Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

This Web page has been archived on the Web.

Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)

Assented to 2023-06-22

PART 4Various Measures (continued)

DIVISION 33Legislation Related to Financial Institutions (continued)

1991, c. 46Bank Act (continued)

551 The portion of section 622 of the English version of the Act before paragraph (a) is replaced by the following:

Marginal note:Requirement to relinquish control

622 If no action has been taken by the Superintendent under section 621 and, after 30 days following the taking of control by the Superintendent under subsection 619(1) or (2.1) of the assets of an authorized foreign bank, the Superintendent receives from the principal officer of the authorized foreign bank a notice in writing requesting the Superintendent to relinquish control, the Superintendent shall, not later than 12 days after receipt of the notice,

552 Section 623 of the Act is replaced by the following:

Marginal note:Advisory committee

623 The Superintendent may appoint a committee of not more than six members to advise the Superintendent in respect of the assets and all other matters pertinent to the duties and responsibilities of the Superintendent in exercising control of the assets. The committee shall be appointed from among the banks and authorized foreign banks that are subject to an assessment under section 23 of the Office of the Superintendent of Financial Institutions Act and required to share in the expenses resulting from the taking of control of the assets of the authorized foreign bank under subsection 619(1) or (2.1).

553 Subsection 624(1) of the English version of the Act is replaced by the following:

Marginal note:Expenses payable by authorized foreign bank

  • 624 (1) If control of the assets of an authorized foreign bank has been taken under subparagraph 619(1)(b)(i) or (ii) or paragraph 619(2.1)(b) or (c) and the control expires or is relinquished under section 620 or paragraph 622(a), the Superintendent may direct that the authorized foreign bank be liable for repayment of all or part of the expenses resulting from the taking of control of the assets and assessed against and paid by other authorized foreign banks and by banks under section 23 of the Office of the Superintendent of Financial Institutions Act, together with any interest in respect of the expenses at any rate that is specified by the Superintendent.

554 Section 625 of the English version of the Act is replaced by the following:

Marginal note:Priority of claim in liquidation

625 In the case of the winding-up of the business in Canada of an authorized foreign bank, the expenses resulting from the taking of control of the assets of the authorized foreign bank under subsection 619(1) or (2.1) and assessed against and paid by other authorized foreign banks and by banks under section 23 of the Office of the Superintendent of Financial Institutions Act and interest in respect of the expenses at any rate that is specified by the Superintendent, constitute a claim of His Majesty in right of Canada against the assets of the authorized foreign bank that ranks after any claim referred to in paragraph 627(1)(d).

555 Subsection 635(1) of the Act is replaced by the following:

Marginal note:Production of information and documents

  • 635 (1) The Superintendent may, by order, direct a person who controls a bank or any entity that is affiliated with a bank to provide the Superintendent with any information or documents that may be specified in the order if the Superintendent believes that the production of the information or documents is necessary in order to be satisfied that

    • (a) the provisions of this Act are being duly observed and that the bank is in a sound financial condition; or

    • (b) the bank has adequate policies and procedures to protect itself against threats to its integrity or security.

  • 556 (1) Subsection 643(1) of the Act is replaced by the following:

    Marginal note:Examination of banks

    • 643 (1) The Superintendent, from time to time, but at least once in each calendar year, shall make or cause to be made any examination and inquiry into the business and affairs of each bank that the Superintendent considers to be necessary or expedient to determine whether the bank is complying with the provisions of this Act, whether the bank is in a sound financial condition and whether the bank has adequate policies and procedures to protect itself against threats to its integrity or security. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.

  • (2) Section 643 of the Act is amended by adding the following after subsection (1):

    • Marginal note:Integrity or security

      (1.1) The Superintendent, from time to time, shall make or cause to be made any examination and inquiry into the business and affairs of any bank that the Superintendent considers to be necessary or expedient to determine whether the bank has adequate policies and procedures to protect itself against threats to its integrity or security. After the conclusion of each examination and inquiry, the Superintendent shall report on it to the Minister.

  • (3) Subsection 643(1.1) of the Act is repealed.

557 Section 644.1 of the Act is replaced by the following:

Marginal note:Prudential agreement

644.1 The Superintendent may enter into an agreement, called a “prudential agreement”, with a bank for the purposes of implementing any measure designed to maintain or improve its safety and soundness or establishing adequate policies and procedures to protect it against threats to its integrity or security.

558 Subsections 645(2) and (3) of the Act are replaced by the following:

  • Marginal note:Directions — policies and procedures

    (1.1) If, in the opinion of the Superintendent, a bank does not have adequate policies and procedures to protect itself against threats to its integrity or security, the Superintendent may direct the bank to take any measures that in the opinion of the Superintendent are necessary to remedy the situation.

  • Marginal note:Opportunity for representations

    (2) Subject to subsection (3), no direction shall be issued to a bank or person under subsection (1) or (1.1) unless the bank or person is provided with a reasonable opportunity to make representations in respect of the matter.

  • Marginal note:Temporary direction

    (3) If, in the opinion of the Superintendent, the length of time required for representations to be made under subsection (2) might be prejudicial to the public interest, the Superintendent may make a temporary direction with respect to the matters referred to in paragraphs (1)(a) and (b) or subsection (1.1) having effect for a period of not more than 15 days.

559 Paragraph 646(1)(a) of the Act is replaced by the following:

  • (a) is contravening or has failed to comply with a prudential agreement entered into under section 644.1 or a direction of the Superintendent made under subsection 645(1), (1.1) or (3),

  • 560 (1) Subsection 648(1.1) of the Act is amended by striking out “or” at the end of paragraph (g) and by adding the following after that paragraph:

    • (g.1) in the opinion of the Superintendent, the bank’s depositors and creditors may be detrimentally affected because all of the common shares or membership shares of the bank must be disposed of under a direction made by the Minister or because there is a prohibition under this Act in respect of the exercise of the right to vote attached to all of the common shares or membership shares of the bank;

  • (2) Subsection 648(1.1) of the Act is amended by adding the following after paragraph (h):

    • (i) in the opinion of the Superintendent, the continued operation of the bank by the directors of the bank or by the officers of the bank responsible for its management would be materially prejudicial to its integrity or security; or

    • (j) in the opinion of the Superintendent, the continued operation of the bank by the directors of the bank or by the officers of the bank responsible for its management would pose a risk to national security.

  • (3) Section 648 of the Act is amended by adding the following after subsection (1.1):

    • Marginal note:Minister’s powers

      (1.11) Subject to this Act, the Minister may, for reasons related to national security, direct the Superintendent to

      • (a) take control, for a period not exceeding 16 days, of the assets of the bank and the assets under its administration;

      • (b) take control, for a period exceeding 16 days, of the assets of the bank and the assets under its administration;

      • (c) if control of assets has been taken under paragraph (a), continue the control beyond the 16 days referred to in that paragraph; or

      • (d) take control of the bank.

  • (4) Subsection 648(2) of the Act is replaced by the following:

    • Marginal note:Notice — up to 16 days

      (1.3) If the Superintendent takes control of the assets of the bank under paragraph (1.11)(a), the Superintendent shall notify the bank that control has been taken at the direction of the Minister.

    • Marginal note:Notice — more than 16 days

      (1.4) If the Minister is considering whether to exercise the powers under any of paragraphs (1.11)(b) to (d), the Superintendent shall notify the bank of the action that is being considered and of its right to make written representations to the Minister within the time specified in the notice, not exceeding 10 days after it receives the notice.

    • Marginal note:Notice — Committee and Review Agency

      (1.5) Within 30 days after exercising any of the powers under subsection (1.11), the Minister shall notify

    • Marginal note:Objectives of Superintendent

      (2) If the Superintendent has control under subsection (1) or (1.11) of the assets of a bank referred to in that subsection, the Superintendent may do all things necessary or expedient to protect the rights and interests of the depositors and creditors of the bank.

  • (5) The portion of subsection 648(3) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Powers of Superintendent

      (3) If the Superintendent has control under subsection (1) or (1.11) of the assets of a bank referred to in that subsection,

  • 561 (1) Subsection 649(1) of the English version of the Act is replaced by the following:

    Marginal note:Powers suspended

    • 649 (1) If the Superintendent takes control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d), the powers, duties, functions, rights and privileges of the directors of the bank and of the officers of the bank responsible for its management are suspended. If the bank is a federal credit union, the powers of the members to make, amend or repeal by-laws are also suspended.

  • (2) The portion of subsection 649(2) of the English version of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Superintendent to manage bank

      (2) If the Superintendent takes control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d), the Superintendent shall manage the business and affairs of the bank and in doing so the Superintendent

  • (3) Subsection 649(3) of the English version of the Act is replaced by the following:

    • Marginal note:Persons to assist

      (3) If the Superintendent takes control of a bank under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d), the Superintendent may appoint one or more persons to assist in the management of the bank.

562 Section 650 of the Act is renumbered as subsection 650(1) and is amended by adding the following:

  • Marginal note:Expiration of control — Minister’s direction

    (2) Control by the Superintendent under subsection 648(1.11) of a bank or of the assets of a bank expires on the day on which a notice by the Superintendent is sent to the directors and officers who conducted the business and affairs of the bank stating that the Minister is of the opinion, on the recommendation of the Superintendant, that corrective measures have been taken in response to the reasons related to national security and that the bank can resume control of its business and affairs.

563 Paragraphs 651(a) and (b) of the Act are replaced by the following:

  • (a) the assets of the bank are under the control of the Superintendent under subparagraph 648(1)(b)(i) or (ii) or paragraph 648(1.11)(b) or (c); or

  • (b) the bank is under the control of the Superintendent under subparagraph 648(1)(b)(iii) or paragraph 648(1.11)(d).

Table of Contents

 

Date modified: