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An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)

Assented to 2007-03-29

Marginal note:2001, c. 9, s. 82(2)

 Subsection 217(3) of the Act is replaced by the following:

  • Marginal note:Effective date of by-law

    (3) 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.

  • Marginal note:Letters patent

    (4) 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.

  • Marginal note:Effect of letters patent

    (5) Letters patent issued under subsection (4) become effective on the day stated in the letters patent.

 Section 225 of the Act is replaced by the following:

Marginal note:Approval of agreement by Superintendent

225. 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 is invalid unless, before the date of the approval, the Superintendent has approved the agreement in writing.

 Paragraph 231(1)(f) of the Act is replaced by the following:

  • (f) maintain outside Canada any records or registers required by this Act to be maintained in Canada.

 Section 233 of the Act is replaced by the following:

Marginal note:Agreement to Superintendent

233. A sale agreement must be sent to the Superintendent before it is submitted to shareholders of the selling bank under subsection 234(1).

Marginal note:2005, c. 54, s. 52(1)

 Section 245 of the Act is replaced by the following:

Marginal note:Requirement to maintain copies and process information in Canada
  • 245. (1) 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 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 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 shall 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.

  • Marginal note:Bank to comply

    (2) A bank shall without delay comply with any direction issued under subsection (1).

Marginal note:1991, c. 46, s. 577

 Paragraph 300(a) of the Act is replaced by the following:

Marginal note:2001, c. 9, s. 98
  •  (1) The portion of subsection 373(1) of the French version of the Act before paragraph (a) is replaced by the following:

    Marginal note:Restrictions à l’acquisition
    • 373. (1) Sous réserve des autres dispositions de la présente partie, il est interdit à une personne — ou à l’entité qu’elle contrôle — d’acquérir, sans l’agrément du ministre, des actions d’une banque ou le contrôle d’une entité qui détient de telles actions si l’acquisition, selon le cas :

  • Marginal note:2001, c. 9, s. 98

    (2) Subsection 373(2) of the Act is replaced by the following:

    • Marginal note:Amalgamation, etc., constitutes acquisition

      (2) 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, the entity is deemed to be acquiring a significant interest in that class of shares of the bank through an acquisition for which the approval of the Minister is required under subsection (1).

Marginal note:2001, c. 9, s. 98

 Sections 377.1 and 378 of the Act are replaced by the following:

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 eight billion dollars.

  • 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 eight 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: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 eight 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 eight billion dollars if the Minister specifies that it no longer applies to the bank.

Marginal note:2001, c. 9, s. 98

 Subsection 398(1) of the French version of the Act is replaced by the following:

Marginal note:Accusé de réception
  • 398. (1) Lorsque, à son avis, la demande faite dans le cadre de la présente partie est complète, le surintendant la transmet sans délai au ministre et adresse au demandeur un accusé de réception précisant la date où elle a été reçue.

Marginal note:1991, c. 46, s. 579

 Section 402.1 of the Act is replaced by the following:

Marginal note:Permission to become another body corporate

402.1 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) instead of, or in addition to, issuing an order under subsection 402(1).

  •  (1) Subsection 413(1) of the Act is amended by striking out the word “or” at the end of paragraph (a), by adding the word “or” at the end of paragraph (b) and by adding the following after paragraph (b):

    • (c) the order approving the commencement and carrying on of business by the bank authorizes it to accept deposits solely in accordance with subsection (3).

  • Marginal note:1997, c. 15, s. 43

    (2) Subsection 413(3) of the Act is replaced by the following:

    • Marginal note:Deposits that fall below $150,000

      (3) 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.
Marginal note:1997, c. 15, s. 43; 2001, c. 9, s. 103(1)

 Subsections 413.1(1) and (2) of the Act are replaced by the following:

Marginal note:Notice before opening account or providing prescribed product
  • 413.1 (1) Before a bank referred to in paragraph 413(1)(b) or (c) opens a deposit account in Canada or provides in Canada a prescribed product that relates to a deposit, the bank shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product

    • (a) a notice in writing that deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and

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

  • Marginal note:Other notice

    (2) A bank referred to in paragraph 413(1)(b) or (c) shall, in accordance with any regulations that may be made,

    • (a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the bank are not insured by the Canada Deposit Insurance Corporation; and

    • (b) include in its advertisements notices to inform the public that deposits with the bank are not insured by the Canada Deposit Insurance Corporation.

 

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