Bank Act (S.C. 1991, c. 46)

Marginal note:Investment in a limited commercial entity — foreign bank

• 522.09 (1) Subject to the requirements relating to approval set out in Division 5, a foreign bank that has a financial establishment in Canada may acquire or hold control of, or a substantial investment in, a Canadian entity if

  • (a) the Canadian entity is not an entity referred to in any of paragraphs 468(1)(a) to (i);

  • (b) the Canadian entity does not engage in more than the prescribed portion of — or if no portion is prescribed, 10 per cent of — the activities referred to in paragraphs 522.08(1)(a) to (f) or in any of paragraphs (a) to (h) of the definition “financial services entity” in subsection 507(1), determined in the prescribed manner;

  • (c) the Canadian entity does not engage in any leasing activities; and

  • (d) in the opinion of the Minister, the Canadian entity engages in or carries on business that is the same as, or similar, related or incidental to, the business outside Canada of the foreign bank or any entity associated with the foreign bank.

• Marginal note:Investment in a limited commercial entity — entity associated with a foreign bank

  (2) Subject to the requirements relating to approval set out in Division 5, an entity that is associated with a foreign bank and that has a financial establishment in Canada may acquire or hold control of, or a substantial investment in, a Canadian entity if

  • (a) the Canadian entity is not an entity referred to in any of paragraphs 468(1)(a) to (i);

  • (b) the Canadian entity does not engage in more than the prescribed portion of — or if no portion is prescribed, 10 per cent of — the activities referred to in paragraphs 522.08(1)(a) to (f) or in any of paragraphs (a) to (h) of the definition “financial services entity” in subsection 507(1), determined in the prescribed manner;

  • (c) the Canadian entity does not engage in leasing activities; and

  • (d) in the opinion of the Minister, the Canadian entity engages in or carries on business that is the same as, or similar, related or incidental to, the business outside Canada of the entity associated with the foreign bank, the foreign bank or any other entity associated with the foreign bank.

• Marginal note:Investment in holding body corporate — limited commercial entities

  (3) A foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity whose business is limited to acquiring or holding shares of, or ownership interests in, limited commercial entities.

Marginal note:Acquisition of other investments

522.1 A foreign bank or an entity associated with a foreign bank may acquire or hold control of, or a substantial investment in, a Canadian entity

• (a) by way of an investment permitted by any of sections 522.11 to 522.13;

• (b) by way of a temporary investment permitted by section 522.14;

• (c) as a result of a default that has occurred under the terms of an agreement with respect to a loan or under any other documents governing the terms of a loan, as permitted by section 522.15;

• (d) through a realization of security, as permitted by section 522.15; or

• (e) if it does so in accordance with regulations made under paragraph 522.23(a) concerning specialized financing.