Bank Act (S.C. 1991, c. 46)

Act current to 2016-01-25 and last amended on 2015-06-23. Previous Versions

Marginal note:Exception re real property holding and management

 Except as may be prescribed, paragraphs 510(1)(a) and (b) do not apply in respect of the holding or managing of, or otherwise dealing with, real property in Canada by a foreign bank or an entity associated with a foreign bank.

  • 2007, c. 6, s. 51.
Marginal note:Exception re accessing accounts

 Nothing in paragraphs 510(1)(a) to (c) is to be construed as prohibiting a foreign bank or an entity associated with a foreign bank from providing its customers who are natural persons not ordinarily resident in Canada with access in Canada to their accounts located outside Canada through the use of automated banking machines located in Canada.

  • 1991, c. 46, s. 511;
  • 2001, c. 9, s. 132;
  • 2007, c. 6, s. 51.
Marginal note:Exception re quotations

 Nothing in paragraphs 510(1)(a) to (c) is to be construed as prohibiting a foreign bank or an entity associated with a foreign bank from establishing, maintaining or using a private telephone service or similar facility for the purpose of quoting to customers in Canada, or entering with customers in Canada into verbal agreements relating to, foreign exchange, deposit or loan rates if there is no accounting or information processing involved in the private telephone service or similar facility.

  • 1991, c. 46, s. 512;
  • 2001, c. 9, s. 132.
Marginal note:Exception re automated services
  •  (1) A foreign bank, or an entity associated with a foreign bank, that has received the approval of the Minister under paragraph 522.22(1)(f) may

    • (a) if it is a foreign securities dealer that has also received the approval of the Minister under paragraph 522.22(1)(i), engage in the activities referred to in paragraph 510(1)(c) so long as they relate to its business referred to in paragraph 522.18(1)(b); and

    • (b) if it is a foreign cooperative credit society, engage in the activities referred to in paragraph 510(1)(c) so long as they relate to its business as a cooperative credit society engaged in or carried on by it in accordance with provincial laws relating to cooperative credit societies.

  • Marginal note:Non-application

    (2) Paragraph 510(1)(c) does not apply to

    • (a) a Canadian entity referred to in any of paragraphs 468(1)(g) to (i);

    • (b) a prescribed Canadian entity, other than a permitted Canadian entity, that is controlled by a Canadian entity referred to in paragraph (a); or

    • (c) any other Canadian entity, other than a limited commercial entity, that is acquired or held by a foreign bank or an entity associated with a foreign bank in accordance with Divisions 4 and 5, and that has received the approval of the Minister under paragraph 522.22(1)(i).

  • 1991, c. 46, s. 513;
  • 1997, c. 15, s. 78;
  • 1999, c. 28, s. 29;
  • 2001, c. 9, s. 132;
  • 2007, c. 6, s. 52.

 [Repealed, 2007, c. 6, s. 53]

 [Repealed, 2007, c. 6, s. 53]

Marginal note:Change of status
  •  (1) If an entity becomes a foreign bank, or an entity associated with a foreign bank, to which this Part applies and immediately before it became such a foreign bank or such an entity it maintained a branch or engaged in or carried on business in Canada that is not permitted by or under this Part, it may continue to maintain that branch or engage in or carry on that business for a period of six months after the day on which it became such a foreign bank or such an entity, or for any other shorter period that may be specified or approved by the Minister.

  • Marginal note:Transitional

    (2) If a foreign bank or an entity associated with a foreign bank was permitted by section 516 or 517, as that section read immediately before the day on which this subsection came into force, to maintain a branch or engage in or carry on business in Canada that is not permitted by or under this Part, it may continue to maintain that branch or engage in or carry on that business for the period during which it could have done so under that section.

  • 1991, c. 46, s. 516;
  • 2001, c. 9, s. 132;
  • 2007, c. 6, s. 53.
Marginal note:Change of status
  •  (1) If an entity becomes a foreign bank, or an entity associated with a foreign bank, to which this Part applies and immediately before it became such a foreign bank or such an entity it held control of, or a substantial investment in, a Canadian entity and that control or substantial investment is not permitted by or under this Part, it may continue to hold control of, or a substantial investment in, the Canadian entity for a period of six months after the day on which it became such a foreign bank or such an entity, or for any other shorter period that may be specified or approved by the Minister.

  • Marginal note:Transitional

    (2) If a foreign bank or an entity associated with a foreign bank was permitted by section 516 or 517, as that section read immediately before the day on which this subsection came into force, to hold control of, or a substantial investment in, a Canadian entity and that holding is not permitted by or under this Part, it may continue to hold control of, or the substantial investment in, the Canadian entity for the period during which it could have done so under that section.

  • 1991, c. 46, s. 517;
  • 1997, c. 15, s. 81;
  • 2001, c. 9, s. 132;
  • 2007, c. 6, s. 53.
Marginal note:Restriction

 If an order has been made under subsection 973.1(1) in respect of a foreign bank or an entity associated with a foreign bank and section 516 or 517 applies to the foreign bank or entity, as the case may be, the period under section 516 or 517 may not extend beyond the expiry of the period referred to in the order made under subsection 973.1(1).

  • 2001, c. 9, s. 132;
  • 2007, c. 6, s. 54(E).
Marginal note:Prohibition re guarantee and acceptance of securities and bills
  •  (1) Subject to subsections (2) to (4),

    • (a) a foreign bank shall not guarantee any securities or accept any bills of exchange or depository bills that are issued by a person resident in Canada and that are intended by the issuer or by any party to the security or bill to be sold or traded in Canada; and

    • (b) no person shall participate in any arrangement in connection with a guarantee or acceptance prohibited by paragraph (a).

  • Marginal note:Exception

    (2) Subsection (1) does not apply in respect of the guarantee or acceptance by a foreign bank of securities, bills of exchange or depository bills that are issued by

    • (a) a non-bank affiliate of the foreign bank;

    • (b) any other person resident in Canada and guaranteed or accepted by

      • (i) a bank that is a subsidiary of the foreign bank or of an entity associated with the foreign bank,

      • (ii) a Canadian entity referred to in any of paragraphs 468(1)(a) to (i) in which a bank that is a subsidiary of the foreign bank, or of an entity associated with the foreign bank, holds a substantial investment,

      • (iii) a Canadian entity referred to in any of paragraphs 468(1)(a) to (i) that is controlled by a bank that is a subsidiary of the foreign bank, or of an entity associated with the foreign bank,

      • (iv) a Canadian entity referred to in any of paragraphs 468(1)(b) to (i) that is a non-bank affiliate of the foreign bank, or

      • (v) a prescribed entity;

    • (c) a bank that is a subsidiary of the foreign bank or of an entity associated with the foreign bank;

    • (d) a Canadian entity in which a bank that is a subsidiary of the foreign bank, or of an entity associated with the foreign bank, holds a substantial investment;

    • (e) a Canadian entity controlled by a bank that is a subsidiary of the foreign bank or of an entity associated with the foreign bank; or

    • (f) a prescribed entity.

  • Marginal note:Exception

    (3) Subsection (1) does not apply in respect of

    • (a) the business in Canada of an authorized foreign bank; or

    • (b) a foreign insurance company in relation to its insurance business in Canada.

  • Marginal note:Exception

    (4) Despite subsection (1), a foreign bank, or an entity associated with a foreign bank, that has received the approval of the Minister under paragraph 522.22(1)(f) may guarantee any securities or accept any bills of exchange or depository bills in relation to its business permitted under paragraph 522.18(1)(a) or (b).

  • 1991, c. 46, s. 518;
  • 1997, c. 15, s. 82;
  • 1999, c. 28, s. 30, c. 31, s. 15(F);
  • 2001, c. 9, s. 132;
  • 2007, c. 6, s. 55.
 
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