Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)
Full Document:
Assented to 2001-06-14
309. The Act is amended by adding the following after section 378:
Marginal note:Restriction on deposit taking
378.1 A retail association shall not accept deposits in Canada unless it is a member institution within the meaning of section 2 of the Canada Deposit Insurance Corporation Act.
310. (1) The portion of subsection 379(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Restriction on guarantees
379. (1) An association shall not guarantee on behalf of any person the payment or repayment of any sum of money unless
Marginal note:1997, c. 15, s. 139
(2) Subsection 379(2) of the French version of the Act is replaced by the following:
Marginal note:Exception
(2) Dans les cas où la personne visée au paragraphe (1) est une filiale de l’association garante, celle-ci peut garantir une somme qui n’est pas fixe.
(3) Subsection 379(3) of the Act is replaced by the following:
Marginal note:Exception
(3) Paragraph (1)(a) does not apply in respect of a guarantee given on behalf of a central, within the meaning of section 472, or a local cooperative credit society if the payment guaranteed represents the obligation of the central or the local cooperative credit society to settle for payment items in accordance with the by-laws and rules of the Canadian Payments Association.
311. Sections 382 and 383 of the Act are replaced by the following:
Marginal note:Restriction on leasing
382. An association shall not engage in Canada in any personal property leasing activity in which a financial leasing entity, within the meaning of subsection 386(1), is not permitted to engage.
Marginal note:Restriction on residential mortgages
382.1 (1) A retail association 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 75 % of the value of the property at the time of the loan.
Marginal note:Exception
(2) Subsection (1) does not apply in respect of
(a) 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 association may make a loan is established;
(b) 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;
(c) the acquisition by the association 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 association to the entity against the issue of such securities; or
(d) a loan secured by a mortgage where
(i) the mortgage is taken back by the association on a property disposed of by the association, including where the disposition is by way of a realization of a security interest, and
(ii) the mortgage secures payment of an amount payable to the association for the property.
Marginal note:Policies re security interests
383. (1) The directors of an association shall establish and the association shall adhere to policies regarding the creation of security interests in property of the association to secure obligations of the association and the acquisition by the association of beneficial interests in property that is subject to security interests.
Marginal note:Order to amend policies
(2) The Superintendent may, by order, direct an association to amend its policies as specified in the order.
Marginal note:Compliance
(3) An association shall comply with an order made under subsection (2) within the time specified in the order.
Marginal note:Regulations and guidelines
383.1 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the creation by an association of security interests in its property to secure obligations of the association and the acquisition by the association of beneficial interests in property that is subject to security interests.
Marginal note:Exception
383.2 Sections 383 and 383.1 do not apply in respect of a security interest created by an association to secure an obligation of the association to the Bank of Canada or the Canada Deposit Insurance Corporation.
312. Subsection 385(1) of the Act is replaced by the following:
Marginal note:Restriction on partnerships
385. (1) Except with the approval of the Superintendent, an association may not be a general partner in a limited partnership or a partner in a general partnership.
313. The Act is amended by adding the following after section 385:
Deposit Acceptance
Marginal note:Deposit acceptance
385.01 (1) A retail association 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 on that principal to or to the order of that person.
Marginal note:Exception
(2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the association pursuant to paragraph (1)(a) is claimed by some other person
(a) in any action or proceeding to which the association 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 association; or
(b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the association not to make payment of that money or to make payment thereof to some person other than the depositor has been served on the association.
If such a claim is 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:Execution of trust
385.02 (1) An association is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject.
Marginal note:Payment when association has notice of trust
(2) Subsection (1) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the association 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.
Unclaimed Balances
Marginal note:Unclaimed balances
385.03 (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 retail association on another branch of the association but not including such an instrument issued in payment of a dividend on the capital of an association) payable in Canada in Canadian currency has been issued, certified or accepted by an association in Canada and no payment has been made in respect of the instrument for a period of ten years after the date of issue, certification, acceptance or maturity, whichever is later,
the retail association 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 association from all liability in respect of the deposit or instrument.
Marginal note:Particulars
(2) A retail association 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 all the particulars of the deposit or instrument listed in subsection 431.1(3) or 431.2(2), as the case may be, current as of the day the payment is made.
Marginal note:Payment to claimant
(3) Subject to section 22 of the Bank of Canada Act, if a 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 the rate and computed in the manner that 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 the day that subsection comes into force.
Marginal note:Notice of unpaid amount
385.04 (1) A retail association shall mail to each person, insofar as is known to the association, to whom a deposit referred to in paragraph 385.03(1)(a) is payable, or to whom or at whose request an instrument referred to in paragraph 385.03(1)(b) was issued, certified or accepted, at the person’s recorded address, a notice stating that the deposit or instrument remains unpaid.
Marginal note:When notice to be given
(2) A notice required by subsection (1) must be given during the month of January next following the end of the first two year period, and also during the month of January next following the end of the first five year period,
(a) in the case of a deposit made for a fixed period, after the fixed period has terminated;
(b) 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
(c) in the case of a cheque, draft or bill of exchange, in respect of which the instrument has remained unpaid.
Accounts
Marginal note:Definitions
385.05 The following definitions apply in this section and sections 385.1 to 385.13, 385.27 and 385.28.
“member association”
« association membre »
“member association” means a retail association that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act.
“personal deposit account”
« compte de dépôt personnel »
“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.
“retail deposit account”
« compte de dépôt de détail »
“retail deposit account” means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed.
Marginal note:Account charges
385.06 A retail association shall not, directly or indirectly, charge or receive any sum for the keeping of an account unless the charge is made by express agreement between the association and a customer or by order of a court.
Marginal note:Disclosure on opening account
385.07 (1) A retail association shall not open or maintain an interest-bearing deposit account in Canada in the name of any natural person unless the association discloses, in accordance with the regulations, to the person who requests the association to open the account, the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.
Marginal note:Exception
(2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that may be prescribed.
Marginal note:Disclosure in advertisements
385.08 No person shall authorize the publication, issue or appearance of any advertisement in Canada that indicates the rate of interest offered by a retail association 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
385.09 The Governor in Council may make regulations respecting
(a) the manner in which and the time at which disclosure is to be made by a retail association of
(i) interest rates applicable to debts of the association and deposits with the association, and
(ii) the manner in which the amount of interest paid is to be calculated;
(b) the manner in which any charges for the keeping of an account are to be disclosed by a retail association to its customers and when the disclosure is to be made; and
(c) any other matters or things that may be necessary to carry out the requirements of sections 385.06 to 385.08.
Marginal note:Disclosure required on opening a deposit account
385.1 (1) Subject to subsections (2) to (4), a retail association shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, the retail association provides in writing to the individual who requests the opening of the account
(a) a copy of the account agreement with the association;
(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 association’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 retail association 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 a retail association 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 retail association has not complied with subsection (1) in respect of the opening of that other account, the retail association 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 a retail association 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.
Marginal note:Disclosure of charges
385.11 A retail association shall disclose, in the prescribed manner and at the prescribed time, to its customers and to the public, the charges applicable to deposit accounts with the association and the usual amount, if any, charged by the association for services normally provided by the association to its customers and to the public.
Marginal note:No increase or new charges without disclosure
385.12 (1) A retail association shall not increase any charge applicable to a personal deposit account with the association or introduce any new charge applicable to a personal deposit account with the association unless the association discloses the charge in the prescribed manner and at the prescribed time to the customer in whose name the account is kept.
Marginal note:No increase or new charges without disclosure
(2) With respect to such services in relation to deposit accounts, other than personal deposit accounts, as are prescribed, a retail association shall not increase any charge for any such service in relation to a deposit account with the association or introduce any new charge for any such service in relation to a deposit account with the association unless the association discloses the charge in the prescribed manner and at the prescribed time to the customer in whose name the account is kept.
Marginal note:Application
385.13 Sections 385.1 to 385.12 apply only in respect of charges applicable to deposit accounts with the retail association in Canada and services provided by it in Canada.
Borrowing Costs
Definition of “cost of borrowing”
385.14 For the purposes of this section and sections 385.15 to 385.24, “cost of borrowing” means, in respect of a loan made by a retail association,
(a) the interest or discount applicable to the loan;
(b) any amount charged in connection with the loan that is payable by the borrower to the association; and
(c) any charge prescribed to be included in the cost of borrowing.
For those purposes, however, “cost of borrowing” does not include any charge prescribed to be excluded from the cost of borrowing.
Marginal note:Rebate of borrowing costs
385.15 (1) If a retail association makes a loan in respect of which the disclosure requirements of section 385.16 apply and the loan is not secured by a mortgage on real property and is required to be repaid either on a fixed future date or by instalments, the association shall, if there is a prepayment of the loan, rebate to the borrower a portion of the charges included in the cost of borrowing in respect of the loan.
Marginal note:Exception
(2) The charges to be rebated do not include the interest or discount applicable to the loan.
Marginal note:Regulations
(3) The Governor in Council may make regulations governing the rebate of charges under subsection (1). The rebate shall be made in accordance with those regulations.
Marginal note:Disclosing borrowing costs
385.16 (1) A retail association shall not make a loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 385.17, and other prescribed information have in the prescribed manner and at the prescribed time been disclosed by the association to the borrower.
Marginal note:Non-application
(2) Subsection (1) does not apply in respect of a loan that is of a prescribed class of loans.
Marginal note:Calculating borrowing costs
385.17 The cost of borrowing shall be calculated, in the prescribed manner, on the basis that all obligations of the borrower are duly fulfilled and shall be expressed as a rate per annum and, in prescribed circumstances, as an amount in dollars and cents.
Marginal note:Additional disclosure
385.18 (1) If a retail association makes a loan in respect of which the disclosure requirements of section 385.16 are applicable and the loan is required to be repaid either on a fixed future date or by instalments, the association shall disclose to the borrower, in accordance with the regulations,
(a) whether the borrower has the right to repay the amount borrowed before the maturity of the loan and, if applicable,
(i) any terms and conditions relating to that right, including the particulars of the circumstances in which the borrower may exercise that right, and
(ii) whether, in the event that the borrower exercises the right, any portion of the cost of borrowing is to be rebated, the manner in which any such rebate is to be calculated or, if a charge or penalty will be imposed on the borrower, the manner in which the charge or penalty is to be calculated;
(b) in the event that an amount borrowed is not repaid at maturity or, if applicable, an instalment is not paid on the day the instalment is due to be paid, particulars of the charges or penalties to be paid by the borrower because of the failure to repay or pay in accordance with the contract governing the loan;
(c) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing or the loan agreement as may be prescribed;
(d) particulars of any other rights and obligations of the borrower; and
(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
Marginal note:Disclosure in credit card applications
(2) A retail association shall, in accordance with the regulations, at such time and in such manner as may be prescribed, provide prescribed information in any application forms or related documents that it prepares for the issuance of credit, payment or charge cards and provide prescribed information to any person applying to it for a credit, payment or charge card.
Marginal note:Disclosure re credit cards
(3) If a retail association issues or has issued a credit, payment or charge card to a natural person, the association shall, in addition to disclosing the costs of borrowing in respect of any loan obtained through the use of the card, disclose to the person, in accordance with the regulations,
(a) any charges or penalties described in paragraph (1)(b);
(b) particulars of the person’s rights and obligations;
(c) any charges for which the person becomes responsible by accepting or using the card;
(d) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing or the loan agreement as may be prescribed; and
(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
Marginal note:Additional disclosure re other loans
(4) If a retail association enters into or has entered into an arrangement, including a line of credit, for the making of a loan in respect of which the disclosure requirements of section 385.16 apply and the loan is not a loan in respect of which subsection (1) or (3) applies, the association shall, in addition to disclosing the costs of borrowing, disclose to the person to whom the loan is made, in accordance with the regulations,
(a) any charges or penalties described in paragraph (1)(b);
(b) particulars of the person’s rights and obligations;
(c) any charges for which the person is responsible under the arrangement;
(d) at such time and in such manner as may be prescribed, any changes respecting the cost of borrowing under the arrangement as may be prescribed; and
(e) any other prescribed information, at such time and in such form and manner as may be prescribed.
Marginal note:Renewal statement
385.19 If a retail association makes a loan in respect of which the disclosure requirements of section 385.16 apply and the loan is secured by a mortgage on real property, the association shall disclose to the borrower, at such time and in such manner as may be prescribed, such information as may be prescribed respecting the renewal of the loan.
Marginal note:Disclosure in advertising
385.2 No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to arrangements referred to in subsection 385.18(4), loans, credit cards, payment cards or charge cards, offered to natural persons by a retail association, and purporting to disclose prescribed information about the cost of borrowing or about any other matter unless the advertisement contains such information as may be required by the regulations, in such form and manner as may be prescribed.
Marginal note:Regulations re borrowing costs
385.21 The Governor in Council may make regulations
(a) respecting the manner in which, and the time at which, a retail association is to disclose to a borrower
(i) the cost of borrowing,
(ii) any rebate of the cost of borrowing, and
(iii) any other information relating to a loan, arrangement, credit card, payment card or charge card referred to in section 385.18;
(b) respecting the contents of any statement disclosing the cost of borrowing and other information required to be disclosed by a retail association to a borrower;
(c) respecting the manner of calculating the cost of borrowing;
(d) respecting the circumstances under which the cost of borrowing is to be expressed as an amount in dollars and cents;
(e) specifying any class of loans that are not to be subject to section 385.15, subsection 385.16(1) or 385.18(1) or (4) or section 385.19 or 385.2 or the regulations or any specified provisions of the regulations;
(f) respecting the manner in which and the time at which any rights, obligations, charges or penalties referred to in sections 385.15 to 385.2 are to be disclosed;
(g) prohibiting the imposition of any charge or penalty referred to in section 385.18 or providing that the charge or penalty, if imposed, will not exceed a prescribed amount;
(h) respecting the nature or amount of any charge or penalty referred to in paragraph 385.18(1)(b), (3)(a) or (4)(a) and the costs of the retail association that may be included or excluded in the determination of the charge or penalty;
(i) respecting the method of calculating the amount of rebate of the cost of borrowing, or the portion of the cost of borrowing referred to in subparagraph 385.18(1)(a)(ii);
(j) respecting advertisements made by a retail association regarding arrangements referred to in subsection 385.18(4), loans, credit cards, payment cards or charge cards;
(k) respecting the renewal of loans; and
(l) respecting such other matters or things as are necessary to carry out the purposes of sections 385.15 to 385.2.
Complaints
Marginal note:Procedures for dealing with complaints
385.22 (1) A retail association shall
(a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from the retail association;
(b) designate an officer or employee of the association to be responsible for implementing those procedures; and
(c) designate one or more officers or employees of the association to receive and deal with those complaints.
Marginal note:Procedures to be filed with Commissioner
(2) A retail association shall file with the Commissioner a copy of its procedures established under paragraph (1)(a).
Marginal note:Obligation to be member
385.23 In any province, if there is no law of the province that makes a retail association subject to the jurisdiction of an organization that deals with complaints made by persons having requested or received products or services in the province from a retail association, the retail association shall be a member of an organization that is not controlled by it and that deals with those complaints that have not been resolved to the satisfaction of the persons under procedures established by retail associations under paragraph 385.22(1)(a).
Marginal note:Information on contacting Agency
385.24 (1) A retail association shall, in the prescribed manner, provide a person requesting or receiving a product or service from it with prescribed information on how to contact the Agency if the person has a complaint about a deposit account, an arrangement referred to in subsection 385.18(4), a payment, credit or charge card, the disclosure of or manner of calculating the cost of borrowing in respect of a loan or about any other obligation of the retail association under a consumer provision.
Marginal note:Report
(2) The Commissioner shall prepare a report, to be included in the report referred to in section 34 of the Financial Consumer Agency of Canada Act, respecting
(a) procedures for dealing with complaints established by retail associations pursuant to paragraph 385.22(1)(a); and
(b) the number and nature of complaints that have been brought to the attention of the Agency by persons who have requested or received a product or service from a retail association.
Miscellaneous
Marginal note:Prepayment protected
385.25 (1) A retail association 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 thereon before its due date.
Marginal note:Minimum balance
(2) Except by express agreement between the retail association and the borrower, the making in Canada of a loan or advance by a retail association to a borrower shall not be subject to a condition that the borrower maintain a minimum credit balance with the association.
Marginal note:Non-application of subsection (1)
(3) Subsection (1) does not apply in respect of a loan that is
(a) secured by a mortgage on real property; or
(b) made for business purposes and the principal amount of which is more than $100,000 or such other amount as may be prescribed.
Marginal note:Government cheques
(4) A retail association shall not make a charge
(a) 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 an association or in any other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament;
(b) for cashing any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund; or
(c) in respect of any cheque or other instrument that is
(i) drawn in favour of the Receiver General, the Government of Canada or any department thereof or any public officer acting in the capacity of a public officer, and
(ii) tendered for deposit to the credit of the Receiver General.
Marginal note:Deposits of Government of Canada
(5) Nothing in subsection (4) precludes any arrangement between the Government of Canada and a retail association concerning
(a) compensation for services performed by the association for the Government of Canada; or
(b) interest to be paid on any or all deposits of the Government of Canada with the association.
Marginal note:Regulations re customer information
385.26 The Governor in Council may make regulations
(a) requiring a retail association to establish procedures regarding the collection, retention, use and disclosure of any information about its customers or any class of customers;
(b) requiring a retail association to establish procedures for dealing with complaints made by a customer about the collection, retention, use or disclosure of information about the customer;
(c) respecting the disclosure by a retail association of information relating to the procedures referred to in paragraphs (a) and (b);
(d) requiring a retail association to designate the officers and employees of the association who are responsible for
(i) implementing the procedures referred to in paragraph (b), and
(ii) receiving and dealing with complaints made by a customer of the association about the collection, retention, use or disclosure of information about the customer;
(e) requiring a retail association to report information relating to
(i) complaints made by customers of the association about the collection, retention, use or disclosure of information, and
(ii) the actions taken by the association to deal with the complaints; and
(f) defining “information”, “collection” and “retention” for the purposes of paragraphs (a) to (e) and the regulations made under those paragraphs.
Marginal note:Notice of branch closure
385.27 (1) Subject to regulations made under subsection (5), a member association with a branch in Canada at which it, through a natural person, opens retail deposit accounts and disburses cash to customers, shall give notice in accordance with those regulations before closing that branch or having it cease to carry on either of those activities.
Marginal note:Pre-closure meeting
(2) After notice is given but before the branch is closed or ceases to carry on the activities, the Commissioner may, in prescribed situations, require the member association to convene and hold a meeting between representatives of the member association, representatives of the Agency and interested parties in the vicinity of the branch in order to exchange views about the closing or cessation of activities.
Marginal note:Meeting details
(3) The Commissioner may establish rules for convening a meeting referred to in subsection (2) and for its conduct.
Marginal note:Not statutory instruments
(4) The Statutory Instruments Act does not apply to rules established under subsection (3).
Marginal note:Regulations
(5) The Governor in Council may make regulations prescribing
(a) the manner and time, which may vary according to circumstances specified in the regulation, in which notice shall be given under subsection (1), to whom it shall be given and the information to be included;
(b) circumstances in which a member association is not required to give notice under subsection (1), circumstances in which the Commissioner may exempt a member association from the requirement to give notice under that subsection, and circumstances in which the Commissioner may vary the manner and time in which notice is required to be given under any regulation made under paragraph (a); and
(c) circumstances in which a meeting may be convened under subsection (2).
Marginal note:Regulations re disclosure
385.28 The Governor in Council may, subject to any other provisions of this Act relating to the disclosure of information, make regulations respecting the disclosure of information by retail associations or any prescribed class of retail associations, including regulations respecting
(a) the information that must be disclosed, including information relating to
(i) any product or service or prescribed class of products or services offered by them,
(ii) any of their policies, procedures or practices relating to the offer by them of any product or service or prescribed class of products or services,
(iii) anything they are required to do or to refrain from doing under a consumer provision, and
(iv) any other matter that may affect their dealings with customers or the public;
(b) the manner, place and time in which and the persons to whom information is to be disclosed; and
(c) the content and form of any advertisement, by retail associations or any prescribed class of retail associations, relating to any matter referred to in paragraph (a).
Marginal note:Bank Act security
385.29 A bank that is continued as an association under this Act that, immediately before that continuance, held any outstanding security pursuant to section 426 or 427 of the Bank Act may continue to hold the security for the life of the loan to which the security relates and all the provisions of the Bank Act relating to the security and its enforcement continue to apply to the association as though it were a bank.
Marginal note:Transmission in case of death
385.3 (1) If the transmission of a debt owing by a retail association by reason of a deposit, of property held by a retail association 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 association of
(a) an affidavit or declaration in writing in a form satisfactory to the association signed by or on behalf of a person claiming by virtue of the transmission stating the nature and effect of the transmission, and
(b) one of the following documents, namely,
(i) 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 of 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
(ii) when the claim is based on a notarial will, an authenticated copy thereof,
is sufficient justification and authority for giving effect to the transmission in accordance with the claim.
Marginal note:Transmission in case of death
(2) Nothing in subsection (1) shall be construed to prevent a retail association from refusing to give effect to a transmission until there has been delivered to the association such documentary or other evidence of or in connection with the transmission as it may deem requisite.
Marginal note:Branch of account with respect to deposits
385.31 (1) For the purposes of this Act, the branch of account with respect to a deposit account is
(a) 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 an agreement between the retail association and the depositor at the time of opening of the deposit account; or
(b) 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 retail association by notice in writing to the depositor.
Marginal note:Where debt payable
(2) The amount of any debt owing by a retail association by reason of a deposit in a deposit account in the association 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 association.
Marginal note:Where debt payable
(3) Despite subsection (2), a retail association may permit, either occasionally or as a regular practice, the person to whom the association is indebted by reason of a deposit in a deposit account in the association to withdraw moneys owing by reason of that deposit at a branch of the association 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.
Marginal note:Situs of indebtedness
(4) The indebtedness of a retail association by reason of a deposit in a deposit account in the association shall be deemed for all purposes to be situated at the place where the branch of account is situated.
Marginal note:Effect of writ, etc.
385.32 (1) Subject to subsections (3) and (4), the following documents are binding on property belonging to a person and in the possession of an association, or on money owing to a person by reason of a deposit account in an association, only if the document or a notice of it is served at the branch of the association that has possession of the property or that is the branch of account in respect of the deposit account, as the case may be:
(a) a writ or process originating a legal proceeding or issued in or pursuant to a legal proceeding;
(b) an order or injunction made by a court;
(c) an instrument purporting to assign, perfect or otherwise dispose of an interest in the property or the deposit account; or
(d) an enforcement notice in respect of a support order or support provision.
Marginal note:Notices
(2) Any notification sent to an association with respect to a customer of the association, other than a document referred to in subsection (1) or (3), constitutes notice to the association and fixes the association with knowledge of its contents only if sent to and received at the branch of the association that is the branch of account of an account held in the name of that customer.
Marginal note:Exception
(3) Subsections (1) and (2) do not apply in respect of an enforcement notice in respect of a support order or support provision if
(a) the enforcement notice, accompanied by a written statement containing the information required by the regulations, is served at an office of an association designated in accordance with the regulations in respect of a province; and
(b) the order or provision can be enforced under the laws of that province.
Marginal note:Time of application
(4) 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.
Marginal note:Regulations
(5) The Governor in Council may make regulations
(a) respecting the designation by an association, 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;
(b) prescribing the manner in which an association shall publicize the locations of designated offices of the association; and
(c) respecting the information that must accompany enforcement notices in respect of support orders and support provisions.
Marginal note:Definitions
(6) The following definitions apply in this section.
“designated office”
« bureau désigné »
“designated office” means a place designated in accordance with regulations made for the purpose of subsection (3).
“enforcement notice”
« avis d’exécution »
“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.
“support order”
« ordonnance alimentaire »
“support order” means an order or judgment or interim order or judgment for family financial support.
“support provision”
« disposition alimentaire »
“support provision” means a provision of an agreement relating to the payment of maintenance or family financial support.
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