Bank Act (S.C. 1991, c. 46)

Marginal note:Disclosure in advertisements

561. No person shall authorize the publication, issue or appearance of any advertisement in Canada that indicates the rate of interest offered by an authorized foreign bank on an interest-bearing deposit or a debt obligation unless the advertisement discloses, in accordance with the regulations, how the amount of interest is to be calculated.

Marginal note:Disclosure regulations

562. The Governor in Council may make regulations respecting

• (a) the time and place at which and the form and manner in which disclosure is to be made by an authorized foreign bank of

  • (i) interest rates applicable to debts of the authorized foreign bank and deposits with it, and

  • (ii) the manner in which the amount of interest paid is to be calculated; and

• (b) any other matters or things that may be necessary to carry out the requirements of sections 560 and 561.

Definition of “personal deposit account”

563. For the purposes of sections 564 to 566, ““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 for a purpose other than that of carrying on business.

Marginal note:Disclosure required on opening a deposit account

• 564. (1) Subject to subsections (2) to (4), an authorized foreign bank shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, it provides in writing to the individual who requests the opening of the account

  • (a) a copy of the account agreement;

  • (b) information about all charges applicable to the account;

  • (c) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the account;

  • (d) information about the authorized foreign bank’s procedures relating to complaints about the application of any charge applicable to the account; and

  • (e) any other information that may be prescribed.

• Marginal note:Exception

  (2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the authorized foreign bank shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge.

• Marginal note:Exception

  (3) If an authorized foreign bank has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the authorized foreign bank has not complied with subsection (1) in respect of the opening of that other account, the authorized foreign bank shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened.

• Marginal note:Disclosure in writing

  (4) If an authorized foreign bank opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1).

• Marginal note:Right to close account

  (5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open.

• Marginal note:Regulations

  (6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer.