Notice of Branch Closure (Banks) Regulations
SOR/2002-104
Registration 2002-02-28
Notice of Branch Closure (Banks) Regulations
P.C. 2002-275 2002-02-28
Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 459.2(5)Footnote a of the Bank ActFootnote b, hereby makes the annexed Notice of Branch Closure (Banks) Regulations.
Return to footnote aS.C. 2001, c. 9, s. 125
Return to footnote bS.C. 1991, c. 46
Interpretation
Marginal note:Definitions
1 The following definitions apply in these Regulations.
- Act
Act means the Bank Act. (Loi)
- retail deposit-taking branch
retail deposit-taking branch means a branch in Canada of a financial institution at which the financial institution, through a natural person, opens retail deposit accounts and disburses cash to customers. (succursale de dépôt de détail)
- rural area
rural area means any territory located in Canada outside an urban area. (zone rurale)
- urban area
urban area means a geographic area in Canada
(a) that is defined as an urban area in the census dictionary published by Statistics Canada for the purpose of the most recent general census whose results have been published; and
(b) that has a minimum population of 10,000 persons, on the basis of that census. (zone urbaine)
Notice Requirements
Marginal note:Deemed time of giving notice
2 For the purposes of these Regulations, a notice is deemed to be given by a member bank to a person
(a) on the day recorded by a server of the member bank as the time of sending the notice to the person, if it is sent by electronic means;
(b) on the day recorded by a fax machine of the member bank as the time of sending the notice to the person, if it is sent by fax and the person has consented to receiving it by fax;
(c) five days after the postmark date on the notice, if it is sent to the person by the member bank by mail; and
(d) when the notice is received by the person, if it is given to the person by the member bank in any other way.
Marginal note:Notice to be given
3 A member bank that is required to give notice under subsection 459.2(1) of the Act before closing a branch or having it cease to carry on an activity referred to in that subsection must give notice of the proposed closure of the branch or cessation of the activity in accordance with sections 4 to 6.
Marginal note:Notice to Commissioner
4 (1) The notice must be given to the Commissioner in writing no later than
(a) four months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in
(i) an urban area, or
(ii) a rural area where there is a retail deposit-taking branch within a travelling distance of 10 km from the branch; or
(b) six months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in a rural area where there is no retail deposit-taking branch within a travelling distance of 10 km from the branch.
Marginal note:Information to be included
(2) The notice must include the following information:
(a) the location of the branch;
(b) the date proposed for the closure of the branch or the cessation of the activity;
(c) alternative sites where, after that date, customers of the branch may obtain services similar to the financial services that are provided at the branch, or a telephone number that customers may call to be informed of those sites;
(d) the measures, if any, that the member bank is taking to maintain any financial services that are available in the area that is served by the branch, to the extent that that information is available; and
(e) how the member bank may be contacted in respect of the proposed closure of the branch or cessation of the activity.
- SOR/2003-70, s. 1(F)
Marginal note:Notice to customers and public
5 (1) If the branch is in an urban area, or in a rural area where there is a retail deposit-taking branch located within a travelling distance of 10 km from the branch, the notice must be given to the customers of the branch and to the public.
Marginal note:Four months notice
(2) The notice must be given no later than four months before the date proposed for the closure of the branch or the cessation of the activity.
Marginal note:Manner of giving notice
(3) The notice must be given by
(a) posting it in a conspicuous place in a public area of the branch; and
(b) sending it to each customer of the branch
(i) by mail, either included with a regular account statement or in a separate mailing, or
(ii) by electronic means, if the customer regularly receives material from the member bank by electronic means.
Marginal note:Information to be included
(4) The notice must include the following information:
(a) the location of the branch;
(b) the date proposed for the closure of the branch or the cessation of the activity;
(c) alternative sites where, after that date, customers of the branch may obtain services similar to the financial services that are provided at the branch, or a telephone number that customers may call to be informed of those sites;
(d) the address of the branch to which the member bank will transfer the customers’ accounts;
(e) the measures, if any, that the member bank is taking to maintain any financial services that are available in the area that is served by the branch, to the extent that that information is available;
(f) how the member bank and the Commissioner may be contacted in respect of the proposed closure of the branch or cessation of the activity; and
(g) a statement that the Commissioner may require the member bank to convene and hold a meeting between representatives of the member bank, representatives of the Agency and interested parties in the vicinity of the branch, in order to exchange views about the proposed closure of the branch or cessation of the activity, if
(i) the member bank has not consulted the community in the area affected by the closure of the branch or the cessation of the activity well enough to ascertain the views of interested persons in the community with regard to the closure of the branch or the cessation of the activity,
(ii) an individual or a community representative from the area affected by the closure of the branch or the cessation of the activity submits to the Commissioner a written request for the meeting, and
(iii) the request is not frivolous or vexatious.
- SOR/2003-70, s. 2(F)
Marginal note:Notice to customers, public and mayor
6 (1) If the branch is in a rural area and there is no retail deposit-taking branch within a travelling distance of 10 km from the branch, the notice must be given to
(a) the customers of the branch;
(b) the public; and
(c) the chairperson, mayor, warden, reeve or other similar chief officer of the municipal or local government body or authority for the area in which the branch is located.
Marginal note:Six months notice
(2) The notice must be given no later than six months before the date proposed for the closure of the branch or the cessation of the activity.
Marginal note:Manner of giving notice
(3) The notice must be given by
(a) posting it in a conspicuous place in a public area of the branch;
(b) sending it to each customer of the branch
(i) by mail, either included with a regular account statement or in a separate mailing, or
(ii) by electronic means, if the customer regularly receives material from the member bank by electronic means;
(c) publishing it in a newspaper in general circulation at or near the place where the branch is located; and
(d) delivering it to the chairperson, mayor, warden, reeve or other similar chief officer of the municipal or local government body or authority for the area in which the branch is located.
Marginal note:Information to be included
(4) The notice must include the following information:
(a) the location of the branch;
(b) the date proposed for the closure of the branch or the cessation of the activity;
(c) alternative sites where, after that date, customers of the branch may obtain services similar to the financial services that are provided at the branch, or a telephone number that customers may call to determine those sites;
(d) the address of the branch to which the member bank will transfer the customers’ accounts;
(e) the measures, if any, that the member bank is taking to maintain any financial services that are available in the area that is served by the branch, to the extent that that information is available;
(f) how the member bank and the Commissioner may be contacted in respect of the proposed closure of the branch or cessation of the activity; and
(g) a statement that the Commissioner may require the member bank to convene and hold a meeting between representatives of the member bank, representatives of the Agency and interested parties in the vicinity of the branch, in order to exchange views about the proposed closure of the branch or cessation of the activity, if
(i) the member bank has not consulted the community in the area affected by the closure of the branch or the cessation of the activity well enough to ascertain the views of interested persons in the community with regard to the closure of the branch or the cessation of the activity,
(ii) an individual or a community representative from the area affected by the closure of the branch or the cessation of the activity submits to the Commissioner a written request for the meeting, and
(iii) the request is not frivolous or vexatious.
- SOR/2003-70, s. 3(F)
Exceptions to Notice Requirements
Marginal note:Circumstances for exemption from notice requirement
7 A member bank is not required to give notice under subsection 459.2(1) of the Act before closing a branch or having a branch cease to carry on an activity referred to in that subsection in the following circumstances:
(a) the closure or cessation is temporary and is caused by events beyond the control of the member bank;
(b) the closure or cessation is not expected to continue for more than 15 business days;
(c) the closure or cessation results from the sale by the member bank of the branch’s assets and liabilities to another financial institution, that other financial institution proposes to operate a retail deposit-taking branch at the same site and the financial services that have been provided to the public from that site are not expected to be interrupted as a result of the sale for more than 15 business days;
(d) the closure or cessation results from a relocation of the branch or a consolidation of the branch with one or more branches into another branch, and the travelling distance from the site of the relocated or consolidated branch to the site of the closed branch is less than 500 m;
(e) the closure or cessation is required in order to comply with
(i) a prudential agreement entered into between the member bank and the Superintendent under section 644.1 of the Act,
(ii) a direction of the Superintendent under subsection 645(1) of the Act, or
(iii) an order of a court under section 646 of the Act;
(f) the closure or cessation results from a decision of the Superintendent under subsection 649(2) of the Act after the Superintendent has taken control of the member bank under subparagraph 648(1)(b)(iii) of the Act;
(g) the closure or cessation results from actions directed towards the voluntary liquidation of the member bank
(i) after the Minister has approved an application under section 344 of the Act for letters patent dissolving the member bank, or
(ii) under the supervision of a court under an order made by the court under subsection 347(1) of the Act;
(h) the closure or cessation results from a winding-up order in respect of the member bank made under section 10 or 10.1 of the Winding-up and Restructuring Act;
(i) the closure or cessation results from the termination or cancellation of the policy of deposit insurance of the member bank under the Canada Deposit Insurance Corporation Act;
(j) the closure or cessation results from the making of an order under subsection 39.13(1) of the Canada Deposit Insurance Corporation Act in respect of the member bank;
(k) the closure or cessation is part of a restructuring transaction carried out under subsection 39.2(1) of the Canada Deposit Insurance Corporation Act;
(l) the branch was acquired within the preceding year by a purchaser in a restructuring transaction carried out under subsection 39.2(1) of the Canada Deposit Insurance Corporation Act; or
(m) the member bank has posted in a conspicuous place in a public area of the branch a notification of the closure or cessation before the coming into force of these Regulations and the closure or cessation occurs within
(i) six months after the coming into force of these Regulations, if the branch is in a rural area where there is no retail deposit-taking branch within a travelling distance of 10 km from the branch,
(ii) four months after the coming into force of these Regulations, in any other cases.
- SOR/2003-70, s. 4(F)
Marginal note:Commissioner may exempt from or vary notice requirement
8 (1) In the circumstances set out in subsection (2), the Commissioner may, at the request of a member bank,
(a) exempt the member bank from the requirement to give notice under subsection 459.2(1) of the Act in relation to the closure of a branch or the cessation of an activity referred to in that subsection; or
(b) vary the manner and time in which notice is otherwise required to be given under these Regulations.
Marginal note:Circumstances in which subsection (1) applies
(2) Subsection (1) applies in the following circumstances:
(a) the closure or cessation is in response to a risk to the safety of the personnel of the branch or the public;
(b) the closure or cessation is caused by the member bank’s right to use the premises as a retail deposit-taking branch being terminated by a person other than the member bank or an affiliate of the member bank and that person has not given the member bank enough notice of the termination to allow the member bank to comply with the notice requirements of these Regulations;
(c) the closure or cessation results from a relocation of the branch, and the travelling distance from the new location to the former location is more than 500 m but not great enough to substantially affect either the customers served by the branch or the nature of the business of the branch; or
(d) the giving of notice under subsection 459.2(1) of the Act in the manner and time otherwise required by these Regulations would cause undue prejudice to the member bank.
- SOR/2003-70, s. 5(F)
- SOR/2009-41, s. 1(E)
Circumstances in Which the Commissioner Shall Require a Member Bank to Convene and Hold a Meeting
- SOR/2009-41, s. 2
Marginal note:Circumstances in which Commissioner shall require meeting
9 For the purposes of subsection 459.2(2) of the Act, the following circumstances are prescribed as circumstances in which the Commissioner shall require a member bank to convene and hold a meeting referred to in that subsection:
(a) the member bank has not consulted the community in the area affected by the closure of the branch or the cessation of the activity well enough to ascertain the views of interested persons in the community with regard to the closure of the branch, the cessation of the activity, alternate service delivery by the bank or measures to help the branch’s customers adjust to the closing or cessation;
(b) an individual or a community representative from the area affected by the closure of the branch or the cessation of the activity submits to the Commissioner a written request for the meeting; and
(c) the request is not frivolous or vexatious.
- SOR/2009-41, s. 3
- SOR/2014-273, s. 9(F)
Coming into Force
Marginal note:Coming into force
10 These Regulations come into force on the day on which they are registered.
- Date modified: