Bank Act (S.C. 1991, c. 46)

Marginal note:Authority to make order

• 49. (1) On application by a bank, the Superintendent may make an order approving the commencement and carrying on of business by the bank.

• Marginal note:Statement of payments

  (2) An application by a bank for an order under subsection (1) must contain a statement setting out the amounts paid or to be paid by the bank in connection with its incorporation and organization.

Marginal note:No payments before order

50. Until an order approving the commencement and carrying on of business is made for a bank, the bank must not make any payment on account of incorporation or organization expenses out of moneys received from the issue of the shares or the membership shares of the bank and interest on those moneys, except reasonable sums

• (a) for the remuneration of not more than two officers;

• (b) for the payment of costs related to the issue of shares, or membership shares, of the bank; and

• (c) for the payment of clerical assistance, legal services, accounting services, office accommodation at one location, office expenses, advertising, stationery, postage and travel expenses.

Marginal note:Deposits and investments before order

51. Where a bank comes into existence but no order approving the commencement and carrying on of business is made for the bank, the bank may only

• (a) deposit, in Canada, paid-in capital of the bank in another deposit-taking Canadian financial institution; or

• (b) invest paid-in capital of the bank in unencumbered securities of the Government of Canada or the government of any province.

Marginal note:Conditions for order

• 52. (1) The Superintendent shall not make an order approving the commencement and carrying on of business by a bank until it has been shown to the satisfaction of the Superintendent that

  • (a) the meeting of shareholders of the bank referred to in subsection 46(1), or, in the case of a federal credit union, the meeting of members referred to in subsection 47.02(1), has been duly held;

  • (b) the bank has paid-in capital of at least five million dollars or any greater amount that is specified by the Minister under subsection 46(1) or 47.02(1);

  • (c) the expenses of incorporation and organization to be borne by the bank are reasonable; and

  • (d) all other relevant requirements of this Act have been complied with.

• Marginal note:Time limit

  (2) The Superintendent shall not make an order approving the commencement and carrying on of business by a bank more than one year after the day on which the bank comes into existence.