An Act respecting the Bank of CanadaBank of Canada ActBank of Canada201204
03
B-2PreambleWHEREAS it is desirable to establish a central bank in Canada to regulate credit and currency in the best interests of the economic life of the nation, to control and protect the external value of the national monetary unit and to mitigate by its influence fluctuations in the general level of production, trade, prices and employment, so far as may be possible within the scope of monetary action, and generally to promote the economic and financial welfare of Canada;THEREFORE, His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:SHORT TITLEShort titleThis Act may be cited as the Bank of Canada Act.
R.S., c. B-2, s. 1.
INTERPRETATIONDefinitionsIn this Act,authorized foreign bankbanque étrangère autoriséeauthorized foreign bank has the meaning assigned to that expression by section 2 of the Bank Act;BankBanqueBank means the Bank of Canada;bankbanquebank means a bank listed in Schedule I or II to the Bank Act;Board or Board of DirectorsconseilBoard or Board of Directors means the Board of Directors of the Bank;Deputy Governorsous-gouverneurDeputy Governor in sections 5, 6, 8, 13, 15, 30 and 31 means the Deputy Governor appointed under section 6;directoradministrateurdirector means a member of the Board of Directors other than the Governor or the Deputy Governor or the member acting by virtue of subsection 5(2);GovernorgouverneurGovernor means the Governor of the Bank or the person acting for the Governor pursuant to this Act;MinisterministreMinister means the Minister of Finance;notesbilletsnotes means notes intended for circulation in Canada.
R.S., 1985, c. B-2, s. 2;
1999, c. 28, s. 93;
2001, c. 9, s. 185.
CONSTITUTION OF THE BANKBank constitutedThere is hereby established a bank to be called the Bank of Canada.Body corporateThe Bank is a body corporate.
R.S., c. B-2, s. 3.
Head officeThe head office of the Bank shall be in the city of Ottawa.Branches and agenciesThe Bank may establish branches and agencies and appoint agents or mandataries in Canada and may also, with the approval of the Governor in Council, establish branches and appoint agents or mandataries elsewhere than in Canada.
R.S., 1985, c. B-2, s. 4;
2004, c. 25, s. 5(E).
Previous VersionMANAGEMENTBoard of DirectorsThe Bank shall be under the management of a Board of Directors composed of a Governor, a Deputy Governor and twelve directors appointed in accordance with this Act.Deputy Minister of Finance to be member of BoardIn addition to the members of the Board as constituted by subsection (1), the Deputy Minister of Finance or, if he or she is absent or unable to act or the office is vacant, such other officer of the Department of Finance as the Minister may nominate, is a member of the Board but does not have the right to vote.
R.S., 1985, c. B-2, s. 5;
2001, c. 9, s. 186(E).
Governor and Deputy GovernorThe Governor and Deputy Governor shall be appointed by the directors with the approval of the Governor in Council.QualificationsThe Governor and Deputy Governor shall be persons of proven financial experience and shall devote the whole of their time to the duties of their offices under this Act or any other Act of Parliament.Tenure and remunerationThe Governor and Deputy Governorshall each be appointed for a term of seven years during good behaviour;are eligible for re-appointment on the expiration of their terms of office; andsubject to the approval of the Governor in Council, shall be paid such salaries as the directors determine, but no such remuneration shall be in the form of a commission or be computed by reference to the income or profits of the Bank.DisqualificationsNo person is eligible to be appointed or to continue as Governor or Deputy Governor whois not a Canadian citizen;is a member of the Senate or House of Commons or a member of a provincial legislature;is employed in any capacity in the federal public administration or the public service of a province or holds any office or position for which any salary or other remuneration is payable out of public moneys; orexcept as authorized by or under any Act of Parliament, is a director, partner, officer, employee or shareholder ofa member of the Canadian Payments Association,a clearing house or participant, as defined in section 2 of the Payment Clearing and Settlement Act,an investment dealer that acts as a primary distributor of new Government of Canada securities, oran institution that controls or is controlled by an institution referred to in any of subparagraphs (i) to (iii).[Repealed, 2007, c. 6, s. 392]
R.S., 1985, c. B-2, s. 6;
1997, c. 15, s. 94;
2001, c. 9, s. 187;
2003, c. 22, s. 93(E);
2007, c. 6, s. 392.
Previous VersionAdditional Deputy GovernorsThe Board may appoint one or more additional Deputy Governors who shall perform such duties as are assigned to them by the Board.Not members of BoardA Deputy Governor appointed under this section is not a member of the Board.
R.S., c. B-2, s. 7.
Powers of GovernorThe Governor of the Bank is the chief executive officer of the Bank and on behalf of the Board has the direction and control of the business of the Bank with authority to act in connection with the conduct of the business of the Bank in all matters that are not by this Act or by the by-laws of the Bank specifically reserved to be done by the Board or by the Executive Committee.Absence, etc., of GovernorIf the Governor is absent or unable to act or the office is vacant, the Deputy Governor has all the powers and functions of the Governor.Absence, etc., of Governor and DeputyThe Board may authorize one of the directors or one of the persons appointed under section 7 to act as the Governor in the event that the Governor and Deputy Governor are absent or unable to act or the offices are vacant, but no such person has authority to act as Governor for a period exceeding one month without the approval of the Governor in Council.
R.S., 1985, c. B-2, s. 8;
2001, c. 9, s. 188.
DirectorsThe Minister, with the approval of the Governor in Council, shall appoint directors to hold office, during good behaviour, subject to removal by the Governor in Council at any time for cause, to replace the directors whose terms of office have expired. The term of a director begins on the day he or she is appointed and ends immediately before March 1 of the year that is three years after the year in which the term of office of the director’s predecessor expired.Continuation in officeIf, on the expiry of a director’s term of office, no new director is appointed, the director whose term of office expired may continue in office until a director is appointed under subsection (1).VacancyIf a person ceases to be a director during the term for which he or she was appointed, the Minister shall, with the approval of the Governor in Council, appoint a qualified person to hold office for the remainder of the term.VotesIn the transaction of the business of the Bank, each director has one vote.Re-appointmentA director on the expiration of the director’s term of office is eligible for re-appointment.
R.S., 1985, c. B-2, s. 9;
2001, c. 9, s. 189.
Selection of directorsThe directors shall be selected from various occupations.Ineligible personsNo person is eligible to be appointed or to continue as a director if the person is a director, a partner, an officer or an employee of any of the following institutions:a direct clearer as defined in the by-laws of the Canadian Payments Association;a clearing house of a clearing and settlement system designated under subsection 4(1) of the Payment Clearing and Settlement Act;a participant in the Large Value Transfer System, or its successor, operated by the Canadian Payments Association;an investment dealer that acts as a distributor of new Government of Canada securities; oran institution that controls, or is controlled by, an institution referred to in any of paragraphs (a) to (d).ControlFor the purpose of paragraph (2)(e),an institution controls a body corporate if securities of the body corporate to which are attached more than fifty per cent of the votes that may be cast to elect directors of the body corporate are beneficially owned by the institution and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate;an institution controls a trust, fund or partnership (other than a limited partnership) or an unincorporated association or organization, if more than fifty per cent of the ownership interests, however designated, into which the trust, fund, partnership, association or organization is divided are beneficially owned by the institution and the institution is able to direct the business and affairs of the trust, fund, partnership, association or organization; andthe general partner of a limited partnership controls the limited partnership.Restriction on share ownershipAny person who beneficially owns a share in an institution referred to in any of paragraphs (2)(a) to (e) at the time of being appointed director of the Bank shall dispose of that beneficial ownership interest within three months after the appointment. A director of the Bank shall not otherwise beneficially own a share of an institution referred to in any of those paragraphs.DisqualificationsNo person is eligible to be appointed or to continue as director whois not a Canadian citizen ordinarily resident in Canada; oris employed, on a full-time basis, in any capacity in the federal public administration or the public service of a province or holds any office or position, other than as a part-time member of any board or advisory body of an agency or department of the government of Canada or a province, for which any salary or other remuneration is payable out of public moneys, except that a director may perform temporary services for the government of Canada or a province for which that director may be reimbursed actual travel and living expenses.[Repealed, 2007, c. 6, s. 393][Repealed, 2001, c. 9, s. 190]
R.S., 1985, c. B-2, s. 10;
1992, c. 1, s. 142;
1997, c. 15, s. 95;
1999, c. 28, s. 94;
2001, c. 9, s. 190;
2003, c. 22, s. 94(E);
2007, c. 6, s. 393.
Previous VersionDisclosure of conflictA director shall disclose to the Bank, in writing or by requesting to have it entered in the minutes of a meeting of the Board, the nature and extent of the director’s interest if the directoris a party to a material contract or transaction, or proposed material contract or transaction, with the Bank;is a director or an officer of, or has a material interest in, any person who is a party to a material contract or transaction, or proposed material contract or transaction, with the Bank;is or is likely to be materially affected by any action taken or proposed to be taken by the Bank or the Governor under the Payment Clearing and Settlement Act; oris a director or an officer of, or has a material interest in, any person who is or is likely to be materially affected by any action taken or proposed to be taken by the Bank or the Governor under the Payment Clearing and Settlement Act.Time of disclosureThe disclosure shall be made as soon as the director becomes aware of the contract, transaction or action.Restriction on votingA director who is required to make a disclosure shall not vote on any resolution to approve the contract, transaction or action, unless it relates to directors’ fees.Continuing disclosureFor the purpose of this section, a general notice to the Board by a director, declaring that he or she is a director or officer of or has a material interest in a person, and that he or she is to be regarded as interested in a contract or transaction entered into with that person or an action that affects that person, is a sufficient declaration of interest in relation to a contract or transaction with that person or action that affects that person.
2001, c. 9, s. 191.
Directors’ feesThe directors are entitled to receive for attendance at directors’ meetings and Executive Committee meetings such fees as may be fixed by the by-laws of the Bank.
R.S., c. B-2, s. 11;
1980-81-82-83, c. 40, s. 46.
ChairThe Governor is Chair of the Board of Directors.
R.S., 1985, c. B-2, s. 12;
2001, c. 9, s. 192(E).
EXECUTIVE COMMITTEEConstitution of Executive CommitteeThere shall be an Executive Committee of the Board consisting of the Governor, the Deputy Governor and not less than two or more than four directors selected by the Board.Deputy Minister of Finance to be member of Executive CommitteeIn addition to the members of the Executive Committee as constituted by subsection (1), the person who is a member of the Board by virtue of subsection 5(2) is a member of the Executive Committee, but that person does not have the right to vote.Powers of Executive CommitteeThe Executive Committee is competent to deal with any matter within the competence of the Board and shall keep minutes of its proceedings, which shall be submitted to the Board at its next meeting.
R.S., c. B-2, s. 13;
1980-81-82-83, c. 40, s. 47.
GOVERNMENT DIRECTIVEConsultationsThe Minister and the Governor shall consult regularly on monetary policy and on its relation to general economic policy.Minister’s directiveIf, notwithstanding the consultations provided for in subsection (1), there should emerge a difference of opinion between the Minister and the Bank concerning the monetary policy to be followed, the Minister may, after consultation with the Governor and with the approval of the Governor in Council, give to the Governor a written directive concerning monetary policy, in specific terms and applicable for a specified period, and the Bank shall comply with that directive.Publication and reportA directive given under this section shall be published forthwith in the Canada Gazette and shall be laid before Parliament within fifteen days after the giving thereof, or, if Parliament is not then sitting, on any of the first fifteen days next thereafter that either House of Parliament is sitting.
R.S., c. B-2, s. 14.
BANK STAFFOfficers and employeesSuch officers and employees may be employed as in the opinion of the Executive Committee may be necessary.Pension fundThe Board may by by-law establish a pension fund for the officers and employees of the Bank and their dependants and may contribute to it out of the funds of the Bank. The pension fund shall be invested in such manner as may be provided by the by-laws of the Bank.By-laws respecting Governor and Deputy GovernorA by-law made under subsection (2) that provides for or relates to the payment of a pension in respect of the retirement of the Governor or Deputy Governor otherwise than by reason of age or disability does not take effect unless it is approved by the Governor in Council.
R.S., 1985, c. B-2, s. 15;
1997, c. 15, s. 96(E).
SECRECYOath of directors and staffBefore a person starts to act as a director, an officer or an employee of the Bank, he or she shall take an oath, or make a solemn affirmation, of fidelity and secrecy, in the form set out in the schedule, before a commissioner for taking affidavits.
R.S., 1985, c. B-2, s. 16;
1997, c. 15, s. 97;
2001, c. 9, s. 193.
CAPITAL AND SHARESCapitalThe capital of the Bank shall be five million dollars but may be increased from time to time pursuant to a resolution passed by the Board of Directors and approved by the Governor in Council and by Parliament.SharesThe capital shall be divided into one hundred thousand shares of the par value of fifty dollars each, which shall be issued to the Minister to be held by the Minister on behalf of Her Majesty in right of Canada.RegistrationThe shares issued to the Minister shall be registered by the Bank in the name of the Minister in the books of the Bank at Ottawa.
R.S., c. B-2, s. 17.
BUSINESS AND POWERS OF THE BANKPowers and businessThe Bank maybuy and sell gold, silver, nickel and bronze coin or any other coin and gold and silver bullion;buy and sell foreign currencies and maintain deposit accounts with banks or foreign banks, either in or outside Canada, to facilitate such operations;buy and sell securities issued or guaranteed by Canada or any province;buy and sell securities issued or guaranteed by the Government of the United States of America or Japan or the government of a country in the European Union;[Repealed, 2001, c. 9, s. 194]buy and sell special drawing rights issued by the International Monetary Fund;for the purposes of conducting monetary policy or promoting the stability of the Canadian financial system,buy and sell from or to any person securities and any other financial instruments — other than instruments that evidence an ownership interest or right in or to an entity — that comply with the policy established by the Governor under subsection 18.1(1), andif the Governor is of the opinion that there is a severe and unusual stress on a financial market or the financial system, buy and sell from or to any person any securities and any other financial instruments, to the extent determined necessary by the Governor;[Repealed, 2008, c. 28, s. 146]make loans or advances for periods not exceeding six months to members of the Canadian Payments Association on taking security in any property that the institution to which the loan or advance is made is authorized to hold;make loans or advances for periods not exceeding six months to the Government of Canada or the government of a province on taking security in readily marketable securities issued or guaranteed by Canada or any province;make loans to the Government of Canada or the government of any province, but such loans outstanding at any one time shall not, in the case of the Government of Canada, exceed one-third of the estimated revenue of the Government of Canada for its fiscal year, and shall not, in the case of a provincial government, exceed one-fourth of that government’s estimated revenue for its fiscal year, and such loans shall be repaid before the end of the first quarter after the end of the fiscal year of the government that has contracted the loan;[Repealed, 2008, c. 28, s. 146]accept deposits from the Government of Canada and pay interest on those deposits;accept deposits from any bank, authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act or other member of the Canadian Payments Association;pay interest on the deposits referred to in paragraph (l.1) if the money deposited is to be used for the purpose of making loans or advances referred to in paragraph (h);accept deposits from the government of any province or from any corporation or agency of the Government of Canada;open accounts in a central bank in any other country or in the Bank for International Settlements, accept deposits from central banks in other countries, the Bank for International Settlements, the International Monetary Fund, the International Bank for Reconstruction and Development and any other official international financial organization, act as agent or mandatary, or depository or correspondent for any of those banks or organizations, and pay interest on any of those deposits;acquire, hold, lease or dispose of real property or immovables;accept deposits of money that are authorized or required by an Act of Parliament to be transferred to the Bank, and, in accordance with that Act, pay interest on money so deposited and pay out money to any person entitled to it under that Act; andcarry on any business activity that is incidental to or consequential on something the Bank is allowed or required to do by this Act.
R.S., 1985, c. B-2, s. 18;
1992, c. 1, s. 142;
1997, c. 15, s. 98;
1999, c. 28, s. 95;
2001, c. 4, s. 58, c. 9, s. 194;
2004, c. 25, s. 6(E);
2008, c. 28, s. 146.
Previous VersionPolicy established by GovernorThe Governor shall establish a policy for the purposes of subparagraph 18(g)(i).PublicationThe Bank shall publish the policy and any amendment to it in the Canada Gazette and the policy or the amendment comes into force seven days after the day on which the Bank publishes it or on any later day specified by the Governor.
2008, c. 28, s. 147.
PublicationIf the Bank takes any action under subparagraph 18(g)(ii), the Bank shall cause a notice to be published in the Canada Gazette that the Governor has formed an opinion that there is a severe and unusual stress on a financial market or the financial system. The notice is to be published as soon as the Governor is of the opinion that its publication will not materially contribute to the stress to which the notice relates.
R.S., 1985, c. B-2, s. 19;
1991, c. 46, s. 581;
1997, c. 15, s. 99;
2001, c. 9, s. 195;
2008, c. 28, s. 147.
Previous VersionAcquisition of collateral securitiesThe Bank mayacquire from any bank or authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act and hold any property held by the bank or authorized foreign bank as security under Part VIII of the Bank Act; andexercise every right and remedy in respect of any security acquired under paragraph (a) that could have been exercised by the bank or authorized foreign bank.
R.S., 1985, c. B-2, s. 20;
1992, c. 1, s. 142;
1999, c. 28, s. 96;
2001, c. 9, s. 195.
Publication of minimum interest rates on loansThe Bank shall at all times make public the minimum rate at which it is prepared to make loans or advances.
R.S., c. B-2, s. 18.
Time limit for unpaid debtsThe Bank is not liable in respect of any unpaid debt in respect of which a federal financial institution has made a payment to the Bank under the relevant Act in respect of the federal financial institution ifthe amount paid to the Bank was less than $1,000; andat least 40 years have gone by since the later ofthe last time a transaction took place on the books of the federal financial institution in respect of the unpaid debt, andthe last time a statement of account was requested of or acknowledged to the federal financial institution by the former creditor in respect of the unpaid debt.Time limit for instrumentsThe Bank is not liable in respect of any instrument in respect of which a federal financial institution has made a payment to the Bank under the relevant Act in respect of the federal financial institution ifthe amount paid to the Bank was less than $1,000; andno payment has been made in respect of the instrument for at least 40 years after the day the instrument was issued or accepted.Time limit for liquidation claimsThe Bank is not liable in respect of any claim against a liquidator in respect of the winding-up of a federal financial institution ifthe amount of the claim has been paid to the Minister and by the Minister to the Bank under the relevant Act in respect of the federal financial institution;the amount paid to the Bank was less than $1,000; andat least 40 years have gone by since the later ofthe last time a transaction took place on the books of the federal financial institution in respect of the subject-matter of the claim, andthe last time a statement of account was requested of or acknowledged to the federal financial institution by the former creditor in respect of the subject-matter of the claim.Limitation of Bank’s liabilityThe Bank is not liable in respect of a debt referred to in subsection (1), an instrument referred to in subsection (1.1) or a claim referred to in subsection (1.2) if the amount paid to the Bank in respect of the debt, instrument or claim was $1,000 or more and at least 100 years have gone by since the payment was made to the Bank.ApplicationFor greater certainty, subsections (1) to (1.3) also apply in respect of amounts paid to the Bank before the coming into force of this subsection.No liability where claims paidThe Bank is not liable in respect ofany unpaid debt or any instrument in respect of which a federal financial institution has paid an amount to the Bank in accordance with the relevant Act in respect of the federal financial institution, orany claim against a liquidator in respect of the winding-up of a federal financial institution the amount of which claim has been paid to the Minister and by the Minister to the Bank under the relevant Act in respect of the federal financial institution,where an amount equal to the amount so paid has been paid by the Bank to the creditor in accordance with the relevant Act in respect of the federal financial institution or to the Receiver General under subsection (3).Amounts to be paid to Receiver GeneralAn amount equal to the amount paid to the Bank in respect of a debt, instrument or claim referred to in subsection (1) shall, within two months after the end of the calendar year in which the applicable twenty year period expired, be paid by the Bank without interest to the Receiver General and the Bank may destroy all records relating to the debt, instrument or claim.Amounts part of C.R.F.Any amount paid by the Bank to the Receiver General under subsection (3) shall form part of the Consolidated Revenue Fund.DefinitionsFor the purposes of this section,federal financial institutioninstitution financière fédéralefederal financial institution means a bank, an authorized foreign bank, a company to which the Trust and Loan Companies Act applies or an association to which the Cooperative Credit Associations Act applies;relevant Actloi pertinenterelevant Act in respect of a federal financial institution meansin the case of a bank or authorized foreign bank, the Bank Act,[Repealed, 1999, c. 28, s. 97]in the case of a company to which the Trust and Loan Companies Act applies, that Act, andin the case of an association to which the Cooperative Credit Associations Act applies, that Act.
R.S., 1985, c. B-2, s. 22;
1991, c. 46, ss. 582, 583, c. 48, s. 494;
1997, c. 15, s. 100;
1999, c. 28, s. 97;
2001, c. 9, s. 196;
2007, c. 6, s. 394.
Previous VersionInspectionThe Bank may require that the Superintendent of Financial Institutions perform, for a specified purpose, an inspection of any financial institution within the meaning of the Office of the Superintendent of Financial Institutions Act.CostsWhere an inspection is made under subsection (1), such costs incurred in relation thereto as in the opinion of the Superintendent of Financial Institutions are extraordinary shall be borne by the Bank.
R.S., 1985, c. 18 (3rd Supp.), s. 85.
Prohibited businessThe Bank shall not, except as authorized by this Act,engage or have a direct interest in any trade or business whatever;purchase, or make loans on the security of, its own shares or the shares of any bank, except the Bank for International Settlements;lend or make advances on the security of any real property or immovable, except that, in the event of any claims of the Bank being in the opinion of the Board endangered, the Bank may secure itself on any real property, or obtain security on any immovable, of the debtor or any other person liable and may acquire that property, which shall be resold as practicable after the acquisition;make loans or advances without security;pay interest on any money deposited with the Bank; orallow the renewal of maturing bills of exchange, promissory notes or other similar documents purchased or discounted by or pledged to the Bank, except that the Board may make regulations authorizing in special circumstances not more than one renewal of any such bill of exchange, promissory note or other document.
R.S., 1985, c. B-2, s. 23;
1997, c. 15, s. 101(E);
2001, c. 4, s. 59.
Fiscal agent of Canadian GovernmentThe Bank shall act as fiscal agent of the Government of Canada.Charge for actingWith the consent of the Minister, the Bank may charge for acting as fiscal agent of the Government of Canada.To manage public debtThe Bank, if and when required by the Minister to do so, shall act as agent for the Government of Canada in the payment of interest and principal and generally in respect of the management of the public debt of Canada.Canadian Government cheques to be paid or negotiated at parThe Bank shall not make any charge for cashing or negotiating a cheque drawn on the Receiver General or on the account of the Receiver General, or for cashing or negotiating any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund, or on a cheque drawn in favour of the Government of Canada or any of its departments and tendered for deposit in the Consolidated Revenue Fund.
R.S., 1985, c. B-2, s. 24;
1997, c. 15, s. 102;
2001, c. 9, s. 197.
Definition of “financial institution”In this section, financial institution has the same meaning as in section 3 of the Office of the Superintendent of Financial Institutions Act.Information requirementA financial institution shall provide the Bank with such information as the Bank may require, at such times and in such form as the Bank may require.LimitationA financial institution shall not be required under subsection (2) to provide the Bank with information about the accounts or affairs of any particular person.
1997, c. 15, s. 103.
NOTE ISSUESole right of note issueThe Bank has the sole right to issue notes and those notes shall be a first charge on the assets of the Bank.Arrangements for issueIt is the duty of the Bank to make adequate arrangements for the issue of its notes in Canada and to supply those notes as required for circulation in Canada.DenominationsNotes of the Bank shall be in such denominations and shall be printed and signed or otherwise executed as the Governor in Council by regulation determines.Form and materialThe form and material of the notes of the Bank shall be subject to approval by the Minister, but each note shall be printed in both the English and French languages.Notes previously printedNotwithstanding anything contained in this section, each note of the Bank printed before June 23, 1936, whether issued before, on or after that date, is a valid and binding obligation of the Bank.DistinctionNotes of the Bank are neither promissory notes nor bills of exchange within the meaning of the Bills of Exchange Act.
R.S., 1985, c. B-2, s. 25;
2001, c. 9, s. 198.
REDEMPTION OF NOTES OTHER THAN THOSE OF THE BANKLiability for notesThe Bank is responsible for the redemption of notes payable to bearer on demand that were issued and outstanding on March 11, 1935 and immediately prior to that day constituted a direct liability of Canada, and such notes are and continue to be legal tender.IdemThe Bank is responsible for the redemption of notes of the Canadian banks listed in Schedule R of the Bank Act, chapter B-1 of the Revised Statutes of Canada, 1970, that were issued prior to January 1, 1950 and intended for circulation in Canada.
R.S., c. B-2, s. 22;
1980-81-82-83, c. 40, s. 50.
RESERVE FUNDSReserve fundThe Bank shall establish a reserve fund and, after making the provision that the Board thinks proper for bad and doubtful debts, depreciation in assets, pension funds and all other matters that are properly provided for by banks, the ascertained surplus available from the operations of the Bank during each financial year is to be applied by the Board as follows:if the Bank’s reserve fund is less than the paid-up capital, one third of the surplus is to be allocated to the reserve fund, and the residue is to be paid to the Receiver General and form part of the Consolidated Revenue Fund;if the reserve fund is not less than the paid-up capital, one fifth of the surplus is to be allocated to the reserve fund until the reserve fund reaches an amount five times the paid-up capital, and the residue is to be paid to the Receiver General and form part of the Consolidated Revenue Fund; andif the reserve fund is not less than five times the paid-up capital, the whole of the surplus is to be paid to the Receiver General and form part of the Consolidated Revenue Fund.
R.S., 1985, c. B-2, s. 27;
2007, c. 6, s. 395(E).
Previous VersionSpecial reserve fund — unrealized valuation lossesDespite section 27, the Bank may establish a special reserve fund and may, pursuant to a resolution passed by the Board, allocate to the fund out of the ascertained surplus available from the operations of the Bank during each financial year an amount to offset unrealized valuation losses due to changes in the fair value of the investment portfolio of the Bank.MaximumThe amount that may be held in the fund shall not be more than $400,000,000 at any time.
2007, c. 6, s. 396.
AUDITAppointment of auditorsThe Governor in Council shall, on the recommendation of the Minister, appoint two firms of accountants eligible to be appointed as auditors of a bank to audit the affairs of the Bank.Term of officeEvery firm of accountants appointed after November 30, 1980 shall be appointed to perform annual audits for the five fiscal years following the year of its appointment except that one of the first two firms of accountants appointed after November 30, 1980 shall be appointed to perform annual audits for the three years following the year of its appointment.VacanciesWhere any vacancy occurs in the office of auditor of the Bank, notice thereof shall forthwith be given by the Bank to the Minister who thereupon shall appoint some other firm of accountants eligible to be appointed under this section to audit the affairs of the Bank for the balance of the term of the firm of accountants so replaced.Persons who may not actNo firm of accountants of which a director is a member is eligible for appointment as an auditor and no auditor of the Bank is eligible for appointment for a second successive term.Reports to MinisterThe Minister may from time to time require the auditors to report to the Minister on the adequacy of the procedure adopted by the Bank for the protection of its creditors or shareholders and the sufficiency of their own procedure in auditing the affairs of the Bank, and the Minister may, at his discretion, enlarge or extend the scope of the audit or direct that any other procedure be established or that any other examination be made by the auditors as the public interest may seem to require.Copies of reports to be sent to MinisterA copy of every report made by the auditors to the Bank under this section shall be transmitted to the Minister by the auditors at the same time as that report is transmitted to the Bank.
R.S., c. B-2, s. 24;
1980-81-82-83, c. 40, s. 51.
RETURNSWeekly financial informationThe Bank shall, on a weekly basis, post on its websites financial information about its assets and liabilities.Monthly balance sheetThe Bank shall, as soon as practicable after the last business day of each month, make up and transmit to the Minister its balance sheet as at the close of business on that day. The balance sheet shall set out information regarding the Bank’s investments in securities issued or guaranteed by the Government of Canada.Publication of balance sheetsA copy of each balance sheet made under subsection (2) must be published in the issue of the Canada Gazette next following its transmission to the Minister.
R.S., 1985, c. B-2, s. 29;
1997, c. 15, s. 104;
2001, c. 9, s. 199;
2007, c. 6, s. 397.
Previous VersionFiscal yearThe fiscal year of the Bank shall be the calendar year.Financial statements to MinisterWithin two months after the end of each financial year, the Bank shall send to the Minister its audited financial statements for the financial year, in the form prescribed by the by-laws of the Bank.Signing of statementsThe financial statements must be signed by the Governor or the Deputy Governor and the Chief Accountant or Acting Chief Accountant of the Bank.Other informationThe financial statements must be accompanied by any summary or report by the Governor that the Governor considers desirable or that is required by the Minister. A copy of the signed and audited financial statements must without delay be published in the Canada Gazette.Report to ParliamentThe Minister shall lay the copy of the accounts and Governor’s report mentioned in subsection (2) before Parliament on any of the first twenty-one days that either House of Parliament is sitting after the Minister receives it.
R.S., 1985, c. B-2, s. 30;
1997, c. 15, s. 105.
LIABILITYNo liability if in good faithNo action lies against Her Majesty, the Minister, any officer, employee or director of the Bank or any person acting under the direction of the Governor for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed.
2001, c. 9, s. 200.
OFFENCES AND PUNISHMENTHolding office when ineligibleEvery person who holds office or continues to hold office as the Governor or as a Deputy Governor or director of the Bank, knowing that he or she is not eligible for that office, is guilty of an offence and liable on summary conviction to a fine of not more than one hundred thousand dollars or to imprisonment for a term of not more than six months or to both.
R.S., 1985, c. B-2, s. 31;
2001, c. 9, s. 201.
Verifying false statement, account or listEvery director, officer or auditor of the Bank who verifies any statement, account or list required to be furnished to the Minister pursuant to this Act, or who has to do with the delivering or transmitting of that statement, account or list to the Minister, knowing it to be false in any material particular, is guilty of an offence and liable on summary conviction to a fine of not more than one hundred thousand dollars or to imprisonment for a term of not more than six months or to both.
R.S., 1985, c. B-2, s. 32;
2001, c. 9, s. 201.
Contravention of ActAny officer of the Bank or any officer of a bank or any other person who fails or omits to comply with any provision of this Act is guilty of an offence and, unless otherwise provided by this Act, liable on summary conviction to a fine of not more than one hundred thousand dollars or to imprisonment for a term of not more than six months or to both.
R.S., 1985, c. B-2, s. 33;
2001, c. 9, s. 201.
LIQUIDATION OR WINDING-UPInsolvency and winding-upNo statute relating to the insolvency or winding-up of any corporation applies to the Bank and in no case shall the affairs of the Bank be wound up unless Parliament so provides, but if provision is made for winding up the Bank the notes of the Bank outstanding are the first charge on the assets.
R.S., c. B-2, s. 30.
BY-LAWSBy-lawsThe Board, with the approval of the Governor in Council, may make by-laws with respect tothe calling of meetings of the Board and of the Executive Committee and what number of persons shall constitute a quorum in each case, and how questions considered at those meetings shall be determined;the fees of directors;the duties and conduct of officers and employees of the Bank;the form of the annual statement of accounts; andgenerally, the management and disposition of the stock, property and undertakings of the Bank.PublicationEvery by-law and every amendment or repeal thereof shall take effect when published in the Canada Gazette.
R.S., 1985, c. B-2, s. 35;
1997, c. 15, s. 106(E);
2001, c. 4, s. 60(F).
(Section 16)OATH OR SOLEMN AFFIRMATION OF OFFICEI, ..............., do solemnly swear (or affirm) that I will faithfully and to the best of my judgment and ability perform the duties that relate to any office or position in the Bank held by me.I also solemnly swear (or affirm) that I will notcommunicate or allow to be communicated, to any person not entitled to it, any confidential information that relates to the business or affairs of the Bank that I may learn in the course of performing those duties;use any such information for any purpose other than to perform those duties; orallow any person to inspect or have access to any books and records that belong to or that are in the possession of the Bank and that relate to the business or affairs of the Bank, unless the person is legally entitled to inspect them or to have access to them.
R.S., 1985, c. B-2, Sch. I;
1997, c. 15, s. 107;
2001, c. 9, s. 202.
[Repealed, 2001, c. 9, s. 202]AMENDMENTS NOT IN FORCE
— 2010, c. 12, s. 2110Section 6 of the Bank of Canada Act is amended by adding the following after subsection (4):Prohibitions — federal credit unionNeither the Governor nor the Deputy Governor shalldirectly or indirectly hold any interest or right in membership shares of a federal credit union, within the meaning of section 2 of the Bank Act, in excess of the minimum number of membership shares of the federal credit union that is required for membership; orexercise any right he or she has as a member of such a federal credit union, except any right that he or she has as a customer of the federal credit union.
— 2010, c. 12, s. 2111Section 10 of the Act is amended by adding the following after subsection (3):Restriction — membership shares of federal credit unionIf a federal credit union is an institution referred to in any of paragraph (2)(a) to (e), any person who, at the time of being appointed director of the Bank, directly or indirectly holds any interest or right in more than the minimum number of membership shares of the federal credit union, within the meaning of section 2 of the Bank Act, that is required for membership shall, within three months after the appointment, dispose of all membership shares that exceed that minimum number.Restriction — rights of membersIf a federal credit union is an institution referred to in any of paragraph (2)(a) to (e), no director of the Bank who is a member of a federal credit union, within the meaning of section 2 of the Bank Act, shall exercise any right that the director has as a member of the federal credit union, except any right that the director has as a customer of the federal credit union.
— 2010, c. 12, s. 21121997, c. 15, s. 101(E)Paragraph 23(b) of the Act is replaced by the following:purchase, or make loans on the security of, its own shares or the shares or membership shares of any bank, except the Bank for International Settlements;
— 2012, c. 5, s. 1832007, c. 6, s. 394Subsection 22(1.3) of the Bank of Canada Act is replaced by the following:Time limit for returned paymentsThe Bank is not liable in respect of any returned payment as defined in section 2 of the Canada Deposit Insurance Corporation Act in respect of which the Canada Deposit Insurance Corporation has made a payment to the Bank under subsection 14.01(1) of that Act ifthe amount paid to the Bank was less than $1,000; andat least 40 years have gone by since the applicable date referred to in subsection 14(2.9) of that Act.Limitation of Bank’s liabilityThe Bank is not liable in respect of a debt referred to in subsection (1), an instrument referred to in subsection (1.1), a claim referred to in subsection (1.2) or a returned payment referred to in subsection (1.21) if the amount paid to the Bank in respect of the debt, instrument, claim or returned payment was $1,000 or more and at least 100 years have gone by since the payment was made to the Bank.1991, c. 46, s. 582Subsection 22(3) of the Act is replaced by the following:No liability where claims paid — returned paymentsThe Bank is not liable in respect of any returned payment as defined in section 2 of the Canada Deposit Insurance Corporation Act in respect of which the Canada Deposit Insurance Corporation has paid an amount to the Bank under subsection 14.01(1) of that Act if an amount equal to the amount so paid has been paid by the Bank to a claimant under subsection 14.01(4) of that Act or to the Receiver General under subsection (3).Amounts to be paid to Receiver GeneralAn amount equal to the amount paid to the Bank in respect of a debt referred to in subsection (1), an instrument referred to in subsection (1.1), a claim referred to in subsection (1.2) or a returned payment referred to in subsection (1.21) shall, within two months after the end of the calendar year in which the applicable 40-year period expired, be paid by the Bank without interest to the Receiver General and the Bank may destroy all records relating to the debt, instrument, claim or returned payment.
— 2012, c. 5, s. 1842001, c. 9, s. 199; 2007, c. 6, s. 397Section 29 of the Act is replaced by the following:Weekly financial informationThe Bank shall, as soon as practicable after the last business day of each week, post on its website financial information about its assets and liabilities.Monthly balance sheetThe Bank shall, as soon as practicable after the last business day of each month, post on its website its balance sheet as at the close of business on that day. The balance sheet shall set out information regarding the Bank’s investments in securities issued or guaranteed by the Government of Canada.