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:1996, c. 6, s. 40
417. Subsection 35(2) of the Act is replaced by the following:
(2) For the purposes of this section, the Corporation is deemed to be a creditor of a member institution despite the termination or cancellation of the institution’s policy of deposit insurance.
418. Section 36 of the Act is replaced by the following:
Marginal note:Removal of references to deposit insurance
36. (1) If the policy of deposit insurance of a member institution is terminated or cancelled, the member institution shall notify its depositors of that fact and shall remove all references to deposit insurance under this Act from all forms of advertising by the institution.
Marginal note:Public notice
(2) The Corporation may, in the manner and through any news media that it considers appropriate, give public notice of the termination or cancellation of the policy of deposit insurance of a member institution if, in the opinion of the Corporation, the public interest requires that such notice be given.
419. Subsections 37(1) and (2) of the Act are replaced by the following:
Marginal note:Provincial deposit insurance
37. (1) If under the law of any province the government of the province or an agent of that government guarantees or insures any of the deposits with a provincial institution operating within the province, the Corporation, subject to section 17.1 and any agreement entered into under subsection (3), may
(a) insure some or all of the deposits with the institution; or
(b) amend the institution’s policy of deposit insurance, to exclude from the policy any of the deposits with the institution.
420. Section 46 of the English version of the Act is replaced by the following:
Marginal note:Insolvency and winding-up
46. No statute relating to the insolvency or winding-up of any corporation applies to the Corporation and in no case shall the affairs of the Corporation be wound up unless Parliament so provides.
421. The definitions “subordinated note” and “subordinated shareholder loan” in section 1 of the schedule to the Act are repealed.
R.S., c. C-21; 2001, c. 9, s. 218Canadian Payments Act
422. (1) The definition “General Manager” in subsection 2(1) of the Canadian Payments Act is repealed.
(2) The definition président in subsection 2(1) of the French version of the Act is repealed.
(3) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
« président »
“President” means the President of the Association appointed under section 16;
(4) Subsection 2(1) of the French version of the Act is amended by adding the following in alphabetical order:
« président du conseil »
président du conseil Le président du conseil visé à l’article 15.
Marginal note:2001, c. 9, s. 219(6)
(5) Subsection 2(3) of the Act is replaced by the following:
Marginal note:Not statutory instrument
(3) Rules, statements of principle and standards made by the Board and orders made under a by-law are not statutory instruments for the purposes of the Statutory Instruments Act.
423. Section 4 of the Act is amended by adding the following after subsection (2):
Marginal note:Commencement of membership
(3) Membership in the Association commences
(a) in the case of a bank and an authorized foreign bank, on the day on which an order is made under the Bank Act approving its commencement and carrying on of business; and
(b) in the case of a person referred to in paragraph (1)(d), on the day on which the person’s application for membership in the Association is approved by the Board.
Marginal note:Suspension of membership rights
(4) A suspension, imposed in accordance with the by-laws, of any of a member’s membership rights is not effective unless the Association has, in advance, sent the Minister a notice of the suspension.
Marginal note:2001, c. 9, s. 227(2)
424. (1) Subsection 9(1.1) of the Act is replaced by the following:
Marginal note:Appointments by Minister
(1.1) The Minister shall appoint three directors of the Association to hold office for a term of not more than three years.
(2) Section 9 of the Act is amended by adding the following after subsection (1.2):
Marginal note:Continuation in office
(1.3) If, on the expiry of the term of office of a director appointed under subsection (1.1), no new director is appointed, the director whose term of office expired may continue in office until a director is appointed under that subsection.
425. The Act is amended by adding the following after section 9:
10. A vacancy on the Board does not impair the right of the remaining directors to act.
426. Section 14 of the Act is replaced by the following:
Marginal note:Canadian citizens
14. At least three quarters of the directors of the Association must be Canadian citizens ordinarily resident in Canada.
Marginal note:2001, c. 9, ss. 231 and 232(E) and par. 245(a)(E)
427. Section 15 of the French version of the Act and the heading before it are replaced by the following:
Président du conseil
Marginal note:Président du conseil
15. (1) Le président du conseil, qui est l’administrateur nommé par la Banque du Canada, exerce les fonctions prévues par les règlements administratifs.
(2) En cas d’absence ou d’empêchement du président du conseil, l’administrateur suppléant nommé par la Banque du Canada en vertu du paragraphe 9(1) exerce ses fonctions et, notamment, préside les réunions du conseil.
Marginal note:Voix prépondérante
(3) Le président du conseil ou, en cas d’absence ou d’empêchement, son suppléant a, lors d’une réunion du conseil, voix prépondérante en cas de partage des voix sur une question soumise au conseil.
Marginal note:2001, c. 9, par. 245(b)(E) and s. 246
428. Section 16 of the Act and the heading before it are replaced by the following:
16. (1) The directors shall appoint the President of the Association.
(2) The President is the chief executive of the Association and has, on behalf of the Board, the direction and management of the business of the Association with authority to act in all matters that are not by the by-laws or by resolution of the Board specifically reserved to be done by the Chairperson, the Board or the Executive Committee.
Marginal note:Exercise of powers by officers and employees
(3) Except as otherwise provided by the President, and subject to any terms and conditions that may be specified by the President, an officer or employee of the Association may exercise any power and perform any duty or function of the Association if the officer or employee is appointed to serve in a capacity appropriate to the exercise of the power or performance of the duty or function.
Marginal note:2001, c. 9, s. 233
429. (1) Paragraph 18(1)(g) of the Act is replaced by the following:
(g) establishing penalties for any failure by members to comply with the by-laws, rules and orders made under the by-laws, including penalties that provide for the payment of interest or the making of restitution, and procedures in respect of the imposition of those penalties;
(2) Subsection 18(1) of the Act is amended by striking out the word “and” at the end of paragraph (h) and by adding the following after paragraph (i):
(j) limiting the liability of the Association, its members, its employees and other persons for any loss or damage suffered by a member as a result of anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under a by-law or a rule are intended or authorized to be exercised or performed; and
(k) respecting the nomination, selection and appointment of persons to be members of the Stakeholder Advisory Council.
(3) Subsection 18(2) of the Act is replaced by the following:
(2) Subject to subsections (3) and (4), a by-law is not effective until approved by the Minister and when so approved must be published in the Canada Gazette and copies of the by-law must be sent to every member by the President.
(4) Subsections 18(3) and (4) of the French version of the Act are replaced by the following:
Marginal note:Approbation des règlements administratifs imposant une amende
(3) Avant d’être soumis à l’approbation du gouverneur en conseil, tout règlement administratif imposant une sanction doit d’abord être approuvé par les membres réunis en assemblée.
Marginal note:Vote relatif à un règlement administratif imposant une amende
(4) Chaque membre a droit, au cours du vote tenu aux fins d’approuver par voie de résolution un règlement administratif imposant une sanction, à une voix pour chaque dollar de la cotisation que les règlements administratifs lui imposent de verser.
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