Marginal note:Insolvency

• 369. (1) In the case of the insolvency of a bank,

  • (a) the payment of any amount due to Her Majesty in right of Canada, in trust or otherwise, except indebtedness evidenced by subordinated indebtedness, shall be a first charge on the assets of the bank;

  • (b) the payment of any amount due to Her Majesty in right of a province, in trust or otherwise, except indebtedness evidenced by subordinated indebtedness, shall be a second charge on the assets of the bank;

  • (c) the payment of the deposit liabilities of the bank and all other liabilities of the bank, except the liabilities referred to in paragraphs (d) and (e), shall be a third charge on the assets of the bank;

  • (d) subordinated indebtedness of the bank and all other liabilities that by their terms rank equally with or subordinate to such subordinated indebtedness shall be a fourth charge on the assets of the bank; and

  • (e) the payment of any fines and penalties for which the bank is liable shall be a last charge on the assets of the bank.

• Marginal note:Priority not affected

  (2) Nothing in subsection (1) prejudices or affects the priority of any holder of any security interest in any property of a bank.

• Marginal note:Priorities

  (3) Priorities within each of paragraphs (1)(a) to (e) shall be determined in accordance with the laws governing priorities and, where applicable, by the terms of the indebtedness and liabilities referred to therein.

Marginal note:Definitions

• 370. (1) In this Part,

  “agent”

  « mandataire »

  “agent” means

  • (a) in relation to Her Majesty in right of Canada or of a province, any agent of Her Majesty in either of those rights and includes a municipal or public body empowered to perform a function of government in Canada or any entity empowered to perform a function or duty on behalf of Her Majesty in either of those rights, but does not include

    • (i) an official or entity performing a function or duty in connection with the administration or management of the estate or property of a natural person,

    • (ii) an official or entity performing a function or duty in connection with the administration, management or investment of a fund established to provide compensation, hospitalization, medical care, annuities, pensions or similar benefits to natural persons, or moneys derived from such a fund, or

    • (iii) the trustee of any trust for the administration of a fund to which Her Majesty in either of those rights contributes and of which an official or entity that is an agent of Her Majesty in either of those rights is a trustee, and

  • (b) in relation to the government of a foreign country or any political subdivision thereof, a person empowered to perform a function or duty on behalf of the government of the foreign country or political subdivision, other than a function or duty in connection with the administration or management of the estate or property of a natural person;

  “eligible Canadian financial institution”

  « institution financière canadienne admissible »

  “eligible Canadian financial institution” means a Canadian financial institution that is a body corporate and that is widely held;

  “eligible financial institution”

  « institution financière admissible »

  “eligible financial institution” means an eligible Canadian financial institution or an eligible foreign institution;

  “eligible foreign institution”

  « institution étrangère admissible »

  “eligible foreign institution” means

  • (a) a foreign bank that, in the opinion of the Minister, after consultation with the Superintendent, is regulated as or like a bank, according to the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business, or

  • (b) a foreign institution that, in the opinion of the Minister,

    • (i) is, with respect to its provision of financial services, regulated in the jurisdiction under whose laws it was incorporated or in any jurisdiction in which it carries on business, and

    • (ii) is widely held;

  “foreign institution”

  « institution étrangère »

  “foreign institution” means an entity that is

  • (a) engaged in the trust, loan or insurance business, the business of a cooperative credit society or the business of dealing in securities, and

  • (b) incorporated or formed otherwise than by or under an Act of Parliament or the legislature of a province.

• (2) to (4) [Repealed, 2001, c. 9, s. 96]