairs of the bank holding company.
Where a by-law of the bank holding company made in accordance with sections 778 and 779 amends or repeals any matter referred to in subsection (1), the by-law prevails.
Any matter that, immediately prior to the day a body corporate is continued as a bank holding company, was provided for in the incorporating instrument of the body corporate, and that, under this Part, would be provided for in the by-laws of a bank holding company, is deemed to be provided for in the by-laws of the bank holding company.
The audit committee of a bank holding company may call a meeting of the directors of the bank holding company to consider any matter of concern to the committee.
In the case of the annual statement and returns of a bank holding company that under this Part must be approved by the directors of the bank holding company, the audit committee of the bank holding company shall report thereon to the directors before the approval is given.
The audit committee of a bank holding company shall
None of the members of the audit committee may be officers or employees of the bank holding company or any of its subsidiaries.
The audit committee of a bank holding company shall consist of at least three directors.
meet with the chief internal auditor of the bank holding company, or the officer or employee of the bank holding company acting in a similar capacity, and with management of the bank holding company, to discuss the effectiveness of the internal control procedures established for the bank holding company.
meet with the auditor to discuss the annual statement and the returns and transactions referred to in this subsection; and
review such investments and transactions that could adversely affect the well-being of the bank holding company as the auditor or any officer of the bank holding company may bring to the attention of the committee;
review, evaluate and approve those procedures;
require the management of the bank holding company to implement and maintain appropriate internal control procedures;
review such returns of the bank holding company as the Superintendent may specify;
review the annual statement of the bank holding company before the annual statement is approved by the directors;
Two or more offices of a bank holding company may be held by the same person.
Subject to section 752, a director of a bank holding company may be appointed to any office of the bank holding company.
The directors of a bank holding company may, subject to the by-laws, designate the offices of the bank holding company, appoint officers thereto, specify the duties of those officers and delegate to them powers, subject to section 785, to manage the business and affairs of the bank holding company.
adopt, amend or repeal by-laws.
except as provided in this Part, approve the annual statement of the bank holding company and any other financial statements issued by the bank holding company; or
approve a management proxy circular;
authorize the payment of a commission on a share issue;
authorize the redemption or other acquisition by the bank holding company pursuant to section 715 of shares issued by the bank holding company;
declare a dividend;
issue or cause to be issued securities, including an issue of shares of a series that is authorized in accordance with section 706, except in accordance with any authorization made by the directors;
fill a vacancy among the directors, on a committee of directors or in the office of auditor or appoint additional directors;
submit to the shareholders a question or matter requiring the approval of the shareholders;
No remuneration shall be paid to a director as director until a by-law fixing the aggregate of all amounts that may be paid to all directors in respect of directors’ remuneration during a fixed period of time has been confirmed by special resolution.
Subject to this section and the by-laws, the directors of a bank holding company may fix the remuneration of the directors, officers and employees of the bank holding company.
An act of the board of directors of a bank holding company is valid notwithstanding a defect in the composition of the board or an irregularity in the election of the board or in the appointment of a member of the board.
An act of a director or an officer of a bank holding company is valid notwithstanding a defect in the director’s qualification or an irregularity in the director’s election or in the appointment of the director or officer.
have a material interest in a party to the contract or transaction.
are a director or officer of a party to the contract or transaction or a person acting in a similar capacity; or
are a party to the contract or transaction;
If the material contract or material transaction, whether entered into or proposed, is one that in the ordinary course of the bank holding company’s business would not require approval by the directors or shareholders, the director or officer shall disclose to the bank holding company, in writing or by requesting to have it entered in the minutes of a meeting of directors or of a committee of directors, the nature and extent of their interest immediately after they become aware of the contract or transaction.
The disclosure required by subsection (1) shall be made in the case of an officer who is not a director
The disclosure shall be made in the case of a director
A director or officer of a bank holding company shall disclose to the bank holding company, in writing or by requesting to have it entered in the minutes of a meeting of directors or a meeting of a committee of directors, the nature and extent of any interest they have in a material contract or material transaction with the bank holding company, whether entered into or proposed, if they
if a person who is interested in a contract or transaction becomes a director, at the first one after they become a director.
if the director becomes interested after a contract or transaction is entered into, at the first one after they become interested; or
if at the time of the meeting referred to in paragraph (a) the director was not interested in the proposed contract or transaction, at the first one after they become interested in it;
at the meeting of directors, or of a committee of directors, at which the proposed contract or transaction is first considered;
if a person who is interested in a contract or transaction becomes an officer, immediately after they become an officer.
if they become interested after the contract or transaction is entered into, immediately after they become interested; or
immediately after they become aware that the contract, transaction, proposed contract or proposed transaction is to be considered or has been considered at a meeting of directors or of a committee of directors;
is with an affiliate of the bank holding company.
is for indemnity under section 799 or insurance under section 800; or
relates primarily to their remuneration as a director, officer, employee or agent of the bank holding company, an entity controlled by the bank holding company or an entity in which the bank holding company has a substantial investment;
An act of the board of directors of a bank holding company, or of a committee of the board of directors, is not invalid because a person acting as a director had ceased under subsection (2) to hold office as a director.
Any director who knowingly contravenes subsection (1) ceases to hold office as director and is not eligible, for a period of five years after the date on which the contravention occurred, for election or appointment as a director of any bank holding company, any insurance holding company or any financial institution that is incorporated or formed by or under an Act of Parliament.
A director who is required to make a disclosure under subsection 789(1) shall not be present at any meeting of directors, or of a committee of directors, while the contract or transaction is being considered or vote on any resolution to approve it unless the contract or transaction
there has been a material change in the nature of the director’s or officer’s interest in the party.
the director or officer has a material interest in the party; or
the director or officer is a director or officer of a party referred to in paragraph 789(1)(b) or (c) or a person acting in a similar capacity;
The shareholders of the bank holding company may examine the portions of any minutes of meetings of directors or committees of directors that contain disclosures under subsection 789(1), or the portions of any other documents that contain those disclosures, during the usual business hours of the bank holding company.
For the purposes of subsection 789(1), a general notice to the directors declaring that a director or officer is to be regarded as interested for any of the following reasons in a contract or transaction entered into with a party is a sufficient declaration of interest in relation to any contract or transaction with that party:
the contract or transaction was reasonable and fair to the bank holding company at the time that it was approved.
the directors approved the contract or transaction; and
the director or officer disclosed their interest in accordance with section 789 and subsection 791(1);
Even if the conditions set out in subsection (1) are not met, a director or officer acting honestly and in good faith is not accountable to the bank holding company or its shareholders for any profit realized from a contract or transaction for which disclosure was required and the contract or transaction is not invalid by reason only of the director’s or officer’s interest in it if
A contract or transaction for which disclosure is required under subsection 789(1) is not invalid and a director or officer is not accountable to the bank holding company or its shareholders for any profit realized from it by reason only of the director’s or officer’s interest in the contract or transaction or the fact that the director was present or was counted to determine whether a quorum existed at the meeting of directors, or of a committee of directors, that considered it if
the contract or transaction was reasonable and fair to the bank holding company at the time that it was approved or confirmed.
disclosure of the interest was made to the shareholders in a manner sufficient to indicate its nature before the contract or transaction was approved or confirmed; and
the contract or transaction is approved or confirmed by special resolution at a meeting of shareholders;
Directors of a bank holding company who vote for or consent to a resolution of the directors authorizing any of the following are jointly and severally, or solidarily, liable to restore to the bank holding company any amounts so distributed or paid and not otherwise recovered by the bank holding company and any amounts in relation to any loss suffered by the bank holding company:
Directors of a bank holding company who vote for or consent to a resolution of the directors authorizing the issue of a share contrary to subsection 709(1) or the issue of subordinated indebtedness contrary to section 723 for a consideration other than money are jointly and severally, or solidarily, liable to the bank holding company to make good any amount by which the consideration received is less than the fair equivalent of the money that the bank holding company would have received if the share or subordinated indebtedness had been issued for money on the date of the resolution.
a payment of an indemnity contrary to section 799.
a payment of a dividend contrary to section 722; or
a reduction of capital contrary to section 718;
a redemption or purchase of shares contrary to section 715;
Where an application is made to a court under subsection (2), the court may, where it is satisfied that it is equitable to do so,
A director who is liable under section 794 is entitled to apply to a court for an order compelling a shareholder or other person to pay or deliver to the director any money or property that was paid or distributed to the shareholder or other person contrary to section 715, 718, 722 or 799.
A director who has satisfied a judgment in relation to the director’s liability under section 794 is entitled to contribution from the other directors who voted for or consented to the unlawful act on which the judgment was founded.
make any further order it thinks fit.
order a bank holding company to return or issue shares to a person from whom the bank holding company has purchased, redeemed or otherwise acquired shares; or
order a shareholder or other person to pay or deliver to a director any money or property that was paid or distributed to the shareholder or other person contrary to section 715, 718, 722 or 799;
A director of a bank holding company who has satisfied a claim under this section is entitled to a contribution from the other directors of the bank holding company who are liable for the claim.
Where a director of a bank holding company pays a debt referred to in subsection (1) that is proven in liquidation and dissolution or bankruptcy proceedings, the director is entitled to any preference that the employee would have been entitled to and, where a judgment has been obtained, the director is entitled to an assignment of the judgment.
Where execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution.
A director is not liable under subsection (1) unless the director is sued for a debt referred to in that subsection while a director or within two years after the director has ceased to be a director.
A director is not liable under subsection (1) unless
Subject to subsections (2) and (3), the directors of a bank holding company are jointly and severally, or solidarily, liable to each employee of the bank holding company for all debts not exceeding six months wages payable to the employee for services performed for the bank holding company while they are directors.
the bank holding company has made an assignment or a bankruptcy order has been made against it under the Bankruptcy and Insolvency Act and a claim for the debt has been proved within six months after the assignment or bankruptcy order.
the bank holding company has commenced liquidation and dissolution proceedings or has been dissolved and a claim for the debt has been proven within six months after the earlier of the date of commencement of the liquidation and dissolution proceedings and the date of dissolution; or
the bank holding company has been sued for the debt within six months after it has become due and execution has been returned unsatisfied in whole or in part;
a report of a person whose profession lends credibility to a statement made by them.
financial statements of the bank holding company that were represented to them by an officer of the bank holding company or in a written report of the auditor of the bank holding company fairly to reflect the financial condition of the bank holding company; or
A director or officer of a bank holding company has fulfilled their duty under subsection 748(1) if they relied in good faith on
A director, officer or employee of a bank holding company is not liable under section 794 or 797 and has fulfilled their duty under subsection 748(2) if they exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on
a report of a person whose profession lends credibility to a statement made by them.
financial statements of the bank holding company that were represented to them by an officer of the bank holding company or in a written report of the auditor of the bank holding company fairly to reflect the financial condition of the bank holding company; or
A bank holding company may, to the extent referred to in subsections (1) to (5) in respect of the person, indemnify the heirs or personal representatives of any person whom the bank holding company may indemnify under those subsections.
Despite subsection (1), a person referred to in that subsection is entitled to be indemnified by the bank holding company in respect of all costs, charges and expenses reasonably incurred by them in connection with the defence of any civil, criminal, administrative, investigative or other proceeding to which the person is subject because of the association referred to in subsection (1) with the bank holding company or other entity described in that subsection if the person
A bank holding company may with the approval of a court indemnify a person referred to in subsection (1) or advance amounts to them under subsection (2) — in respect of an action by or on behalf of the bank holding company or other entity to procure a judgment in its favour to which the person is made a party because of the association referred to in subsection (1) with the bank holding company or other entity — against all costs, charges and expenses reasonably incurred by them in connection with that action if they fulfil the conditions set out in subsection (3).
A bank holding company may not indemnify a person under subsection (1) unless
A bank holding company may advance amounts to the director, officer or other person for the costs, charges and expenses of a proceeding referred to in subsection (1). They shall repay the amounts if they do not fulfil the conditions set out in subsection (3).
A bank holding company may indemnify a director or officer of the bank holding company, a former director or officer of the bank holding company or another person who acts or acted, at the bank holding company’s request, as a director or officer of or in a similar capacity for another entity against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by them in respect of any civil, criminal, administrative, investigative or other proceeding in which they are involved because of that association with the bank holding company or other entity.
in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the person had reasonable grounds for believing that their conduct was lawful.
the person acted honestly and in good faith with a view to the best interests of, as the case may be, the bank holding company or the other entity for which they acted at the bank holding company’s request as a director or officer or in a similar capacity; and
fulfils the conditions set out in subsection (3).
was not judged by the court or other competent authority to have committed any fault or omitted to do anything that they ought to have done; and
in the capacity of a director or officer of another entity or while acting in a similar capacity for another entity, if they act or acted in that capacity at the bank holding company’s request, except if the liability relates to a failure to act honestly and in good faith with a view to the best interests of the entity.
in the capacity of a director or an officer of the bank holding company, except where the liability relates to a failure to act honestly and in good faith with a view to the best interests of the bank holding company; or
On an application under subsection (1), the court may order notice to be given to any interested person and that person is entitled to appear and to be heard in person or by counsel at the hearing of the application.
An applicant under subsection (1) shall give the Superintendent written notice of the application and the Superintendent is entitled to appear and to be heard at the hearing of the application in person or by counsel.
A bank holding company or a person referred to in section 799 may apply to a court for an order approving an indemnity under that section and the court may so order and make any further order it thinks fit.
the reference to “sections 143 and 144” in subsection 221(1) is to be read as a reference to “sections 732 and 733”.
the reference to “subsection 159(1) and section 168” in paragraph 217(1)(i) is to be read as a reference to “subsection 749(1) and section 756”; and
references to “this Act” in those sections are to be read as references to “this Part”;
references to “bank” in those sections are to be read as references to “bank holding company”;
Despite subsection (1), if the amalgamated bank holding company would be a bank holding company with equity of twelve billion dollars or more, the Minister shall not issue letters patent referred to in that subsection unless the amalgamated bank holding company is
Despite subsection (1), if one of the applicants is a bank holding company that controls a bank named in Schedule I as that Schedule read immediately before the day section 184 of the Financial Consumer Agency of Canada Act comes into force, other than a bank in respect of which the Minister has specified that subsection 378(1) no longer applies, the Minister shall not issue letters patent referred to in subsection (1) unless
On the joint application of two or more bodies corporate incorporated by or under an Act of Parliament, including banks and bank holding companies but not including federal credit unions, the Minister may issue letters patent amalgamating and continuing the applicants as one bank holding company.
the amalgamated bank holding company would be controlled by a widely held bank holding company that, at the time the application was made, controlled
the amalgamated bank holding company would be a widely held bank holding company; or
any other applicant that is a bank holding company that controls a bank named in Schedule I as that Schedule read immediately before the day section 184 of the Financial Consumer Agency of Canada Act comes into force, other than a bank in respect of which the Minister has specified that subsection 378(1) no longer applies.
the applicant, or
controlled, within the meaning of paragraph 3(1)(d), by a widely held insurance holding company, or by an eligible Canadian financial institution, within the meaning of subsection 370(1), other than a bank, or by an eligible foreign institution, within the meaning of subsection 370(1), that controlled one of the applicants at the time the application was made.
controlled, within the meaning of paragraphs 3(1)(a) and (d), by a widely held bank, or by a widely held bank holding company, that controlled one of the applicants at the time the application was made; or
widely held;
If shares of one of the applicants are held by or on behalf of another of the applicants, other than shares held in the capacity of a personal representative or by way of security, the amalgamation agreement must provide for the cancellation of those shares when the amalgamation becomes effective without any repayment of capital in respect thereof, and no provision shall be made in the agreement for the conversion of those shares into shares of the amalgamated bank holding company.
Every amalgamation agreement shall set out the terms and means of effecting the amalgamation and, in particular,
Each applicant proposing to amalgamate shall enter into an amalgamation agreement.
the proposed effective date of the amalgamation.
details of any other matter necessary to perfect the amalgamation and to provide for the subsequent management and operation of the amalgamated bank holding company; and
the proposed by-laws of the amalgamated bank holding company;
the manner of payment of money in lieu of the issue of fractional shares of the amalgamated bank holding company or of any other body corporate that are to be issued in the amalgamation;
if any shares of an applicant are not to be converted into shares or other securities of the amalgamated bank holding company, the amount of money or securities that the holders of those shares are to receive in addition to or in lieu of shares or other securities of the amalgamated bank holding company;
the manner in which the shares of each applicant are to be converted into shares or other securities of the amalgamated bank holding company;
the name and place of ordinary residence of each proposed director of the amalgamated bank holding company;
the name of the amalgamated bank holding company and the province in which its head office is to be situated;
An amalgamation agreement may provide that, at any time before the issue of letters patent of amalgamation, the agreement may be terminated by the directors of an applicant notwithstanding that the agreement has been approved by the shareholders of all or any of the applicant bodies corporate.
Subject to subsection (3), an amalgamation agreement is approved when the shareholders of each applicant that is a body corporate have approved the amalgamation by special resolution.
The holders of shares of a class or series of shares of each applicant are entitled to vote separately as a class or series in respect of an amalgamation agreement if the agreement contains a provision that, if it were contained in a proposed amendment to the by-laws or incorporating instrument of the applicant, would entitle those holders to vote separately as a class or series.
Each share of an applicant carries the right to vote in respect of an amalgamation agreement whether or not it otherwise carries the right to vote.
The directors of each applicant shall submit an amalgamation agreement for approval to a meeting of the holders of shares of the applicant body corporate of which they are directors and, subject to subsection (3), to the holders of each class or series of such shares.
the resolutions provide that
the amalgamation is approved by a resolution of the directors of the bank holding company and of each amalgamating subsidiary; and
no securities will be issued by the amalgamated bank holding company in connection with the amalgamation.
the letters patent of amalgamation and the by-laws of the amalgamated bank holding company will be the same as the incorporating instrument and the by-laws of the amalgamating bank holding company that is the holding body corporate, and
the shares of each amalgamating subsidiary will be cancelled without any repayment of capital in respect thereof,
Two or more bodies corporate incorporated by or under an Act of Parliament may amalgamate and continue as one bank holding company without complying with sections 804 to 806 if
A bank holding company may, without complying with sections 804 to 806, amalgamate with one or more bodies corporate that are incorporated by or under an Act of Parliament if the body or bodies corporate, as the case may be, are wholly-owned subsidiaries of the bank holding company and
the resolutions provide that
the amalgamation is approved by a resolution of the directors of each of the applicants; and
the applicants are all wholly-owned subsidiaries of the same holding body corporate;
at least one of the applicants is a bank holding company;
the stated capital of the amalgamating bank holding companies and bodies corporate whose shares are cancelled will be added to the stated capital of the amalgamating bank holding company whose shares are not cancelled.
the letters patent of amalgamation and the by-laws of the amalgamated bank holding company will be the same as the incorporating instrument and the by-laws of the amalgamating bank holding company whose shares are not cancelled, and
the shares of all applicants, except those of one of the applicants that is a bank holding company, will be cancelled without any repayment of capital in respect thereof,
Before issuing letters patent of amalgamation continuing the applicants as one bank holding company, the Minister shall take into account all matters that the Minister considers relevant to the application, including
If two or more bodies corporate, none of which is a bank holding company, apply for letters patent under subsection (1), sections 672 to 674 apply in respect of the application with any modifications that the circumstances require.
No application for the issue of letters patent under subsection (1) may be made unless
Subject to subsection (2), unless an amalgamation agreement is terminated in accordance with subsection 806(5), the applicants shall, within three months after the approval of the agreement in accordance with subsection 806(4) or the approval of the directors in accordance with subsection 807(1) or (2), jointly apply to the Minister for letters patent of amalgamation continuing the applicants as one bank holding company.
the application is supported by satisfactory evidence that the applicants have complied with the requirements of this Part relating to amalgamations.
notice of intention to make such an application has been published at least once a week for a period of four consecutive weeks in the Canada Gazette and in a newspaper in general circulation at or near the place where the head office of each applicant is situated; and
the best interests of the financial system in Canada.
the opinion of the Superintendent regarding the extent to which the proposed corporate structure of the amalgamated bank holding company and its affiliates may affect the supervision and regulation of any bank that will be its subsidiary, having regard to
the impact of any integration of the operations and businesses of the applicants on the conduct of those operations and businesses;
whether the amalgamated bank holding company will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;
the reputation of the applicants for being operated in a manner that is consistent with the standards of good character and integrity;
the business record and experience of the applicants;
the soundness and feasibility of the plans of the applicants for the future conduct and development of the business of any bank that will be a subsidiary of the amalgamated bank holding company;
the sources of continuing financial support for any bank that will be a subsidiary of the amalgamated bank holding company;
the nature and degree of supervision and regulation applying to the proposed financial services activities to be carried out by the affiliates of the amalgamated bank holding company; and
the nature and extent of the proposed financial services activities to be carried out by the affiliates of the amalgamated bank holding company, and
The Superintendent shall cause to be published in the Canada Gazette notice of the issuance of letters patent pursuant to subsection (1).
Where letters patent are issued pursuant to this section, section 676 applies with such modifications as the circumstances require in respect of the issue of the letters patent.
Where an application has been made to the Minister in accordance with section 808, the Minister may issue letters patent of amalgamation continuing the applicants as one bank holding company.
An appeal from an order of a court under this section lies in the same manner as, and to the same court to which, an appeal may be taken from any other order of the court.
If a bank holding company or any director, officer, employee or agent of a bank holding company is contravening or has failed to comply with any term or condition made in respect of the issuance of letters patent of amalgamation, the Minister may, in addition to any other action that may be taken under this Act, apply to a court for an order directing the bank holding company or the director, officer, employee or agent to comply with the term or condition, cease the contravention or do any thing that is required to be done, and on the application the court may so order and make any other order it thinks fit.
the letters patent of amalgamation are the incorporating instrument of the amalgamated bank holding company.
if any director or officer of an applicant continues as a director or officer of the amalgamated bank holding company, any disclosure by that director or officer of a material interest in any contract made to the applicant shall be deemed to be disclosure to the amalgamated bank holding company; and
any conviction against, or ruling, order or judgment in favour of or against, an applicant may be enforced by or against the amalgamated bank holding company;
any civil, criminal or administrative action or proceeding pending by or against an applicant may be continued to be prosecuted by or against the amalgamated bank holding company;
any existing cause of action, claim or liability to prosecution is unaffected;
the amalgamated bank holding company continues to be liable for the obligations of each applicant;
the property of each applicant continues to be the property of the amalgamated bank holding company;
the amalgamation of the applicants and their continuance as one bank holding company becomes effective;
Any deemed disclosure under paragraph (1)(g) shall be recorded in the minutes of the first meeting of directors of the amalgamated bank holding company.
On the day provided for in the letters patent issued under section 809,
maintain outside Canada any records or registers required by this Act to be maintained in Canada.
acquire and hold assets that a bank holding company is not otherwise permitted by this Act to acquire or hold if one or more of the amalgamating bodies corporate were obliged, at the time the application for the letters patent was made, to acquire those assets; and
hold assets that a bank holding company is not otherwise permitted by this Act to hold if the assets were held by one or more of the amalgamating bodies corporate at the time the application for the letters patent was made;
continue to have issued and outstanding debt obligations the issue of which is not authorized by this Act if the debt obligations were outstanding at the time the application for the letters patent was made;
engage in a business activity specified in the order that a bank holding company is not otherwise permitted by this Act to engage in and that one or more of the amalgamating bodies corporate was engaging in at the time application for the letters patent was made;
The Minister shall not grant to a bank holding company any permission
Subject to subsection (4), the Minister may, by order on the recommendation of the Superintendent, renew a permission granted by order under subsection (1) with respect to any matter described in any of paragraphs (1)(b) to (d) for any further period or periods that the Minister considers necessary.
The permission granted under subsection (1) shall be expressed to be granted for a period specified in the order not exceeding
Despite any other provision of this Act or the regulations, the Minister may, by order, on the recommendation of the Superintendent, grant to a bank holding company in respect of which letters patent were issued under subsection 809(1) permission to
with respect to any matter described in any of paragraphs (1)(c) to (e), two years.
with respect to any matter described in paragraph (1)(b), ten years; and
with respect to any matter described in paragraph (1)(a), thirty days after the date of issue of the letters patent or, where the activity is conducted pursuant to an agreement existing on the date of issue of the letters patent, the expiration of the agreement;
with respect to matters described in paragraphs (1)(c) and (d), that purports to be effective more than ten years after the effective date of the letters patent.
with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the effective date of the letters patent of amalgamation, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the bank holding company that the bank holding company will not be able at law to redeem at the end of the ten years the outstanding debt obligations to which the permission relates; and
Where a special resolution under subsection (6) approving a proposed transaction so states, the directors of a bank holding company may, subject to the rights of third parties, abandon the transaction without further approval of the shareholders.
For the purpose of subsection (1), the proposal is not approved unless the holders of the shares of each class or series of shares entitled to vote separately on the proposal have approved the proposal by special resolution.
The holders of shares of a class or series of shares of the bank holding company are entitled to vote separately as a class or series in respect of the proposal if the shares of the class or series are affected by the proposed transaction in a manner different from the shares of another class or series.
Each share of the bank holding company carries the right to vote in respect of the proposal whether or not the share otherwise carries the right to vote.
At the meeting referred to in the notice, the shareholders may authorize the sale, lease or exchange and may fix or authorize the directors to fix any of the sale’s, lease’s or exchange’s terms and conditions.
A notice of a meeting of shareholders complying with sections 727 and 730 shall be sent in accordance with those sections to each shareholder and shall include or be accompanied by a copy or summary of the agreement of sale, lease or exchange.
A sale, lease or exchange of all or substantially all the property of a bank holding company requires the approval of the shareholders in accordance with subsections (2) to (7).
A bank holding company shall send to the Superintendent, within fifteen days after any change of address of its head office, a notice of the change of address.
The directors of a bank holding company may change the address of the head office within the province specified in the incorporating instrument or by-laws.
A bank holding company shall at all times have a head office in the province specified in its incorporating instrument or by-laws.
particulars of exceptions granted under section 688 or 812 that are from time to time applicable to the bank holding company.
the information referred to in paragraphs 951(1)(a) and (c) to (g) contained in all returns provided to the Superintendent pursuant to section 951; and
minutes of meetings and resolutions of shareholders;
its incorporating instrument and by-laws and all amendments to them;
For the purposes of paragraph (1)(b) and subsection (2),
In addition to the records described in subsection (1), a bank holding company shall prepare and maintain adequate
A bank holding company shall prepare and maintain records containing
records containing minutes of meetings and resolutions of the board of directors and those of its committees.
corporate accounting records; and
in the case of a body corporate amalgamated and continued as a bank holding company, records includes similar records required by law to be maintained by the body corporate before it was so amalgamated.
in the case of a body corporate continued as a bank holding company, records includes similar records required by law to be maintained by the body corporate before it was so continued; and
A bank holding company may make the information contained in records referred to in subsection 815(1) available to persons by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing the records in intelligible written form within a reasonable time.
Every shareholder of a bank holding company is entitled, on request made not more frequently than once in each calendar year, to receive, free of charge, one copy of the by-laws of the bank holding company.
Shareholders and creditors of a bank holding company and their personal representatives may examine the records referred to in subsection 815(1) during the usual business hours of the bank holding company and may take extracts from them free of charge or have copies of them made on payment of a reasonable fee. If the bank holding company is a distributing bank holding company, any other person may on payment of a reasonable fee examine those records during the usual business hours of the bank holding company and take extracts from them or have copies of them made.
The records described in section 815 shall at all reasonable times be open to inspection by the directors.
Where any of the records described in section 815 are not kept at the head office of a bank holding company, the bank holding company shall notify the Superintendent of the place where the records are kept.
Subject to subsection 822(1.1), subsection (1) does not apply to a bank holding company that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.
The records described in section 815 shall be kept at the head office of the bank holding company or at such other place in Canada as the directors think fit.
A bank holding company or its agent shall provide a supplemental list of shareholders required under subsection (5)
A person requiring a bank holding company to supply a basic list of shareholders may, if the person states in the accompanying affidavit that supplemental lists are required, request the bank holding company or its agent, on payment of a reasonable fee, to provide supplemental lists of shareholders setting out any changes from the basic list in the names and addresses of the shareholders and the number of shares owned by each shareholder for each business day following the date to which the basic list is made up.
A basic list of shareholders of a bank holding company consists of a list of shareholders that is made up to a date not more than ten days before the receipt of the affidavit referred to in subsection (2) and that sets out
A shareholder or creditor of a bank holding company or their personal representative — or if the bank holding company is a distributing bank holding company, any person — is entitled to a basic list of shareholders of the bank holding company.
A request under subsection (1) must be accompanied by an affidavit containing
A person who is entitled to a basic list of shareholders of a bank holding company (in this section referred to as the “applicant”) may request the bank holding company to furnish the applicant with a basic list within ten days after receipt by the bank holding company of the affidavit referred to in subsection (2) and, on payment of a reasonable fee by the applicant, the bank holding company shall comply with the request.
an undertaking that the basic list and any supplemental lists obtained pursuant to subsections (5) and (6) will not be used except as permitted under section 819,
the name and address for service of the entity, if the applicant is an entity, and
the name and address of the applicant,
the address of each shareholder as shown in the records of the bank holding company.
the number of shares owned by each shareholder; and
the names of the shareholders of the bank holding company;
within ten days following the day to which the supplemental list relates, where the information relates to changes that took place on or after the date the basic list was provided.
within ten days following the date the basic list is provided, where the information relates to changes that took place prior to that date; and
any other matter relating to the affairs of the bank holding company.
an offer to acquire shares of the bank holding company; or
an effort to influence the voting of shareholders of the bank holding company;
may be entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.
may be in a bound or loose-leaf form or in a photographic film form; or
Notwithstanding section 823, a bank holding company may destroy any register or other record referred to in subsection (1) at any time after the register or other record has been converted to another form.
Registers and records maintained in one form may be converted to any other form.
A register or other record required or authorized by this Part to be prepared and maintained by a bank holding company
ensure that unauthorized persons do not have access to or use of information in
facilitate detection and correction of inaccuracies in, and
prevent falsification of entries in,
prevent loss or destruction of,
A bank holding company shall without delay comply with any order issued under subsection (1) or (1.1).
Where a bank holding company referred to in subsection 816(1.1) or 828(3) maintains records referred to in section 815 or the central securities register at a place outside Canada, the Superintendent may, in the case referred to in paragraph (a), and shall, in the case referred to in paragraph (b), by order, direct the bank holding company to maintain a copy of those records or register at any place in Canada as the directors think fit
If the Superintendent is of the opinion that it is incompatible with the fulfilment of the Superintendent’s responsibilities under this Act for a bank holding company to maintain, in another country, copies of records referred to in section 815 or of its central securities register or for a bank holding company to process, in another country, information or data relating to the preparation and maintenance of those records or of its central securities register — or if the Superintendent is advised by the Minister that, in the opinion of the Minister, it is not in the national interest for a bank holding company to do any of those activities in another country — the Superintendent shall direct the bank holding company to not maintain those copies, or to not process the information or data, as the case may be, in that other country or to maintain those copies or to process the information or data only in Canada.
if the Superintendent is advised by the Minister that the Minister is of the opinion that it is not in the national interest for the bank holding company not to maintain a copy of those records or register at any place in Canada.
if the Superintendent is of the opinion that he or she does not have immediate, direct, complete and ongoing access to those records or register; or
the central securities register referred to in subsection 825(1).
any record of the bank holding company referred to in paragraph 815(2)(a) or (b); and
the records of the bank holding company referred to in subsection 815(1);
the date and particulars of the issue and transfer of each security.
the number of securities held by each security holder; and
the names, alphabetically arranged, and latest known addresses of the persons who are security holders, and the names and latest known addresses of the persons who have been security holders;
A bank holding company or its agent shall provide the supplementary information within
A person who wishes to examine a central securities register, take extracts from it or have copies of it made may on payment of a reasonable fee, if they state in the accompanying affidavit that supplementary information is required, request the bank holding company or its agent to provide supplementary information setting out any changes made to the register.
A person who wishes to examine the central securities register, take extracts from it or have copies of it made shall provide the bank holding company with an affidavit containing their name and address — or if they are an entity, the name and address for service of the entity — and with an undertaking that the information contained in the register will not be used except in the same way as a list of shareholders may be used under section 819. In the case of an entity, the affidavit is to be sworn by a director or officer of the entity or a person acting in a similar capacity.
The bank holding company may make the information contained in the central securities register available by any mechanical or electronic data processing system or other information storage device that is capable of reproducing it in intelligible written form within a reasonable time.
Shareholders and creditors of a bank holding company and their personal representatives may examine the central securities register during the usual business hours of the bank holding company and may take extracts from it free of charge or have copies of it made on payment of a reasonable fee. If the bank holding company is a distributing bank holding company, any other person may on payment of a reasonable fee examine the central securities register during the usual business hours of the bank holding company and take extracts from it or have copies of it made.
For the purposes of subsection (1), “central securities register” includes similar registers required by law to be maintained by a body corporate continued, or amalgamated and continued, as a bank holding company under this Part before the continuance, or amalgamation, as the case may be.
A bank holding company shall maintain a central securities register in which it shall record the securities, within the meaning of section 81, issued by it in registered form, showing in respect of each class or series of securities
10 days after the day to which the supplementary information relates if the changes take place on or after the day on which the central securities register is examined.
10 days after the day on which the central securities register is examined if the changes take place before that day; and
Subject to subsection 822(1.1), subsection (1) does not apply to a bank holding company that is a subsidiary of a foreign bank incorporated or formed otherwise in a country or territory other than Canada in which a trade agreement listed in Schedule IV is applicable or of a regulated foreign entity.
A branch securities register of a bank holding company may be kept at any place in or outside Canada designated by the directors of the bank holding company.
The central securities register of a bank holding company shall be maintained by the bank holding company at its head office or at any other place in Canada designated by the directors of the bank holding company.
Particulars of each issue or transfer of a security registered in a branch securities register of a bank holding company shall also be kept in the central securities register of the bank holding company.
A branch securities register shall only contain particulars of the securities issued or transferred at the branch for which that register is established.
an instrument referred to in subsection 713(1) or a like instrument, irrespective of its form, after the date of its expiration.
a cancelled security certificate in bearer form or an instrument referred to in subsection 713(1) that is cancelled or a like cancelled instrument in bearer form after the date of its cancellation; or
a cancelled security certificate in registered form or an instrument referred to in subsection 713(1) that is cancelled or a like cancelled instrument in registered form after six years from the date of its cancellation;
A document executed on behalf of a bank holding company is not invalid merely because a corporate seal is not affixed to it.
A bank holding company may adopt a corporate seal and change one that it adopted.
Sections 275 to 277 apply in respect of bank holding companies subject to the following:
the reference to “a regulation referred to in subsection 485(1) or (2) or of an order made under subsection 485(3)” in subsection 277(25) is to be read as a reference to “a regulation referred to in subsection 949(1) or (2) or of an order made under subsection 949(3)”.
the reference to “this Act” in section 276 is to be read as a reference to “this Part”; and
references to “bank” are to be read as references to “bank holding company”;
the reference to “the Minister” in subsection 291(4) is to be read as a reference to “the Receiver General”.
references to “another deposit-taking financial institution” in subsection 287(3) are to be read as references to “a deposit-taking financial institution”; and
references to “bank” in those sections are to be read as references to “bank holding company”;
references to “subordinated indebtedness” in those sections are to be read as references to “subordinated indebtedness” as defined in subsection 663(1).
references to “this Act” in those sections are to be read as references to “this Part”; and
references to “bank” in those sections are to be read as references to “bank holding company”;
If, in any year, a bank holding company comes into existence after the first day of July, its first financial year ends, at its election in its by-laws, on the expiration of the thirty-first day of October or the thirty-first day of December in the next calendar year.
The financial year of a bank holding company ends, at the election of the bank holding company in its by-laws, on the expiration of the thirty-first day of October of each year or the thirty-first day of December of each year.
the financial year, if any, immediately preceding the financial year referred to in subparagraph (i);
the financial year immediately preceding the meeting, and
any further information respecting the financial position of the bank holding company and the results of its operations required by the by-laws of the bank holding company to be placed before the shareholders at the annual meeting.
the report of the auditor of the bank holding company; and
a comparative annual financial statement (in this Part referred to as an “annual statement”) relating separately to
The Governor in Council may make regulations respecting subsidiaries that are not required to be listed for the purposes of paragraph (3)(a).
The financial statements referred to in subsection (1), paragraph (3)(b) and subsection 842(1) shall, except as otherwise specified by the Superintendent, be prepared in accordance with generally accepted accounting principles, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada. A reference in any provision of this Act to the accounting principles referred to in this subsection shall be construed as a reference to those generally accepted accounting principles with any specifications so made.
A bank holding company shall include with its annual statement
With respect to each of the financial years to which it relates, the annual statement of a bank holding company must contain the prescribed statements and any information that is in the opinion of the directors necessary to present fairly, in accordance with the accounting principles referred to in subsection (4), the financial position of the bank holding company as at the end of the financial year to which it relates and the results of the operations and changes in the financial position of the bank holding company for that financial year.
The directors of a bank holding company shall place before the shareholders at every annual meeting
the percentage of the voting rights attached to all the outstanding voting shares of the subsidiary that is carried by the aggregate of any voting shares of the subsidiary beneficially owned by the bank holding company and by other subsidiaries of the bank holding company; and
the book value of the aggregate of any shares of the subsidiary beneficially owned by the bank holding company and by other subsidiaries of the bank holding company, and
its name and the address of its head or principal office,
such other information as the Governor in Council may, by order, require in such form as may be prescribed.
a list of the subsidiaries of the bank holding company, other than subsidiaries that are not required to be listed by the regulations and subsidiaries acquired pursuant to section 934 or pursuant to a realization of security in accordance with section 935 and which the bank holding company would not otherwise be permitted to hold, showing, with respect to each subsidiary,
one director, if the signature required by paragraph (a) is that of a director, or two directors if the signature required by that paragraph is that of an officer who is not a director.
the chief executive officer or, in the event of that officer’s absence or inability to act, any other officer of the bank holding company authorized by the directors to sign in the stead of the chief executive officer; and
A bank holding company shall not publish copies of an annual statement unless it is approved and signed in accordance with subsection (1).
The directors of a bank holding company shall approve the annual statement and their approval shall be evidenced by the signature or a printed or otherwise mechanically reproduced facsimile of the signature of
A bank holding company shall give the Superintendent and the person seeking to examine the statements referred to in subsection (1) notice of an application to a court under subsection (4), and the Superintendent and the person may appear and be heard in person or by counsel at the hearing of the application.
Within fifteen days after a refusal under subsection (3), the bank holding company shall apply to a court for an order barring the right of the person concerned to make an examination under subsection (2) and the court shall either order the bank holding company to permit the examination or, if it is satisfied that the examination would be detrimental to the bank holding company or to any other body corporate the financial statements of which would be subject to examination, bar the right and make any further order it thinks fit.
A bank holding company may refuse to permit an examination under subsection (2) by any person.
Subject to this section, the shareholders of a bank holding company and their personal representatives may, on request therefor, examine the statements referred to in subsection (1) during the usual business hours of the bank holding company and may take extracts therefrom free of charge.
A bank holding company shall keep at its head office a copy of the current financial statements of each subsidiary of the bank holding company.
Where a bank holding company is required to comply with subsection (1) and the bank holding company does not comply with that subsection, the annual meeting at which the documents referred to in that subsection are to be considered shall be adjourned until that subsection has been complied with.
A bank holding company is not required to comply with subsection (1) with respect to a shareholder who has informed the bank holding company, in writing, that the shareholder does not wish to receive the annual statement.
A bank holding company shall, no later than 21 days before the date of each annual meeting or before the signing of a resolution under paragraph 741(1)(b) in lieu of the annual meeting, send to each shareholder a copy of the documents referred to in subsections 840(1) and (3) unless that time period is waived by the shareholder.
If a bank holding company’s shareholders sign a resolution under paragraph 741(1)(b) in lieu of an annual meeting, the bank holding company shall send a copy of the documents referred to in subsections 840(1) and (3) to the Superintendent not later than thirty days after the signing of the resolution.
Subject to subsection (2), a bank holding company shall send to the Superintendent a copy of the documents referred to in subsections 840(1) and (3) not later than twenty-one days before the date of each annual meeting of shareholders of the bank holding company.
member, in relation to a firm of accountants, means
firm of accountants means a partnership, the members of which are accountants engaged in the practice of accounting, or a body corporate that is incorporated by or under an Act of the legislature of a province and engaged in the practice of accounting. (cabinet de comptables)
an accountant who is an employee of a firm of accountants. (membre)
an accountant who is a partner in a partnership, the members of which are accountants engaged in the practice of accounting; or
The remuneration of the auditor may be fixed by ordinary resolution of the shareholders but, if not so fixed, shall be fixed by the directors.
The shareholders of a bank holding company shall, by ordinary resolution at the first meeting of shareholders and at each succeeding annual meeting, appoint a firm of accountants to be the auditor of the bank holding company until the close of the next annual meeting.
are independent of the bank holding company; and
are ordinarily resident in Canada, and
each have at least five years experience at a senior level in performing audits of a financial institution,
are members in good standing of an institute or association of accountants incorporated by or under an Act of the legislature of a province,
the member of the firm jointly designated by the firm and the bank holding company to conduct the audit of the bank holding company on behalf of the firm is qualified in accordance with paragraph (a).
two or more members thereof are accountants who
In any case where subsection (4) applies and a designation is not made pursuant to that subsection within thirty days after the designated member ceases to conduct the audit of the bank holding company, there shall be deemed to be a vacancy in the office of auditor of the bank holding company.
Where for any reason a member of a firm of accountants designated pursuant to subsection (3) ceases to conduct the audit of the bank holding company, the bank holding company and the firm of accountants may jointly designate another member of the same firm of accountants who has the qualifications described in subsection (1) to conduct the audit of the bank holding company and the bank holding company shall forthwith notify the Superintendent in writing of the designation.
Within fifteen days after appointing a firm of accountants as auditor of a bank holding company, the bank holding company and the firm of accountants shall jointly designate a member of the firm who has the qualifications described in subsection (1) to conduct the audit of the bank holding company on behalf of the firm and the bank holding company shall forthwith notify the Superintendent in writing of the designation.
For the purposes of subsection (2), a business partner of a member of a firm of accountants includes
For the purposes of subsection (1),
A firm of accountants is qualified to be an auditor of a bank holding company if
a member of a firm of accountants is deemed not to be independent of a bank holding company if that member, a business partner of that member or the firm of accountants
independence is a question of fact; and
has been a liquidator, trustee in bankruptcy, receiver or receiver and manager of any affiliate of the bank holding company within the two years immediately preceding the firm’s proposed appointment as auditor of the bank holding company, other than an affiliate that is a subsidiary of the bank holding company acquired pursuant to section 934 or through a realization of security pursuant to section 935.
beneficially owns or controls, directly or indirectly, a material interest in the shares of the bank holding company or of any affiliate of the bank holding company, or
is a business partner, director, officer or employee of the bank holding company or of any affiliate of the bank holding company or is a business partner of any director, officer or employee of the bank holding company or of any affiliate of the bank holding company,
a shareholder of the firm or of a business partner of the member.
another member of the firm; and
Any interested person may apply to a court for an order declaring that an auditor of a bank holding company has ceased to be qualified under section 847 and declaring the office of auditor to be vacant.
An auditor that ceases to be qualified under section 847 shall resign forthwith after any member of the firm becomes aware that the firm has ceased to be so qualified.
A vacancy created by the revocation of the appointment of an auditor under subsection (1) may be filled at the meeting at which the appointment was revoked and, if not so filled, shall be filled by the directors under section 851.
The Superintendent may at any time revoke the appointment of an auditor made under subsection (3) or 846(1) or section 851 by notice in writing signed by the Superintendent and sent by registered mail to the auditor and to the bank holding company addressed to the usual place of business of the auditor and the bank holding company.
The shareholders of a bank holding company may, by ordinary resolution at a special meeting, revoke the appointment of an auditor.
the appointment of the auditor is revoked by the shareholders or the Superintendent.
the auditor resigns; or
The resignation of an auditor becomes effective at the time a written resignation is sent to the bank holding company or at the time specified in the resignation, whichever is later.
An auditor of a bank holding company ceases to hold office when
Where the Superintendent has, pursuant to subsection (2), appointed a firm of accountants to fill a vacancy, the Superintendent shall designate the member of the firm who is to conduct the audit of the bank holding company on behalf of the firm.
Where the directors fail to fill a vacancy in accordance with subsection (1), the Superintendent may fill the vacancy and the auditor so appointed holds office for the unexpired term of office of the predecessor of that auditor.
Subject to subsection 849(3), where a vacancy occurs in the office of auditor of a bank holding company, the directors shall forthwith fill the vacancy, and the auditor so appointed holds office for the unexpired term of office of the predecessor of that auditor.
The Superintendent may attend and be heard at any meeting referred to in subsection (2).
A director or shareholder who gives notice under subsection (2) shall send concurrently a copy of the notice to the bank holding company and the bank holding company shall forthwith send a copy thereof to the Superintendent.
If a director or shareholder of a bank holding company, whether or not the shareholder is entitled to vote at the meeting, gives written notice, not less than ten days before a meeting of shareholders, to an auditor or former auditor of the bank holding company that the director or shareholder wishes the auditor’s attendance at the meeting, the auditor or former auditor shall attend the meeting at the expense of the bank holding company and answer questions relating to the auditor’s or former auditor’s duties as auditor.
The auditor of a bank holding company is entitled to receive notice of every meeting of shareholders and, at the expense of the bank holding company, to attend and be heard thereat on matters relating to the duties of the auditor.
receives a notice or otherwise learns of a meeting of directors or shareholders at which another firm of accountants is to be appointed in its stead, whether because of the auditor’s resignation or revocation of appointment or because the auditor’s term of office has expired or is about to expire,
receives a notice or otherwise learns of a meeting of shareholders called for the purpose of revoking the appointment of the auditor, or
resigns,
The bank holding company shall send a copy of the statements referred to in subsections (1) and (1.1) without delay to every shareholder entitled to vote at the annual meeting of shareholders and to the Superintendent.
In the case of a proposed replacement of an auditor whether because of removal or the expiry of their term, the bank holding company shall make a statement of the reasons for the proposed replacement and the proposed replacement auditor may make a statement in which they comment on those reasons.
An auditor of a bank holding company that
Unless subsection (2) applies, an appointment as auditor of a bank holding company is void if subsection (1) has not been complied with.
Notwithstanding subsection (1), a firm of accountants may accept an appointment or consent to be appointed as auditor of a bank holding company if, within fifteen days after a request under that subsection is made, no reply from the other auditor is received.
Where an auditor of a bank holding company has resigned or the appointment of an auditor has been revoked, no firm of accountants shall accept an appointment as auditor of the bank holding company or consent to be an auditor of the bank holding company until the firm of accountants has requested and received from the other auditor a written statement of the circumstances and reasons why the other auditor resigned or why, in the other auditor’s opinion, the other auditor’s appointment was revoked.
The examination of the auditor referred to in subsection (1) shall, except as otherwise specified by the Superintendent, be conducted in accordance with generally accepted auditing standards, the primary source of which is the Handbook of the Chartered Professional Accountants of Canada.
The auditor of a bank holding company shall make such examination as the auditor considers necessary to enable the auditor to report on the annual statement and on other financial statements required by this Part to be placed before the shareholders, except such annual statements or parts thereof as relate to the period referred to in subparagraph 840(1)(a)(ii).
provide such information and explanations
permit access to such records, assets and security held by the bank holding company or any entity in which the bank holding company has a substantial investment, and
A person who in good faith makes an oral or written communication under subsection (1) or (2) shall not be liable in any civil action arising from having made the communication.
On the request of the auditor of a bank holding company, the directors of the bank holding company shall, to the extent that they are reasonably able to do so,
On the request of the auditor of a bank holding company, the present or former directors, officers, employees or agents of the bank holding company shall, to the extent that such persons are reasonably able to do so,
provide the auditor with the information and explanations so obtained.
obtain from the present or former directors, officers, employees and agents of any entity in which the bank holding company has a substantial investment the information and explanations that such persons are reasonably able to provide and that are, in the opinion of the auditor, necessary to enable them to perform the duties of the auditor of the bank holding company; and
The expenses entailed by any examination or audit referred to in any of subsections (1) to (3) are payable by the bank holding company on being approved in writing by the Superintendent.
The Superintendent may direct that a special audit of a bank holding company be made if, in the opinion of the Superintendent, it is so required and may appoint for that purpose a firm of accountants qualified pursuant to subsection 847(1) to be an auditor of the bank holding company.
The Superintendent may, in writing, require that the auditor of a bank holding company make a particular examination to determine whether any procedures adopted by the bank holding company may be prejudicial to the interests of depositors, policyholders or creditors of any federal financial institution that is affiliated with the bank holding company, or any other examination as, in the Superintendent’s opinion, the public interest may require, and report to the Superintendent thereon.
The Superintendent may, in writing, require that the auditor of a bank holding company report to the Superintendent on the extent of the procedures of the auditor in the examination of the annual statement and may, in writing, require that the auditor enlarge or extend the scope of that examination or direct that any other particular procedure be performed in any particular case, and the auditor shall comply with any such requirement of the Superintendent and report to the Superintendent thereon.
In each report referred to in subsection (2), the auditor shall include such remarks as the auditor considers necessary when
In each report required under subsection (1), the auditor shall state whether, in the opinion of the auditor, the annual statement presents fairly, in accordance with the accounting principles referred to in subsection 840(4), the financial position of the bank holding company as at the end of the financial year to which it relates and the results of the operations and changes in the financial position of the bank holding company for that financial year.
The auditor shall, not less than twenty-one days before the date of the annual meeting of the shareholders of the bank holding company, make a report in writing to the shareholders on the annual statement referred to in subsection 840(1).
the annual statement does not present fairly, in accordance with the accounting principles referred to in subsection 840(4), the financial position of the bank holding company as at the end of the financial year to which it relates or the results of the operations or changes in the financial position of the bank holding company for that financial year.
the annual statement has not been prepared on a basis consistent with that of the preceding financial year; or
the examination has not been made in accordance with the auditing standards referred to in subsection 855(2);
A report of the auditor made under subsection (1) shall be attached to the financial statement to which it relates and a copy of the statement and report shall be sent by the directors to every shareholder and to the Superintendent.
The auditor of a bank holding company shall, if required by the shareholders, audit and report to the shareholders on any financial statement submitted by the directors to the shareholders, and the report shall state whether, in the opinion of the auditor, the financial statement presents fairly the information required by the shareholders.
in the case of a subsidiary with more than one auditor, the auditor of the bank holding company is one of the subsidiary’s auditors.
its auditor is the auditor of each of its subsidiaries; and
Subsection (1) does not apply in respect of any particular subsidiary where the bank holding company, after having consulted its auditor, is of the opinion that the total assets of the subsidiary are not a material part of the total assets of the bank holding company.
Subsection (1) applies in the case of a subsidiary that carries on its operations in a country other than Canada unless the laws of that country do not permit the appointment of an auditor of the bank holding company as the auditor of that subsidiary.
A bank holding company shall take all necessary steps to ensure that
If so requested by a member of the audit committee, the auditor shall attend every meeting of the audit committee held during the member’s term of office.
The auditor of a bank holding company is entitled to receive notice of every meeting of the audit committee of the bank holding company and, at the expense of the bank holding company, to attend and be heard at that meeting.
The chief internal auditor of a bank holding company or any officer or employee of the bank holding company acting in a similar capacity shall, at the request of the auditor of the bank holding company and on receipt of reasonable notice, meet with the auditor.
The auditor of a bank holding company or a member of the audit committee may call a meeting of the audit committee.
When under subsection (2) the auditor or former auditor of a bank holding company informs the directors of an error or misstatement in an annual statement or other financial statement, the directors shall
If the auditor or former auditor of a bank holding company is notified or becomes aware of an error or misstatement in an annual statement or other financial statement on which the auditor reported and in the opinion of the auditor the error or misstatement is material, the auditor or former auditor shall inform each director of the bank holding company accordingly.
A director or an officer of a bank holding company shall forthwith notify the audit committee and the auditor of the bank holding company of any error or misstatement of which the director or officer becomes aware in an annual statement or other financial statement on which the auditor or any former auditor has reported.
otherwise inform the shareholders and the Superintendent of the error or misstatement.
prepare and issue a revised annual statement or financial statement; or
references to “this Act” in those sections are to be read as references to “this Part”.
references to “bank” in those sections are to be read as references to “bank holding company”; and
The Winding-up and Restructuring Act does not apply to a bank holding company.
Any proceedings taken under this Division to dissolve or to liquidate and dissolve a bank holding company shall be stayed if the bank holding company is at any time found, in a proceeding under the Bankruptcy and Insolvency Act, to be an insolvent person as defined in subsection 2(1) of that Act.
Subsection (2) and sections 342 to 365, 368 and 868 do not apply to a bank holding company that is an insolvent person or a bankrupt as those terms are defined in subsection 2(1) of the Bankruptcy and Insolvency Act.
the reference to “sections 143 and 144” in subsection 343(1) is to be read as a reference to “sections 732 and 733”.
references to “bank” in those sections are to be read as references to “bank holding company”; and
paragraph 354(a) is to be read without reference to “or auditors”.
the reference to “subsection 308(1)” in subsection 353(1) is to be read as a reference to “subsection 840(1)”; and
references to “bank” in those sections are to be read as references to “bank holding company”;
the reference to “sections 366 and 367” in section 365 is to be read as a reference to “section 872”.
the reference to “section 366” in section 364 is to be read as a reference to “section 872”; and
the reference to “section 632” in subsection 362(2) is to be read as a reference to “section 951”;
references to “this Part” in those sections are to be read as references to “this Division”;
references to “bank” in those sections are to be read as references to “bank holding company”;
If at any time a person establishes that he or she is entitled to any moneys paid to the Receiver General under this Act, the Receiver General shall pay an equivalent amount to him or her out of the Consolidated Revenue Fund.
A payment under subsection (1) is deemed to be in satisfaction of a debt or claim of such creditor or shareholder.
On the dissolution of a bank holding company under this Act, the portion of the property distributable to a creditor or shareholder who cannot be found shall be converted into money and paid to the Receiver General.
if the person has a significant interest in a class of shares of the bank holding company, the acquisition would increase the significant interest of the person in that class of shares.
the acquisition would cause the person to have a significant interest in any class of shares of the bank holding company; or
If the entity that would result from an amalgamation, a merger or a reorganization would have a significant interest in a class of shares of a bank holding company, the entity is deemed to be acquiring a significant interest in that class of shares of the bank holding company through an acquisition for which the approval of the Minister is required under subsection (1).
Subject to section 876, no person, or entity controlled by a person, shall, without the approval of the Minister, purchase or otherwise acquire any share of a bank holding company or purchase or otherwise acquire control of any entity that holds any share of a bank holding company if
Subsection (1) does not apply to an entity that controls, within the meaning of paragraph 3(1)(d), the bank holding company with equity of twelve billion dollars or more if the entity is controlled, within the meaning of that paragraph, by
Subsection (1) does not apply to an entity that controls, within the meaning of paragraphs 3(1)(a) and (d), the bank holding company with equity of twelve billion dollars or more if the entity is controlled, within the meaning of those paragraphs, by a widely held bank to which subsection (2) applies, or a widely held bank holding company to which subsection (3) applies, that controls the bank holding company.
Subsection (1) does not apply to any of the following that controls, within the meaning of paragraph 3(1)(d), the bank holding company with equity of twelve billion dollars or more if it controlled, within the meaning of that paragraph, the bank holding company on the day the bank holding company’s equity reached twelve billion dollars and it has controlled, within the meaning of that paragraph, the bank holding company since that day:
Subsection (1) does not apply to a widely held bank holding company that controls, within the meaning of paragraphs 3(1)(a) and (d), the bank holding company with equity of twelve billion dollars or more if the widely held bank holding company controlled, within the meaning of those paragraphs, the bank holding company on the day the bank holding company’s equity reached twelve billion dollars and the widely held bank holding company has controlled, within the meaning of those paragraphs, the bank holding company since that day.
Subsection (1) does not apply to a widely held bank that controls, within the meaning of paragraphs 3(1)(a) and (d), the bank holding company with equity of twelve billion dollars or more if it controlled, within the meaning of those paragraphs, the bank holding company on the day the bank holding company’s equity reached twelve billion dollars and it has controlled, within the meaning of those paragraphs, the bank holding company since that day.
No person may be a major shareholder of a bank holding company with equity of twelve billion dollars or more.
an eligible foreign institution.
an eligible Canadian financial institution, other than a bank; or
a widely held insurance holding company;
an eligible foreign institution to which subsection (4) applies that controls the bank holding company.
an eligible Canadian financial institution, other than a bank, to which subsection (4) applies that controls the bank holding company; or
a widely held insurance holding company to which subsection (4) applies that controls the bank holding company;
If general market conditions so warrant and the Minister is satisfied that the person has used the person’s best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which the person must comply with that subsection.
Subsection (1) does not apply to an entity that controls, within the meaning of paragraph 3(1)(d), the amalgamated bank holding company if the entity is controlled, within the meaning of that paragraph, by any of the following:
Subsection (1) does not apply to an entity that controls, within the meaning of paragraphs 3(1)(a) and (d), the amalgamated bank holding company if the entity is controlled, within the meaning of those paragraphs, by a widely held bank or widely held bank holding company to which subsection (2) applies that controls the amalgamated bank holding company.
Subsection (1) does not apply to any of the following that controlled, within the meaning of paragraph 3(1)(d), one of the applicants for the letters patent of amalgamation if it has controlled, within the meaning of that paragraph, the amalgamated bank holding company since the effective date of those letters patent:
Subsection (1) does not apply to a widely held bank or a widely held bank holding company that controlled, within the meaning of paragraphs 3(1)(a) and (d), one of the applicants for the letters patent of amalgamation and that has controlled, within the meaning of those paragraphs, the amalgamated bank holding company since the effective date of those letters patent.
Despite section 876, if a bank holding company with equity of twelve billion dollars or more was formed as the result of an amalgamation, a person who is a major shareholder of the bank holding company on the effective date of the letters patent of amalgamation shall do all things necessary to ensure that the person is no longer a major shareholder of the bank holding company on the day that is one year after that day or on the day that is after any shorter period specified by the Minister.
an eligible foreign institution.
an eligible Canadian financial institution, other than a bank; or
a widely held insurance holding company;
an eligible foreign institution to which subsection (3) applies that controls the amalgamated bank holding company.
an eligible Canadian financial institution to which subsection (3) applies, other than a bank, that controls the amalgamated bank holding company; or
a widely held insurance holding company to which subsection (3) applies that controls the amalgamated bank holding company;
If general market conditions so warrant and the Minister is satisfied that the person has used the person’s best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which the person must comply with that subsection.
Subsection (1) does not apply if any of subsections 876(2) to (6) applies to the person in respect of the bank holding company.
If a person is a major shareholder of a bank holding company with equity of less than twelve billion dollars and the bank holding company’s equity reaches twelve billion dollars or more, the person shall do all things necessary to ensure that the person is not a major shareholder of the bank holding company on the day that is three years after the day the bank holding company’s equity reached twelve billion dollars.
the bank or the entity that controls the bank does not have any major shareholder other than the widely held bank holding company or any entity that it controls.
the widely held bank holding company no longer controls the bank; or
If general market conditions so warrant and the Minister is satisfied that the widely held bank holding company has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
Subsection (1) does not apply in respect of a bank with equity of less than two hundred and fifty million dollars, or any other prescribed amount.
If a widely held bank holding company with equity of twelve billion dollars or more controls a bank and a person becomes a major shareholder of the bank or of any entity that also controls the bank, the widely held bank holding company must do all things necessary to ensure that, on the day that is one year after the person became a major shareholder of the bank or entity that controls it,
the bank or the entity that controls the bank does not have any major shareholder other than the widely held bank holding company or any entity that the widely held bank holding company controls.
the widely held bank holding company no longer controls the bank; or
If general market conditions so warrant and the Minister is satisfied that the widely held bank holding company has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
Despite subsection 879(1), if a widely held bank holding company with equity of twelve billion dollars or more controls a bank in respect of which that subsection does not apply by reason of subsection 879(2) and the equity of the bank reaches two hundred and fifty million dollars or more or any other amount that is prescribed and on the day the equity of the bank reaches two hundred and fifty million dollars or more or the prescribed amount, as the case may be, a person is a major shareholder of the bank or of any entity that also controls the bank, the widely held bank holding company must do all things necessary to ensure that, on the day that is three years after that day,
Subsection (1) does not apply if any of subsections 876(2) to (6) applies in respect of the person in respect of the bank holding company.
No person shall control, within the meaning of paragraph 3(1)(d), a bank holding company with equity of twelve billion dollars or more.
If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(d), a bank holding company with equity of less than twelve billion dollars, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the bank holding company through an acquisition for which the approval of the Minister is required under subsection (1).
No person shall, without the approval of the Minister, acquire control, within the meaning of paragraph 3(1)(d), of a bank holding company with equity of less than twelve billion dollars.
engages in Canada in any personal property leasing activity that a financial leasing entity within the meaning of subsection 464(1) is prohibited from engaging in.
has control of or has a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity within the meaning of subsection 464(1) is prohibited from engaging in; or
engage in Canada in any personal property leasing activity that a financial leasing entity within the meaning of subsection 464(1) is prohibited from engaging in.
control or have a substantial investment in an entity that engages in Canada in any personal property leasing activity that a financial leasing entity within the meaning of subsection 464(1) is prohibited from engaging in; or
where the person has a significant interest in a class of shares of the bank holding company, the transfer or issue of the share would increase the significant interest of the person in that class of shares.
the transfer or issue of the share would cause the person to have a significant interest in any class of shares of the bank holding company; or
The Governor in Council may make regulations
Subsection (1) does not apply if the purchase or other acquisition of shares or the acquisition of control referred to in that subsection would
If the person referred to in subsection (1) is an eligible agent or an entity controlled by an eligible agent, then the Minister may reduce the percentage referred to in subsection (2) or (3).
If a person has a significant interest in a class of shares of a bank holding company and the person’s percentage of that class has decreased after the date of the most recent purchase or other acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares of the bank holding company, or of control of an entity that held shares of that class of shares of the bank holding company, for which approval was given by the Minister, the percentage for the purposes of subsection (1) is the percentage that is the lesser of
Subject to subsection (3) and for the purpose of subsection (1), the percentage is 5 percentage points in excess of the significant interest of the person in that class of shares of the bank holding company on the day of the most recent purchase or acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares of the bank holding company, or of control of an entity that held shares of that class of shares of the bank holding company, for which approval was given by the Minister.
Despite sections 875 and 887, the approval of the Minister is not required in respect of a bank holding company with equity of less than twelve billion dollars if a person with a significant interest in a class of shares of the bank holding company, or an entity controlled by a person with a significant interest in a class of shares of the bank holding company, purchases or otherwise acquires shares of that class, or acquires control of any entity that holds any share of that class, and the number of shares of that class purchased or otherwise acquired, or the acquisition of control of the entity, as the case may be, would not increase the significant interest of the person in that class of shares of the bank holding company to a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever is applicable.
10 percentage points in excess of the lowest significant interest of the person in that class of shares of the bank holding company at any time after the day of the most recent purchase or other acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares of the bank holding company, or of control of an entity that held shares of that class of shares of the bank holding company, for which approval was given by the Minister.
5 percentage points in excess of the significant interest of the person in that class of shares of the bank holding company on the day of the most recent purchase or other acquisition by the person or any entity controlled by the person, other than the entity referred to in subsection (1), of shares of that class of shares of the bank holding company, or of control of an entity that held shares of that class of shares of the bank holding company, for which approval was given by the Minister, and
result in an increase in a significant interest in a class of shares of the bank holding company by an entity controlled by the person by a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever applies, and the increase is not exempted by the regulations.
result in the acquisition of a significant interest in a class of shares of the bank holding company by an entity controlled by the person and the acquisition of that investment is not exempted by the regulations; or
if the person controls the bank holding company but the voting rights attached to the aggregate of any voting shares of the bank holding company beneficially owned by the person and by entities controlled by the person do not exceed 50 per cent of the voting rights attached to all of the outstanding voting shares of the bank holding company, cause the voting rights attached to that aggregate to exceed 50 per cent of the voting rights attached to all of the outstanding voting shares of the bank holding company;
result in the acquisition of control of the bank holding company by the person referred to in that subsection;
exempting from the application of paragraph (4)(d) an increase in a significant interest in a class of shares of the bank holding company by an entity controlled by the person by a percentage that is greater than the percentage referred to in subsection (2) or (3), whichever applies.
exempting from the application of paragraph (4)(c) the acquisition of a significant interest in a class of shares of the bank holding company by an entity controlled by the person; and
a person, other than an eligible agent, who controls, within the meaning of paragraph 3(1)(a), the bank holding company acquires additional shares of the bank holding company.
the Superintendent has, by order, directed the bank holding company to increase its capital and shares of the bank holding company are issued and acquired in accordance with the terms and conditions, if any, that may be specified in the order; or
Paragraph (1)(a) does not apply in respect of a bank holding company with equity of twelve billion dollars or more.
Despite sections 875 and 887, the approval of the Minister is not required if
the purchase or other acquisition of up to a specified number or percentage of shares of a bank holding company within a specified period.
the purchase or other acquisition of any number or percentage of shares of a bank holding company that may be required in a particular transaction or series of transactions; or
shares none of which is beneficially owned by a person who is a major shareholder of the bank holding company in respect of the voting shares of the bank holding company or by any entity that is controlled by a person who is a major shareholder of the bank holding company in respect of such shares.
shares of one or more classes of shares that are listed and posted for trading on a recognized stock exchange in Canada; and
If general market conditions so warrant and the Minister is satisfied that a bank holding company has used its best efforts to be in compliance with this section on the day determined under subsection (2), the Minister may specify a later day as the day from and after which the bank holding company must comply with subsection (1).
The day referred to in subsection (1) is
Every bank holding company with equity of two billion dollars or more but less than twelve billion dollars shall, from and after the day determined under this section in respect of that bank holding company, have, and continue to have, voting shares that carry at least 35 per cent of the voting rights attached to all of the outstanding voting shares of the bank holding company and that are
in any other case, the day that is three years after the day of the first annual meeting of the shareholders of the bank holding company held after the equity of the bank holding company first reaches two billion dollars.
if the bank holding company had equity of two billion dollars or more but less than twelve billion dollars on the day the bank holding company was formed or came into existence, the day that is three years after that day; and
For the purposes of subsections (1) and (2), total assets, in respect of a bank holding company, has the meaning given that expression by the regulations.
For the purposes of subsection (1), the average total assets of a bank holding company in a three month period is to be computed by adding the total assets of the bank holding company as calculated for the month end of each of the three months in the period and by dividing the sum by three.
Unless an exemption order with respect to the bank holding company is granted under section 897, if a bank holding company fails to comply with section 893 in any month, the Minister may, by order, require the bank holding company not to have, until it complies with that section, average total assets in any three month period ending on the last day of a subsequent month exceeding the bank holding company’s average total assets in the three month period ending on the last day of the month immediately before the month specified in the order.
Subsections 895(2) and (3) apply for the purposes of subsection (3).
If a bank holding company fails to comply with section 893 on the day referred to in subsection (2), the bank holding company shall not, until it complies with that section, have average total assets in any three month period ending on the last day of a subsequent month exceeding the bank holding company’s average total assets in the three month period ending on the last day of the month immediately before the day referred to in subsection (2) or any later day that the Minister may, by order, specify.
If an exemption order granted under this section in respect of a bank holding company expires, the bank holding company shall comply with section 893 as of the day the exemption order expires.
On application by a bank holding company, the Minister may, if the Minister considers it appropriate to do so, by order exempt the bank holding company from the requirements of section 893, subject to any terms and conditions that the Minister considers appropriate.
the conversion of any convertible securities into voting shares of the bank holding company.
the exercise of any option to acquire voting shares of the bank holding company; or
a redemption or purchase of voting shares of the bank holding company;
a distribution to the public of voting shares of the bank holding company;
If, as the result of an event that has occurred and is continuing, shares of a bank holding company acquire voting rights in such number as to cause the bank holding company to no longer be in compliance with section 893, section 895 does not apply in respect of that bank holding company until the expiration of six months after the day the bank holding company ceased to be in compliance with section 893 or any later day that the Minister may, by order, specify.
If a bank holding company fails to comply with section 893 as the result of any of the following, section 895 does not apply in respect of the bank holding company until the expiration of six months after the day it failed to comply with section 893:
Subsection (1) applies only if the person referred to in that subsection provides the Minister with an undertaking satisfactory to the Minister to do all things necessary so that, within three years after the acquisition, or any other period that the Minister may specify, the bank holding company has voting shares that carry at least 35 per cent of the voting rights attached to all of the outstanding voting shares of the bank holding company and that are
Subject to subsection (2) and sections 887 and 900, section 893 does not apply in respect of a bank holding company if a person acquires control of the bank holding company through the purchase or other acquisition of all or any number of the shares of the bank holding company by the person or by any entity controlled by the person.
shares none of which is beneficially owned by a person who is a major shareholder of the bank holding company in respect of the voting shares of the bank holding company or by any entity that is controlled by a person who is a major shareholder of the bank holding company in respect such shares.
shares of one or more classes of shares that are listed and posted for trading on a recognized stock exchange in Canada; and
that are subject to an agreement entered into by the particular person, or any entity controlled by the particular person, pertaining to the exercise of the voting rights.
that are attached to shares of the bank holding company beneficially owned by the particular person or any entity controlled by the particular person; or
Despite subsection (1), if a person contravenes subsection 876(1) by reason only that, as a result of an event that has occurred and is continuing and is not within the control of the person, shares of the bank holding company beneficially owned by the person or by any entity controlled by the person acquire voting rights in such number so as to cause the person to be a major shareholder of the bank holding company, the Minister may, after consideration of the circumstances, permit the person and any entity controlled by the person to exercise voting rights, in person or by proxy, in respect of any class of voting shares of the bank holding company beneficially owned by them that do not in aggregate exceed 20 per cent of the voting rights attached to that class of voting shares.
Subsection (1) shall cease to apply in respect of a person when, as the case may be,
If, with respect to any bank holding company, a particular person contravenes section 874, subsection 875(1), 876(1) or 878(1), section 880 or 881 or subsection 882(1) or section 883 or fails to comply with an undertaking referred to in subsection 899(2) or with any term or condition imposed under section 907, no person, and no entity controlled by the particular person, shall, in person or by proxy, exercise any voting rights
if the person failed to comply with a term or condition imposed under section 907, the person complies with the term or condition.
if the person failed to comply with an undertaking referred to in subsection 899(2), the bank holding company complies with section 893; or
the person ceases to control the bank holding company within the meaning of paragraph 3(1)(d);
the shares to which the contravention relates have been disposed of;
If general market conditions so warrant and the Minister is satisfied that the bank or the bank holding company has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
Despite sections 876 and 882, a widely held bank or a widely held bank holding company may be a major shareholder of a bank holding company with equity of twelve billion dollars or more and cease to control, within the meaning of paragraphs 3(1)(a) and (d), the bank holding company if it has entered into an agreement with the Minister to do all things necessary to ensure that it is not a major shareholder of the bank holding company on the expiration of the day specified in the agreement.
If general market conditions so warrant and the Minister is satisfied that the institution or insurance holding company has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
Despite sections 876 and 882, an eligible foreign institution, an eligible Canadian financial institution, other than a bank, or a widely held insurance holding company may be a major shareholder of a bank holding company with equity of twelve billion dollars or more and cease to control, within the meaning of paragraph 3(1)(d), the bank holding company if it has entered into an agreement with the Minister to do all things necessary to ensure that it is not a major shareholder of the bank holding company on the expiration of the day specified in the agreement.
it is not a major shareholder of the bank holding company.
it does not control, within the meaning of paragraph 3(1)(d), the bank holding company; and
If general market conditions so warrant and the Minister is satisfied that the body corporate has used its best efforts to be in compliance with subsection (1) on the required day, the Minister may specify a later day as the day from and after which it must comply with that subsection.
If a body corporate that is an eligible financial institution other than a bank controls, within the meaning of paragraph 3(1)(d), a bank holding company with equity of twelve billion dollars or more and the body corporate subsequently ceases to be an eligible financial institution, the body corporate must do all things necessary to ensure that, on the day that is one year after the day it ceased to be an eligible financial institution,
If, with respect to any particular transaction, this Division applies to more than one person, any one of those persons may make the application to the Minister for approval on behalf of all of those persons.
An application for an approval of the Minister required under this Division must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require.
the best interests of the financial system in Canada.
the impact of any integration of the businesses and operations of the applicant or applicants with those of the bank holding company and its affiliates on the conduct of those businesses and operations; and
whether the bank holding company will be operated responsibly by persons with the competence and experience suitable for involvement in the operation of a financial institution;
the character and integrity of the applicant or applicants or, if the applicant or any of the applicants is a body corporate, its reputation for being operated in a manner that is consistent with the standards of good character and integrity;
the business record and experience of the applicant or applicants;
the soundness and feasibility of the plans of the applicant or applicants for the future conduct and development of the business of any bank that is a subsidiary of the bank holding company;
the nature and sufficiency of the financial resources of the applicant or applicants as a source of continuing financial support of any bank that is a subsidiary of the bank holding company;
The Minister shall not approve a transaction that would cause a bank holding company to become a subsidiary of a foreign bank within the meaning of any of paragraphs (a) to (f) of the definition foreign bank in section 2 that is a non-WTO Member foreign bank, unless the Minister is satisfied that treatment as favourable for bank holding companies to which this Act applies exists or will be provided in the jurisdiction in which the foreign bank principally carries on business, either directly or through a subsidiary.
Except for an application by an eligible agent for an approval under section 875, and subject to subsection 882(1), the Minister shall take into account only paragraph (1)(d) if the application is in respect of a transaction that would result in the applicant or applicants holding
Subject to subsection (2), if an application for an approval under section 875 is made, the Minister, in determining whether or not to approve the transaction, shall take into account all matters that the Minister considers relevant to the application, including
more than 10 per cent but no more than 30 per cent of any class of the outstanding non-voting shares of such a bank holding company.
more than 10 per cent but no more than 20 per cent of any class of the outstanding voting shares of a widely held bank holding company with equity of twelve billion dollars or more; or
If, in the opinion of the Superintendent, an application filed under this Division is incomplete, the Superintendent shall send a notice to the applicant specifying the information required by the Superintendent to complete the application.
If, in the opinion of the Superintendent, an application filed under this Division contains all the required information, the Superintendent shall without delay refer the application to the Minister and send a receipt to the applicant certifying the date on which the completed application was received by the Superintendent.
if the Minister is not satisfied that the transaction to which the application relates should be approved, a notice to that effect, advising the applicant of the right to make representations to the Minister in respect of the matter.
a notice approving the transaction to which the application relates; or
If the Minister considers it appropriate to do so, the Minister may extend the period referred to in subsection (2) for one or more periods of forty-five days.
If the Minister is unable to complete the consideration of an application within the period referred to in subsection (1), the Minister shall,
Subject to subsections (4) and 910(2), the notice referred to in paragraph (1)(a) or (b) shall be sent by the Minister within a period of 45 days after the certified date referred to in subsection 908(1) in the following cases:
Subject to subsections (2) and (3) and 910(1), the Minister shall, within a period of thirty days after the certified date referred to in subsection 908(1), send to the applicant
an application is made for the approval referred to in subsection 913(3).
the application is made by an eligible agent or an entity controlled by an eligible agent; or
the application involves the acquisition of control of a bank holding company;
within a further period of thirty days after the date of the sending of the notice referred to in paragraph (a) or within any other further period that may be agreed on by the applicant and the Minister, send a notice referred to in paragraph (1)(a) or (b) to the applicant.
within that period, send a notice to that effect to the applicant; and
If, after receipt of the notice sent in accordance with subsection 909(2) that the Minister is not satisfied that the transaction to which the application relates should be approved, the applicant advises the Minister that the applicant wishes to make representations, the Minister must provide the applicant with a reasonable opportunity within a period of 45 days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
If, after receipt of the notice referred to in paragraph 909(1)(b), the applicant advises the Minister that the applicant wishes to make representations, the Minister must provide the applicant with a reasonable opportunity within a period of thirty days after the date of the notice, or within any further period that may be agreed on by the applicant and the Minister, to make representations in respect of the matter.
Within a period of forty-five days after the expiration of the period for making representations referred to in subsection 910(2), the Minister shall, in the light of any such representations and having regard to the matters to be taken into account, send a notice to the applicant indicating whether or not the Minister approves the transaction to which the application relates.
Within a period of thirty days after the expiration of the period for making representations referred to in subsection 910(1), the Minister shall, in the light of any such representations and having regard to the matters to be taken into account, send a notice to the applicant indicating whether or not the Minister approves the transaction to which the application relates.
the government of a foreign country or any political subdivision of a foreign country, or any agent or agency of a foreign government.
Her Majesty in right of Canada or of a province or any agent or agency of Her Majesty in either of those rights; or
Any person with respect to whom a direction has been made under subsection (7) may, within 30 days after the date of the direction, appeal the matter in accordance with section 977.
No direction shall be made under subsection (7) unless the Minister has provided each person to whom the direction relates and the bank holding company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
If a bank holding company or an eligible agent fails to comply with any undertaking or term or condition in relation to an approval referred to in subsection (3), or if an eligible agent ceases to be an eligible agent, the Minister may, if the Minister considers it to be in the public interest to do so, by order, direct the eligible agent or former eligible agent and any person controlled by the eligible agent or former eligible agent to dispose of any number of shares of the bank holding company beneficially owned by the eligible agent or former eligible agent or the persons controlled by the eligible agent or former eligible agent that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the eligible agent or former eligible agent and the persons controlled by the eligible agent or former eligible agent that is specified in the order.
If an approval referred to in subsection (3) is revoked, the bank holding company shall delete any entry in its securities register in respect of the recording of the issuance of shares to the eligible agent.
The Minister, in determining whether to grant the approval referred to in subsection (3), shall take into account all matters that he or she considers relevant, including those set out in paragraphs 906(1)(a) to (g).
The application for the approval referred to in subsection (3) must be made jointly by the bank holding company and the eligible agent.
Despite subsection (1), a bank holding company may, with the Minister’s approval, record in its securities register the issue of any share of the bank holding company to an eligible agent.
Subsection (2) does not permit a bank holding company to record in its securities register a transfer or issue of any share of the bank holding company to a foreign bank that is a foreign bank by reason only of paragraph (f) of the definition foreign bank in section 2.
Despite subsection (1), a bank holding company may record in its securities register a transfer or issue of any share of the bank holding company to a foreign bank, or to a foreign institution, that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share that is transferred or issued is beneficially owned by the foreign bank or foreign institution or by an entity controlled by the foreign bank or foreign institution.
No bank holding company shall record in its securities register a transfer or issue of any share of the bank holding company to
the government of a foreign country or any political subdivision thereof, or any agency thereof.
Her Majesty in right of Canada or of a province or any agency of Her Majesty in either of those rights; or
If an approval referred to in subsection 913(3) is suspended, the eligible agent shall not exercise, in person or by proxy, any voting rights attached to any share of the bank holding company that is beneficially owned by the eligible agent.
Subsection (1) does not apply in respect of the exercise of voting rights attached to any share referred to in subsection 913(3).
Subsection (1) does not apply to a foreign bank, or to a foreign institution, that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share referred to in subsection (1) is beneficially owned by the foreign bank or foreign institution or by an entity controlled by the foreign bank or foreign institution.
Despite section 737, no person shall, in person or by proxy, exercise any voting rights attached to any share of a bank holding company that is beneficially owned by
No direction shall be made under subsection (1) unless the Minister has provided each person to whom the direction relates and the bank holding company concerned with a reasonable opportunity to make representations in respect of the subject-matter of the direction.
If, with respect to any bank holding company, a person contravenes section 874 or subsection 875(1), 876(1) or 878(1) or section 880 or 881 or subsection 882(1) or section 883 or fails to comply with an undertaking referred to in subsection 899(2) or with any terms and conditions imposed under section 907, the Minister may, if the Minister deems it in the public interest to do so, by order, direct that person and any person controlled by that person to dispose of any number of shares of the bank holding company beneficially owned by any of those persons that the Minister specifies in the order, within the time specified in the order and in the proportion, if any, as between the person and the persons controlled by that person that is specified in the order.
An appeal from an order of a court under this section lies in the same manner as, and to the same court to which, an appeal may be taken from any other order of the court.
A court may, on an application under subsection (1), make such order as the circumstances require to give effect to the terms of the direction and may, without limiting the generality of the foregoing, require the bank holding company concerned to sell the shares that are the subject-matter of the direction.
If a person fails to comply with a direction made under subsection 913(7) or 915(1), an application on behalf of the Minister may be made to a court for an order to enforce the direction.
such other information as the directors deem relevant for the purposes of this Division;
the beneficial ownership of the share, and
determine the circumstances in which a declaration referred to in paragraph (a) is to be required, the form of the declaration and the times at which it is to be submitted.
require any person who wishes to have a transfer of a share registered in the name of, or to have a share issued to, that person to submit a declaration referred to in paragraph (a) as though the person were the holder of that share; and
require any person in whose name a share of the bank holding company is held to submit a declaration setting out
Where, pursuant to this section, a declaration is required to be submitted by a shareholder or other person in respect of the issue or transfer of any share, a bank holding company may refuse to issue the share or register the transfer unless the required declaration is submitted.
As soon as possible after receipt by a bank holding company of a direction under subsection (2),
The Superintendent may, by order, direct a bank holding company to obtain from any person in whose name a share of the bank holding company is held a declaration setting out the name of every entity controlled by that person and containing information concerning
The directors of a bank holding company may make such arrangements as they deem necessary to carry out the intent of this Division and, in particular, but without limiting the generality of the foregoing, may
such other related matters as are specified by the Superintendent.
the ownership or beneficial ownership of the share; and
every person who is requested by the bank holding company to provide a declaration containing information referred to in subsection (1) or (2) shall comply with the request.
the bank holding company shall comply with the direction; and
any other prescribed business.
providing management, advisory, financing, accounting, information processing and other prescribed services to entities in which it has a substantial investment; and
acquiring, holding and administering investments that are permitted by this Part;
The Governor in Council may make regulations prescribing businesses or services for the purposes of subsection (1).
Subject to this Part, a bank holding company shall not engage in or carry on any business other than
The Governor in Council may make regulations imposing terms and conditions in respect of guarantees permitted by this section.
Subsection (1) does not apply if
A bank holding company shall not guarantee on behalf of any person the payment or repayment of any sum of money.
the subsidiary has an unqualified obligation to reimburse the bank holding company for the full amount of the payment or repayment to be guaranteed.
the person on whose behalf the bank holding company has undertaken to guarantee the payment or repayment is a subsidiary of the bank holding company; and
For the purposes of subsection (1), general partnership means any partnership other than a limited partnership.
Except with the approval of the Superintendent, a bank holding company shall not be a general partner in a limited partnership or a partner in a general partnership.
This Division does not apply in respect of
For the purpose of this Division, a member of a bank holding company’s group is any of the following:
The definitions in subsection 464(1) apply in respect of bank holding companies, except that the reference to “section 468” in the definition permitted entity is to be read as a reference to “section 930” and the reference to “bank” in that definition is to be read as a reference to “bank holding company”.
a prescribed entity in relation to the bank holding company.
an entity in which the bank holding company, or an entity referred to in any of paragraphs 930(1)(a) to (f) that controls the bank holding company, has a substantial investment; or
a subsidiary of the bank holding company or of an entity referred to in any of paragraphs 930(1)(a) to (f) that controls the bank holding company;
an entity referred to in any of paragraphs 930(1)(a) to (f) that controls the bank holding company;
the holding of a security interest in securities of an entity.
the holding of a security interest in real property, unless the security interest is prescribed under paragraph 941(a) to be an interest in real property; or
For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.
The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a bank holding company and its subsidiaries hold must not exceed $200,000,000.
If a bank holding company decides to exercise its right under subsection (5), the bank holding company is deemed to be acquiring the control or the substantial investment under the other provision.
Despite having acquired control of, or a substantial investment in, an entity under a particular provision of this Part, a bank holding company may continue to control the entity or hold the substantial investment in the entity as though it had made the acquisition under another provision of this Part so long as the conditions of that other provision are met.
If a bank holding company holds a substantial investment in an entity referred to in paragraph 930(1)(j) that it acquired or increased under subsection (2) before the coming into force of subsection (4.1), the bank holding company may continue to hold that substantial investment.
No bank holding company shall, under subsection (2), acquire control of, or acquire or increase a substantial investment in, an entity referred to in paragraph 930(1)(j).
A bank holding company is deemed not to contravene subsection (1) if the bank holding company acquires control of, or acquires or increases a substantial investment in, an entity solely as the result of an event not within the control of the bank holding company.
A bank holding company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls holds shares of, or other ownership interests in, an entity or holds a loan made to an entity and, in respect of that entity and its affiliates, the aggregate value of the following exceeds $100,000,000:
A bank holding company is prohibited from holding or acquiring a substantial investment in the business growth fund or any entity that the business growth fund controls if the business growth fund or any entity that the business growth fund controls hold or acquires shares of, or other ownership interests in, any of the following entities, or in any entity that controls any of the following entities:
For greater certainty, a bank holding company is prohibited from acquiring control of the business growth fund or any entity that the business growth fund controls.
Subject to section 927.1 and subsections (3.2) to (3.4), a bank holding company may hold, acquire or increase a substantial investment in the business growth fund or any entity that the business growth fund controls.
A bank holding company may acquire control of, or acquire or increase a substantial investment in, an entity by way of
A bank holding company may acquire control of, or acquire or increase a substantial investment in, an entity other than a permitted entity by way of
Subject to subsections (2) to (3.4), no bank holding company shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.
an acquisition of shares or ownership interests in the entity by
an acquisition of control of an entity referred to in any of paragraphs 930(1)(a) to (j), a specialized financing entity or a prescribed entity that controls or has a substantial investment in the entity; or
an entity controlled by an entity referred to in any of paragraphs 930(1)(a) to (j), a specialized financing entity or a prescribed entity that is controlled by the bank holding company.
an entity referred to in any of paragraphs 930(1)(a) to (j), a specialized financing entity or a prescribed entity that is controlled by the bank holding company, or
a realization of security permitted by section 935.
an acquisition of shares of a body corporate or of ownership interests in an unincorporated entity permitted by section 934; or
a temporary investment permitted by section 933;
an entity that is engaged in any prescribed activity.
an entity that acts as an insurance broker or agent in Canada; or
an entity that is primarily engaged in providing temporary possession of personal property, including motor vehicles, to customers in Canada for a purpose other than to finance the customer’s acquisition of the property;
an entity that is primarily engaged in the leasing of motor vehicles in Canada for the purpose of extending credit to a customer or financing a customer’s acquisition of a motor vehicle;
an entity referred to in any of paragraphs 930(1)(a) to (j);
the outstanding principal of all loans held by the business growth fund or the entities that the business growth fund controls.
all ownership interests that are held by the bank holding company, the bank holding company’s subsidiaries, the business growth fund or the entities that the business growth fund controls, the value of those ownership interests as determined by the amount paid for them at the time each was first acquired by any of those entities; and
prescribing terms and conditions under which a bank holding company may acquire control of, or acquire or increase a substantial investment in, a specialized financing entity.
specifying the classes of persons who are connected with any person for the purposes of paragraph (b); and
respecting the loans and investments, and the maximum aggregate amount of all loans and investments, that may be made or acquired by a bank holding company and its prescribed subsidiaries to or in a person and any persons connected with that person;
respecting the determination of the amount or value of loans, investments and interests for the purposes of this Division;
an entity that is incorporated or formed, and regulated, otherwise than by or under an Act of Parliament or of the legislature of a province and that is primarily engaged outside Canada in a business that, if carried on in Canada, would be the business of banking, the business of a cooperative credit society, the business of insurance, the business of providing fiduciary services or the business of dealing in securities.
an entity that is incorporated or formed by or under an Act of Parliament or of the legislature of a province and that is primarily engaged in dealing in securities; or
a cooperative credit society incorporated or formed, and regulated, by or under an Act of the legislature of a province;
a trust, loan or insurance corporation incorporated or formed by or under an Act of the legislature of a province;
an insurance holding company;
an insurance company or a fraternal benefit society incorporated or formed by or under the Insurance Companies Act;
an association to which the Cooperative Credit Associations Act applies;
a body corporate to which the Trust and Loan Companies Act applies;
a bank holding company;
a bank;
If a bank holding company controls, within the meaning of paragraph 3(1)(a), (b) or (c), an entity, subsections (5) and (6) do not apply in respect of any subsequent increases by the bank holding company of its substantial investment in the entity so long as the bank holding company continues to control the entity.
A bank holding company that, under subsection (4), controls an entity may, with the prior written approval of the Superintendent, give up control of the entity while keeping a substantial investment in the entity if
A bank holding company that, under paragraph (4)(b), (c) or (d), controls an entity may not, without the prior written approval of the Minister, give up control, within the meaning of paragraph 3(1)(d), of the entity while it continues to control the entity.
A bank holding company that controls, within the meaning of paragraphs 3(1)(a) and (d), an entity referred to in paragraph (1)(a) or (b) may not give up control, within the meaning of paragraph 3(1)(a) or (d), of the entity while continuing to control, within the meaning of the other paragraph, the entity.
A bank holding company need not control an entity referred to in paragraph (1)(j), or an entity that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province, if the laws or customary business practices of the country under the laws of which the entity was incorporated or formed do not permit the bank holding company to control the entity.
The exception in paragraph (7)(d) does not apply with respect to a deemed acquisition of control under subsection 928(6).
Subsection (6) does not apply in respect of a particular transaction if
Subject to subsection (7) and the regulations, a bank holding company may not acquire control of, or acquire or increase a substantial investment in, an entity referred to in any of paragraphs (1)(g) to (j) and (4)(c) and (d) unless the bank holding company obtains the approval of the Superintendent.
In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval under paragraph (5)(b.1), take into account all matters that he or she considers relevant in the circumstances, including
Subject to the regulations, a bank holding company may not, without the prior written approval of the Minister,
Subject to subsection (8) and the regulations, a bank holding company may not acquire control of, or acquire or increase a substantial investment in,
Despite paragraph (3)(a), a bank holding company may acquire control of, or acquire or increase a substantial investment in, any entity that acts as a trustee for a trust if the entity has been permitted under the laws of a province to act as a trustee for a trust and the following conditions are satisfied:
A bank holding company may not acquire control of, or acquire or increase a substantial investment in, an entity whose business includes any activity referred to in any of paragraphs (2)(a) to (e) if the entity engages in the business of accepting deposit liabilities or if the activities of the entity include
Subject to subsections (3) to (6), a bank holding company may acquire control of, or acquire or increase a substantial investment in, an entity, other than an entity referred to in any of paragraphs (1)(a) to (j), whose business is limited to one or more of the following:
Subject to subsections (4) to (6), a bank holding company may acquire control of, or acquire or increase a substantial investment in
engaging in prescribed activities, under prescribed terms and conditions, if any are prescribed.
engaging in the activities referred to in the definition closed-end fund, mutual fund distribution entity, mutual fund entity or real property brokerage entity in subsection 464(1); and
engaging in any activity that a bank is permitted to engage in, other than an activity referred to in paragraph (a) or (e), that relates to
engaging in the provision of any services exclusively to any or all of the following, so long as the entity is providing those services to the bank holding company or any member of the bank holding company’s group:
acquiring or holding shares of, or ownership interests in, entities in which a bank holding company is permitted under this Division to hold or acquire;
engaging in any financial service activity that a bank is permitted to engage in under any of paragraphs 409(2)(a) to (d) or any other activity that a bank is permitted to engage in under section 410 or 411;
any prescribed person, if it is doing so under prescribed terms and conditions, if any are prescribed;
any permitted entity in which an entity referred to in subparagraph (iii) has a substantial investment, or
any entity that is primarily engaged in the business of providing financial services,
any member of the bank holding company’s group,
the bank holding company,
if a significant portion of the business of the entity involves an activity referred to in subparagraph (i), the promotion, sale, delivery or distribution of a financial product or financial service that is provided by any other entity that is primarily engaged in the business of providing financial services;
the promotion, sale, delivery or distribution of a financial product or financial service that is provided by any member of the bank holding company’s group, or
any prescribed activity.
acquiring control of or acquiring or holding a substantial investment in another entity unless
activities that a bank is not permitted to engage in under section 416 if the entity engages in the activities of a finance entity or of any other entity as may be prescribed;
dealing in securities, except as may be permitted under paragraph (2)(e) or as may be permitted to a bank under paragraph 409(2)(c);
activities that a bank is not permitted to engage in under any of sections 412, 417 and 418;
in the case of an entity that is not controlled by the bank holding company, a bank would be permitted to acquire a substantial investment in the other entity under subsection 466(2), paragraph 466(3)(b) or (c) or subsection 466(4) or 468(1) or (2); or
in the case of an entity that is controlled by the bank holding company, a bank would be permitted under Part IX to acquire a substantial investment in the other entity, or
if the entity engages in other business, that business is limited to engaging in one or more of the following:
the entity acts as a trustee only with respect to a closed-end fund or mutual fund entity; and
the provision of investment counselling services and portfolio management services.
any activity that a bank is permitted to engage in under paragraph 410(1)(c.2), and
the activities of a mutual fund distribution entity,
the bank holding company is permitted by regulations made under paragraph 936(a) to acquire or increase the substantial investment;
the bank holding company controls, within the meaning of paragraphs 3(1)(a) and (d), the entity or would thereby acquire control, within the meaning of those paragraphs, of the entity, or
an entity whose business includes an activity referred to in paragraph (2)(b), including a specialized financing entity, unless
an entity whose business includes one or more of the activities referred to in paragraph (2)(a) and that engages, as part of its business, in any financial intermediary activity that exposes the entity to material market or credit risk, including a finance entity, a factoring entity and a financial leasing entity, unless
an entity referred to in any of paragraphs (1)(c) to (j), unless
an entity referred to in paragraph (1)(a) or (b), unless
the bank holding company is permitted by regulations made under paragraph 936(a) to acquire or increase the substantial investment;
the bank holding company controls, within the meaning of paragraph 3(1)(d), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, or
the bank holding company is permitted by regulations made under paragraph 936(a) to acquire or increase the substantial investment; or
the bank holding company controls, within the meaning of paragraph 3(1)(d), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity, or
subject to prescribed terms and conditions, if any are prescribed, the activities of the entity do not include the acquisition or holding of control of, or the acquisition or holding of shares or other ownership interests in, an entity referred to in any of paragraphs (a) to (c) or an entity that is not a permitted entity.
the bank holding company is permitted by regulations made under paragraph 936(a) to acquire or increase the substantial investment, or
the bank holding company controls, within the meaning of paragraph 3(1)(d), the entity, or would thereby acquire control, within the meaning of that paragraph, of the entity,
acquire control of, or acquire or increase a substantial investment in, an entity engaging in an activity prescribed for the purposes of paragraph (2)(f).
acquire control of, or acquire or increase a substantial investment in, an entity that engages in an activity described in paragraph 410(1)(c.1); or
acquire control of, or acquire or increase a substantial investment in, an entity that engages in Canada in an activity described in paragraph 410(1)(c);
acquire control of, or acquire or increase a substantial investment in, an entity whose business includes one or more of the activities referred to in paragraph (2)(d);
acquire control of an entity referred to in paragraph (1)(j) if the bank holding company is a bank holding company with equity of two billion dollars or more and A + B > C where A is the value of the entity’s consolidated assets, as it would have been reported in the entity’s annual financial statements if those statements had been prepared immediately before the acquisition, B is the aggregate of the values of the consolidated assets of all other entities referred to in paragraph (1)(j) that the bank holding company has acquired control of within the preceding 12 months, as the value for each entity would have been reported in its annual financial statements if those statements had been prepared immediately before the acquisition of control of that entity, and C is 10% of the value of the bank holding company’s consolidated assets, as shown in the bank holding company’s last annual statement that was prepared before its first acquisition of control of an entity referred to in paragraph (1)(j) within the preceding 12 months;
acquire control of an entity referred to in paragraph (1)(j) or (4)(c), other than an entity whose activities are limited to the activities of one or more of the following entities, if the control is acquired from an entity referred to in any of paragraphs (1)(a) to (f) that is not a member of the bank holding company’s group:
acquire control of an entity referred to in paragraphs (1)(g) to (i) from a person who is not a member of the bank holding company’s group;
a financial leasing entity;
a factoring entity, or
the best interests of the financial system in Canada.
the stability of the financial system in Canada; and
the bank holding company is acquiring or increasing a substantial investment in an entity (referred to in this paragraph as the “target entity”) without acquiring control of it, and A/B < C where A is the aggregate of the values, as they would have been reported in the bank holding company’s annual financial statements if those statements were prepared on the day of the acquisition or increase of the substantial investment in the target entity, of the shares of, or other ownership interests in, the target entity that the bank holding company or a subsidiary of the bank holding company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, and the shares of, or other ownership interests in, the target entity that are held by an entity the control of which the bank holding company is acquiring in the transaction that results in the acquisition or increase of a substantial investment in the target entity, the shares of, or other ownership interests in, the target entity that are held by the bank holding company or a subsidiary of the bank holding company and that were acquired by the bank holding company or the subsidiary within the 12 months preceding the transaction referred to in subparagraph (i), and the shares of, or other ownership interests in, the target entity that are held by a subsidiary of the bank holding company the control of which was acquired by the bank holding company within the 12 months preceding the transaction referred to in subparagraph (i), excluding any shares or other ownership interests referred to in subparagraph (ii), B is the value of the bank holding company’s consolidated assets, as shown in its last annual statement prepared before the transaction that results in the acquisition or increase of the substantial investment in the target entity, and C is 0.005, in the case of a bank holding company with equity of 12 billion dollars or more, or 0.01, in the case of any other bank holding company.
subject to subsection (7.1), the bank holding company is acquiring control of an entity (referred to in this paragraph as the “target entity”) referred to in paragraph (4)(c) or (d) and A/B < C where A is the aggregate of the values, as they would have been reported in the bank holding company’s annual financial statements if those statements were prepared on the day of the acquisition of control of the target entity, of the target entity’s consolidated assets, the assets of the bank holding company and of any subsidiary of the bank holding company that were acquired, at any time within the 12 months preceding the acquisition of control of the target entity, from any entity that, at that time, held any of the assets referred to in subparagraph (i), and the consolidated assets of any entity referred to in paragraph 4(c) or (d) the control of which is acquired by the bank holding company at the same time as the acquisition of control of the target entity — or within the 12 months preceding the acquisition of control of the target entity if, at any time within those 12 months, that entity and the target entity were affiliates — excluding any assets referred to in subparagraph (i) or (ii) and the consolidated assets of an entity in respect of which no approval of the Superintendent is required under any of paragraphs (a) to (c), B is the value of the bank holding company’s consolidated assets, as shown in its last annual statement prepared before the acquisition of control of the target entity, and C is 0.01, in the case of a bank holding company with equity of 12 billion dollars or more, or 0.02, in the case of any other bank holding company; or
the Minister has approved the transaction under subsection (5) or is deemed to have approved it under subsection 931(1);
the bank holding company is acquiring control of an entity whose activities are limited to the activities of a factoring entity or a financial leasing entity;
the bank holding company is acquiring control of an entity, other than a specialized financing entity, and the only reason for which the bank holding company would, but for this subsection, require approval for the acquisition is that the entity carries on activities referred to in paragraph (2)(b);
the entity meets the conditions referred to in subparagraph (4)(d)(iii).
the bank holding company is permitted to do so by regulations made under paragraph 936(c); or
If a bank holding company obtains the approval of the Superintendent under subsection 930(6) to acquire control of, or to acquire or increase a substantial investment in, an entity and, through that acquisition or increase the bank holding company indirectly acquires control of, or acquires or increases a substantial investment in, another entity that would require the approval of the Superintendent under that subsection and that indirect acquisition or increase is disclosed to the Superintendent in writing before the approval is obtained, the bank holding company is deemed to have obtained the approval of the Superintendent for that indirect acquisition or increase.
If a bank holding company obtains the approval of the Minister under subsection 930(5) to acquire control of, or to acquire or increase a substantial investment in, an entity and, through that acquisition or increase, the bank holding company indirectly acquires control of, or acquires or increases a substantial investment in, another entity that would require the approval of the Minister under subsection 930(5) or the Superintendent under subsection 930(6) and that indirect acquisition or increase is disclosed to the Minister in writing before the approval is obtained, the bank holding company is deemed to have obtained the approval of the Minister or the Superintendent for that indirect acquisition or increase.
access to information about the entity.
the activities of the entity; and
Despite any other provision of this Division, a bank holding company shall not control a permitted entity, other than an entity referred to in any of paragraphs 930(1)(a) to (f), unless, in the course of the acquisition of control or within a reasonable time after the control is acquired, the bank holding company obtains from the permitted entity an undertaking to provide the Superintendent with reasonable access to the records of the permitted entity.
The Superintendent may enter into an agreement with the appropriate official or public body responsible for the supervision of any entity referred to in any of paragraphs 930(1)(g) to (j) in each province or in any other jurisdiction concerning any matters referred to in paragraphs (1)(a) and (b) or any other matter the Superintendent considers appropriate.
If a bank holding company acquires control of an entity referred to in any of paragraphs 930(1)(g) to (j), the bank holding company shall provide the Superintendent with any undertakings concerning the entity that the Superintendent may require.
If a bank holding company controls a permitted entity, other than an entity referred to in any of paragraphs 930(1)(a) to (f), the bank holding company shall provide the Superintendent with any undertakings that the Superintendent may require regarding
If a bank holding company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Superintendent would have been required under subsection 930(6) if the bank holding company had acquired the control, or acquired or increased the substantial investment, under section 930, the Superintendent may, on application, permit the bank holding company to retain control of the entity or to continue to hold the substantial investment in the entity for an indeterminate period, on any terms and conditions that the Superintendent considers appropriate.
If a bank holding company, by way of temporary investment, acquires control of, or acquires or increases a substantial investment in, an entity for which the approval of the Minister would have been required under subsection 930(5) if the bank holding company had acquired the control, or acquired or increased the substantial investment, under section 930, the bank holding company must, within 90 days after acquiring control or after acquiring or increasing the substantial investment,
The Superintendent may, in the case of any particular bank holding company that makes an application under this subsection, extend the period of two years, or the other period specified or approved by the Superintendent, that is referred to in subsection (1) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary.
Subject to subsection (3), a bank holding company may, by way of a temporary investment, acquire control of, or acquire or increase a substantial investment in, an entity but, within two years, or any other period that may be specified or approved by the Superintendent, after acquiring control or after acquiring or increasing the substantial investment, as the case may be, it shall do all things necessary to ensure that it no longer controls the entity or has a substantial investment in the entity.
do all things necessary to ensure that, on the expiry of the 90 days, it no longer controls the entity or does not have a substantial investment in the entity.
apply to the Minister for approval to retain control of the entity or to continue to hold the substantial investment in the entity for a period specified by the Minister or for an indeterminate period on any terms and conditions that the Minister considers appropriate; or
a substantial investment in an entity that is primarily engaged in holding shares of, ownership interests in or assets acquired from the entity to which the loan was made or any of the affiliates of that entity.
a substantial investment in any entity that is an affiliate of the entity; or
a substantial investment in the entity to which the loan was made;
If, under subsection (1), a bank holding company acquires control of, or acquires or increases a substantial investment in, an entity that it would otherwise be permitted to acquire or increase under section 930, the bank holding company may retain control of the entity or continue to hold the substantial investment for an indeterminate period, if the approval in writing of the Minister is obtained before the end of the period referred to in subsection (2), including any extension of it granted under subsection (3).
If a bank holding company acquires a substantial investment in any entity under subsection (4), the bank holding company may, on any terms and conditions that the Superintendent considers appropriate, continue to hold the substantial investment for an indeterminate period or for any other period that the Superintendent may specify.
Despite anything in this Division, if a subsidiary of a bank holding company has made a loan to, or holds a debt obligation of, the government of a foreign country or an entity controlled by the government of a foreign country and, under the terms of the agreement between the subsidiary and that government or the entity, as the case may be, and any other documents governing the terms of the loan or debt obligation, a default has occurred, the bank holding company may acquire, through the subsidiary, a substantial investment in that entity or in any other entity designated by that government if the acquisition is part of a debt restructuring program of that government.
The Superintendent may, in the case of any particular bank holding company that makes an application under this subsection, extend the period of five years referred to in subsection (2) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary.
If a bank holding company acquires a substantial investment in an entity under subsection (1), the bank holding company shall, within five years after acquiring the substantial investment, cause the subsidiary that made the loan to do all things necessary to ensure that the bank holding company does not control the entity or have a substantial investment in the entity.
Despite anything in this Division, if any subsidiary of a bank holding company has made a loan to an entity and, under the terms of the agreement between the subsidiary and the entity with respect to the loan and any other documents governing the terms of the loan, a default has occurred, the bank holding company may acquire, through the subsidiary,
If, under subsection (1), a bank holding company acquires control of, or acquires or increases a substantial investment in, an entity that it would otherwise be permitted to acquire or increase under section 930, the bank holding company may retain control of the entity or continue to hold the substantial investment for an indeterminate period if the approval in writing of the Minister is obtained before the end of the period referred to in subsection (2), including any extension of it granted under subsection (3).
The Superintendent may, in the case of any particular bank holding company that makes an application under this subsection, extend the period of five years referred to in subsection (2) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary.
Subject to subsection 717(2), if a bank holding company acquires control of, or a substantial investment in, an entity by way of the realization of a security interest held by any of its subsidiaries, the bank holding company shall, within five years after the day on which control or the substantial investment is acquired, cause the subsidiary to do all things necessary to ensure that the bank holding company no longer controls the entity or has a substantial investment in the entity.
Despite anything in this Part, a bank holding company may acquire control of, or a substantial investment in, an entity if the control or the substantial investment is acquired through the realization of a security interest held by a subsidiary of the bank holding company.
restricting the ownership by a bank holding company of shares of a body corporate or of ownership interests in an unincorporated entity under sections 930 to 935 and imposing terms and conditions applicable to bank holding companies that own such shares or interests.
for the purposes of subsection 930(11), permitting a bank holding company to give up control of an entity; and
for the purposes of subsection 930(5) or (6), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which either of those subsections does not apply or the bank holding companies or other entities in respect of which either of those subsections does not apply, including prescribing bank holding companies or other entities on the basis of the activities they engage in;
for the purposes of subsection 930(4), permitting the acquisition of control or the acquisition or increase of substantial investments, or prescribing the circumstances under which that subsection does not apply or the bank holding companies or other entities in respect of which that subsection does not apply, including prescribing bank holding companies or other entities on the basis of the activities they engage in;
for a period of five years after the day on which the loan, investment or interest was acquired, in the case of a loan, investment or interest, other than an interest in real property.
for a period of twelve years following the day on which the interest was acquired, in the case of an interest in real property; and
Subsection (1) does not apply to an investment or interest described in that subsection if the investment or interest is defined by a regulation made under section 941 to be an interest in real property and
The Superintendent may, in the case of any particular bank holding company, extend any period referred to in subsection (1) for any further period or periods, and on any terms and conditions, that the Superintendent considers necessary.
Subject to subsection (3), the value of all loans, investments and interests acquired by a bank holding company and any of its prescribed subsidiaries under section 934 or as a result of a realization of a security interest is not to be included in calculating the value of loans, investments and interests of the bank holding company and its prescribed subsidiaries under sections 938 to 940
the bank holding company or the subsidiary acquired the investment or interest under section 934 as a result of a default referred to in that section in respect of a loan that was defined by a regulation made under section 941 to be an interest in real property.
the bank holding company or the subsidiary acquired the investment or interest as a result of the realization of a security interest securing a loan that was defined by a regulation made under section 941 to be an interest in real property; or
all ownership interests in unincorporated entities, other than ownership interests in permitted entities in which the bank holding company has a substantial investment,
all participating shares, excluding participating shares of permitted entities in which the bank holding company has a substantial investment, and
acquire control of an entity that holds shares or ownership interests referred to in paragraph (a),
purchase or otherwise acquire any participating shares of any body corporate or any ownership interests in any unincorporated entity, other than those of a permitted entity in which the bank holding company has, or by virtue of the acquisition would have, a substantial investment, or
interests in real property, or
ownership interests in an unincorporated entity, other than ownership interests in a permitted entity in which the bank holding company has, or by virtue of the acquisition would have, a substantial investment, or
participating shares of a body corporate, other than those of a permitted entity in which the bank holding company has, or by virtue of the acquisition would have, a substantial investment,
all interests of the bank holding company in real property referred to in subparagraph (a)(iii)
all participating shares and ownership interests referred to in subparagraphs (a)(i) and (ii) that are beneficially owned by the bank holding company and its prescribed subsidiaries, and
make an improvement to real property in which the bank holding company or any of its prescribed subsidiaries has an interest
purchase or otherwise acquire
exempting classes of bank holding companies from the application of sections 937 to 940.
determining the method of valuing those interests; or
defining the interests of a bank holding company in real property;
Subsection (2) does not apply in respect of an entity in which a bank holding company has a substantial investment permitted by this Division.
If
If, in the opinion of the Superintendent,
The Superintendent may, by order, direct a bank holding company to dispose of, within any period that the Superintendent considers reasonable, any loan, investment or interest made or acquired in contravention of this Division.
the bank holding company or any entity it controls has entered into an arrangement whereby it or its nominee may veto any proposal put before
an investment by a bank holding company or any entity it controls in shares of a body corporate or in ownership interests in an unincorporated entity enables the bank holding company to control the body corporate or the unincorporated entity, or
a similar group or committee of an unincorporated entity,
the board of directors of a body corporate, or
is in default of an undertaking referred to in subsection 932(1) or (2) and the default is not remedied within ninety days after the day of receipt by the bank holding company of a notice from the Superintendent of the default, or
fails to provide or obtain within a reasonable time the undertakings referred to in subsection 932(1), (2) or (4), or
a permitted entity referred to in subsection 932(4) is in default of an undertaking referred to in subsection 932(4) and the default is not remedied within ninety days after the day of receipt by the bank holding company of a notice from the Superintendent of the default,
a bank holding company
For the purposes of subsection (1), the total value of all assets that the bank holding company or any of its subsidiaries has transferred during the 12-month period referred to in subsection (1) is the total of the value of each of those assets as reported in the last annual statement of the bank holding company prepared before the transfer of the asset or, if the value of any of those assets is not reported in that annual statement, as it would be reported in the annual statement of the bank holding company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 840(4), immediately before the transfer of the asset.
For the purposes of subsection (1), the total value of all assets that the bank holding company or any of its subsidiaries has acquired during the period of twelve months referred to in subsection (1) is the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which immediately after the acquisition were included in the annual statement of the bank holding company, the fair market value of the assets of the entity at the date of the acquisition.
For the purposes of “A” in subsection (1), the value of the assets is
The approval of the Superintendent is not required if
Subsection (1) does not apply in respect of
The Superintendent may, for the purposes of subsection (1), approve a transaction or series of transactions relating to the acquisition or transfer of assets that may be entered into with a person, or with persons of any class of persons, regardless of whether those persons are known at the time of the granting of the approval or not.
A bank holding company shall not, and shall not permit its subsidiaries to, without the approval of the Superintendent, acquire assets from a person or transfer assets to a person if A + B > C where A is the value of the assets; B is the total value of all assets that the bank holding company and its subsidiaries acquired from or transferred to that person in the twelve months ending immediately before the acquisition or transfer; and C is ten per cent of the total value of the assets of the bank holding company, as shown in the last annual statement of the bank holding company prepared before the acquisition or transfer.
fully secured by debt obligations that are guaranteed by any financial institution;
fully secured by deposits with any financial institution, or
guaranteed by any financial institution,
assets acquired or transferred under a transaction or series of transactions by a subsidiary of the bank holding company with a financial institution as a result of the subsidiary’s participation in one or more syndicated loans with that financial institution.
assets that are debt obligations of an entity controlled by the bank holding company; or
assets that are debt obligations that are widely distributed, as that expression is defined by the regulations;
assets that are debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in paragraph (b);
assets that are debt obligations issued
assets that are debt obligations that are
the government of a foreign country or any political subdivision of a foreign country, or
a municipality, or
the government of a province,
the Government of Canada,
by a prescribed international agency;
by, or by any agency of,
the transaction has been approved by the Minister under subsection 678(1) of this Act or subsection 715(1) of the Insurance Companies Act.
the bank holding company or its subsidiary acquires shares of, or ownership interests in, an entity for which the approval of the Minister under Division 7 or subsection 930(5) is required or the approval of the Superintendent under subsection 930(6) is required; or
in the case of assets that are transferred, the value of the assets as reported in the last annual statement of the bank holding company prepared before the transfer or, if the value of the assets is not reported in that annual statement, the value of the assets as it would be reported in the annual statement of the bank holding company if the annual statement had been prepared, in accordance with the accounting principles referred to in subsection 840(4), immediately before the transfer.
in the case of assets that are acquired, the purchase price of the assets or, if the assets are shares of, or ownership interests in, an entity the assets of which will be included in the annual statement of the bank holding company after the acquisition, the fair market value of the assets; and
the disposal of an investment made after that date as a result of a commitment made before that date.
the disposal of an investment made before that date; or
the termination of a loan made after that date as a result of a commitment made before that date;
the termination of a loan made before February 7, 2001;
A Canadian entity is not a non-bank entity by reason only that a subsidiary of a bank holding company that is a bank controls, or has a substantial investment in, the Canadian entity.
Subject to subsection (2), for the purpose of section 948 non-bank entity means a Canadian entity, other than a bank, that is controlled by a bank holding company or in which a bank holding company has a substantial investment.
represent to the public that any instrument issued by the non-bank entity is a deposit or that any liability incurred by the non-bank entity is a deposit.
engage in the business of accepting deposit liabilities; or
Subsection (2) does not apply if the non-bank entity is
Subsections (1) and (2) do not apply if the non-bank entity is
Subsection (2) does not apply
The disclosure shall be
A non-bank entity that carries on as part of its business the provision of financial services shall not borrow money in Canada from the public without disclosing that
A non-bank entity shall not, in Canada,
the non-bank entity is not regulated as a financial institution in Canada.
the liability incurred by the non-bank entity through the borrowing is not a deposit; and
the non-bank entity is not a member institution of the Canada Deposit Insurance Corporation;
in any other manner that may be prescribed.
in a prospectus, information circular or other offering document related to the borrowing or in a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or
except as may be provided in any regulations, to a borrowing
to a borrowing of a prescribed class or type or to a borrowing in prescribed circumstances or in a prescribed manner; or
through the issue of instruments in denominations of $150,000 or more.
from a person in an amount of $150,000 or more, or
a prescribed entity.
an entity referred to in paragraph 930(1)(d) or (h); or
a trust or loan corporation incorporated under an Act of Parliament or of the legislature of a province;
a prescribed entity.
a financial institution that is described in paragraph (g) of the definition financial institution in section 2; or
an entity that is controlled by an insurance holding company or in which an insurance holding company has a substantial investment;
a bank holding company or an insurance holding company;
an insurance company incorporated under an Act of Parliament or of the legislature of a province;
adequate and appropriate forms of liquidity,
adequate capital, and
A bank holding company shall comply with an order made under subsection (3) within such time as the Superintendent specifies therein.
Notwithstanding that a bank holding company is complying with regulations or guidelines made under subsection (2), the Superintendent may, by order, direct the bank holding company
The Governor in Council may make regulations and the Superintendent may make guidelines respecting the maintenance by bank holding companies of adequate capital and adequate and appropriate forms of liquidity.
A bank holding company shall, in relation to its business, maintain
to provide additional liquidity in such forms and amounts as the Superintendent may require.
to increase its capital; or
the name, address and date of appointment of the auditor of the bank holding company.
the date of expiration of the term of each director referred to in paragraph (a); and
the name of each committee of the bank holding company on which each director referred to in paragraph (a) serves;
the names of the directors referred to in paragraph (a) who are officers or employees of the bank holding company or any affiliate of the bank holding company, and the positions they occupy;
the bodies corporate of which each director referred to in paragraph (a) is an officer or director and the firms of which each director is a member;
the mailing address of each director holding office immediately following the meeting;
the name, residence and citizenship of each director holding office immediately following the meeting;
Where
A bank holding company shall, within thirty days after each annual meeting of the bank holding company, provide the Superintendent with a return showing
a vacancy on the board of directors of the bank holding company occurs or is filled,
a vacancy in the office of auditor of the bank holding company occurs or is filled by another person, or
any information relating to a director or an auditor of a bank holding company shown in the latest return made to the Superintendent under subsection (1), other than information referred to in paragraph (1)(c), becomes inaccurate or incomplete,
the information referred to in paragraphs 951(1)(a) and (c) to (g) contained in the latest return sent to the Superintendent pursuant to section 951.
the incorporating instrument of the bank holding company; and
A statement containing information in the register and purporting to be certified by the Superintendent is admissible in evidence in all courts as proof, in the absence of evidence to the contrary, of the facts stated in the statement without proof of the appointment or signature of the Superintendent.
Persons are entitled to reasonable access to the register and may make copies of or take extracts from the information in it.
The register may be maintained in
The Superintendent shall, in respect of each bank holding company, cause a register to be maintained containing a copy of
a system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.
a bound or loose-leaf form or in a photographic film form; or
determine whether the bank holding company has adequate policies and procedures to protect itself against threats to its integrity or security.
ascertain the financial condition of the bank holding company; or
determine whether the bank holding company is complying with the provisions of this Act;
Subsection (1) does not apply in respect of an entity that controls a bank holding company or is affiliated with a bank holding company where that entity is a financial institution regulated
Any person to whom a direction has been issued under subsection (1) shall provide the information or documents specified in the order within the time specified in the order and, where the order does not specify a time, the person shall provide the information or documents within a reasonable time.
The Superintendent may, by order, direct a person who controls a bank holding company or any entity that is affiliated with a bank holding company to provide the Superintendent with the information or documents that are specified in the order if the Superintendent believes that the production of the information or documents is necessary in order to
by or under an Act of the legislature of a province where the Superintendent has entered into an agreement with the appropriate official or public body responsible for the supervision of financial institutions in that province concerning the sharing of information on such financial institutions.
by or under an Act of Parliament; or
Nothing in subsection (1) prevents the Superintendent from disclosing any information
All information regarding the business or affairs of a bank holding company, or regarding a person dealing with a bank holding company, that is obtained by the Superintendent, or by any person acting under the direction of the Superintendent, as a result of the administration or enforcement of any Act of Parliament, and all information prepared from that information, is confidential and shall be treated accordingly.
to the Deputy Minister of Finance or any officer of the Department of Finance authorized in writing by the Deputy Minister of Finance or to the Governor of the Bank of Canada or any officer of the Bank of Canada authorized in writing by the Governor of the Bank of Canada, for the purposes of policy analysis related to the regulation of financial institutions,
to the Canada Deposit Insurance Corporation or any compensation association designated by order of the Minister pursuant to subsection 449(1) of the Insurance Companies Act, for purposes related to its operation, and
to any other agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision,
to any government agency or body that regulates or supervises financial institutions, for purposes related to that regulation or supervision,
The Governor in Council may, for the purposes of subsection (3), make regulations respecting the circumstances in which prescribed supervisory information may be used as evidence.
The disclosure of any prescribed supervisory information, other than under subsection (3) or (4), does not constitute a waiver of the privilege referred to in subsection (1).
Despite subsections (1) and (2) and section 39.1 of the Office of the Superintendent of Financial Institutions Act, a court, tribunal or other body may, by order, require the Minister, the Superintendent or a bank holding company to give oral testimony or to produce any document relating to any prescribed supervisory information in any civil proceedings in relation to the administration or enforcement of this Act that are commenced by the Minister, the Superintendent, the Attorney General of Canada or the bank holding company.
Despite subsection (1),
No person shall by an order of any court, tribunal or other body be required in any civil proceedings to give oral testimony or to produce any document relating to any prescribed supervisory information.
Prescribed supervisory information shall not be used as evidence in any civil proceedings and is privileged for that purpose.
a bank holding company may, in accordance with the regulations, if any, use prescribed supervisory information as evidence in any proceedings in relation to the administration or enforcement of this Act or the Winding-up and Restructuring Act that are commenced by the bank holding company, the Minister, the Superintendent or the Attorney General of Canada.
the Minister, the Superintendent or the Attorney General of Canada may, in accordance with the regulations, if any, use prescribed supervisory information as evidence in any proceedings; and
The Superintendent shall not disclose any information referred to in subsection (1) to any person whose powers, duties or functions include
For greater certainty, the disclosure by a bank holding company — or by a person who controls a bank holding company or by an entity that is affiliated with a bank holding company — to the Superintendent of any information that is subject to a privilege under the law of evidence, solicitor-client privilege or the professional secrecy of advocates and notaries or to litigation privilege does not constitute a waiver of any of those privileges or that secrecy.
the investigation of, or conduct of proceedings in respect of, a violation under an Act referred to in paragraph (a).
the investigation or prosecution of an offence under any Act of Parliament or of the legislature of a province; or
The Superintendent or a person acting under the Superintendent’s direction
The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of each bank holding company that the Superintendent considers to be necessary or expedient to determine whether the bank holding company is complying with the provisions of this Act and to ascertain the financial condition of the bank holding company or to determine whether the bank holding company has adequate policies and procedures to protect itself against threats to its integrity or security.
may require the directors, officers and the auditor of a bank holding company to provide information and explanations, to the extent that they are reasonably able to do so, in respect of the condition and affairs of the bank holding company or any entity in which the bank holding company has a substantial investment.
has a right of access to any records, cash, assets and security held by or on behalf of a bank holding company; and
cause the affiliate or person to perform any act that in the opinion of the Superintendent is necessary to remedy the situation or to minimize the prejudice, to the extent that the bank holding company is able to do so.
perform any act that in the opinion of the Superintendent is necessary to remedy the situation or to minimize the prejudice; or
cause the affiliate or person to cease or refrain from committing the act or pursuing the course of conduct, to the extent that the bank holding company is able to do so;
cease or refrain from committing the act or pursuing the course of conduct;
A temporary direction made under subsection (3) continues to have effect after the expiration of the fifteen day period referred to in that subsection if no representations are made to the Superintendent within that period or, if representations have been made, the Superintendent notifies the bank holding company that the Superintendent is not satisfied that there are sufficient grounds for revoking the direction.
If, in the opinion of the Superintendent, the length of time required for representations to be made might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) to (d) or subsection (1.1) having effect for a period of not more than 15 days.
Subject to subsection (4), no direction shall be issued under subsection (1) or (1.1) unless the bank holding company is provided with a reasonable opportunity to make representations in respect of the matter.
If, in the opinion of the Superintendent, a bank holding company does not have adequate policies and procedures to protect itself against threats to its integrity or security, the Superintendent may direct the bank holding company to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.
If, in the opinion of the Superintendent, a bank holding company, one of its affiliates or any person with respect to a bank holding company is committing, or is about to commit, an act — or is pursuing or is about to pursue a course of conduct — that may directly or indirectly be prejudicial to the interest of depositors, policyholders or creditors of a federal financial institution that is affiliated with the bank holding company, the Superintendent may direct the bank holding company to
An appeal from a decision of a court under subsection (1) lies in the same manner, and to the same court, as an appeal from any other order of the court.
If a bank holding company is contravening or has failed to comply with a prudential agreement entered into under section 959 or a direction of the Superintendent issued to the bank holding company under section 960 or is contravening this Act or has omitted to do any thing under this Act that it is required to do, the Superintendent may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the bank holding company to comply with the prudential agreement or the direction, cease the contravention or do any thing that is required to be done, and on such application the court may so order and make any other order it thinks fit.
that is the subject of a direction made under section 960, or an order made under subsection 949(3).
that has been notified by the Superintendent that this section applies to it where the bank holding company is subject to measures designed to protect the interests of depositors, policyholders and creditors of any federal financial institution affiliated with it, which measures are contained in a prudential agreement entered into under section 959 or an undertaking given by the bank holding company to the Superintendent; or
Where an order has been made under subsection (4)
The Superintendent must in writing notify the person concerned and the bank holding company of any action that the Superintendent proposes to take under subsection (4) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
In forming an opinion under subsection (4), the Superintendent must consider whether the interests of the depositors, policyholders and creditors of any federal financial institution affiliated with the bank holding company would likely be prejudiced if the person were to take office or continue to hold office, as the case may be.
If the Superintendent is of the opinion that, on the basis of the competence, business record, experience, conduct or character of a person, he or she is not suitable to hold that position, the Superintendent may, by order,
The information required by subsection (2) shall be provided to the Superintendent
A bank holding company shall provide the Superintendent with the name of
This section applies only in respect of a bank holding company
each person who is newly elected as a director of the bank holding company at a meeting of shareholders and who was not proposed for election by anyone involved in the management of the bank holding company,
each person who has been selected by the bank holding company for appointment as a senior officer, and
each person who has been nominated for election or appointment as a member of its board of directors,
in the case of a person referred to in paragraph (2)(c), within 15 days after the date of the election of the person.
at least 30 days prior to the date or proposed date of the election or appointment or within such shorter period as the Superintendent may allow; or
in the case of a person referred to in paragraph (2)(c), remove the person from office as a director of the bank holding company.
in the case of a person referred to in paragraph (2)(a) or (b), disqualify the person from being elected or appointed as a director of a bank holding company or from being appointed as a senior officer; or
removing a director from office, the person shall not continue to hold, and the bank holding company shall not permit the person to continue to hold, office as a director.
disqualifying a person from being elected or appointed to a position, the person shall not be, and the bank holding company shall not permit the person to be, elected or appointed to the position; or
because the person has contravened or, by action or negligence, has contributed to the contravention of
on the basis of the competence, business record, experience, conduct or character of the person; or
a prudential agreement entered into under section 959 or an undertaking given by the bank holding company to the Superintendent.
an order made under subsection 949(3), or
a direction made under section 960,
this Act or the regulations made under it,
Any by-law, notice, resolution, requisition, statement or other document required or permitted to be executed or signed by more than one person for the purposes of this Act may be executed or signed in several documents of like form, each of which is executed or signed by one or more of the persons. The documents if duly executed or signed by all persons required or permitted to sign them are deemed to constitute one document for the purposes of this Act.
A removal order is not stayed by an appeal.
The Federal Court, in the case of an appeal, may dismiss the appeal or set aside the removal order.
The director or senior officer, as the case may be, or the bank holding company may, within 30 days after the date of receipt of notice of the removal order under subsection (5), or within any longer period that the Court allows, appeal the matter to the Federal Court.
The director or senior officer, as the case may be, ceases to hold that office as of the date the removal order is made or any later date specified in the order.
The Superintendent shall, without delay, notify the director or senior officer, as the case may be, and the bank holding company of a removal order or suspension order.
If the Superintendent is of the opinion that the public interest may be prejudiced by the director or senior officer continuing to exercise the powers or carry out the duties and functions of that office during the period for making representations, the Superintendent may make an order suspending the director or senior officer. The suspension may not extend beyond 10 days after the expiration of that period.
The Superintendent must in writing notify the person concerned and the bank holding company of any removal order that the Superintendent proposes to make under subsection (1) and must afford them an opportunity within 15 days after the date of the notice, or within any longer period that the Superintendent allows, to make representations to the Superintendent in relation to the matter.
In forming an opinion under subsection (1), the Superintendent must consider whether the interests of the depositors, policyholders and creditors of any federal financial institution affiliated with the bank holding company have been or are likely to be prejudiced by the person’s holding office as a director or senior officer.
The Superintendent may, by order, remove a person from office as a director or senior officer of a bank holding company if the Superintendent is of the opinion that the person is not suitable to hold that office
the member at the member’s latest address as shown in the records of the bank.
the director at the director’s latest address as shown in the records of the bank or bank holding company, or in the latest return made under section 632 or 951; and
the shareholder at the shareholder’s latest address as shown in the records of the bank or bank holding company, or its transfer agent;
If a bank or bank holding company sends a notice or document to a shareholder or member in accordance with section 965 and it is returned on two consecutive occasions because the shareholder or member cannot be found, the bank or bank holding company is not required to send any further notices or documents to the shareholder or member until it is informed in writing of their new address.
A notice or document sent by mail in accordance with section 965 to a shareholder, member or director is deemed to be received by that person at the time it would be delivered in the ordinary course of mail unless there are reasonable grounds for believing that that person did not receive the notice or document at that time or at all.
When introduced as evidence in any civil, criminal or administrative action or proceeding, the following are, in the absence of evidence to the contrary, proof of the facts so certified without proof of the signature or official character of the person appearing to have signed the certificate:
A certificate issued on behalf of a bank or a bank holding company stating any fact that is set out in the incorporating instrument, the by-laws, the minutes of the meetings of the directors, a committee of directors or the shareholders or members, or in a contract to which the bank or bank holding company is a party, may be signed by a director or an officer of the bank or bank holding company.
a certified copy of, or an extract from, minutes of a meeting of shareholders, directors or a committee of directors of a bank or a bank holding company or of a meeting of members of a federal credit union.
a certified extract from the members register of a federal credit union; or
a certified extract from a securities register of a bank or a bank holding company;
a fact stated in a certificate referred to in subsection (1);
An entry in the members register of a federal credit union is evidence that the person in whose name the membership share is registered is the owner of the membership share in the register.
An entry in the securities register of, or on a security certificate issued by, a bank or a bank holding company is evidence that the person in whose name the security is registered is the owner of the securities described in the register or in the certificate.
A document or fact required by this Act or by the Superintendent to be verified may be verified by affidavit made under oath or by statutory declaration under the Canada Evidence Act before any commissioner for oaths or for taking affidavits.
The Superintendent may require that a document or a fact stated in a document that is required by or under this Act to be sent to the Superintendent or to the Minister be verified in accordance with subsection (2).
If a provision of this Act provides for consequences to follow the publication of something in the Canada Gazette or in any other manner, the same consequences follow the publication of that thing in any other manner that may be prescribed for the purpose of that provision.
Any condition under a provision of this Act that something be published in the Canada Gazette or in any other way is satisfied if that thing is published instead in any manner that may be prescribed for the purpose of that provision.
Anything that is required by a provision of this Act to be summarized in a publication may instead be summarized and published in any manner that may be prescribed for the purpose of that provision.
Anything that is required by a provision of this Act to be published in the Canada Gazette or to be published in any other way may, instead of being published in that way, be published in any manner that may be prescribed for the purpose of that provision.
The Superintendent may, on application, exempt an applicant or applicants from the provisions of this Act respecting the publication of a notice of intention in respect of applications for approvals and impose any terms and conditions respecting the publication of the notice of intention that he or she considers appropriate.
The Minister or the Superintendent may grant more than one approval, other than letters patent, in a single instrument if he or she considers it appropriate to do so, and if the Minister or Superintendent does so, he or she may specify different effective dates for each of the approvals.
if the approval relates to a federal credit union, whether the approval will affect its ability to be organized and carry on business on a cooperative basis in accordance with section 12.1.
Canada’s international relations and its international legal obligations; and
national security;
In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval and to any prudential considerations that the Superintendent considers relevant in the circumstances, the Superintendent may, in considering whether to grant the approval, take into account
In addition to any matters or conditions provided for in this Act that are relevant to the granting of an approval, the Minister may, in considering whether to grant the approval, take into account all matters that he or she considers relevant in the circumstances, including
if the approval relates to a federal credit union, whether the approval will affect its ability to be organized and carry on business on a cooperative basis in accordance with section 12.1.
Canada’s international relations and its international legal obligations; and
national security;
In addition to any other action that may be taken under this Act, the Superintendent may, in granting an approval, impose any terms and conditions or require any undertaking that the Superintendent considers appropriate.
If the Minister specifies that the Commissioner is to supervise a bank to determine if it is complying with any terms and conditions that are imposed, or undertakings that are required, by the Minister for the protection of the bank’s customers, the Commissioner may take the same measures that the Commissioner could take if the terms and conditions or undertaking were a consumer provision.
In addition to any other action that may be taken under this Act, the Minister may, in granting an approval, impose any terms and conditions or require any undertaking that the Minister considers appropriate, including any terms, conditions or undertakings specified by the Superintendent to maintain or improve the safety and soundness of any financial institution regulated under an Act of Parliament to which the approval relates or that might be affected by it or to ensure that such a financial institution has adequate policies and procedures to protect itself against threats to its integrity or security.
Canada’s international relations and its international legal obligations.
national security; and
A temporary suspension or amendment of an approval ceases to have effect on the earlier of
If, in the Minister’s opinion, the length of time required for representations to be made under subsection (3) might be prejudicial to the public interest, the Minister may temporarily suspend or amend any approval granted by the Minister.
Before taking any action under subsection (1) or (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations.
The Superintendent may revoke, suspend or amend any approval granted by the Superintendent if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Superintendent may take into account any prudential considerations that he or she considers relevant in the circumstances and
The Minister may revoke, suspend or amend any approval granted by the Minister if he or she considers it appropriate to do so. In deciding whether to take any of those actions, the Minister may take into account all matters that he or she considers relevant in the circumstances, including
Canada’s international relations and its international legal obligations.
national security; and
if the approval is revoked, suspended or amended under subsection (1), the day on which the revocation, suspension or amendment takes effect.
the expiry of 30 days after the day on which it takes effect or of a shorter period that is specified by the Minister, and
If the Minister specifies under subsection (1) that information referred to in that subsection is confidential for reasons related to national security, the Minister shall, within 30 days after the day on which the undertaking in question is required, notify
Despite anything in this Act but subject to subsection (3), it is prohibited to disclose any confidential information referred to in subsection (1) except in accordance with any terms or conditions that the Minister may specify in the undertaking.
If, in the Minister’s opinion, the disclosure of information about an undertaking required under subsection 973.02(1) or 973.03(1) or (4), or information that could reveal the existence of the undertaking, could pose a threat to the integrity or security of the financial institution to which the undertaking relates or could be injurious to national security, the Minister may specify that the information is confidential and shall be treated accordingly.
the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.
the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act; and
At the request of the person concerned, the Minister or the Superintendent, as the case may be, may revoke, suspend or amend any terms or conditions imposed by him or her and may revoke or suspend an undertaking given to him or her or approve its amendment.
Before taking any action under subsection (2), the Minister or the Superintendent, as the case may be, shall give the person concerned a reasonable opportunity to make representations.
In addition to any other action that may be taken under this Act, in the case of non-compliance by a person with a term, condition or undertaking imposed or required under any provision of this Act, the Minister or the Superintendent, as the case may be, may
Unless otherwise expressly provided in this Act, a failure to comply with a term, condition or undertaking imposed or required under any provision of this Act does not invalidate the approval to which the term, condition or undertaking relates.
apply to a court for an order directing the person to comply with the term, condition or undertaking, and on such an application the court may make the order and any other order that it thinks fit.
revoke, suspend or amend the approval to which the term, condition or undertaking relates; or
The specification ceases to have effect on the day indicated in the notice, which may be no later than five years after the day on which the specification is made.
The Superintendent shall cause a notice of the specification to be published in the Canada Gazette within 60 days after the day on which the specification has effect.
If, as a result of a change to the accounting principles referred to in subsections 308(4) and 840(4) — whether the change is made before or after this section comes into force — the Superintendent considers, given any prudential considerations that he or she considers relevant, that any amount, calculation or valuation under this Act or the regulations is not appropriate, the Superintendent may specify the amount that is to be used or the calculation or valuation that is to be performed instead.
If section 516 or 517 applies in respect of a foreign bank or an entity associated with a foreign bank, the Minister may only make an order under subsection (1) to the extent that the aggregate of the period that applied under that section and the period specified in the order under subsection (1) does not exceed twelve months.
Despite sections 378.1 and 378.2, paragraph 522.32(2)(b), subsection 522.32(4), paragraphs 522.32(7)(c) and (d) and sections 524.1, 524.2, 885 and 886, the Minister may, by order, provide that any of those provisions do not apply in respect of a person specified in the order for a period of up to twelve months, subject to any terms and conditions that the Minister considers appropriate.
provide that any provision of this Act or the regulations applies to a bank, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.
provide that any provision of this Act or the regulations shall not apply to a bank, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and
For the purposes of this section, a reference to a “bank” includes a reference to a “bank holding company”, and the references to “section 646.1” in paragraphs (5)(a) and (b) are to be read, in relation to a bank holding company, as references to “section 962”.
For the purposes of this section, shares includes membership shares and any conversion or exchange privilege, option or right to acquire shares.
The Statutory Instruments Act does not apply to an order made under this section.
Even if the acquisition of a bank’s shares under subsection (6) would otherwise cause the bank to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the bank is not a Crown corporation for the purposes of that Act.
If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.
If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a bank on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.
An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.
The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.
Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada are to be registered in the name of the Minister, agent or agency, as the case may be, in the bank’s securities register or members register, as the case may be, if they are capable of being registered in it, and they are to be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.
On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.
Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a bank on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the bank may record in its securities register or members register, as the case may be, the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty.
From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a bank to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the bank that the Minister considers appropriate, including any terms and conditions or undertakings relating to
The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).
On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a bank by, or transfer or issue of shares of a bank to, Her Majesty in right of Canada or Her Majesty’s agent or agency.
The Minister may make a recommendation under subsection (1) only if the Minister
On the recommendation of the Minister, the Governor in Council may, by order,
the management of the business and affairs or the regulation and supervision of a bank during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the bank, or during the time that shares of the bank are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and
the acquisition, holding, sale or other disposition of, or other dealing with, shares of a bank by, or the transfer or issue of shares of a bank to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or
is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chief Executive Officer of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.
is of the opinion that the order would relate to
the bank’s lending policies and practices.
the payment of dividends by the bank; and
the appointment or removal of the bank’s senior officers, as defined in section 646.1, and directors;
the remuneration of the bank’s senior officers, as defined in section 646.1, and directors;
applications for extensions of time under subsection 471(3) or (5), 472(4), 473(4), 933(2) or (4), 934(3) or 935(3).
applications for exemptions under subsection 156.05(3); and
applications for consent under subsection 71(1) or 715(1);
applications for approval under subsection 65(1), 72(2), 75(4), 79(5), 79.1(2), 80(1), 170(1), 192.03(6), 217(3), 421(1), 468(6) or (11), 471(1) or (2) or 482(1), subparagraph 487(2)(a)(vi), section 490 or subsection 494(3) or (4), 495.3(1), 553.1(1), 709(1), 716(2), 718(4), 723(1), 758(1), 924(1), 930(6) or (11), 933(1) or 944(1);
If the applicant does not receive the notice required by subsection (3) and, where applicable, subsection (4), within the required period, the Superintendent is deemed to have approved the application and granted the approval, consent, extension or exemption to which the application relates, regardless of whether the approval, consent, extension or exemption is to be in writing or not.
If the Superintendent is unable to complete the consideration of the application within the period referred to in subsection (3), the Superintendent shall, within that period, send a notice to the applicant informing the applicant that the Superintendent has extended the period for a further period set out in the notice.
Subject to subsection (4), the Superintendent shall, within a period of thirty days after the receipt of the application, send to the applicant
Without delay after receiving the application, the Superintendent shall send a receipt to the applicant certifying the date on which it was received.
The following applications to the Superintendent must contain the information, material and evidence that the Superintendent may require:
if the Superintendent is not satisfied that it should be approved, a notice to that effect.
a notice approving the application, subject to any terms and conditions that the Superintendent considers appropriate; or
paragraphs 930(5)(b.1), (c), (d) and (d.1).
paragraphs 539(1)(b.1) and (b.2); and
paragraphs 522.22(1)(c), (d) and (d.1);
paragraphs 468(5)(b.1), (c), (d) and (d.1);
paragraphs 410(1)(c) and (c.1);
If the Minister does not send the notice referred to in subsection (4) or, where applicable, subsection (5), within the required period, the Minister is deemed to have approved the application.
If the Minister is unable to complete the consideration of an application within the 30-day period, the Minister must, within that period, send a notice to the applicant informing the applicant that the Minister has extended the period for a further period set out in the notice.
Subject to subsection (5), the Minister must, within 30 days after the certified date referred to in subsection (2), send to the applicant
If, in the opinion of the Superintendent, the application is incomplete, the Superintendent must send a notice to the applicant specifying the information required by the Superintendent to complete it.
If, in the opinion of the Superintendent, the application contains all the required information, the Superintendent must refer it to the Minister, together with his or her analysis in relation to the application, and send a receipt to the applicant certifying the date on which the application was referred to the Minister.
An application for the prior written approval of the Minister in respect of any of the following provisions must be filed with the Superintendent and contain the information, material and evidence that the Superintendent may require:
if the Minister is not satisfied that the application should be approved, a notice to that effect.
a notice approving the application; or
For the purposes of an appeal under subsection (1), the Minister shall, at the request of the bank, bank holding company or person making the appeal, provide the bank, bank holding company or person with a certificate in writing setting out the direction or decision appealed from and the reasons why the direction or decision was made.
The Federal Court may, in an appeal under subsection (1),
An appeal lies to the Federal Court from any direction of the Minister made under subsection 401.2(7), 402(1), 402.2(1), 913(7) or 915(1).
set aside the direction or decision and refer the matter back for re-determination.
set aside the direction or decision; or
dismiss the appeal;
generally for carrying out the purposes and provisions of this Act.
respecting information, in addition to the information required by section 634 or 953, to be maintained in the register referred to in that section; and
respecting the holding of shares, membership shares and ownership interests for the purposes of sections 70, 74 and 714;
respecting the protection and maintenance of assets of a bank or a bank holding company, including regulations respecting the bonding of directors, officers and employees of a bank or a bank holding company;
respecting the value of assets of a bank or a bank holding company to be held in Canada and the manner in which those assets are to be held;
respecting the retention, in Canada, of assets of a bank or a bank holding company;
respecting the regulatory capital and total assets of a bank or a bank holding company;
requiring the payment of a fee in respect of the filing, examining or issuing of any document or in respect of any action that the Superintendent is required or authorized to take under this Act, and fixing the amount of the fee or the manner of determining its amount;
defining words and expressions to be defined for the purposes of this Act;
respecting, for any purpose of any provision of the Act, the determination of the equity of a bank or a bank holding company;
prescribing the way in which anything that is required or authorized by this Act to be prescribed is to be determined;
prescribing anything that is required or authorized by this Act to be prescribed;
Material does not become a regulation for the purposes of the Statutory Instruments Act because it is incorporated by reference.
The regulations may incorporate any material by reference regardless of its source and either as it exists on a particular date or as amended from time to time.
The Governor in Council may make regulations
A bank or authorized foreign bank shall establish and implement procedures for dealing with matters the particulars of which have been reported to it by employees under subsection 979.2(1).
In this Part, wrongdoing includes a contravention of
a policy or procedure established by a bank or authorized foreign bank.
a voluntary code of conduct that a bank or authorized foreign bank has adopted or a public commitment that it has made; and
any provision of this Act or the regulations;
If the bank, authorized foreign bank, Commissioner, Superintendent, government agency or body or law enforcement agency has disclosed, under subsection (3) or (4), the identity of the employee or any information that could reasonably be expected to reveal their identity, the bank, authorized foreign bank, Commissioner, Superintendent, government agency or body or law enforcement agency shall make every reasonable effort to inform the employee of the disclosure.
Despite subsection (2), the Commissioner, Superintendent, government agency or body or law enforcement agency may disclose to each other the identity of the employee and information that could reasonably be expected to reveal their identity for purposes related to an investigation.
Despite subsection (2), the bank or authorized foreign bank may disclose the identity of the employee and information that could reasonably be expected to reveal their identity to the Commissioner, Superintendent, government agency or body or law enforcement agency if the Commissioner, Superintendent, government agency or body or law enforcement agency considers the disclosure necessary for purposes related to an investigation.
The bank, authorized foreign bank, Commissioner, Superintendent, government agency or body or law enforcement agency shall keep confidential the identity of the employee and any information that could reasonably be expected to reveal their identity.
Any employee of a bank or authorized foreign bank who has reasonable grounds to believe that the bank, authorized foreign bank or any person has committed or intends to commit a wrongdoing may report the particulars of the matter to the bank or authorized foreign bank or to the Commissioner, the Superintendent, a government agency or body that regulates or supervises financial institutions or a law enforcement agency.
the bank or authorized foreign bank believes that the employee will do anything referred to in paragraphs (a) to (c).
the employee, acting on the basis of reasonable belief, has done or stated an intention of doing anything that is required to be done in order to prevent a wrongdoing from being committed; or
the employee, acting on the basis of reasonable belief, has refused or stated an intention of refusing to do anything that is a wrongdoing;
the employee, acting on the basis of reasonable belief, has reported particulars under subsection 979.2(1);
Nothing in this section impairs any right of an employee either at law or under an employment contract or collective agreement.
No bank or authorized foreign bank shall dismiss, suspend, demote, discipline, harass or otherwise disadvantage an employee, or deny an employee a benefit of employment, by reason that
Every person who knowingly provides false or misleading information in relation to any matter under this Act or the regulations is guilty of an offence.
The Governor in Council may make regulations for the purposes of subsections (1) to (3), paragraphs (4)(b), (g) and (h) and subsections (4.2), (4.3), (5.3), (8) and (9.1) to (11).
For the purposes of this section, an entity is associated with a foreign bank if the entity is or is deemed to be associated with the foreign bank within the meaning of section 507 and is an entity to which Part XII applies.
In this section, foreign bank means a foreign bank to which Part XII applies.
For the purposes of this section, an identifying mark of an entity includes
For the purposes of this section, other than subsection (1), an entity’s name includes
For the purposes of this section, the words cooperative and federal include
For the purposes of this section, the phrase credit union includes
For the purposes of this section, the word bank, banker or banking includes
No person commits an offence under any of subsections (2) to (3) if the activity referred to in that subsection has been approved by the Superintendent and is in accordance with any terms and conditions that the Superintendent may impose and, if the activity involves the use of the name or any identifying mark of a bank, a bank holding company or a foreign bank, the bank, bank holding company or foreign bank has consented to the use.
Subject to the regulations, no foreign bank that carries on a business or activity referred to in section 510.1, 522.05, 522.18 or 522.19, and no entity incorporated or formed by or under the laws of a country other than Canada that carries on a business or activity referred to in any of those provisions and that is an entity associated with a foreign bank, commits an offence by reason only that it uses its name or any of its identifying marks if it does not use the word “bank”, “banker” or “banking”.
[Repealed, 2007, c. 6, s. 129]
Subject to the regulations, no Canadian entity that is an entity associated with a foreign bank commits an offence by reason only that it uses the name of the foreign bank in its corporate name or in a name under which it carries on business, or by reason only that it uses any identifying mark of the foreign bank in carrying on its business, if
Subject to the regulations, no entity affiliated with a bank holding company commits an offence by reason only that the entity uses the name of the bank holding company in a description of the entity’s corporate relationship with the bank holding company.
No subsidiary of a bank holding company commits an offence by reason only that it uses the name of the bank holding company in a description of its corporate relationship to the bank holding company.
[Repealed, 2007, c. 6, s. 129]
Subject to the regulations, no entity affiliated with a bank holding company commits an offence by reason only that the entity uses the name of the bank holding company in the entity’s corporate name or in a name under which the entity carries on business or by reason only that it uses any identifying mark of the bank holding company in carrying on its business, if the entity does not use the word “bank”, “banker” or “banking” in its corporate name, in a name under which it carries on business or in any of its identifying marks.
[Repealed, 2007, c. 6, s. 129]
No subsidiary of a bank holding company commits an offence by reason only that it uses the name of the bank holding company in the subsidiary’s corporate name or in a name under which it carries on business, or by reason only that it uses any identifying mark of the bank holding company in carrying on its business, so long as, if the subsidiary is not a bank or a subsidiary of a bank, it does not use the word “bank”, “banker” or “banking” in its corporate name, in a name under which it carries on business or in any of its identifying marks.
[Repealed, 2007, c. 6, s. 129]
No financial institution that was controlled by a bank on June 25, 1999 and that had a name that included the word “bank”, “banker” or “banking” on that day commits an offence by reason only that it uses that word in its corporate name or in a name under which it carries on business if the financial institution is a subsidiary of a bank holding company that controls the bank.
Subject to the regulations, no entity affiliated with a bank commits an offence by reason only that the entity uses the name of the bank in the entity’s corporate name or in a name under which the entity carries on business or by reason only that it uses any identifying mark of the bank in carrying on its business, if the entity does not use any of the words “bank”, “banker” or “banking” or the phrase “federal credit union” in its corporate name, in a name under which it carries on business or in any of its identifying marks.
No bank commits an offence under subsection (2.2) or (2.3) if it is affiliated with the bank or the foreign bank.
No person commits an offence under subsections (2) to (2.1) if the activity referred to in that subsection is in relation to a business that is not engaged in financial activities, unless the business is carried out by a prescribed entity.
No subsidiary of a bank commits an offence by reason only that it uses the name of the bank of which it is a subsidiary in its corporate name or a name under which it carries on business or by reason only that it uses any identifying mark or domain name of that bank in carrying on its business.
For the purposes of subsection (4.2), the requirements are the following:
Subject to the regulations, no person commits an offence under subsection (2.1) or (2.11) if they meet the requirements set out in subsection (4.3) and they are
No person commits an offence under any of subsections (2.01) to (2.04) if the activity referred to in that subsection is done
No person commits an offence under any of subsections (2) to (2.3) if the activity referred to in that subsection is done
Subject to the regulations and subsections (7) to (9.1) and (12), every entity that acquires, adopts or retains the name of a bank holding company and every person who uses the name or any identifying mark of a bank holding company to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.
Subject to the regulations and subsections (4) to (5.1), (6) and (12), every person, other than a bank, who, in respect of their own business, causes or authorizes another person to use the word “bank”, “banker” or “banking”, without being authorized to do so by this Act or any other Act of Parliament, to indicate or describe that business in Canada, or any part of that business in Canada, including any of its products or services or the means by which any of those products or services may be obtained, is guilty of an offence.
Subject to the regulations and subsections (4) to (5.1) and (12), every entity, other than a federal credit union, that acquires, adopts or retains a name that includes both of the words “cooperative” and “federal”, either alone or in combination with other words, to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.
Subject to the regulations and subsections (4), (5.2) and (12), every person is guilty of an offence who, without being authorized to do so by this Act or any other Act of Parliament, makes any statement that a business is connected, associated or affiliated with a bank or a foreign bank.
Subject to the regulations and subsections (4) to (5.1) and (12), every entity, other than a federal credit union, that acquires, adopts or retains a name that includes both of the words “cooperative” and “bank”, either alone or in combination with other words, to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.
Subject to the regulations and subsections (4), (5), (5.2), (5.3) and (10) to (12), every person who uses the name or any identifying mark of a bank or a foreign bank to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.
Subject to the regulations and subsections (4) to (5.1) and (12), every entity, other than a federal credit union, that acquires, adopts or retains a name that includes both the phrase “credit union” and the word “federal”, either alone or in combination with other words, to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.
Subject to the regulations and subsections (4) to (5.1), (6) and (12), every person, other than a bank, who uses the word “bank”, “banker” or “banking”, without being authorized to do so by this Act or any other Act of Parliament, to indicate or describe a business in Canada or any part of a business in Canada, including any of its products or services or the means by which any of those products or services may be obtained, is guilty of an offence.
Subject to the regulations and subsections (4) to (5.1) and (12), every entity, other than a federal credit union, that acquires, adopts or retains a name that includes both the phrase “credit union” and the word “bank”, either alone or in combination with other words, to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.
Subject to the regulations and subsections (4) to (5.1), (6) and (12), every entity, other than a bank, that acquires, adopts or retains a name, a domain name or an identifying mark that includes the word “bank”, “banker” or “banking”, either alone or in combination with other words, to indicate or describe a business in Canada or any part of a business in Canada, without being authorized to do so by this Act or any other Act of Parliament, is guilty of an offence.
Except to the extent permitted by the regulations, every person who uses the name of a bank or of a bank holding company in a prospectus, offering memorandum, takeover bid circular, advertisement for a transaction related to securities or in any other document in connection with a transaction related to securities is guilty of an offence.
in the identification of a bank holding company.
in the identification of a Canadian financial institution that
in the identification of a body corporate that was a non-bank affiliate of a foreign bank within the meaning of subsection 303(1) of the Bank Act, being chapter B-1 of the Revised Statutes of Canada, 1985, at any time before June 1, 1981;
subject to the regulations, in a description of the corporate relationship between a non-bank affiliate of a foreign bank, within the meaning of subsection 507(1), and an entity that is associated with a foreign bank that controls the non-bank affiliate, if
subject to the regulations, in a description of the corporate relationship between a non-bank affiliate of a foreign bank, within the meaning of subsection 507(1), and a foreign bank that controls the non-bank affiliate, if the non-bank affiliate is not a bank holding company or an entity that is controlled by a bank holding company;
in a description of the corporate relationship between a bank or a bank holding company and an entity that is associated with a foreign bank and that controls the bank or the bank holding company;
in a description of the corporate relationship between a bank or a bank holding company and a foreign bank that controls the bank or the bank holding company;
in relation to the business in Canada of an authorized foreign bank;
in the identification of representative offices of a foreign bank in Canada;
in an advertisement in Canada by or on behalf of a foreign bank in respect of its facilities outside Canada;
[Repealed, 2007, c. 6, s. 129]
in a description of the corporate relationship between a bank holding company and an entity controlled by the bank holding company;
subject to the regulations, in a description of a corporate relationship between a bank and an entity affiliated with the bank;
in a description of the corporate relationship between a bank and an entity controlled by the bank;
the entity is not a bank, a bank holding company, a foreign bank or an entity controlled by a bank or a bank holding company;
the non-bank affiliate is not a bank holding company or an entity that is controlled by a bank holding company, and
used, before June 15, 1997, the word “bank”, “banker” or “banking” to identify itself; or
is controlled by a foreign bank that, before June 15, 1997, controlled the subsidiary, and
was controlled by a bank that was a subsidiary of a foreign bank before June 15, 1997 but that has ceased to be so controlled,
in accordance with a prescribed approval and any terms and conditions that the Minister may impose.
under prescribed circumstances; or
in relation to a prescribed use;
a prescribed entity.
the corporation known as “ATB Financial” and referred to in section 2 of the ATB Financial Act, chapter A-45.2 of the Revised Statutes of Alberta 2000, or a successor of that corporation; or
a federation of cooperative credit societies;
a local cooperative credit society;
a central cooperative credit society;
a trust or loan corporation incorporated or formed by or under an Act of the legislature of a province;
a body corporate to which the Trust and Loan Companies Act applies;
any other prescribed information; and
whether it participates in a deposit insurance system in Canada, and if so, the name of that system, and
the jurisdiction under whose laws the entity is primarily regulated,
the type of entity it is, as described in any of paragraphs (4.2)(a) to (g) or in the regulations,
the entity complies with any prescribed requirements or conditions.
subject to the regulations, the entity discloses
the foreign bank has consented to the use.
it does not use the word “bank”, “banker” or “banking” in its corporate name, in a name under which it carries on business or in any of its identifying marks; and
any word or words, in any language, that are equivalent to any of those words.
any of those words in any language; and
any word or words, in any language, that are equivalent to any of the words in that phrase.
that phrase in any language; and
any word or words, in any language, that are equivalent to any of those words.
any of those words in any language; and
the entity’s name in any language.
a name that is substantially similar to the entity’s name; and
any mark that is substantially similar to any identifying mark of the entity.
any trademark of the entity; and
the initials or any acronym of the entity;
any logogram, insignia or logo of the entity;
in a document giving or purporting to give security on property to a bank under section 426 or 427 or to an authorized foreign bank under either of those sections as incorporated by section 555.
in a warehouse receipt or bill of lading given to a bank or authorized foreign bank under the authority of this Act; or
For the purposes of this section, the expressions warehouse receipt and bill of lading have the meaning assigned to those expressions by section 425.
Every bank or authorized foreign bank that acquires or holds a warehouse receipt or bill of lading or a document signed and delivered to it giving or purporting to give to the bank security on property under section 426 or 427, or to give the authorized foreign bank security or property under either of those sections as incorporated by section 555, to secure the payment of any debt, liability, loan or advance, is guilty of an offence unless
If a debt or liability to a bank or authorized foreign bank is secured by a warehouse receipt or bill of lading or security on property given to a bank under section 426 or 427 or to an authorized foreign bank under either of those sections as incorporated by section 555 and is not paid, the bank or authorized foreign bank is guilty of an offence if it sells the property covered by the warehouse receipt, bill of lading or security under the power of sale conferred on it by this Act without complying with the provisions of this Act applicable to the exercise of the power of sale.
Every person is guilty of an offence who, having possession or control of property mentioned in or covered by a warehouse receipt, bill of lading or any security given to a bank under section 426 or 427 or to an authorized foreign bank under either of those sections as incorporated by section 555, and having knowledge of the receipt, bill of lading or security, without the consent of the bank or authorized foreign bank in writing before the loan, advance, debt or liability secured by it has been fully paid
Every person is guilty of an offence who wilfully makes a false statement
wilfully withholds from the bank or authorized foreign bank possession of any of the property if demand for its possession is made by the bank or authorized foreign bank after failure to pay the loan, advance, debt or liability.
wilfully alienates or parts with any of the property; or
the acquisition or holding by the bank or authorized foreign bank of the warehouse receipt, bill of lading or security is otherwise authorized by an Act of Parliament.
the debt, liability, loan or advance was contracted or made on the written promise or agreement that the warehouse receipt, bill of lading or security would be given to the bank or authorized foreign bank; or
the debt, liability, loan or advance is contracted or made at the time of the acquisition by the bank or authorized foreign bank of the warehouse receipt, bill of lading or document;
on conviction on indictment, to a fine of not more than $1,000,000 or to imprisonment for a term of not more than five years, or to both; and
on summary conviction, to a fine of not more than $100,000 or to imprisonment for a term of not more than twelve months, or to both, or
in the case of an entity, liable
in the case of a natural person, liable
on conviction on indictment, to a fine of not more than $5,000,000.
on summary conviction, to a fine of not more than $500,000, or
If a person has been convicted of an offence under this Act, the court may, if it is satisfied that as a result of the commission of the offence the convicted person acquired any monetary benefits or that monetary benefits accrued to the convicted person or their spouse, common-law partner or other dependant, order the convicted person to pay, despite the maximum amount of any fine that may otherwise be imposed under this Act, an additional fine in an amount equal to three times the court’s estimation of the amount of those monetary benefits.
If a person has been convicted of an offence under this Act, the court may, in addition to any punishment it may otherwise impose, order the person to comply with the provisions of this Act or the regulations in respect of which the person was convicted.
Every person who is guilty of an offence under any of sections 980 to 984 is
A document appearing to have been issued by the Superintendent or the Commissioner, as the case may be, certifying the day on which the subject-matter of any proceedings became known to the Superintendent or the Commissioner is admissible in evidence without proof of the signature or official character of the person appearing to have signed it and is, in the absence of evidence to the contrary, proof of the matter asserted in it.
Proceedings by way of summary conviction in respect of an offence under a provision of this Act may be commenced at any time within, but not later than, two years after the day on which the subject-matter of the proceedings became known, in the case of an offence under a consumer provision, to the Commissioner and, in any other case, to the Superintendent.
The Superintendent may direct an entity to provide him or her with the information or documents that he or she specifies if he or she is of the opinion that their production is necessary in order to be satisfied that the entity is meeting the requirements of subsection 983(4.3).
If a bank or an authorized foreign bank or any director, officer, employee or agent of one does not comply with any applicable consumer provision, the Commissioner or any complainant may, in addition to any other right that that person has, apply to a court for an order directing the bank, authorized foreign bank, director, officer, employee or agent to comply with — or restraining the bank, authorized foreign bank, director, officer, employee or agent from acting in breach of — the consumer provision and, on the application, the court may so order and make any further order it thinks fit.
If an authorized foreign bank or any of its directors, officers, employees or agents does not comply with any provision of this Act or the regulations other than a consumer provision, or of an order made under subsection 524(1), 528(1) or (1.1) or 534(1) in respect of the authorized foreign bank, the Superintendent, any complainant or any creditor of the authorized foreign bank may, in addition to any other right that that person has, apply to a court for an order directing the authorized foreign bank, director, officer, employee or agent to comply with — or restraining the authorized foreign bank, director, officer, employee or agent from acting in breach of — the provision and, on the application, the court may so order and make any further order that it thinks fit.
If a bank or a bank holding company or any director, officer, employee or agent of one does not comply with any provision of this Act or the regulations other than a consumer provision, or of the incorporating instrument or any by-law of the bank or bank holding company, the Superintendent, any complainant or any creditor of the bank or bank holding company may, in addition to any other right that that person has, apply to a court for an order directing the bank, bank holding company, director, officer, employee or agent to comply with — or restraining the bank, bank holding company, director, officer, employee or agent from acting in breach of — the provision and, on the application, the court may so order and make any further order it thinks fit.
perform the acts that in the opinion of the Superintendent are necessary to remedy the situation.
cease or refrain from acting in that manner; and
A temporary direction under subsection (3) continues to have effect after the expiration of the 15-day period referred to in that subsection if no representations are made within that period or, if representations have been made, the Superintendent notifies the person that the Superintendent is not satisfied that there are sufficient grounds for revoking the direction.
If, in the opinion of the Superintendent, the length of time required for representations to be made might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) and (b) having effect for a period of not more than 15 days.
Subject to subsection (3), no direction is to be issued to a person under subsection (1) unless the person is provided with a reasonable opportunity to make representations in respect of the matter.
If, in the opinion of the Superintendent, a person is acting in a manner that is prohibited by section 983, the Superintendent may direct the person to
An appeal from an order of a court under subsection (1) lies in the same manner, and to the same court, as an appeal from any other order of the court.
If a person contravenes a direction made under subsection 989.2(1) or (3), the Superintendent may, in addition to any other action that may be taken under this Act or the Office of the Superintendent of Financial Institutions Act, apply to a court for an order requiring the person to comply with the direction, and on such application the court may so order and make any other order it thinks fit.
An appeal lies to the court of appeal of a province from any order, other than a final order made by a court of that province, only with leave of the court of appeal in accordance with the rules applicable to that court.
An appeal lies to the court of appeal of a province from any final order made by a court of that province under this Act.
information system means a system used to generate, send, receive, store or otherwise process an electronic document. (système de traitement de l’information)
electronic document means, except in section 1001, any form of representation of information or concepts that is fixed in any medium in or by electronic, optical or other similar means and that can be read or perceived by a person or by any means. (document électronique)
the prescribed requirements are complied with.
the electronic document is, unless otherwise prescribed, provided to the designated information system; and
the addressee consents and designates an information system for the receipt of the electronic document;
The Governor in Council may make regulations respecting the revocation of the consent referred to in paragraph (1)(a).
Despite subsection (1), the requirements referred to in paragraph (1)(c) may provide that the consent referred to in paragraph (1)(a) and any notice related to that consent may be provided in electronic form.
Despite anything in this Part, a requirement under this Act or the regulations to provide a notice, document or other information is not satisfied by providing an electronic document unless
the prescribed requirements are complied with.
the incorporating instrument or by-laws of the bank, bank holding company or authorized foreign bank, as the case may be, do not provide otherwise; and
the prescribed requirements are complied with.
the information in the electronic document is accessible so as to be usable for subsequent reference; and
the prescribed requirements are complied with.
the information in the electronic document is accessible by the addressee and capable of being retained by them so as to be usable for subsequent reference; and
the requirements of sections 994 to 1000 are complied with.
the authorized person before whom the statutory declaration or affidavit is made signs it with their secure electronic signature; and
the person who makes the statutory declaration or affidavit signs it with their secure electronic signature;
For the purpose of complying with paragraph (1)(c), references to “electronic document” in sections 994 to 1000 are to be read as references to “electronic document within the meaning of subsection 31(1) of the Personal Information Protection and Electronic Documents Act”.
For the purposes of this section, electronic document and secure electronic signature have the same meaning as in subsection 31(1) of the Personal Information Protection and Electronic Documents Act.
A statutory declaration or affidavit required under this Act or the regulations may be created or provided in an electronic document if
the technology or process can be used to identify the person using the technology or process.
the technology or process is used by the person to incorporate their signature into, attach it to or associate it with the electronic document; and
the signature resulting from the use by the person of the technology or process is unique to the person;
any matter necessary for the purposes of the application of this section.
the time and place at which and the circumstances under which electronic documents are considered to be sent or received; and
their signature in electronic or other form or their execution, adoption or authorization in a manner that is to have the same effect for the purposes of this Act as their signature;
the persons or classes of persons who may send notices and documents;
the notices and documents that may be sent in electronic or other form;
Provisions not in the current consolidation
1397 provisions mirrored on this date are not in the current consolidation; they could not be placed in document order.
This Act may be cited as the Bank Act.
In this Act,
A body corporate is the holding body corporate of any entity that is its subsidiary.
An entity is a subsidiary of another entity if it is controlled by the other entity.
[Repealed, 2005, c. 54, s. 3]
This Act is the charter of and applies to each bank.
No act of a bank or authorized foreign bank, including any transfer of property to or by a bank or authorized foreign bank, is invalid by reason only that the act or transfer is contrary to
It is not necessary for a bank to pass a by-law in order to confer any particular power on the bank or its directors.
No person is affected by or is deemed to have notice or knowledge of the contents of a document concerning a bank or authorized foreign bank by reason only that the document has been filed with the Superintendent or the Minister or is available for inspection at a branch of the bank or authorized foreign bank.
Letters patent incorporating a bank may not be issued if the application therefor is made by or on behalf of
If a proposed bank would be a subsidiary of a foreign bank, within the meaning of paragraphs (a) to (f) of the definition foreign bank in section 2, and the application for letters patent to incorporate the bank is made by a non-WTO Member foreign bank, letters patent to incorporate the bank may not be issued unless the Minister is satisfied that treatment as favourable for banks to which this Act applies exists or will be provided in the jurisdiction in which the foreign bank principally carries on business, either directly or through a subsidiary.
Before issuing letters patent to incorporate a bank, the Minister shall take into account all matters that the Minister considers relevant to the application, including
The Superintendent shall cause to be published in the Canada Gazette a notice of the issuance of letters patent incorporating a bank.
The first directors of a bank are the directors named in the application for letters patent to incorporate the bank.
A bank comes into existence on the date provided therefor in its letters patent.
On the day set out in the letters patent continuing a body corporate as a bank,
A bank may not be incorporated under this Act with a name
Despite section 40, a bank that is affiliated with another entity may, with the consent of that entity, be incorporated with, or change its name to, substantially the same name as that of the affiliated entity.
The Superintendent may, on request, reserve for ninety days a name for a proposed bank or proposed authorized foreign bank or for a bank or authorized foreign bank that intends to change its name.
A director named in the application for letters patent to incorporate a bank holds office until the election of directors at the meeting of shareholders called pursuant to subsection 46(1).
Until an order approving the commencement and carrying on of business is made for a bank, the bank must not make any payment on account of incorporation or organization expenses out of moneys received from the issue of the shares or the membership shares of the bank and interest on those moneys, except reasonable sums
Where a bank comes into existence but no order approving the commencement and carrying on of business is made for the bank, the bank may only
Except for the sole purpose of winding up the bank’s affairs, a bank ceases to exist one year after the day on which its incorporating instrument became effective if it does not obtain an order approving the commencement and carrying on of business within that year.
Where voting rights are attached to a share of a bank, the voting rights may confer only one vote in respect of that share.
Shares issued by a bank after the coming into force of this section are non-assessable and the shareholders are not liable to the bank or to its creditors in respect thereof.
Except as provided in sections 71 to 74, or unless permitted by the regulations, a bank shall not
Subject to the regulations, a bank that was in existence immediately prior to the day this Part comes into force shall cause any subsidiary of the bank that holds shares of the bank, or of any body corporate that controls the bank, or any ownership interests of any unincorporated entity that controls the bank to sell or otherwise dispose of those shares or ownership interests within six months after the day this section comes into force.
On a conversion of any debt obligation of a bank into shares of a class or series of shares, or into membership shares, the bank must
In this section and sections 82 to 135,
The transfer of a security is governed by sections 83 to 135.
A guarantor for an issuer of a security is deemed to be an issuer to the extent of the guarantee, whether or not the guarantor’s obligation is noted on the security.
There shall be stated on the face of each share certificate issued by a bank after the coming into force of this section
A bank may issue a certificate for a fractional share or may issue in place thereof a scrip certificate in bearer form that entitles the holder to receive a certificate for a full share by exchanging scrip certificates aggregating a full share.
The directors of a bank may attach conditions to any scrip certificate issued by the bank, including conditions that
If a minor exercises any rights of ownership in the securities of a bank, no subsequent repudiation or avoidance is effective against the bank.
A bank may treat as owners of a security the survivors of persons to whom the security was issued as joint holders, if the bank receives proof satisfactory to it of the death of any of the joint holders.
In any action on a security,
Unless otherwise agreed, and subject to any applicable law, regulation or stock exchange rule, a person required to deliver securities may deliver any security of the specified issue in bearer form or registered in the name of the transferee or endorsed to the transferee or in blank.
An unauthorized signature on a security before or in the course of issue is ineffective, except that the signature is effective in favour of a purchaser for value and without notice of the lack of authority, if the signing has been done by
A purchaser of a security, or any securities broker for a seller or purchaser, is deemed to have notice of an adverse claim if
Notwithstanding that a purchaser, or any securities broker for a seller or purchaser, has notice that a security is held for a third person by, or is registered in the name of or endorsed by, a fiduciary, neither the purchaser nor the securities broker has any duty to inquire into the rightfulness of the transfer or any notice of an adverse claim, except that if the purchaser or securities broker for the seller or purchaser knows that the consideration is to be used for, or that the transaction is for, the personal benefit of the fiduciary or is otherwise in breach of the fiduciary’s duty, the purchaser or securities broker is deemed to have notice of an adverse claim.
An event that creates a right to immediate performance of the principal obligation evidenced by a security or that sets a date on or after which the security is to be presented or surrendered for redemption or exchange is not of itself notice of an adverse claim, except in the case of a purchase
Where a security in registered form is delivered to a purchaser without a necessary endorsement, the purchaser may become a bona fide purchaser only as of the time the endorsement is supplied, but against the transferor the transfer is complete on delivery and the purchaser has a specifically enforceable right to have any necessary endorsement supplied.
Unless otherwise agreed, the endorser by the endorsement assumes no obligation that the security will be honoured by the issuer.
An endorsement purporting to be an endorsement of only part of a security representing units intended by the issuer to be separately transferable is effective to the extent of the endorsement.
Failure of a fiduciary to comply with a controlling instrument or with the law of the jurisdiction governing the fiduciary relationship, including any law requiring the fiduciary to obtain court approval of a transfer, does not render the fiduciary’s endorsement unauthorized for the purposes of this Part.
An endorsement of a security, whether special or in blank, does not constitute a transfer until delivery of the security on which it appears or, if the endorsement is on a separate document, until delivery of both the security and that document.
An endorsement of a security in bearer form may give notice of an adverse claim under section 105 but does not otherwise affect any of the holder’s rights.
Delivery to a purchaser occurs when
No seizure of a security or other interest evidenced thereby is effective until the person making the seizure obtains possession of the security.
An agent or bailee who in good faith, including observance of reasonable commercial standards if the agent or bailee is in the business of buying, selling or otherwise dealing with securities of a bank, has received securities and sold, pledged or delivered them according to the instructions of the agent’s or bailee’s principal is not liable for conversion or for participation in breach of fiduciary duty even though the principal has no right to dispose of the securities.
If an issuer, in relation to a transfer, demands assurance other than an assurance specified in subsection 127(1) and obtains a copy of a will, trust or partnership agreement or a by-law or similar document, the issuer is deemed to have notice of all matters contained therein affecting the transfer.
Unless an issuer is deemed to have notice of an adverse claim from a document that it obtained under section 128 or has received notice of an adverse claim under subsection 129(1), if a security presented for registration is endorsed by the appropriate person, the issuer has no duty to inquire into adverse claims and, in particular,
A written notice of adverse claim received by an issuer is effective for twelve months after the day it was received unless the notice is renewed in writing.
An authenticating trustee, registrar, transfer agent or other agent of an issuer has, in respect of the issue, registration of transfer and cancellation of a security of the issuer,
Notice to an authenticating trustee, registrar, transfer agent or other agent of an issuer is notice to the issuer in respect of the functions performed by the agent.
If a bank has only one shareholder, or only one holder of any class or series of shares, the shareholder present in person or represented by a proxyholder constitutes a meeting of shareholders or a meeting of shareholders of that class or series.
Subject to section 156.09, if a share of a bank entitles the holder of the share to vote at a meeting of shareholders, that share entitles the shareholder to one vote at the meeting.
Unless the by-laws otherwise provide, if two or more persons hold shares jointly, one of those holders present at a meeting of shareholders may in the absence of the others vote the shares, but if two or more of those persons who are present in person or represented by proxyholder vote, they shall vote as one on the shares jointly held by them.
The following persons are disqualified from being directors of a bank:
A director of a bank is not required to hold shares of the bank.
The Governor in Council may make regulations specifying the circumstances under which a natural person is affiliated with a bank for the purposes of this Act.
No more than 15 per cent of the directors of a bank may, at each director’s election or appointment, be employees of the bank or a subsidiary of the bank, except that up to four persons who are employees of the bank or a subsidiary of the bank may be directors of the bank if those directors constitute not more than one half of the directors of the bank.
A director who has completed a term of office is, if otherwise qualified, eligible for re-election.
Despite section 183, if a class of persons have an exclusive right to elect one or more directors and a vacancy occurs among those directors, then, subject to section 176,
A shareholder entitled to vote at an annual meeting of shareholders may, in accordance with sections 143 and 144, make a proposal to make, amend or repeal a by-law.
Subject to section 191, where a by-law of a bank that was in existence immediately prior to the day this section comes into force was in effect immediately prior to that day, the by-law continues in effect until amended or repealed, unless it is contrary to a provision of this Act.
The directors of a bank may appoint from their number, in addition to the committees referred to in subsection 157(2), such other committees as they deem necessary and, subject to section 198, delegate to those committees such powers of the directors, and assign to those committees such duties, as the directors consider appropriate.
The directors of a bank that is not a federal credit union may not delegate the power to
A director of a bank is entitled to attend and to be heard at every meeting of shareholders or members.
If a director or officer of a bank fails to comply with any of sections 202 to 205, a court, on application of the bank or any of its shareholders or members, may set aside the contract or transaction on any terms that the court thinks fit and may require the director or officer to account to the bank for any profit or gain realized on it.
An action to enforce a liability imposed by section 207 may not be commenced after two years from the date of the resolution authorizing the action complained of.
A bank may purchase and maintain insurance for the benefit of any person referred to in section 212 against any liability incurred by the person
On the application of a bank duly authorized by special resolution, the Minister may approve a proposal to add, change or remove any provision that is permitted by this Act to be set out in the bank’s incorporating instrument.
A proposed addition or amendment to the by-laws referred to in subsection 218(1) is adopted when the holders of the shares of each class or series entitled to vote separately thereon as a class or series have approved the addition or amendment by a special resolution.
Where a special resolution referred to in subsection 217(2) so states, the directors may, without further approval of the shareholders, revoke the special resolution.
No amendment to the incorporating instrument or by-laws of a bank affects an existing cause of action or claim or liability to prosecution in favour of or against the bank or its directors or officers, or any civil, criminal or administrative action or proceeding to which the bank or any of its directors or officers are a party.
An amalgamation agreement must be submitted to the Superintendent for approval, and any approval of the agreement under subsection 226(4) by the holders of any class or series of shares of an applicant, and, if applicable, by the members, is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing.
A sale agreement must be sent to the Superintendent before it is submitted to shareholders or to members and shareholders, as the case may be, of the selling bank under subsection 234(1).
If a special resolution approving a sale under subsection 234(4) so states, the directors of a selling bank may, subject to the rights of third parties, abandon the sale without further approval of the shareholders or the members and shareholders, as the case may be.
A person requiring a bank to supply a basic list or a supplemental list of shareholders or members may also require the bank to include in that list the name and address of any known holder of an option or right to acquire shares of the bank.
No person shall use a list of shareholders or members obtained under section 240 except in connection with
A bank and its agents shall take reasonable precautions to
The Governor in Council may make regulations respecting the records, papers and documents to be retained by a bank, including the length of time those records, papers and documents are to be retained, and what constitutes immediate, direct, complete and ongoing access, for the purpose of paragraph 245(1.1)(a).
A bank may establish as many branch securities registers as it considers necessary.
A bank may appoint an agent to maintain its central securities register and each of its branch securities registers.
Registration of the issue or transfer of a security in the central securities register or in a branch securities register is complete and valid registration for all purposes.
A bank, its agent or a trustee within the meaning of section 294 is not required to produce
A bank shall set out its name in legible characters in all contracts, invoices, negotiable instruments and other documents evidencing rights or obligations with respect to other parties that are issued or made by or on behalf of the bank.
[Repealed, 1997, c. 15, s. 30]
An insider shall submit an insider report in accordance with the regulations.
On application by an insider, the Superintendent may in writing and on any terms that the Superintendent thinks fit exempt the insider from any of the requirements of section 266. The exemption may be given retroactive effect and the Superintendent shall publish the particulars of the exemption and the reasons for it in a periodical available to the public.
The Governor in Council may make regulations for carrying out the purposes of sections 266 and 267, including
[Repealed, 2005, c. 54, s. 56]
A bank may carry out a going-private transaction if it complies with any applicable provincial securities laws.
No bank may carry out a squeeze-out transaction unless, in addition to any approval by holders of shares required by or under this Act or the bank’s by-laws, the transaction is approved by ordinary resolution of the holders of each class of shares affected by the transaction, voting separately, whether or not the shares otherwise carry the right to vote. However, the following do not have the right to vote on the resolution:
[Repealed, 2005, c. 54, s. 57]
[Repealed, 2005, c. 54, s. 57]
[Repealed, 2005, c. 54, s. 57]
[Repealed, 2005, c. 54, s. 57]
[Repealed, 2005, c. 54, s. 57]
If, within one hundred and twenty days after the date of a take-over bid, the bid is accepted by the holders of not less than 90 per cent of the shares of any class of shares to which the take-over bid relates, other than shares held at the date of the take-over bid by or on behalf of the offeror or an affiliate or associate of the offeror, the offeror is entitled, on complying with sections 285 to 290, subsections 291(1) and (2) and section 292, to acquire the shares held by the dissenting offerees.
A dissenting offeree to whom a notice is sent under subsection 285(1) shall within 20 days after receiving the notice
Within thirty days after an offeror sends an offeror’s notice under subsection 285(1), the offeree bank shall
On an application under subsection 289(1) or (2),
Where no application is made to a court under subsection 289(2) within the period set out in that subsection, a dissenting offeree is deemed to have elected to transfer the dissenting offeree’s shares to the offeror on the same terms on which the offeror acquired the shares from the offerees who accepted the take-over bid.
The Minister shall pay to the Bank of Canada any amounts paid to the Minister under subsection 291(4), and section 367 applies in respect thereof as if the amounts paid under subsection 291(4) had been paid under subsection 366(3).
In this section and sections 295 to 306,
Sections 296 to 306 apply in respect of a trust indenture if the subordinated indebtedness issued or to be issued under the trust indenture is part of a distribution to the public.
The Superintendent may, in writing, exempt a trust indenture from the application of sections 297 to 306 if, in the Superintendent’s opinion, the trust indenture and the subordinated indebtedness are subject to a law of a province or other jurisdiction, other than Canada, that is substantially equivalent to the provisions of this Act relating to trust indentures.
A trust indenture and any subordinated indebtedness issued thereunder are valid notwithstanding a material conflict of interest of the trustee.
If a trustee is appointed in contravention of subsection 297(1) or if a trustee contravenes subsection 297(2), any interested person may apply to a court for an order that the trustee be replaced, and the court may make an order on such terms as it thinks fit.
A trustee, or at least one of the trustees if more than one is appointed, must be
A trustee shall, within thirty days after the trustee becomes aware of the occurrence thereof, give to the holders of subordinated indebtedness issued under a trust indenture notice of every event of default arising under the trust indenture and continuing at the time the notice is given, unless the trustee believes on reasonable grounds that it is in the best interests of the holders of the subordinated indebtedness to withhold the notice and so informs the issuer and guarantor in writing.
No term of a trust indenture or of any agreement between a trustee and the holders of subordinated indebtedness issued thereunder or between the trustee and the issuer or guarantor operates to relieve a trustee from the duties imposed on the trustee by sections 297, 301 and 304 and subsection 305(1).
For the purposes of this section and sections 314 to 333,
Any oral or written statement or report made under this Act by the auditor or auditors or former auditor or auditors of a bank has qualified privilege.
For the purposes of subsections 346(1) and 347(1) and (2), sections 348 to 352, subsection 353(1), sections 355 and 357 to 359, subsections 363(3) and (4) and section 368, court means a court having jurisdiction in the place where the bank has its head office.
A liquidator appointed under this Part to wind up the business of a bank shall provide the Superintendent with such information relating to the business and affairs of the bank in such form as the Superintendent requires.
If the voluntary liquidation and dissolution of a bank is proposed, the bank may apply to the Minister for letters patent dissolving the bank
In connection with the liquidation and dissolution of a bank, the court may, where it is satisfied that the bank is able to pay or adequately provide for the discharge of all its obligations, make any order it thinks fit including, without limiting the generality of the foregoing,
When making an order for the liquidation of a bank, or at any later time, the court may appoint any person, including a director, an officer, a shareholder or a member of the bank or any other bank, as liquidator of the bank.
Where an order for the liquidation of a bank has been made and the office of liquidator is or becomes vacant, the property of the bank is under the control of the court until the office of liquidator is filled.
A liquidator is not liable if they exercised the care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including reliance in good faith on
A liquidator shall pay the costs of liquidation out of the property of the bank and shall pay or make adequate provision for all claims against the bank.
In sections 363 and 364, shareholder, member and incorporator include the heirs and personal representatives of a shareholder, member or incorporator, respectively.
If a creditor, shareholder, member or incorporator to whom property is to be distributed on the dissolution of a bank cannot be found, the portion of the property to be distributed to that creditor, shareholder, member or incorporator is to be converted into money and paid in accordance with section 366.
Subject to subsection 362(1) and sections 366 and 367, property of a bank that has not been disposed of at the date of the dissolution of the bank vests in Her Majesty in right of Canada.
A person who has been granted custody of the documents, records and registers of a dissolved bank shall keep them available for production for six years following the date of the dissolution of the bank or until the expiration of such shorter period as may be ordered by the court when it orders the dissolution.
Except as permitted by this Part, no person shall have a significant interest in any class of shares, or in membership shares, of a bank.
A bank must not, unless the acquisition of the share or membership share has been approved by the Minister, record in its securities register or members register, as the case may be, a transfer or issue of any share or membership share of the bank to any person or to any entity controlled by a person if
Despite section 379, if, as a result of a transfer or issue of shares of a class of shares, or of membership shares, of a bank to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the bank, or the total number of membership shares registered in the members register of the bank, as the case may be, in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class or of the outstanding membership shares, as the case may be, the bank is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares or in membership shares of the bank as a result of that issue or transfer of shares or membership shares.
For the purposes of sections 373 and 379, the Minister may approve
If the Superintendent has, by order, directed a bank with equity of two billion dollars or more but less than twelve billion dollars to increase its capital and shares of the bank are issued and acquired in accordance with any terms and conditions that may be specified in the order, section 385 does not apply in respect of the bank until the time that the Superintendent may, by order, specify.
At the expiration of the period for compliance with an undertaking referred to in subsection 390(2), section 385 shall apply in respect of the bank to which the undertaking relates.
The Minister may impose any terms and conditions in respect of an approval given under this Part that the Minister considers necessary to ensure compliance with any provision of this Act.
This Part does not apply to a securities underwriter in respect of shares of a body corporate or ownership interests in an unincorporated entity that are acquired by the underwriter in the course of a distribution to the public of those shares or ownership interests and that are held by the underwriter for a period of not more than six months.
A bank and any person who is a director or an officer, employee or agent of the bank may rely on any information contained in a declaration required by the directors pursuant to section 405 or on any information otherwise acquired in respect of any matter that might be the subject of such a declaration, and no action lies against the bank or any such person for anything done or omitted to be done in good faith in reliance on any such information.
[Repealed, 1994, c. 47, s. 23]
Nothing in, or done under the authority of, this Act affects the operation of the Competition Act.
No bank shall act in Canada as
A bank shall not deal in Canada in securities to the extent prohibited or restricted by such regulations as the Governor in Council may make for the purposes of this section.
A bank shall not engage in Canada in any personal property leasing activity in which a financial leasing entity, as defined in subsection 464(1), is not permitted to engage.
A bank shall not grant to a person the right to appoint a receiver or a receiver and manager of the property or business of the bank.
A bank may lend money and make advances to a receiver, to a receiver and manager, to a liquidator appointed under any winding-up Act, or to a custodian, an interim receiver or a trustee under the Bankruptcy and Insolvency Act, if the receiver, receiver and manager, liquidator, custodian, interim receiver or trustee has been duly authorized or empowered to borrow, and, in making the loan or advance, and thereafter, the bank may take security, with or without personal liability, from the receiver, receiver and manager, liquidator, custodian, interim receiver or trustee to such an amount and on such property as may be directed or authorized by any court of competent jurisdiction.
Securities acquired and held by a bank as security may, in case of default in the payment of the loan, advance or debt or in the discharge of the liability for the securing of which they were so acquired and held, be dealt with, sold and conveyed, in like manner as and subject to the restrictions under which a private individual might in like circumstances deal with, sell and convey the same, and the right to deal with and dispose of securities as provided in this section may be waived or varied by any agreement between the bank and the person by whom the security was given.
The rights, powers and privileges that a bank is by this Act declared to have, or to have had, in respect of real property on which it has taken security, shall be held and possessed by it in respect of any personal property on which it has taken security.
A bank may purchase any real property offered for sale
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2001, c. 9, s. 115]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
[Repealed, 2018, c. 27, s. 321]
For the purposes of sections 425 to 436, where a bank accepts a bill of exchange drawn on it and not payable on demand or pays or makes money available for the payment of such a bill of exchange, or issues a guarantee, or otherwise makes a promise to effect a payment, the bank is deemed to lend money or make an advance.
The directors of a bank shall establish and the bank shall adhere to investment and lending policies, standards and procedures that a reasonable and prudent person would apply in respect of a portfolio of investments and loans to avoid undue risk of loss and obtain a reasonable return.
The Governor in Council may make regulations
The Governor in Council may make regulations
A bank shall not, and shall not permit its prescribed subsidiaries to, purchase or otherwise acquire an interest in real property or make an improvement to any real property in which the bank or any of its prescribed subsidiaries has an interest if the aggregate value of all interests of the bank in real property exceeds, or the acquisition of the interest or the making of the improvement would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the bank.
A bank shall not, and shall not permit its prescribed subsidiaries to,
A bank shall not, and shall not permit its prescribed subsidiaries to,
For the purposes of this Part, the Governor in Council may make regulations
If a bank controls or has a substantial investment in an entity as permitted by this Part and the bank becomes aware of a change in the business or affairs of the entity that, if the change had taken place before the acquisition of control or of the substantial investment, would have caused the entity not to be a permitted entity or would have been such that approval for the acquisition would have been required under subsection 468(5) or (6), the bank is deemed to have acquired, on the day the bank becomes aware of the change, a temporary investment in respect of which section 471 applies.
Nothing in this Part requires
A loan or investment referred to in section 483 is deemed not to be prohibited by the provisions of this Part.
Notwithstanding anything in this Part, a bank may enter into a transaction with a related party of the bank if the value of the transaction is nominal or immaterial to the bank when measured by criteria that have been established by the conduct review committee of the bank and approved in writing by the Superintendent.
A bank may make a loan to or a guarantee on behalf of a related party of the bank or take an assignment of or otherwise acquire a loan to a related party of the bank if
A bank may enter into a transaction with a related party of the bank if the transaction consists of a deposit by the bank with a financial institution that is a direct clearer or a member of a clearing group under the by-laws of the Canadian Payments Association and the deposit is made for clearing purposes.
A bank may borrow money from, take deposits from, or issue debt obligations to, a related party of the bank.
The Superintendent may establish terms and conditions with respect to the making by a bank of margin loans to a director or senior officer of the bank.
A bank may enter into a transaction with a related party of the bank if the transaction is a prescribed transaction or one of a class of prescribed transactions.
[Repealed, 1997, c. 15, s. 74]
Where a bank has entered into a transaction that the bank is prohibited by this Part from entering into or where a bank has entered into a transaction for which approval is required under subsection 497(1) without having obtained the approval, the bank shall, on becoming aware of that fact, notify the Superintendent without delay.
[Repealed, 2007, c. 6, s. 49]
Nothing in paragraphs 510(1)(a) to (c) is to be construed as prohibiting a foreign bank or an entity associated with a foreign bank from providing its customers who are natural persons not ordinarily resident in Canada with access in Canada to their accounts located outside Canada through the use of automated banking machines located in Canada.
Nothing in paragraphs 510(1)(a) to (c) is to be construed as prohibiting a foreign bank or an entity associated with a foreign bank from establishing, maintaining or using a private telephone service or similar facility for the purpose of quoting to customers in Canada, or entering with customers in Canada into verbal agreements relating to, foreign exchange, deposit or loan rates if there is no accounting or information processing involved in the private telephone service or similar facility.
[Repealed, 2007, c. 6, s. 53]
[Repealed, 2007, c. 6, s. 53]
The Governor in Council may make regulations exempting any class or classes of businesses, investments, activities and branches from any of the prohibitions set out in section 510 or 518.
A foreign bank may
Before making an order under subsection 524(1), the Minister shall take into account all matters that the Minister considers relevant to the application, including
An authorized foreign bank shall set out its name and, where applicable, any other permitted name, as set out in the order made under subsection 524(1) or 528(1.1), in legible characters in all contracts, invoices, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the authorized foreign bank.
Subject to section 22.1 of the Payment Clearing and Settlement Act, an authorized foreign bank may be a participant in a clearing and settlement system designated under subsection 4(1) of that Act.
No authorized foreign bank shall act in Canada as
An authorized foreign bank shall not deal in Canada in securities to the extent prohibited or restricted by any regulations that the Governor in Council may make for the purposes of this section.
An authorized foreign bank shall not engage in Canada in any personal property leasing activity in which a financial leasing entity as defined in subsection 464(1) is not permitted to engage.
An authorized foreign bank shall not, in respect of its business in Canada, grant to a person the right to appoint a receiver or a receiver and manager of the property or of the business of the authorized foreign bank.
Sections 425 to 436, as they exist from time to time, apply, with any modifications that the circumstances require, in respect of the carrying on of business in Canada by an authorized foreign bank as if a reference to “bank” in any of those provisions were a reference to “authorized foreign bank”.
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
[Repealed, 2018, c. 27, s. 327]
For the purposes of sections 425 to 436, as incorporated by section 555, where an authorized foreign bank accepts a bill of exchange drawn on it and not payable on demand or pays or makes money available for the payment of such a bill of exchange, or issues a guarantee, or otherwise makes a promise to effect a payment, the authorized foreign bank is deemed to lend money or make an advance.
An authorized foreign bank shall establish and adhere to investment and lending policies, standards and procedures that a reasonable and prudent person would apply in respect of a portfolio of investments and loans to avoid undue risk of loss and obtain a reasonable return.
In sections 585 to 596, the expressions firm of accountants and member have the meanings assigned to those expressions by section 313.
An auditor of an authorized foreign bank who
Any oral or written statement or report made under this Act by the auditor or a former auditor of an authorized foreign bank has qualified privilege.
Sections 244 to 247 apply, with any modifications that the circumstances require, to an authorized foreign bank, and in the application of those sections,
An authorized foreign bank shall provide the Superintendent with any information, at the times and in the form, that the Superintendent may require.
[Repealed, 2007, c. 6, s. 98]
[Repealed, 2007, c. 6, s. 98]
[Repealed, 2007, c. 6, s. 98]
The Governor in Council may make regulations prohibiting, limiting or restricting the disclosure by authorized foreign banks of prescribed supervisory information.
Subject to any regulations made under paragraph 627.998(n), information obtained by an authorized foreign bank regarding any of its customers shall not be disclosed or made available under subsection 609(1) or section 610.
The Superintendent shall prepare a report respecting the disclosure of information by authorized foreign banks and describing the state of progress made in enhancing the disclosure of information in the financial services industry. The report is to be included in the report referred to in section 40 of the Office of the Superintendent of Financial Institutions Act.
The Superintendent has all the powers of a person appointed as a commissioner under Part II of the Inquiries Act for the purpose of obtaining evidence under oath, and may delegate those powers to any person acting under the Superintendent’s direction.
Where, in the opinion of the Superintendent, it is necessary for the protection of rights of depositors and creditors of the authorized foreign bank in respect of its business in Canada, the Superintendent may, by order,
For the purposes of sections 619 to 627, assets, in relation to an authorized foreign bank, means
The Superintendent may, at any time before the receipt of a request under section 622 to relinquish control of the assets of an authorized foreign bank, request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the authorized foreign bank, if the assets of the authorized foreign bank are under the control of the Superintendent under subparagraph 619(1)(b)(i) or (ii) or paragraph 619(2.1)(b) or (c).
If no action has been taken by the Superintendent under section 621 and, after 30 days following the taking of control by the Superintendent under subsection 619(1) or (2.1) of the assets of an authorized foreign bank, the Superintendent receives from the principal officer of the authorized foreign bank a notice in writing requesting the Superintendent to relinquish control, the Superintendent shall, not later than 12 days after receipt of the notice,
The Superintendent may appoint a committee of not more than six members to advise the Superintendent in respect of the assets and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the assets. The committee shall be appointed from among the banks and authorized foreign banks that are subject to an assessment under section 23 of the Office of the Superintendent of Financial Institutions Act and required to share in the expenses resulting from the taking of control of the assets of the authorized foreign bank under subsection 619(1) or (2.1).
In the case of the winding-up of the business in Canada of an authorized foreign bank, the expenses resulting from the taking of control of the assets of the authorized foreign bank under subsection 619(1) or (2.1) and assessed against and paid by other authorized foreign banks and by banks under section 23 of the Office of the Superintendent of Financial Institutions Act and interest in respect of the expenses at any rate that is specified by the Superintendent, constitute a claim of His Majesty in right of Canada against the assets of the authorized foreign bank that ranks after any claim referred to in paragraph 627(1)(d).
Any amount recovered under section 624 or 625 shall be applied to reduce the total amount of expenses incurred for or in connection with the administration of this Act.
[Repealed, 2007, c. 6, s. 102]
[Repealed, 2007, c. 6, s. 102]
[Repealed, 2007, c. 6, s. 102]
A bank shall send to the Superintendent, within thirty days after the coming into effect of a by-law or an amendment to a by-law, a copy of the by-law or amendment.
The Governor in Council may make regulations prohibiting, limiting or restricting the disclosure by banks of prescribed supervisory information.
Subject to any regulations made under paragraph 627.998(n), no information obtained by a bank regarding any of its customers shall be disclosed or made available under subsection 639(1) or section 640.
The Superintendent shall prepare a report, to be included in the report referred to in section 40 of the Office of the Superintendent of Financial Institutions Act, respecting the disclosure of information by banks and describing the state of progress made in enhancing the disclosure of information in the financial services industry.
The Superintendent has all the powers of a person appointed as a commissioner under Part II of the Inquiries Act for the purpose of obtaining evidence under oath, and may delegate those powers to any person acting under the Superintendent’s direction.
The Superintendent may, at any time before the receipt of a request under section 652 to relinquish control of a bank or of the assets of a bank, request the Attorney General of Canada to apply for a winding-up order under section 10.1 of the Winding-up and Restructuring Act in respect of the bank, where
If no action has been taken by the Superintendent under section 651 and, after 30 days following the taking of control by the Superintendent under subsection 648(1) or (1.11) of a bank or of the assets of a bank, the Superintendent receives from its board of directors a notice in writing requesting the Superintendent to relinquish control, the Superintendent shall, not later than 12 days after receipt of the notice,
The Superintendent may, from among the banks and authorized foreign banks that are subject to an assessment under section 23 of the Office of the Superintendent of Financial Institutions Act and required to share in the expenses resulting from the taking of control of a bank under subsection 648(1) or (1.11), appoint a committee of not more than six members to advise the Superintendent in respect of assets, management and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the bank.
In the case of the winding-up of a bank, the expenses resulting from the taking of control of the bank under subsection 648(1) or (1.11) and assessed against and paid by other banks and by authorized foreign banks under section 23 of the Office of the Superintendent of Financial Institutions Act, and interest in respect of the expenses at any rate that is specified by the Superintendent, constitute a claim of His Majesty in right of Canada against the assets of the bank that ranks after all other claims but prior to any claim in respect of the shares or membership shares of the bank.
Any amount recovered pursuant to section 654 or 655 shall be applied to reduce the total amount of expenses incurred for or in connection with the administration of this Act.
A bank, authorized foreign bank or external complaints body must provide the Commissioner with the information at the times and in the form that he or she may require for the purposes of the administration of the Financial Consumer Agency of Canada Act and the consumer provisions.
The Commissioner, in carrying out his or her duties in relation to consumer provisions, has all the powers of a person appointed as a commissioner under Part II of the Inquiries Act for the purpose of obtaining evidence under oath, and may delegate those powers to any person acting under the Commissioner’s direction.
The Commissioner may enter into an agreement, called a “compliance agreement”, with a bank, an authorized foreign bank or the external complaints body for the purposes of implementing any measure that is designed so as to further compliance by it with the consumer provisions.
The purpose of this Part is to provide for the incorporation, formation and regulation of bank holding companies.
No act of a bank holding company, including any transfer of property to or by a bank holding company, is invalid by reason only that the act or transfer is contrary to the bank holding company’s incorporating instrument or this Act.
It is not necessary for a bank holding company to pass a by-law in order to confer any particular power on the bank holding company or its directors.
The shareholders of a bank holding company are not, as shareholders, liable for any liability, act or default of the bank holding company except as otherwise provided by this Act.
No person is affected by or is deemed to have notice or knowledge of the contents of a document concerning a bank holding company by reason only that the document has been filed with the Superintendent or the Minister or is available for inspection at an office of the bank holding company.
On the application of one or more persons made in accordance with this Part, the Minister may, subject to this Division, issue letters patent incorporating a bank holding company.
Letters patent incorporating a bank holding company may not be issued if the application therefor is made by or on behalf of
If a proposed bank holding company would be a subsidiary of a foreign bank, within the meaning of any of paragraphs (a) to (f) of the definition foreign bank in section 2, letters patent to incorporate the bank holding company may not be issued unless the Minister is satisfied that, if the application is made by a non-WTO Member foreign bank, treatment as favourable for bank holding companies to which this Act applies exists or will be provided in the jurisdiction in which the foreign bank principally carries on business, either directly or through a subsidiary.
An application for letters patent to incorporate a bank holding company setting out the names of the first directors of the bank holding company shall be filed with the Superintendent, together with such other information, material and evidence as the Superintendent may require.
Before issuing letters patent to incorporate a bank holding company, the Minister shall take into account all matters that the Minister considers relevant to the application, including
The Superintendent shall cause to be published in the Canada Gazette a notice of the issuance of letters patent incorporating a bank holding company.
The first directors of a bank holding company are the directors named in the application for letters patent to incorporate the bank holding company.
A bank holding company comes into existence on the date provided therefor in its letters patent.
On the day set out in the letters patent continuing a body corporate as a bank holding company under subsection 684(1),
Where a body corporate is continued as a bank holding company under this Part,
On the day specified by the Minister, this Act ceases to apply to the body corporate continued under the other Act of Parliament or under the Act of the legislature of a province.
Where a special resolution authorizing the application under subsection 689(1) so states, the directors of a bank holding company may, without further approval of the shareholders, withdraw the application before it is acted on.
A bank holding company may not be incorporated under this Part with a name
Despite section 693 and subject to section 695, a bank holding company that is affiliated with another entity may, with the consent of that entity,
A bank holding company may not be incorporated or continued with, change its name to or carry on business or identify itself by, a name that is substantially similar to that of a bank unless the name contains words that, in the opinion of the Superintendent, indicate to the public that the bank holding company is distinct from any bank that is a subsidiary of the bank holding company.
The Superintendent may, on request, reserve for ninety days a name for a proposed bank holding company or for a bank holding company that intends to change its name.
The Superintendent shall, within sixty days after the end of each year, cause a notice to be published in the Canada Gazette, showing
A director named in the application for letters patent to incorporate a bank holding company holds office until the election of directors at the meeting of shareholders called pursuant to subsection 701(1).
Where voting rights are attached to a share of a bank holding company, the voting rights may confer only one vote in respect of that share.
Shares issued by a bank holding company are non-assessable and the shareholders are not liable to the bank holding company or to its creditors in respect thereof.
Except as provided in sections 715 to 717, or unless permitted by the regulations, a bank holding company shall not
On a conversion of any debt obligation of a bank holding company into shares of a class or series of shares, the bank holding company shall
Sections 81 to 135 apply in respect of bank holding companies, subject to the following:
If a bank holding company has only one shareholder, or only one holder of any class or series of shares, the shareholder present in person or represented by a proxyholder constitutes a meeting of shareholders or a meeting of shareholders of that class or series.
Subject to subsection 156.09, if a share of a bank holding company entitles the holder of the share to vote at a meeting of shareholders, that share entitles the shareholder to one vote at the meeting.
Unless the by-laws otherwise provide, if two or more persons hold shares jointly, one of those holders present at a meeting of shareholders may in the absence of the others vote the shares, but if two or more of those persons who are present in person or represented by proxyholder vote, they shall vote as one on the shares jointly held by them.
Sections 156.01 to 156.09 apply in respect of bank holding companies, subject to the following:
The following persons are disqualified from being directors of a bank holding company:
A director of a bank holding company is not required to hold shares of the bank holding company.
No more than 15 per cent of the directors of a bank holding company may, at each director’s election or appointment, be employees of the bank holding company or a subsidiary of the bank holding company, except that up to four persons who are employees of the bank holding company or a subsidiary of the bank holding company may be directors of the bank holding company if those directors constitute not more than one half of the directors of the bank holding company.
A director who has completed a term of office is, if otherwise qualified, eligible for re-election.
The by-laws of a bank holding company may provide that a vacancy among the directors is to be filled only
Notwithstanding section 772, where the holders of any class or series of shares of a bank holding company have an exclusive right to elect one or more directors and a vacancy occurs among those directors, then, subject to section 764,
Unless the by-laws otherwise provide, a director elected or appointed to fill a vacancy holds office for the unexpired term of the director’s predecessor in office.
A shareholder entitled to vote at an annual meeting of shareholders may, in accordance with sections 732 and 733, make a proposal to make, amend or repeal a by-law.
The directors of a bank holding company may appoint from their number, in addition to the committees referred to in subsection 747(2), such other committees as they deem necessary and, subject to section 785, delegate to those committees such powers of the directors, and assign to those committees such duties, as the directors consider appropriate.
The directors of a bank holding company shall appoint from their number a chief executive officer who must be ordinarily resident in Canada and, subject to section 785, may delegate to that officer any of the powers of the directors.
The directors of a bank holding company may not delegate any of the following powers, namely, the power to
A director of a bank holding company is entitled to attend and to be heard at every meeting of shareholders.
If a director or officer of a bank holding company fails to comply with any of sections 789 to 792, a court, on application of the bank holding company or any of its shareholders, may set aside the contract or transaction on any terms that the court thinks fit and may require the director or officer to account to the bank holding company for any profit or gain realized on it.
An action to enforce a liability imposed by section 794 may not be commenced after two years from the date of the resolution authorizing the action complained of.
A bank holding company may purchase and maintain insurance for the benefit of any person referred to in section 799 against any liability incurred by the person
Sections 215 to 222 apply in respect of bank holding companies, subject to the following:
An amalgamation agreement must be submitted to the Superintendent for approval and any approval of the agreement under subsection 806(4) by the holders of any class or series of shares of an applicant is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing.
A person requiring a bank holding company to supply a basic list or a supplemental list of shareholders may also require the bank holding company to include in that list the name and address of any known holder of an option or right to acquire shares of the bank holding company.
A list of shareholders obtained under section 817 shall not be used by any person except in connection with
A bank holding company and its agents shall take reasonable precautions to
A bank holding company shall retain
The Governor in Council may make regulations respecting the records, papers and documents to be retained by a bank holding company, including the length of time those records, papers and documents are to be retained, and what constitutes immediate, direct, complete and ongoing access, for the purpose of paragraph 822(1.1)(a).
A bank holding company may establish as many branch securities registers as it considers necessary.
A bank holding company may appoint an agent to maintain its central securities register and each of its branch securities registers.
Registration of the issue or transfer of a security in the central securities register or in a branch securities register is complete and valid registration for all purposes.
A bank holding company, its agent or a trustee within the meaning of section 294 is not required to produce
A bank holding company shall set out its name in legible characters in all contracts, invoices, negotiable instruments and other documents evidencing rights or obligations with respect to other parties that are issued or made by or on behalf of the bank holding company.
Sections 265 to 272 apply in respect of bank holding companies except that references to “bank” are to be read as references to “bank holding company”.
Sections 273 and 274 apply in respect of bank holding companies except that references to “bank” are to be read as references to “bank holding company”.
Sections 283 to 292.1 apply in respect of bank holding companies, subject to the following:
If at any time a person establishes an entitlement to any moneys paid to the Receiver General under subsection 291(4), the Receiver General shall pay an equivalent amount to that person out of the Consolidated Revenue Fund.
Sections 294 to 306 apply in respect to bank holding companies, subject to the following:
The following definitions apply in this section and sections 846 to 864.
Any oral or written statement or report made under this Part by the auditor or former auditor of a bank holding company has qualified privilege.
Sections 334 to 338 apply in respect of bank holding companies, subject to the following:
For the purposes of subsections 346(1) and 347(1) and (2), sections 348 to 352, subsection 353(1), sections 355 and 357 to 359, subsections 363(3) and (4) and section 368, court means a court having jurisdiction in the place where the bank holding company has its head office.
A liquidator appointed under this Division to wind up the business of a bank holding company shall provide the Superintendent with such information relating to the business and affairs of the bank holding company in such form as the Superintendent requires.
Sections 342 to 346 apply in respect of bank holding companies, subject to the following:
Sections 347 to 360 apply in respect of bank holding companies, subject to the following:
Sections 361 to 365 and 368 apply in respect of bank holding companies, subject to the following:
Sections 370 to 371.1 apply in respect of bank holding companies, except that references to “bank” in sections 371 and 371.1 are to be read as references to “bank holding company”.
Except as permitted by this Division, no person shall have a significant interest in any class of shares of a bank holding company.
No person who has a significant interest in any class of shares of a widely held bank holding company with equity of twelve billion dollars or more may have a significant interest in any class of shares of a subsidiary of the widely held bank holding company that is a bank or a bank holding company.
No person who has a significant interest in any class of shares of a bank holding company may have a significant interest in any class of shares of any widely held bank with equity of twelve billion dollars or more, or of any widely held bank holding company with equity of twelve billion dollars or more, that controls the bank holding company.
A bank holding company with equity of less than twelve billion dollars that controls a bank to which subsection 378(1) applies is deemed, for the purposes of sections 156.09, 727, 876, 879, 879.1, 880, 881, 882, 888 and 890, subsection 891(2), section 893 and subsection 906(2), to be a bank holding company with equity of twelve billion dollars or more.
No person may control or be a major shareholder of a bank holding company if the person or an entity affiliated with the person
No person who controls a bank holding company or who is a major shareholder of a bank holding company, and no entity affiliated with that person, may
No bank holding company shall, unless the acquisition of the share has been approved by the Minister, record in its securities register a transfer or issue of any share of the bank holding company to any person or to any entity controlled by a person if
On application by a bank holding company, other than a bank holding company with equity of twelve billion dollars or more, the Superintendent may exempt any class of non-voting shares of the bank holding company the aggregate book value of which is not more than 30 per cent of the aggregate book value of all the outstanding shares of the bank holding company from the application of sections 875 and 887.
Despite section 887, if, as a result of a transfer or issue of shares of a class of shares of a bank holding company to a person, other than an eligible agent, the total number of shares of that class registered in the securities register of the bank holding company in the name of that person would not exceed 5,000 and would not exceed 0.1% of the outstanding shares of that class, the bank holding company is entitled to assume that no person is acquiring or increasing a significant interest in that class of shares of the bank holding company as a result of that issue or transfer of shares.
For the purposes of sections 875 and 887, the Minister may approve
If a bank holding company to which section 893 applies becomes a bank holding company with equity of twelve billion dollars or more, that section continues to apply to the bank holding company until no person is a major shareholder of the bank holding company, other than a person in respect of whom subsections 876(2) to (6) applies.
If the Superintendent has, by order, directed a bank holding company with equity of two billion dollars or more but less than twelve billion dollars to increase its capital and shares of the bank holding company are issued and acquired in accordance with any terms and conditions that may be specified in the order, section 893 does not apply in respect of the bank holding company until the time that the Superintendent may, by order, specify.
At the expiration of the period for compliance with an undertaking referred to in subsection 899(2), section 893 shall apply in respect of the bank holding company to which the undertaking relates.
The Minister may impose any terms and conditions in respect of an approval given under this Division that the Minister considers necessary to ensure compliance with any provision of this Act.
If the Minister does not send a notice under subsection 909(1) or (3) or 911(1) within the period provided for in those subsections, the Minister is deemed to have approved the transaction to which the application relates.
Any person with respect to whom a direction has been made under subsection 915(1) may, within thirty days after the date of the direction, appeal the matter in accordance with section 977.
This Division does not apply to a securities underwriter in respect of shares of a body corporate or ownership interests in an unincorporated entity that are acquired by the underwriter in the course of a distribution to the public of those shares or ownership interests and that are held by the underwriter for a period of not more than six months.
A bank holding company and any person who is a director or an officer, employee or agent of the bank holding company may rely on any information contained in a declaration required by the directors pursuant to section 919 or on any information otherwise acquired in respect of any matter that might be the subject of such a declaration, and no action lies against the bank holding company or any such person for anything done or omitted to be done in good faith in reliance on any such information.
Nothing in, or done under the authority of, this Act affects the operation of the Competition Act.
Subject to this Division, a bank holding company may invest its funds in the shares of or ownership interests in any entity or make any other investment that its directors consider necessary or advisable to manage the bank holding company’s liquidity.
The directors of a bank holding company shall establish and the bank holding company shall adhere to investment and lending policies, standards and procedures that a reasonable and prudent person would apply to avoid undue risk of loss and obtain a reasonable return.
The Governor in Council may make regulations
The Governor in Council may make regulations
A bank holding company shall not, and shall not permit its prescribed subsidiaries to, purchase or otherwise acquire an interest in real property or make an improvement to any real property in which the bank holding company or any of its prescribed subsidiaries has an interest if the aggregate value of all interests of the bank holding company in real property exceeds, or the acquisition of the interest or the making of the improvement would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the bank holding company.
A bank holding company shall not, and shall not permit its prescribed subsidiaries to,
A bank holding company shall not, and shall not permit its prescribed subsidiaries to,
For the purposes of this Division, the Governor in Council may make regulations
If a bank holding company controls or has a substantial investment in an entity as permitted by this Division and the bank holding company becomes aware of a change in the business or affairs of the entity that, if the change had taken place before the acquisition of control or of the substantial investment, would have caused the entity not to be a permitted entity or would have been such that approval for the acquisition would have been required under subsection 930(5) or (6), the bank holding company is deemed to have acquired, on the day the bank holding company becomes aware of the change, a temporary investment in respect of which section 933 applies.
Nothing in this Division requires
A loan or investment referred to in section 945 is deemed not to be prohibited by the provisions of this Division.
A bank holding company shall provide the Superintendent with such information, at such times and in such form as the Superintendent may require.
A bank holding company shall send to the Superintendent within thirty days after the coming into effect of a by-law or an amendment to a by-law, a copy of the by-law or amendment.
The Governor in Council may make regulations prohibiting, limiting or restricting the disclosure by bank holding companies of prescribed supervisory information.
The Superintendent has all the powers of a person appointed as a commissioner under Part II of the Inquiries Act for the purpose of obtaining evidence under oath, and may delegate those powers to any person acting under the Superintendent’s direction.
The Superintendent may enter into an agreement, called a “prudential agreement”, with a bank holding company for the purposes of implementing any measure designed to protect the interests of depositors, policyholders and creditors of any federal financial institution affiliated with it or establishing adequate policies and procedures to protect the bank holding company against threats to its integrity or security.
In sections 963 and 964, senior officer means the chief executive officer, secretary, treasurer or controller of a bank holding company or any other officer reporting directly to the bank holding company’s board of directors or chief executive officer.
A notice or document required by this Act or the regulations or by the incorporating instrument or by-laws of a bank or a bank holding company to be sent to a shareholder, member or director of the bank, or to a shareholder or director of the bank holding company, may be sent by prepaid mail addressed to, or may be delivered personally to,
A director named in the latest return sent by a bank or a bank holding company to the Superintendent under section 632 or 951 is presumed for the purposes of this Act to be a director of the bank or bank holding company referred to in the return.
A notice or document required by this Act to be sent to or served on a bank, a bank holding company or an authorized foreign bank may be sent by registered mail to the head office of the bank or bank holding company, or to the principal office of the authorized foreign bank, as the case may be, and, if sent, is deemed to be received or served at the time it would be delivered in the ordinary course of mail unless there are reasonable grounds for believing that the bank, bank holding company or authorized foreign bank did not receive it at that time or at all.
In sections 973.01 to 973.06, approval includes any consent, designation, order, exemption, extension or other permission granted by the Minister or the Superintendent under this Act, and includes the issuance of letters patent.
An instrument issued or made under this Act and directed to a single bank, bank holding company, authorized foreign bank or person, other than a regulation made under paragraph 627.998(o) or an order referred to in section 499, is not a statutory instrument for the purposes of the Statutory Instruments Act.
The Superintendent may, by order, establish the form of any application to be made to the Minister or the Superintendent under this Act.
The Minister may delegate any of the Minister’s powers, duties and functions under this Act to any Minister of State appointed under the Ministries and Ministers of State Act to assist the Minister.
Every person who, without reasonable cause, contravenes any provision of this Act or the regulations is guilty of an offence.
Every director, officer or employee of a bank or an authorized foreign bank who wilfully gives or concurs in giving to any creditor of the bank or authorized foreign bank any fraudulent, undue or unfair preference over other creditors, by giving security to the creditor, by changing the nature of the creditor’s claim or otherwise, is guilty of an offence.
Every person who, without reasonable cause, refuses or fails to comply with a requirement made under paragraph 643(2)(b) or 957(2)(b) is guilty of an offence.
If an entity commits an offence under this Act, any officer, director, agent or principal officer of the entity who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable on summary conviction or on conviction on indictment to the punishment provided under paragraph 985(1)(a) for the offence, whether or not the entity has been prosecuted or convicted.
Unless otherwise expressly provided in this Act, a contravention of any provision of this Act or the regulations does not invalidate any contract entered into in contravention of the provision.
All fines payable under this Act are recoverable and enforceable, with costs, at the suit of Her Majesty in right of Canada, instituted by the Attorney General of Canada, and, when recovered, belong to Her Majesty in right of Canada.
The following definitions apply in this Part.
This Part other than sections 1004 and 1005 does not apply in respect of any notice, document or other information that under this Act or the regulations is sent to or issued by the Minister, the Superintendent, the Commissioner or the Bank of Canada or any prescribed notice, document or information.
Nothing in this Act or the regulations requires a person to create or provide an electronic document.
A requirement under this Act or the regulations to create or provide a notice, document or other information is satisfied by creating or providing an electronic document if
A requirement under this Act or the regulations to create a notice, document or other information in writing is satisfied by creating an electronic document if in addition to the conditions set out in section 996
A requirement under this Act or the regulations to provide a notice, document or other information in writing is satisfied by providing an electronic document if in addition to the conditions set out in section 996
A requirement under this Act or the regulations to provide two or more copies of a document at the same time to one addressee is satisfied by providing one copy of the electronic document.
A requirement under this Act or the regulations to provide a document by registered mail is not satisfied by providing an electronic document except in the prescribed circumstances.
A requirement under this Act or the regulations for a signature or for a document to be executed, except in respect of a statutory declaration or affidavit, is satisfied in respect of an electronic document if the prescribed requirements are complied with and the signature results from the application by the person of a technology or process that permits the following to be proved:
The Governor in Council may make regulations respecting the time and place at which and the circumstances under which an electronic document is considered to be provided or received.
The Minister, Superintendent, Commissioner or Bank of Canada may establish the requirements for the content and fix the form, including electronic and other forms, of notices and documents sent to or issued by each of them under this Act or the regulations, including
In the prescribed circumstances, the Minister, Superintendent, Commissioner or Bank of Canada may, on any conditions that they consider appropriate, exempt from the application of any provision of this Act requiring a notice or document to be sent to them any notice or document, or class of notice or document, containing information similar to that contained in a notice or document required to be made public under any other Act of Parliament or any Act of the legislature of a province.
As at December 31, 2023 Name of Bank Head Office B2B Bank Ontario Bank of Montreal Quebec Bank of Nova Scotia (The) Nova Scotia Bridgewater Bank Alberta Caisse populaire acadienne ltée New Brunswick Canadian Imperial Bank of Commerce Ontario Canadian Tire Bank Ontario Canadian Western Bank Alberta Coast Capital Savings Federal Credit Union British Columbia Concentra Bank Saskatchewan CS Alterna Bank Ontario Digital Commerce Bank Alberta Equitable Bank Ontario Exchange Bank of Canada Ontario Fairstone Bank of Canada Ontario First Nations Bank of Canada Saskatchewan General Bank of Canada Alberta Haventree Bank Ontario Home Bank Ontario HomeEquity Bank Ontario Innovation Federal Credit Union Saskatchewan Laurentian Bank of Canada Quebec Manulife Bank of Canada Ontario Motus Bank Ontario National Bank of Canada Quebec Peoples Bank of Canada British Columbia President’s Choice Bank Ontario RFA Bank of Canada Ontario Rogers Bank Ontario Royal Bank of Canada Quebec Tangerine Bank Ontario Toronto-Dominion Bank (The) Ontario Vancity Community Investment Bank British Columbia VersaBank Ontario Wealth One Bank of Canada Ontario
As at December 31, 2023 Name of Bank Head Office Amex Bank of Canada Ontario Bank of China (Canada) Ontario Cidel Bank Canada Ontario Citco Bank Canada Ontario Citibank Canada Ontario CTBC Bank Corp. (Canada) British Columbia Habib Canadian Bank Ontario HSBC Bank Canada British Columbia ICICI Bank Canada Ontario Industrial and Commercial Bank of China (Canada) Ontario J.P. Morgan Bank Canada Ontario KEB Hana Bank Canada Ontario SBI Canada Bank Ontario Shinhan Bank Canada Ontario UBS Bank (Canada) Ontario
As at December 31, 2023 Name of Authorized Foreign Bank (FB) Name under which FB is permitted to carry on business in Canada Type of Foreign Bank Branch (FBB)*Principal Office Bank of America, National Association Bank of America, National Association Full-service Ontario Bank of China Limited Bank of China, Toronto Branch Full-service Ontario Bank of New York Mellon (The) Bank of New York Mellon (The) Full-service Ontario Barclays Bank PLC Barclays Bank PLC, Canada Branch Full-service Ontario BNP Paribas BNP Paribas Full-service Quebec Capital One, National Association Capital One Bank (Canada Branch) Full-service Ontario China Construction Bank China Construction Bank Toronto Branch Full-service Ontario Citibank, N.A. Citibank, N.A. Full-service Ontario Comerica Bank Comerica Bank Full-service Ontario Coöperatieve Rabobank U.A. Rabobank Canada Full-service Ontario Crédit Agricole Corporate and Investment Bank Crédit Agricole Corporate and Investment Bank (Canada Branch) Lending Quebec Credit Suisse AG Credit Suisse AG, Toronto Branch Lending Ontario Deutsche Bank AG Deutsche Bank AG Full-service Ontario Fifth Third Bank, National Association Fifth Third Bank, National Association Full-service Ontario First Commercial Bank First Commercial Bank Full-service British Columbia JPMorgan Chase Bank, National Association JPMorgan Chase Bank, National Association Full-service Ontario M&T Bank M&T Bank Full-service Ontario Maple Bank GmbH Maple Bank Full-service Ontario Mega International Commercial Bank Co., Ltd. Mega International Commercial Bank Co., Ltd. Full-service Ontario Mizuho Bank, Ltd. Mizuho Bank, Ltd., Canada Branch Full-service Ontario MUFG Bank, Ltd. MUFG Bank, Ltd., Canada Branch Full-service Ontario Natixis Natixis Canada Branch Lending Quebec Northern Trust Company (The) Northern Trust Company, Canada Branch (The) Full-service Ontario PNC Bank, National Association PNC Bank Canada Branch Full-service Ontario Silicon Valley Bank Silicon Valley Bank Lending Ontario Société Générale Société Générale (Canada Branch) Full-service Quebec State Street Bank and Trust Company State Street Full-service Ontario Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Banking Corporation, Canada Branch Full-service Ontario U.S. Bank National Association U.S. Bank National Association Full-service Ontario United Overseas Bank Limited United Overseas Bank Limited Full-service British Columbia Wells Fargo Bank, National Association Wells Fargo Bank, National Association, Canadian Branch Full-service Ontario An FBB, whose order is subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act, is referred to as a “lending” branch.
Whereas a strong and efficient banking sector is essential to economic growth and prosperity;
Whereas a legislative framework that enables banks to compete effectively and be resilient in a rapidly evolving marketplace, taking into account the rights and interests of depositors and other consumers of banking services, contributes to stability and public confidence in the financial system and is important to the strength and security of the national economy;
And whereas it is desirable and is in the national interest to provide for clear, comprehensive, exclusive, national standards applicable to banking products and banking services offered by banks;
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
Short Title
Interpretation and Application
Definitions
Interpretation
is such that, if that person and all of the entities referred to in paragraph (b) that beneficially own securities of the entity were one person, that person would control the entity.
exceeds 10 per cent of all of the outstanding shares of that class of shares of the bank or bank holding company.
in such number as to increase the percentage of shares of that class that are beneficially owned by the person and by any entities controlled by the person.
those persons are deemed to be a single person who is acquiring beneficial ownership of the aggregate number of shares of the bank or bank holding company or shares or ownership interests of the entity that are beneficially owned by them.
is deemed to be an agreement, commitment or understanding referred to in subsection (1).
in such number as to cause the shareholders’ equity of the body corporate represented by the aggregate of the shares of the body corporate beneficially owned by the person and by any entities controlled by the person to exceed 25 per cent of the shareholders’ equity of the body corporate, or
in such number as to cause the voting rights attached to the aggregate of the voting shares beneficially owned by the person and by any entities controlled by the person to exceed 10 per cent of the voting rights attached to all of the outstanding voting shares of the body corporate,
the acquisition is deemed to cause the person to increase a substantial investment in the body corporate.
Application
Schedules I and II shall be amended accordingly.
Status and Powers
Incorporation and Continuance
Formalities of Incorporation
Continuance
Discontinuance
Corporate Name
except where the trademark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name and consent to the use of the trademark, trade name or corporate name is signified to the Superintendent in such manner as the Superintendent may require;
that is prohibited by section 40, the Superintendent may, by order, direct the bank to change its name and the bank shall comply with that direction.
Organization and Commencement
Organization Meetings
Banks Other Than Federal Credit Unions
Federal Credit Unions
Meeting of First Directors
First Meeting of Members
Membership in a Federal Credit Union
Conditions of Membership
Withdrawal and Termination
General Provisions — Federal Credit Unions
Commencement and Carrying on of Business
but before making any such further order the Superintendent shall provide the bank with an opportunity to make representations regarding that further order.
Despite any other provision of this Act or the regulations, the subsidiary may act in accordance with that permission.
Capital Structure
Share Capital
where the security interest is nominal or immaterial when measured by criteria established by the bank that have been approved in writing by the Superintendent.
shall be submitted to the Superintendent at the time of the application for approval of the special resolution.
Membership Capital
Subordinated Indebtedness
Security Certificates and Transfers
together with
and accompanied by any assurance the bank may require under section 127.
then, in addition to other methods, a transfer or pledge of the security or any interest therein may be effected by the making of an appropriate entry in the records of the clearing agency.
Corporate Governance
Shareholders and Members
Proxies
Restrictions on Voting
Directors and Officers
Duties
Qualification and Number — Directors
Election and Tenure — Directors
elect the stated number of directors to hold office until the close of the next annual meeting of shareholders following their election.
Incomplete Elections and Director Vacancies
is entitled to submit to the bank a written statement giving the reasons for the resignation or the reasons why the director opposes any proposed action or resolution.
Meetings of the Board
By-laws
and that, under this Act, would be provided for in the by-laws of a bank, is deemed to be provided for in the by-laws of the bank.
Committees of the Board
Directors and Officers — Authority
Conflicts of Interest
Liability, Exculpation and Indemnification
Fundamental Changes
Amendments — Letters Patent
Conversion into Federal Credit Union
Conversion into Bank with Common Shares
Amendments — By-laws
Amalgamation
Transfer of Business
Corporate Records
Head Office and Corporate Records
and, if the applicant is an entity, the affidavit shall be made by a director or an officer of the entity, or any person acting in a similar capacity.
the registers and records required or authorized by this Act to be prepared and maintained.
Securities Registers
Members Register
Corporate Name and Seal
Insiders
Insider Reporting
Insider Trading
Civil remedies
Prospectus
Going-private Transactions and Squeeze-out Transactions
Compulsory Acquisitions
Trust Indentures
as shown on the records maintained by the trustee on the day the statutory declaration is delivered to that trustee.
provide the trustee with evidence of compliance with the conditions in the trust indenture in respect thereof.
Financial Statements and Auditors
Annual Financial Statement
Auditors
shall submit to the bank and the Superintendent a written statement giving the reasons for the resignation or the reasons why the auditor opposes any proposed action.
as are, in the opinion of the auditor or auditors, necessary to enable the auditor or auditors to perform the duties of the auditor or auditors of the bank.
but when a report required under paragraph (b) has been made in respect of loans to any person, it is not necessary to report again in respect of loans to that person unless, in the opinion of the auditor or auditors, the amount of the loss likely to occur has increased.
Remedial Actions
Liquidation and Dissolution
Simple Liquidation
Court-supervised Liquidation
General
Ownership
Definitions and Interpretation
Ownership of Banks
Constraints on Ownership
Approval Process
Directions
General Provisions
Business and Powers
General Business
Special Security
comprises that thing in any form or state and any part thereof and any product or by-product thereof or derived therefrom.
or of any rights or interests in or to any of the foregoing whether the security be taken from the borrower or from a guarantor of the liability of the borrower or from any other person.
all of which property is for the purposes of this Act property covered by the security.
to do all or any of the following, namely, take possession of, seize, care for, maintain, use, operate and, subject to the provisions of any other Act and any regulations made under any other Act governing the ownership and disposition of the property that is the subject of the security, sell the property covered by the security or part thereof as it sees fit.
there has been registered or filed in the proper land registry or land titles office or office in which are recorded the rights, licences or permits referred to in this section,
on the security of aquacultural equipment or aquacultural implements, but security taken under this paragraph is not effective in respect of aquacultural equipment or aquacultural implements that, at the time the security is taken, by any statutory law that is then in force, are exempt from seizure under writs of execution and the aquaculturist is prevented from giving as security for money lent to the aquaculturist,
on the security of agricultural equipment or agricultural implements, but security taken under this paragraph is not effective in respect of agricultural equipment or agricultural implements that, at the time the security is taken, by any statutory law that is then in force, are exempt from seizure under writs of execution and the farmer is prevented from giving as security for money lent to the farmer,
and the security may be given by signature and delivery to the bank, by or on behalf of the person giving the security, of a document in the prescribed form or in a form to the like effect.
the following rights and powers, namely,
a first and preferential lien and claim thereon for the sum secured and interest thereon, and as regards a crop as well before as after the severance from the soil, harvesting or threshing thereof, and, in addition thereto, the same rights and powers in respect of the property as if the bank had acquired a warehouse receipt or bill of lading in which the property was described, and all rights and powers of the bank subsist notwithstanding that the property is affixed to real property and notwithstanding that the person giving the security is not the owner of that real property,
and all such property in respect of which such rights and powers are vested in the bank under this section is for the purposes of this Act property covered by the security.
to take possession of or seize the property covered by the security, and in the case of aquacultural stock growing or produced in the aquaculture operation or a crop growing or produced on the farm to care for it and, where applicable, harvest it or thresh the grain therefrom, and in the case of livestock or aquatic plants and animals to care for them, and has the right and authority to enter on any land, premises or site whenever necessary for any such purpose and to detach and remove such property, exclusive of wiring, conduits or piping incorporated in a building, from any real property to which it is affixed.
have priority over the rights of the bank in a security given to the bank under this section, in the order in which they are mentioned in this subsection, and if the bank takes possession or in any way disposes of the property covered by the security, the bank is liable for those claims to the extent of the net amount realized on the disposition of the property, after deducting the cost of realization, and the bank is subrogated in and to all the rights of the claimants to the extent of the amounts paid to them by the bank.
there has been registered or filed in the proper land registry or land titles office,
and the proceeds of such a sale of livestock, after deducting all expenses incurred by the bank and all expenses of seizure and sale, shall first be applied to satisfy privileges, liens or pledges having priority over the security given to the bank and for which claims have been filed with the person making the sale, and the balance shall be applied in payment of the debt, liability, loan or advance, with interest and the surplus, if any, returned to the person by whom the security was given.
and such debt, liability, loan or advance may be renewed, or the time for the payment thereof extended, without affecting any security so acquired or held.
in cases in which, under similar circumstances, an individual could so purchase, without any restriction as to the value of the property that it may so purchase, and may acquire title thereto as any individual, purchasing at a sheriff’s sale or sale for taxes or under a power of sale, in like circumstances could do, and may take, have, hold and dispose of the property so purchased.
a bank is, on the acquisition of that warehouse receipt or bill of lading, vested with all the right and title of the owner of the goods, wares and merchandise, subject to the right of the owner to have the same re-transferred to the owner if the debt or liability, as security for which the warehouse receipt or bill of lading is held by the bank, is paid.
Deposit Acceptance
and, in the case of any such claim so made, the money so deposited may be paid to the depositor with the consent of the claimant or to the claimant with the consent of the depositor.
Unclaimed Balances
the bank shall pay to the Bank of Canada not later than December 31 in each year an amount equal to the principal amount of the deposit or instrument, plus interest, if any, calculated in accordance with the terms of the deposit or instrument, and payment accordingly discharges the bank from all liability in respect of the deposit or instrument.
Miscellaneous
is sufficient justification and authority for giving effect to the transmission in accordance with the claim.
Investments
Definitions and Application
General Constraints on Investments
Subsidiaries and Equity Investments
Exceptions and Exclusions
if the investment or interest is acquired through the realization of a security interest held by the bank or any of its subsidiaries.
Portfolio Limits
Real Property
Equities
if the aggregate value of
beneficially owned by the bank and its prescribed subsidiaries, exceeds, or the purchase or acquisition would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the bank.
Aggregate Limit
if the aggregate value of
exceeds, or the acquisition or the making of the improvement would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the bank.
Miscellaneous
or whereby no proposal may be approved except with the consent of the bank, the entity it controls or the nominee,
the Superintendent may, by order, require the bank, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the bank no longer controls the body corporate or unincorporated entity or has the ability to veto or otherwise defeat any proposal referred to in paragraph (b).
the Superintendent may, by order, require the bank, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the bank no longer has a substantial investment in the entity to which the undertaking relates.
But if the loan or investment would be precluded or limited by this Part, the amount of the loan or investment may not, except as provided in subsections 471(2), 472(3) and 473(3), be increased after that date.
Capital, Liquidity and Capacity to Absorb Losses
and shall comply with any regulations in relation thereto.
Self-dealing
Interpretation and Application
Prohibited Related Party Transactions
Permitted Related Party Transactions
if the lease payments are made in money.
and the amount of any such loans to a related party of a bank shall not be included in determining, for the purposes of subsection (2), the aggregate principal amount of all outstanding loans made by the bank to the related party.
if, immediately following the transaction, the aggregate of
would exceed 2 per cent of the regulatory capital of the bank.
if, immediately following the transaction, the aggregate of
would exceed 50 per cent of the regulatory capital of the bank.
Restrictions on Permitted Transactions
Disclosure
Remedial Actions
Foreign Banks
Interpretation and Application
would, if they were one person, hold a substantial investment in the Canadian entity.
would, if they were one person, hold a substantial investment in the Canadian entity.
would, if they were one person, control the Canadian entity.
would, if they were one person, control the Canadian entity.
General Prohibitions and Exceptions
maintain representative offices in Canada that are registered with the Superintendent in the prescribed manner; and
No Financial Establishment in Canada
may in Canada engage in the activities of a leasing entity so long as it does not engage in any other activity in Canada.
Financial Establishment in Canada
Investments
may acquire or hold control of, or a substantial investment in, a Canadian entity that is not a permitted Canadian entity or an entity referred to in paragraphs 468(1)(a) to (i), and if it does so, none of the requirements relating to approval set out in Division 5 apply in respect of that acquisition or holding.
it may retain the control or the substantial investment for five years, but it shall do all things necessary to ensure that, within five years after the acquisition, it no longer controls the Canadian entity or holds a substantial investment in the Canadian entity.
Branches
Approvals
Application
Approval to Have a Financial Establishment in Canada
Approvals in Respect of Investments and Activities
and that indirect acquisition is disclosed to the Minister in writing before the approval is obtained, the foreign bank or the entity associated with a foreign bank is deemed to have obtained the approval of the Minister for that indirect acquisition.
Administration
[Repealed, 2007, c. 6, s. 72]
Transitional
Non-Application of the Investment Canada Act
Authorized Foreign Banks
Application
Formalities of Authorization
Commencement and Carrying on of Business in Canada
but before making a further order the Superintendent shall provide the authorized foreign bank with an opportunity to make representations regarding that further order.
Principal Office and Principal Officer
Transfer of Liabilities
Business and Powers
by means of financial instruments that cannot be subsequently sold or traded; or
Deposit Acceptance
and, if a claim is made, the deposited money may be paid to the depositor with the consent of the claimant, or to the claimant with the consent of the depositor.
Unclaimed Balances
the authorized foreign bank shall pay to the Bank of Canada not later than December 31 in each year an amount equal to the principal amount of the deposit or instrument, plus interest, if any, calculated in accordance with the terms of the deposit or instrument, and payment accordingly discharges the authorized foreign bank from all liability in respect of the deposit or instrument.
Miscellaneous
Deposit Requirements
Financial Year
Auditors
Interpretation
Appointment
shall submit to the principal officer of the authorized foreign bank and the Superintendent a written statement giving the reasons for the resignation or the reasons why the auditor opposes any proposed action.
Examinations and Reports
that are, in the opinion of the auditor, necessary to enable the auditor to perform the duties of auditor of the authorized foreign bank.
Records
Termination of Business in Canada
Supervision
Returns
if the Superintendent is satisfied that the information will be treated as confidential by the agency, body or person to whom it is disclosed.
in the form and manner and at the times that may be required by or under regulations that the Governor in Council may make for the purpose.
Inspection of Authorized Foreign Banks
Remedial Powers
Prudential Agreements
Directions of Compliance
the Superintendent may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the authorized foreign bank or person to comply with the prudential agreement or the direction, cease the contravention or do any thing that is required to be done, and on the application the court may so order and make any other order it thinks fit.
Asset Maintenance
Disqualification and Removal of Principal Officers
Supervisory Intervention
Regulation of Banks — Superintendent
Supervision
Returns
the bank shall forthwith provide the Superintendent with such information as is required to maintain the return in a complete and accurate form.
if the Superintendent is satisfied that the information will be treated as confidential by the agency, body or person to whom it is disclosed.
in such form and manner and at such times as may be required by or pursuant to such regulations as the Governor in Council may make for the purpose.
Inspection of Banks
Remedial Powers
Prudential Agreements
Directions of Compliance
the Superintendent may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the bank or person to comply with the prudential agreement or the direction, cease the contravention or do any thing that is required to be done, and on such application the court may so order and make any other order it thinks fit.
Disqualification and Removal of Directors or Senior Officers
together with such other information about the background, business record and experience of the person as the Superintendent may require.
Supervisory Intervention
Regulation of Banks and External Complaints Bodies — Commissioner
Bank Holding Companies
Purpose
Interpretation
Status and Powers
Incorporation and Continuance
Formalities of Incorporation
Continuance
Discontinuance
Corporate Name
except where the trademark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name and consent to the use of the trademark, trade name or corporate name is signified to the Superintendent in such manner as the Superintendent may require;
that is prohibited by section 693 or 695, the Superintendent may, by order, direct the bank holding company to change its name and the bank holding company shall comply with that direction.
Publication of Information
Organization and Commencement
Capital Structure
Share Capital
shall be submitted to the Superintendent at the time of the application for approval of the special resolution.
Subordinated Indebtedness
Security Certificates and Transfers
Corporate Governance
Shareholders
Proxies and Voting Restrictions
Directors and Officers
Duties
Qualification and Number — Directors
Election and Tenure — Directors
elect the stated number of directors to hold office until the close of the next annual meeting of shareholders following their election.
Incomplete Elections and Director Vacancies
is entitled to submit to the bank holding company a written statement giving the reasons for the resignation or the reasons why the director opposes any proposed action or resolution.
Meetings of the Board
By-laws
Committees of the Board
Directors and Officers — Authority
Conflicts of Interest
Liability, Exculpation and Indemnification
Fundamental Changes
Amendments
Amalgamation
Transfer of Business
Corporate Records
Head Office and Corporate Records
and, if the applicant is an entity, the affidavit shall be made by a director or an officer of the entity, or any person acting in a similar capacity.
the registers and records required or authorized by this Part to be prepared and maintained.
Securities Registers
Corporate Name and Seal
Insiders
Prospectus
Going-private Transactions and Squeeze-out Transactions
Compulsory Acquisitions
Trust Indentures
Financial Statements and Auditor
Annual Financial Statement
Auditors
shall submit to the bank holding company and the Superintendent a written statement giving the reasons for the resignation or the reasons why the auditor opposes any proposed action.
as are, in the opinion of the auditor, necessary to enable the auditor to perform the duties of the auditor of the bank holding company.
Remedial Actions
Liquidation and Dissolution
Simple Liquidation
Court-supervised Liquidation
General
Ownership
Constraints on Ownership
Approval Process
Business and Powers
Investments
Interpretation
Investments
General Constraints on Investments
Subsidiaries and Equity Investments
Exceptions and Exclusions
Portfolio Limits
Real Property
Equities
if the aggregate value of
beneficially owned by the bank holding company and its prescribed subsidiaries exceeds, or the purchase or acquisition would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the bank holding company.
Aggregate Limit
if the aggregate value of
exceeds, or the acquisition or the making of the improvement would cause that aggregate value to exceed, the prescribed percentage of the regulatory capital of the bank holding company.
Miscellaneous
or whereby no proposal may be approved except with the consent of the bank holding company, the entity it controls or the nominee,
the Superintendent may, by order, require the bank holding company, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the bank holding company no longer controls the body corporate or unincorporated entity or has the ability to veto or otherwise defeat any proposal referred to in paragraph (b).
the Superintendent may, by order, require the bank holding company, within any period that the Superintendent considers reasonable, to do all things necessary to ensure that the bank holding company no longer has a substantial investment in the entity to which the undertaking relates.
But if the loan or investment would be precluded or limited by this Division, the amount of the loan or investment may not be increased after that date.
Adequacy of Capital and Liquidity
and shall comply with any regulations in relation thereto.
Regulation of Bank Holding Companies
Supervision
Returns
the bank holding company shall forthwith provide the Superintendent with such information as is required to maintain the return in a complete and accurate form.
if the Superintendent is satisfied that the information will be treated as confidential by the agency, body or person to whom it is disclosed.
Inspection of Bank Holding Companies
Remedial Powers
Prudential Agreements
Directions of Compliance
Disqualification and Removal of Directors or Senior Officers
together with such other information about the background, business record and experience of the person as the Superintendent may require.
Administration
Notices and Other Documents
Approvals
Exceptions to Generally Accepted Accounting Principles
Short-term Exemption Order
Orders to Exempt or Adapt
Orders and Directives
Applications to Superintendent
Applications for Certain Approvals
Appeals
Regulations
Delegation
Sanctions
Documents in Electronic or Other Form
Agreement within the meaning of subsection 2(1) of the Canada-Chile Free Trade Agreement Implementation Act
Agreement within the meaning of section 2 of the Canada–Peru Free Trade Agreement Implementation Act
Agreement within the meaning of section 2 of the Canada–Colombia Free Trade Agreement Implementation Act
Agreement within the meaning of section 2 of the Canada–Panama Economic Growth and Prosperity Act
Agreement within the meaning of section 2 of the Canada–Honduras Economic Growth and Prosperity Act
Agreement within the meaning of section 2 of the Canada–Korea Economic Growth and Prosperity Act
Agreement within the meaning of section 2 of the Canada–European Union Comprehensive Economic and Trade Agreement Implementation Act
Agreement within the meaning of section 2 of the Canada–United States–Mexico Agreement Implementation Act
Agreement within the meaning of section 2 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act
Agreement within the meaning of section 2 of the Canada–United Kingdom Trade Continuity Agreement Implementation Act