Marginal note:Superintendent may take control
648 (1) Subject to this Act, where any of the circumstances described in subsection (1.1) exist in respect of a bank, the Superintendent may
(a) take control, for a period not exceeding sixteen days, of the assets of the bank and the assets under its administration; or
(b) unless the Minister advises the Superintendent that the Minister is of the opinion that it is not in the public interest to do so,
(i) take control, for a period exceeding sixteen days, of the assets of the bank and the assets under its administration,
(ii) where control of assets has been taken under paragraph (a), continue the control beyond the sixteen days referred to in that paragraph, or
(iii) take control of the bank.
Marginal note:Circumstances for taking control
(1.1) Control by the Superintendent under subsection (1) may be taken in respect of a bank where
(a) the bank has failed to pay its liabilities or, in the opinion of the Superintendent, will not be able to pay its liabilities as they become due and payable;
(b) [Repealed, 2001, c. 9, s. 182]
(c) the assets of the bank are not, in the opinion of the Superintendent, sufficient to give adequate protection to the bank’s depositors and creditors;
(d) any asset appearing on the books or records of the bank or held under its administration is not, in the opinion of the Superintendent, satisfactorily accounted for;
(e) the regulatory capital of the bank has, in the opinion of the Superintendent, reached a level or is eroding in a manner that may detrimentally affect its depositors or creditors;
(f) the bank has failed to comply with an order of the Superintendent under paragraph 485(3)(a);
(g) the bank’s deposit insurance has been terminated by the Canada Deposit Insurance Corporation;
(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;
(h) in the opinion of the Superintendent, any other state of affairs exists in respect of the bank that may be materially prejudicial to the interests of the bank’s depositors or creditors or the owners of any assets under the bank’s administration, including where proceedings under a law relating to bankruptcy or insolvency have been commenced in Canada or elsewhere in respect of the holding body corporate of the bank;
(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.
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.
Marginal note:Notice of proposed action
(1.2) The Superintendent must notify a bank of any action proposed to be taken in respect of it under paragraph (1)(b) and of its right to make written representations to the Superintendent within the time specified in the notice, not exceeding ten days after it receives the notice.
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
(a) the Committee, as defined in section 2 of the National Security and Intelligence Committee of Parliamentarians Act; and
(b) the Review Agency, as defined in section 2 of the National Security and Intelligence Review Agency Act.
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.
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,
(a) the bank shall not make, acquire or transfer any loan or make any purchase, sale or exchange of securities or any disbursement or transfer of cash of any kind without the prior approval of the Superintendent or a representative designated by the Superintendent; and
(b) no director, officer or employee of the bank shall have access to any cash or securities held by the bank unless
(i) a representative of the Superintendent accompanies the director, officer or employee, or
(ii) the access is previously authorized by the Superintendent or the Superintendent’s representative.
- 1999, c. 28, s. 50
- 2001, c. 9, s. 182
- 2023, c. 26, s. 560
- Date modified: