Bank Act (S.C. 1991, c. 46)

Marginal note:Prohibition against control

• 377. (1) No person shall control, within the meaning of paragraph 3(1)(d), a bank with equity of twelve billion dollars or more.

• Marginal note:Exception — federal credit union

  (1.1) Subsection (1) does not apply in respect of a person who controls a federal credit union.

• Marginal note:Exception

  (2) Subsection (1) does not apply if any of subsections 374(2) to (6) applies to the person in respect of the bank.

Marginal note:Restriction on control

• 377.1 (1) 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.

• Marginal note:Exception — federal credit union

  (1.1) Subsection (1) does not apply in respect of a person who acquires control of a federal credit union.

• Marginal note:Amalgamation, etc., constitutes acquisition

  (2) 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).

Marginal note:Prohibition against control — federal credit union

• 377.2 (1) 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.

• Marginal note:Approval

  (2) The Minister may grant the approval only if

  • (a) 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

  • (b) 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.

Marginal note:Former Schedule I banks with equity of less than five billion dollars

• 378. (1) 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.

• Marginal note:Application — amalgamation

  (2) 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.

• Marginal note:Non-application of subsection (1)

  (3) 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.