Bank Act (S.C. 1991, c. 46)

Act current to 2014-09-15 and last amended on 2014-06-19. Previous Versions

Marginal note:Prohibition re deposits
  •  (1) A foreign bank — or an entity that is associated with a foreign bank and that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province — shall not, as part of its business in Canada,

    • (a) engage in the business of accepting deposit liabilities;

    • (b) engage in the business of acting as an agent for the acceptance of deposit liabilities for a foreign bank or an entity associated with a foreign bank; or

    • (c) represent to the public that any instrument issued by it is a deposit or that any liability incurred by it is a deposit.

  • Marginal note:Exception

    (2) Subsection (1) does not apply to

    • (a) a foreign bank that is an authorized foreign bank; or

    • (b) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society.

  • Marginal note:Exception

    (3) Paragraph (1)(b) does not apply to a foreign securities dealer that has received the approval of the Minister under paragraph 522.22(1)(f) or to a foreign insurance company — or to a prescribed entity — that engages in the business of acting as an agent for the acceptance of deposit liabilities for

    • (a) an authorized foreign bank;

    • (b) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society; or

    • (c) an entity referred to in paragraph 468(1)(a), (c), (d) or (h) or a trust or loan corporation referred to in paragraph 468(1)(g).

  • 1991, c. 46, s. 520;
  • 1999, c. 28, s. 32;
  • 2001, c. 9, s. 132;
  • 2007, c. 6, s. 56.
Marginal note:Borrowing from the public
  •  (1) A foreign bank — or an entity that is associated with a foreign bank and that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province — may, as part of its business in Canada, borrow money in Canada from the public only if

    • (a) it maintains a branch in Canada as permitted by section 522.05 or 522.19 or it engages in or carries on business in Canada as permitted by that section; and

    • (b) it discloses that

      • (i) it is not a member institution of the Canada Deposit Insurance Corporation,

      • (ii) the liability incurred through the borrowing is not a deposit, and

      • (iii) it is not regulated as a financial institution in Canada.

  • Marginal note:Manner of disclosure

    (2) The disclosure must be

    • (a) in a prospectus, information circular or other offering document or a similar document related to the borrowing or, if there is no such document, in a statement delivered to the lender; or

    • (b) in any other manner that may be prescribed.

  • Marginal note:Exception for certain borrowing

    (3) The disclosure is not required in respect of

    • (a) a borrowing of a prescribed class or type or a borrowing in prescribed circumstances or in a prescribed manner; or

    • (b) except as may be provided in any regulations, a borrowing

      • (i) from a person in an amount of $150,000 or more, or

      • (ii) through the issue of instruments in denominations of $150,000 or more.

  • Marginal note:Exception

    (4) Subsection (1) does not apply to

    • (a) an authorized foreign bank;

    • (b) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society;

    • (c) a foreign insurance company;

    • (d) a foreign securities dealer that has received the approval of the Minister under paragraph 522.22(1)(f); or

    • (e) a prescribed entity.

  • 2007, c. 6, s. 56.