Marginal note:Deposit acceptance
423. (1) A company may, without the intervention of any other person,
(a) accept a deposit from any person whether or not the person is qualified by law to enter into contracts; and
(b) 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.
(2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the company pursuant to paragraph (1)(a) is claimed by some other person
(a) in any action or proceeding to which the company 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 company, or
(b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the company not to make payment of that money or make payment thereof to some person other than the depositor has been served on the company,
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.
Marginal note:Guaranteed trust money
(3) A company that is a trust company pursuant to subsection 57(2) shall accept deposits only as guaranteed trust money.
(4) Notwithstanding subsection (3), a company that is a trust company pursuant to subsection 57(2) that accepts deposits may retain the interest and profit resulting from the investment thereof in excess of the amount of interest payable to its depositors in respect thereof.
Marginal note:Assets to be identified
(5) Where a company that is a trust company pursuant to subsection 57(2) accepts deposits, the company shall identify on its books assets to be held in respect thereof equal to the aggregate amount of the deposits.
Marginal note:Execution of trust
(6) A company is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject, other than a trust of which the company is a trustee.
Marginal note:Payment when company has notice of trust
(7) Subsection (6) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the company 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.
- 1991, c. 45, s. 423;
- 2001, c. 9, s. 536.
Marginal note:Unclaimed balances
424. (1) Where
(a) a deposit has been made in Canada that is payable in Canada in Canadian currency 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 ten years
(i) in the case of a deposit made for a fixed period, from the day on which the fixed period terminated, and
(ii) 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
(b) a cheque, draft or bill of exchange (including any such instrument drawn by one branch of a company on another branch of the company but not including such an instrument issued in payment of a dividend on the capital of a company) payable in Canada in Canadian currency has been issued, certified or accepted by a company in Canada and no payment has been made in respect thereof for a period of ten years after the date of issue, certification, acceptance or maturity, whichever is later,
the company 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 company from all liability in respect of the deposit or instrument.
Marginal note:Provision of information
(2) A company 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 company:
(a) in the case of a deposit,
(i) the name of the depositor in whose name the deposit is held,
(ii) the recorded address of the depositor,
(iii) the outstanding amount of the deposit, and
(iv) the branch of the company at which the last transaction took place in respect of the deposit, and the date of that last transaction; and
(b) in the case of an instrument,
(i) the name of the person to whom or at whose request the instrument was issued, certified or accepted,
(ii) the recorded address of that person,
(iii) the name of the payee of the instrument,
(iv) the amount and date of the instrument,
(v) the name of the place where the instrument was payable, and
(vi) the branch of the company at which the instrument was issued, certified or accepted.
Marginal note:Copies of signature cards and signing authorities
(2.1) A company shall, on written request by the Bank of Canada, 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.
Marginal note:Payment to claimant
(3) 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) 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
(b) at such rate and computed in such manner as the Minister determines.
Marginal note:Enforcing liability
(4) 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.
Marginal note:Application of subsection (1)
(5) Subsection (1) applies only in respect of deposits made, and cheques, drafts and bills of exchange issued, certified or accepted after May 31, 1990.
(6) This section shall not apply until the day that is eight years after the day on which this section comes into force.
- 1991, c. 45, s. 424;
- 1993, c. 34, s. 127;
- 2007, c. 6, s. 361.
- Date modified: