Budget Implementation Act, 2009 (S.C. 2009, c. 2)

Orders to Exempt or Adapt

Marginal note:Order

• 459.9 (1) On the recommendation of the Minister, the Governor in Council may, by order,

  • (a) provide that any provision of this Act or the regulations shall not apply to an association, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and

  • (b) provide that any provision of this Act or the regulations applies to an association, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.

• Marginal note:Minister’s recommendation

  (2) The Minister may make a recommendation under subsection (1) only if the Minister

  • (a) is of the opinion that the order would relate to

    • (i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of an association by, or the transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or

    • (ii) the management of the business and affairs or the regulation and supervision of an association during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the association, or during the time that shares of the association are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and

  • (b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.

• Marginal note:Terms and conditions

  (3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of an association by, or transfer or issue of shares of an association to, Her Majesty in right of Canada or Her Majesty’s agent or agency.

• Marginal note:Repeal of order under subsection (1)

  (4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).

• Marginal note:Terms, conditions and undertakings

  (5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of an association to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the association that the Minister considers appropriate, including any terms and conditions or undertakings relating to

  • (a) the remuneration of the association’s senior officers, as defined in section 441.01, and directors;

  • (b) the appointment or removal of the association’s senior officers, as defined in section 441.01, and directors;

  • (c) the payment of dividends by the association; and

  • (d) the association’s lending policies and practices.

• Marginal note:Acquisition

  (6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of an association on behalf of or in trust for Her Majesty if an order is made under subsection (1).

• Marginal note:Payment out of C.R.F.

  (7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.

• Marginal note:Registration of shares

  (8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the association’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.

• Marginal note:Disposition by Minister

  (9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

• Marginal note:Disposition by agent or agency

  (10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

• Marginal note:Consideration by Minister

  (11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of an association on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.

• Marginal note:Mandatory disposition

  (12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.

• Marginal note:Statutory Instruments Act

  (13) The Statutory Instruments Act does not apply to an order made under this section.

• Definition of “shares”

  (14) For the purposes of this section, “shares” includes membership shares and any conversion or exchange privilege, option or right to acquire shares or membership shares.

“consumer provision”

« disposition visant les consomma­teurs »

“consumer provision” means

• (a) paragraphs 157(2)(e) and (f), section 413.1, subsection 418.1(3), sections 439.1 to 459.5, subsections 540(2) and (3) and 545(4) and (5), paragraphs 545(6)(b) and (c), subsection 552(3) and sections 559 to 576.2 of the Bank Act together with any regulations made under or for the purposes of those provisions;

• (b) paragraphs 167(2)(f) and (g), subsection 382.2(3) and sections 385.05 to 385.28 of the Cooperative Credit Associations Act together with any regulations made under or for the purposes of those provisions;

• (c) paragraphs 165(2)(f) and (g), subsection 469.1(3), sections 479 to 489.3, subsection 542.061(3) and sections 598 to 607.2 of the Insurance Companies Act together with any regulations made under or for the purposes of those provisions;

• (d) paragraphs 161(2)(e) and (f), subsection 418.1(3) and sections 425.1 to 444.3 of the Trust and Loan Companies Act together with any regulations made under or for the purposes of those provisions; and

• (e) subsection 469.1(3) as set out in paragraph 17(1)(f) of the Green Shield Canada Act and the provisions referred to in paragraph 17(1)(f.1) of that Act as they apply to Green Shield Canada in accordance with section 17 of that Act together with any regulations made under or for the purposes of those provisions.

• (i) Part XI, except sections 528.1 to 528.3, Parts XV and XVI, Part XVIII, except section 1016.7, and Part XIX.

• c) émettre des cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, exploiter un système de telles cartes.

Marginal note:Restriction on charges to borrowers

• 469.1 (1) Subject to any regulations made under subsection (2), a company that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the company of the insurance or guarantee.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations

  • (a) respecting the determination of the actual cost to a company for the purposes of subsection (1);

  • (b) respecting the circumstances in which a company is exempt from the application of subsection (1);

  • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a company in Canada on the security of residential property,

    • (i) the arrangements into which the company, its representatives and its employees may or may not enter, and

    • (ii) the payments or benefits that the company, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

  • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

• Marginal note:Regulations — disclosure

  (3) The Governor in Council may make regulations respecting the disclosure by a company of information relating to insurance or a guarantee against default on a loan made by the company in Canada on the security of residential property, including regulations respecting

  • (a) the information that must be disclosed, including information relating to

    • (i) the person who benefits from the insurance or guarantee,

    • (ii) the arrangements between the company, its representatives or its employees and the insurer or the insurer’s affiliates, and

    • (iii) the payments and benefits that the company, its representatives and its employees accept from an insurer or the insurer’s affiliates;

  • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

  • (c) the circumstances under which a company is not required to disclose information.