Bank Act (S.C. 1991, c. 46)

Act current to 2014-10-15 and last amended on 2014-06-19. Previous Versions

Marginal note:Cessation of business and powers
  •  (1) Where a court makes an order for the liquidation of a bank,

    • (a) the bank continues in existence but shall cease to carry on business, except the business that is, in the opinion of the liquidator, required for an orderly liquidation; and

    • (b) the powers of the directors, shareholders and members are vested in the liquidator and cease to be vested in the directors, shareholders and members, except as specifically authorized by the court.

  • Marginal note:Delegation by liquidator

    (2) A liquidator may delegate any of the powers vested by paragraph (1)(b) to the directors, shareholders or members, if any.

  • 1991, c. 46, s. 350;
  • 2010, c. 12, s. 2041.
Marginal note:Appointment of liquidator

 When making an order for the liquidation of a bank, or at any later time, the court may appoint any person, including a director, an officer, a shareholder or a member of the bank or any other bank, as liquidator of the bank.

  • 1991, c. 46, s. 351;
  • 2010, c. 12, s. 2042.
Marginal note:Vacancy in liquidator’s office

 Where an order for the liquidation of a bank has been made and the office of liquidator is or becomes vacant, the property of the bank is under the control of the court until the office of liquidator is filled.

Marginal note:Duties of liquidator
  •  (1) A liquidator shall

    • (a) forthwith after appointment give notice thereof to the Superintendent and to each claimant and creditor of the bank known to the liquidator;

    • (b) forthwith after appointment publish notice thereof once a week for four consecutive weeks in the Canada Gazette and once a week for two consecutive weeks in one or more newspapers in general circulation in each province in which the bank has transacted any business within the preceding twelve months, requiring

      • (i) any person indebted to the bank to render an account and pay to the liquidator at the time and place specified in the notice any amount owing,

      • (ii) any person possessing property of the bank to deliver it to the liquidator at the time and place specified in the notice, and

      • (iii) any person having a claim against the bank, whether liquidated, unliquidated, future or contingent, to present particulars thereof in writing to the liquidator not later than sixty days after the first publication of the notice;

    • (c) take into custody and control the property of the bank;

    • (d) open and maintain a trust account for the moneys received by the liquidator in the course of the liquidation of the bank;

    • (e) keep accounts of the moneys received and paid out by the liquidator in the course of the liquidation of the bank;

    • (f) maintain separate lists of members and of each class of creditors, shareholders and other persons having claims against the bank;

    • (g) if at any time the liquidator determines that the bank is unable to pay or adequately provide for the discharge of its obligations, apply to the court for directions;

    • (h) deliver to the court and to the Superintendent, at least once in every twelve month period after the liquidator’s appointment or more often as the court requires, the annual statement of the bank prepared in accordance with subsection 308(1) or prepared in such manner as the liquidator thinks proper or as the court requires; and

    • (i) after the final accounts are approved by the court, distribute any remaining property of the bank among the shareholders, incorporators or members, according to their respective rights.

  • Marginal note:Powers of liquidator

    (2) A liquidator may

    • (a) retain lawyers, notaries, accountants, appraisers and other professional advisers;

    • (b) bring, defend or take part in any civil, criminal or administrative action or proceeding in the name and on behalf of the bank;

    • (c) carry on the business of the bank as required for an orderly liquidation;

    • (d) sell by public auction or private sale any property of the bank;

    • (e) do all acts and execute documents in the name and on behalf of the bank;

    • (f) borrow money on the security of the property of the bank;

    • (g) settle or compromise any claims by or against the bank; and

    • (h) do all other things necessary for the liquidation of the bank and distribution of its property.

  • 1991, c. 46, s. 353;
  • 2010, c. 12, s. 2043.