Bank Act (S.C. 1991, c. 46)

Act current to 2014-04-02 and last amended on 2014-03-29. Previous Versions

Marginal note:Effects of continuance
  •  (1) Where a body corporate is continued as a bank under this Part,

    • (a) the property of the body corporate continues to be the property of the bank;

    • (b) the bank continues to be liable for the obligations of the body corporate;

    • (c) an existing cause of action or claim by or against the body corporate or any liability of the body corporate to prosecution is unaffected;

    • (d) a civil, criminal or administrative action or proceeding pending by or against the body corporate may continue to be prosecuted by or against the bank;

    • (e) a conviction against, or any ruling, order or judgment in favour of or against the body corporate may be enforced by or against the bank;

    • (f) a person who, on the day the body corporate becomes a bank, was the holder of a security issued by the body corporate is not deprived of any right or privilege available to the person at that time in respect of the security or relieved of any liability in respect thereof, but any such right or privilege may be exercised only in accordance with this Act; and

    • (g) the by-laws of the body corporate, except those that are in conflict with this Act, continue as the by-laws of the bank.

  • Marginal note:Membership shares

    (2) In addition, if the body corporate is continued as a federal credit union,

    • (a) in the case of a body corporate with common shares,

      • (i) its common shares are deemed to be membership shares to which are attached the rights, privileges and restrictions set out in this Act,

      • (ii) the holders of those common shares are deemed to be the members of the federal credit union, and

      • (iii) any agreement made before continuance under which the holders of any common shares of the body corporate have agreed to vote those shares in a manner provided in the agreement is of no effect; and

    • (b) in the case of a body corporate that has members,

      • (i) the membership shares, however designated, of the body corporate are deemed to be membership shares of the federal credit union to which are attached the rights, privileges and restrictions set out in this Act,

      • (ii) the members of the body corporate are deemed to be the members of the federal credit union, and

      • (iii) any agreement made before continuance under which the members of the body corporate have agreed to vote in a manner provided in the agreement is of no effect.

  • 1991, c. 46, s. 38;
  • 2010, c. 12, s. 1913.
Marginal note:Transitional
  •  (1) Notwithstanding any other provision of this Act or the regulations, the Minister may, on the recommendation of the Superintendent, by order, grant to a bank in respect of which letters patent were issued under subsection 35(1) permission to

    • (a) engage in a business activity specified in the order that a bank is not otherwise permitted by this Act to engage in and that the body corporate continued as the bank was engaging in at the time the application for the letters patent was made;

    • (b) continue to have issued and outstanding debt obligations the issue of which is not authorized by this Act if the debt obligations were outstanding at the time the application for the letters patent was made;

    • (c[Repealed, 1994, c. 47, s. 14]

    • (d) hold assets that a bank is not otherwise permitted by this Act to hold if the assets were held by the body corporate continued as the bank at the time the application for the letters patent was made;

    • (e) acquire and hold assets that a bank is not otherwise permitted by this Act to acquire or hold if the body corporate continued as the bank was obliged, at the time the application for the letters patent was made, to acquire those assets; and

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

  • Marginal note:Duration

    (2) The 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), 30 days after the date of issue of the letters patent or

      • (i) if the activity is conducted under an agreement existing on the date of issue of the letters patent, the expiry of the agreement, or

      • (ii) if the bank is a federal credit union and an undertaking to cease engaging in the activity has been given under subsection 973.02(1), the cessation date set out in the undertaking in respect of the activity;

    • (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)(d) to (f), two years.

  • Marginal note:Renewal

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

  • Marginal note:Limitation

    (4) The Minister shall not grant to a bank any permission

    • (a) with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the date of the approval for the bank to commence and carry on business, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the bank that the bank will not be able at law to redeem at the end of the ten years the outstanding debt obligations to which the permission relates; and

    • (b) with respect to matters described in paragraphs (1)(d) and (e), that purports to be effective more than ten years after the date of the approval for the bank to commence and carry on business.

  • 1991, c. 46, s. 39;
  • 1994, c. 47, s. 14;
  • 1997, c. 15, s. 3;
  • 2007, c. 6, s. 5;
  • 2010, c. 12, s. 1914.