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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2021-02-15 and last amended on 2020-05-09. Previous Versions

PART XII.1Authorized Foreign Banks (continued)

Formalities of Authorization (continued)

Marginal note:Transitional

  •  (1) Subject to this section but notwithstanding any other provision of this Act or the regulations, the Minister may, on the recommendation of the Superintendent, by order, grant an authorized foreign bank permission to

    • (a) engage in a business activity specified in the order that an authorized foreign bank is not otherwise permitted by this Part to engage in;

    • (b) have liabilities that an authorized foreign bank is not otherwise permitted by this Part to have, if the authorized foreign bank or an affiliate of the authorized foreign bank had those liabilities at the time an application for an order under subsection 524(1) was made;

    • (c) hold assets that an authorized foreign bank is not otherwise permitted by this Part to hold, if the assets were held, at the time an application for an order under subsection 524(1) was made, by the authorized foreign bank or an affiliate of the authorized foreign bank;

    • (d) acquire and hold assets that an authorized foreign bank is not otherwise permitted by this Part to acquire or hold if the authorized foreign bank was obliged, at the time an application for an order under subsection 524(1) was made, to acquire those assets;

    • (e) [Repealed, 2001, c. 9, s. 136]

    • (f) in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), carry on business in Canada without having to deposit assets having a value of at least five million dollars, as required by subparagraphs 534(3)(a)(ii) and 582(1)(b)(i), if the authorized foreign bank continues to hold a substantial investment in

      • (i) a bank that is a subsidiary of a foreign bank and the Minister has approved an application for letters patent dissolving the bank made by the subsidiary under section 344, or

      • (ii) a company to which the Trust and Loan Companies Act applies and the Minister has approved an application for letters patent dissolving the company made under section 349 of that Act; or

    • (g) maintain outside Canada any records or registers required by this Act to be maintained in Canada.

  • Marginal note:Restriction

    (2) An order under subsection (1) may not be made if the effect of the order would be to permit an authorized foreign bank to

    • (a) contravene section 545, in the case of an authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2); or

    • (b) have deposit liabilities so as to cause the authorized foreign bank to be in contravention of section 540, in the case of an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2).

  • Marginal note:Duration

    (3) Permission granted under subsection (1) shall be expressed to be granted for a period specified in the order not exceeding

    • (a) with respect to any activity described in paragraph (1)(a), thirty days after the day on which an order made under subsection 524(1) becomes effective in respect of the authorized foreign bank or, where the activity is conducted pursuant to an agreement existing on that day, on the expiration of the agreement;

    • (b) with respect to any matter described in paragraph (1)(b), ten years; and

    • (c) with respect to any matter described in any of paragraphs (1)(c) to (g), two years.

  • Marginal note:Renewal

    (4) Subject to subsection (5), the Minister may, on the recommendation of the Superintendent, by order, renew permission granted under subsection (1) with respect to any matter described in paragraphs (1)(b) to (f) for any further period or periods that the Minister considers necessary.

  • Marginal note:Limitation

    (5) The Minister may not grant to an authorized foreign bank any permission

    • (a) with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the authorized foreign bank that the authorized foreign bank will not be able at law to redeem or discharge at the end of the ten years any liabilities to which the permission relates;

    • (b) with respect to matters described in paragraphs (1)(c) and (d), that purports to be effective more than ten years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank; and

    • (c) with respect to matters described in paragraph (1)(f), that purports to be effective more than seven years after the day on which an order made under subsection 534(1) becomes effective in respect of the authorized foreign bank.

  • 1991, c. 46, s. 529
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 136
  • 2007, c. 6, s. 76

Marginal note:Prohibited names

  •  (1) An order made under subsection 524(1) or 528(1.1) may not provide for the use of a name that is

    • (a) prohibited by an Act of Parliament;

    • (b) in the opinion of the Superintendent, deceptively misdescriptive;

    • (c) the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, any existing trademark, trade name or corporate name of a body corporate, except where

      • (i) the trademark or trade name is being changed or the body corporate is being dissolved or is changing its corporate name, and

      • (ii) consent to the use of the trademark, trade name or corporate name is signified to the Superintendent in any manner that the Superintendent may require;

    • (d) the same as or, in the opinion of the Superintendent, substantially the same as or confusingly similar to, the known name under or by which any other entity carries on business or is identified; or

    • (e) reserved under section 43 for an existing or proposed bank or for an existing or proposed authorized foreign bank or under section 697 for an existing or proposed bank holding company.

  • Marginal note:Name otherwise prohibited

    (2) An order made under subsection 524(1) or 528(1.1) may provide for the use of a name that includes a word referred to in section 47 of the Trust and Loan Companies Act.

  • 1991, c. 46, s. 530
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 137
  • 2007, c. 6, s. 77
  • 2014, c. 20, s. 366(E)

Marginal note:Publication of name

 An authorized foreign bank shall set out its name and, where applicable, any other permitted name, as set out in the order made under subsection 524(1) or 528(1.1), in legible characters in all contracts, invoices, negotiable instruments and other documents evidencing rights and obligations with respect to other parties that are issued or made by or on behalf of the authorized foreign bank.

  • 1991, c. 46, s. 531
  • 1996, c. 6, s. 10
  • 1997, c. 15, s. 87
  • 1999, c. 28, s. 35
  • 2007, c. 6, s. 78

Marginal note:Directing change of name

  •  (1) If through inadvertence or otherwise an order made under subsection 524(1) or 528(1.1) provides for the use of a name that is prohibited by section 530, the Superintendent may, by order, direct the authorized foreign bank to change the name without delay and the authorized foreign bank shall comply with that direction.

  • Marginal note:Revoking name

    (2) Where an authorized foreign bank does not comply with a direction under subsection (1) within sixty days after the service of the direction, the Superintendent may revoke the name and assign another name and, until changed in accordance with section 528, that other name is the name of the authorized foreign bank.

  • 1991, c. 46, s. 532
  • 1996, c. 6, s. 11
  • 1999, c. 28, s. 35
  • 2007, c. 6, s. 79(E)

 [Repealed, 1999, c. 28, s. 35]

Marginal note:Other name

  •  (1) Subject to section 531 and subsection (2), an authorized foreign bank may carry on business in Canada under a name other than the name set out in the order made under subsection 524(1) or 528(1.1).

  • Marginal note:Directions

    (2) Where an authorized foreign bank carries on business in Canada under a name other than the name set out in the order, the Superintendent may, by order, direct the authorized foreign bank not to use that other name if the Superintendent is of the opinion that the other name is a name referred to in any of paragraphs 530(1)(a) to (e).

  • 1991, c. 46, s. 533
  • 1999, c. 28, s. 35
  • 2007, c. 6, s. 80
 
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