An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)
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Assented to 2007-03-29
PART 11991, c. 46AMENDMENTS TO THE BANK ACT
Marginal note:1991, c. 46, s. 579
22. Section 402.1 of the Act is replaced by the following:
Marginal note:Permission to become another body corporate
402.1 If subsection 402(1) applies, the Minister may, on application by the bank, permit the bank to apply to be continued as a body corporate under any Act of Parliament referred to in subsection 39.1(1) instead of, or in addition to, issuing an order under subsection 402(1).
23. (1) Subsection 413(1) of the Act is amended by striking out the word “or” at the end of paragraph (a), by adding the word “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) the order approving the commencement and carrying on of business by the bank authorizes it to accept deposits solely in accordance with subsection (3).
Marginal note:1997, c. 15, s. 43
(2) Subsection 413(3) of the Act is replaced by the following:
Marginal note:Deposits that fall below $150,000
(3) A bank referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after the bank receives the authorization referred to in that paragraph,
A/B ≤ 0.01
where
- A
- is the sum of all amounts each of which is the sum of all the deposits held by the bank at the end of a day in the preceding 30 days each of which deposits is less than $150,000 and payable in Canada; and
- B
- is the sum of all amounts each of which is the sum of all deposits held by the bank at the end of a day in those preceding 30 days and payable in Canada.
Marginal note:1997, c. 15, s. 43; 2001, c. 9, s. 103(1)
24. Subsections 413.1(1) and (2) of the Act are replaced by the following:
Marginal note:Notice before opening account or providing prescribed product
413.1 (1) Before a bank referred to in paragraph 413(1)(b) or (c) opens a deposit account in Canada or provides in Canada a prescribed product that relates to a deposit, the bank shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product
(a) a notice in writing that deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and
(b) any other information that may be prescribed.
Marginal note:Other notice
(2) A bank referred to in paragraph 413(1)(b) or (c) shall, in accordance with any regulations that may be made,
(a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the bank are not insured by the Canada Deposit Insurance Corporation; and
(b) include in its advertisements notices to inform the public that deposits with the bank are not insured by the Canada Deposit Insurance Corporation.
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.
32. Section 455 of the Act is amended by adding the following after subsection (2):
Marginal note:How procedures to be made available
(3) A bank shall make its procedures established under paragraph (1)(a) available
(a) in the form of a brochure, at its branches where products or services are offered in Canada;
(b) on its websites through which products or services are offered in Canada; and
(c) in written format to be sent to any person who requests them.
Marginal note:Information on contacting Agency
(4) A bank shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3).
33. The Act is amended by adding the following before section 458:
Marginal note:Charges for prescribed products or services
457. A bank shall not, directly or indirectly, charge or receive any sum for the provision of any prescribed products or services unless the charge is made by express agreement between it and a customer or by order of a court.
34. The Act is amended by adding the following after section 458.1:
Marginal note:Regulations respecting the holding of funds
458.2 The Governor in Council may make regulations respecting the maximum period during which a bank may hold funds in respect of specified classes of cheques or other instruments that are deposited into an account at a branch or prescribed point of service in Canada before permitting the customer in whose name the account is kept to access the funds.
Marginal note:2001, c. 9, s. 124(2)
35. Subsection 459.1(4.1) of the Act is replaced by the following:
Marginal note:Disclosure
(4.1) A bank shall disclose the prohibition on coercive tied selling set out in subsection (1) in a statement in plain language that is clear and concise, displayed and available to customers and the public at all of its branches where products or services are offered in Canada, on all of its websites through which products or services are offered in Canada and at all prescribed points of service in Canada.
Marginal note:2001, c. 9, s. 125
36. Subsection 459.2(2) of the Act is replaced by the following:
Marginal note:Pre-closure meeting
(2) After notice is given but before the branch is closed or ceases to carry on the activities, the Commissioner shall, in prescribed situations, require the bank to convene and hold a meeting between representatives of the bank, representatives of the Agency and interested parties in the vicinity of the branch in order to exchange views about the closing or cessation of activities, including, but not limited to, alternative service delivery by the bank and measures to help the branch’s customers adjust to the closing or cessation of activities.
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