An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)
Full Document:
Assented to 2007-03-29
Marginal note:2001, c. 9, s. 104
25. (1) Subsection 413.2(1) of the Act is replaced by the following:
Marginal note:Deposits less than $150,000
413.2 (1) Subject to the regulations, a bank referred to in paragraph 413(1)(b) or (c) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.
Marginal note:2001, c. 9, s. 104
(2) Subsection 413.2(2) of the French version of the Act is replaced by the following:
Définition de « dépôt »
(2) Pour l’application du présent article, dépôt s’entend au sens du paragraphe 413(5).
Marginal note:2001, c. 9, s. 104
26. (1) Subsection 413.3(1) of the Act is replaced by the following:
Marginal note:Shared premises
413.3 (1) Subject to the regulations, no bank referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank.
Marginal note:2001, c. 9, s. 104
(2) Subsections 413.3(3) and (4) of the Act are replaced by the following:
Marginal note:Adjacent premises
(3) Subject to the regulations, no bank referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the bank, unless the bank clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.
Marginal note:Regulations
(4) The Governor in Council may make regulations
(a) respecting the circumstances in which, and the conditions under which, a bank referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and
(b) respecting the circumstances in which, and the conditions under which, a bank referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3).
27. Subsection 418(1) of the Act is replaced by the following:
Marginal note:Restriction on residential mortgages
418. (1) A bank 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 80 per cent of the value of the property at the time of the loan.
Marginal note:1993, c. 28, s. 78 (Sch. III, s. 5); 2002, c. 7, s. 82(E)
28. (1) Subsections 427(4) to (6) of the Act are replaced by the following:
Marginal note:Notice of intention
(4) Subject to the regulations, the following provisions apply where security on property is given to a bank under this section:
(a) the rights and powers of the bank in respect of property covered by the security are void as against creditors of the person giving the security and as against subsequent purchasers or mortgagees in good faith of the property covered by the security unless a notice of intention was provided to the bank by the person giving the security and registered by the bank in the system of registration not more than three years immediately before the security was given;
(b) the registration of a notice of intention may be cancelled by the registration of a certificate of release by the bank; and
(c) any person may obtain information from the system of registration for the purpose of ascertaining whether a notice of intention or a certificate of release has been registered.
(2) Section 427 of the Act is amended by adding the following after subsection (8):
Marginal note:Regulations
(9) The Governor in Council may make regulations
(a) establishing a system of registration for the purpose of this section;
(b) respecting the practice and procedure for the operation of the system of registration, including the registration of notices of intention and certificates of release and the obtaining of information from the system of registration;
(c) respecting the form and content of notices of intention and certificates of release;
(d) requiring the payment of fees relating to the system of registration, including fees to obtain information from the system of registration, and prescribing the amounts of those fees or the manner of calculating them; and
(e) respecting any other matter necessary for the operation of the system of registration.
Marginal note:Transitional
(10) Notices of intention and certificates of release registered in the system of registration as it existed immediately before the establishment of a system of registration under regulations made under paragraph (9)(a) are deemed to be registered in that system.
Marginal note:1999, c. 28, s. 23
29. Subsection 438(2) of the Act is replaced by the following:
Marginal note:Provision of information
(2) A bank 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 bank:
(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 bank 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 bank at which the instrument was issued, certified or accepted.
Marginal note:Copies of signature cards and signing authorities
(2.1) A bank 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.
30. (1) Subsection 439(1) of the Act is replaced by the following:
Marginal note:Notice of unpaid amount
439. (1) Subject to subsections (1.1) to (3), a bank shall send to each person to whom a deposit referred to in paragraph 438(1)(a) is payable, and to each person to whom or at whose request an instrument referred to in paragraph 438(1)(b) was issued, certified or accepted, a notice stating that the deposit or instrument remains unpaid.
Marginal note:Where notice to be sent
(1.1) The notice is to be sent to the person’s recorded address and, if the person has designated an information system for the receipt of electronic documents, to that designated information system.
(2) The portion of subsection 439(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:When notice to be sent
(2) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period
(3) Section 439 of the Act is amended by adding the following after subsection (2):
Marginal note:Notification of transfer to the Bank of Canada
(3) The notice to be sent during the month of January next following the end of the first nine-year period determined under paragraphs (2)(a) to (c), as the case may be, must also
(a) indicate that in the month of January in the next year the unpaid amounts will be transferred to the Bank of Canada; and
(b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument.
31. The Act is amended by adding the following after section 448.2:
Registered Products
Marginal note:Disclosure required concerning registered products
448.3 (1) Subject to subsection (2), a bank shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the bank provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service
(a) information about all charges applicable to the registered product;
(b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product;
(c) information about the bank’s procedures relating to complaints about the application of any charge applicable to the registered product; and
(d) any other information that may be prescribed.
Marginal note:Regulations
(2) The Governor in Council may make regulations specifying the circumstances under which a bank need not provide the information.
Definition of “registered product”
(3) In this section, “registered product” means a product that is defined to be a registered product by the regulations.
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