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Bank Act (S.C. 1991, c. 46)

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Act current to 2020-05-17 and last amended on 2020-05-09. Previous Versions

PART XIVRegulation of Banks and External Complaints Bodies — Commissioner (continued)

Marginal note:Commissioner’s directions

  •  (1) If, in the opinion of the Commissioner, a bank, authorized foreign bank or person, in conducting the business of the bank or authorized foreign bank, fails to comply, or there are reasonable grounds to believe that the bank, authorized foreign bank or person will fail to comply, with a compliance agreement, a consumer provision or this Part, the Commissioner may direct the bank, authorized foreign bank or person to comply with them and to perform any act that in the opinion of the Commissioner is necessary to do so.

  • Marginal note:Opportunity for representations

    (2) Subject to subsection (3), no direction shall be issued to a bank, authorized foreign bank or person under subsection (1) unless the bank, authorized foreign 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 Commissioner, the length of time required for representations to be made under subsection (2) might be prejudicial to the public interest, the Commissioner may make a temporary direction with respect to the matters referred to in subsection (1) that has effect for a period of not more than 15 days.

  • Marginal note:Continued effect

    (4) A temporary direction under subsection (3) continues to have effect after the expiration of the 15-day period referred to in that subsection if no representations are made to the Commissioner within that period or, if representations have been made, the Commissioner notifies the bank, authorized foreign bank or person that the Commissioner is not satisfied that there are sufficient grounds for revoking the direction.

  • 2018, c. 27, s. 332

Marginal note:Court enforcement

  •  (1) If a bank, authorized foreign bank or person, in conducting the business of the bank or authorized foreign bank, contravenes or fails to comply with a compliance agreement or a direction made under subsection 661.1(1) or (3), contravenes this Act or omits to do any thing that is required to be done under this Act by or on the part of the bank, authorized foreign bank or person, the Commissioner may, in addition to any other action that may be taken under this Act, apply to a court for an order requiring the bank, authorized foreign bank or person to comply with the compliance agreement or the direction, cease the contravention or do any thing that is required to be done, and on the application the court may so order and make any other order it thinks fit.

  • Marginal note:Appeal

    (2) An appeal from a decision of a court under subsection (1) lies in the same manner, and to the same court, as an appeal from any other order of the court.

  • 2018, c. 27, s. 332

PART XVBank Holding Companies

Purpose

Marginal note:Purpose

 The purpose of this Part is to provide for the incorporation, formation and regulation of bank holding companies.

  • 1999, c. 28, s. 61
  • 2001, c. 9, s. 183

DIVISION 1Interpretation

Marginal note:Definitions

  •  (1) The following definitions apply in this Part.

    complainant

    complainant, in relation to a bank holding company or any matter concerning a bank holding company, means

    • (a) a registered holder or beneficial owner, and a former registered holder or beneficial owner, of a security of a bank holding company or any of its affiliates;

    • (b) a director or an officer, or a former director or officer, of a bank holding company or any of its affiliates; or

    • (c) any other person who, in the discretion of a court, is a proper person to make an application under section 334, 338 or 989. (plaignant)

    subordinated indebtedness

    subordinated indebtedness means an instrument evidencing an indebtedness of a bank holding company that by its terms provides that the indebtedness will, in the event of the insolvency or winding-up of the bank holding company, be subordinate in right of payment to all liabilities of the bank holding company except those that, by their terms, rank equally with or are subordinate to such indebtedness. (titre secondaire)

  • Marginal note:Provisions in other Parts

    (2) A reference in a provision of this Part to a provision in any other Part is deemed to be a reference to that provision as it has been made applicable by this Part in respect of bank holding companies.

  • Marginal note:References in other Parts

    (3) A reference in a provision of another Part to a provision that has been made applicable in respect of bank holding companies by this Part is to be read as including a reference to that provision as it has been made applicable in respect of bank holding companies.

  • 1999, c. 28, s. 61
  • 2001, c. 9, s. 183

DIVISION 2Status and Powers

Marginal note:Corporate powers

  •  (1) A bank holding company has the capacity of a natural person and, subject to this Act, the rights, powers and privileges of a natural person.

  • Marginal note:Powers restricted

    (2) A bank holding company shall not carry on any business or exercise any power that it is restricted by this Act from carrying on or exercising, or exercise any of its powers in a manner contrary to this Act.

  • Marginal note:Business in Canada

    (3) A bank holding company may carry on business throughout Canada.

  • Marginal note:Powers outside Canada

    (4) Subject to this Act, a bank holding company has the capacity to carry on its business, conduct its affairs and exercise its powers in any jurisdiction outside Canada to the extent and in the manner that the laws of that jurisdiction permit.

  • 1999, c. 28, s. 61
  • 2001, c. 9, s. 183

Marginal note:No invalidity

 No act of a bank holding company, including any transfer of property to or by a bank holding company, is invalid by reason only that the act or transfer is contrary to the bank holding company’s incorporating instrument or this Act.

  • 1999, c. 28, s. 62
  • 2001, c. 9, s. 183

Marginal note:By-law not necessary

 It is not necessary for a bank holding company to pass a by-law in order to confer any particular power on the bank holding company or its directors.

  • 1999, c. 28, s. 63
  • 2001, c. 9, s. 183

Marginal note:No personal liability

 The shareholders of a bank holding company are not, as shareholders, liable for any liability, act or default of the bank holding company except as otherwise provided by this Act.

  • 1999, c. 28, s. 63
  • 2001, c. 9, s. 183

Marginal note:No constructive notice

 No person is affected by or is deemed to have notice or knowledge of the contents of a document concerning a bank holding company by reason only that the document has been filed with the Superintendent or the Minister or is available for inspection at an office of the bank holding company.

  • 1999, c. 28, s. 64, c. 31, ss. 16(F), 250
  • 2001, c. 9, s. 183

Marginal note:Authority of directors, officers and representatives

  •  (1) No bank holding company and no guarantor of an obligation of a bank holding company may assert against a person dealing with the bank holding company or against a person who has acquired rights from the bank holding company that

    • (a) the bank holding company’s incorporating instrument or any by-laws of the bank holding company have not been complied with;

    • (b) the persons named as directors of the bank holding company in the most recent return sent to the Superintendent under section 951 are not the directors of the bank holding company;

    • (c) the place named in the incorporating instrument or by-laws of the bank holding company is not the place where the head office of the bank holding company is situated;

    • (d) a person held out by the bank holding company as a director, officer or representative of the bank holding company has not been duly appointed or has no authority to exercise the powers and perform the duties that are customary in the business of the bank holding company or usual for a director, officer or representative; or

    • (e) a document issued by any director, officer or representative of the bank holding company with actual or usual authority to issue the document is not valid or not genuine.

  • Marginal note:Exception — knowledge

    (2) Subsection (1) does not apply in respect of a person who has or ought to have knowledge of a situation described in that subsection by virtue of their relationship to the bank holding company.

  • 1999, c. 28, s. 65
  • 2001, c. 9, s. 183
  • 2005, c. 54, s. 83
 
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