Bank of Canada Act (R.S.C., 1985, c. B-2)

Marginal note:Policy established by Governor

• 18.1 (1) The Governor shall establish a policy for the purposes of subparagraph 18(g)(i).

• Marginal note:Publication

  (2) The Bank shall publish the policy and any amendment to it in the Canada Gazette and the policy or the amendment comes into force seven days after the day on which the Bank publishes it or on any later day specified by the Governor.

Marginal note:Publication

19. If the Bank takes any action under subparagraph 18(g)(ii), the Bank shall cause a notice to be published in the Canada Gazette that the Governor has formed an opinion that there is a severe and unusual stress on a financial market or the financial system. The notice is to be published as soon as the Governor is of the opinion that its publication will not materially contribute to the stress to which the notice relates.

Marginal note:Acquisition of collateral securities

20. The Bank may

• (a) acquire from any bank or authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act and hold any property held by the bank or authorized foreign bank as security under Part VIII of the Bank Act; and

• (b) exercise every right and remedy in respect of any security acquired under paragraph (a) that could have been exercised by the bank or authorized foreign bank.

Marginal note:Publication of minimum interest rates on loans

21. The Bank shall at all times make public the minimum rate at which it is prepared to make loans or advances.

Marginal note:Time limit for unpaid debts

• 22. (1) The Bank is not liable in respect of any unpaid debt in respect of which a federal financial institution has made a payment to the Bank under the relevant Act in respect of the federal financial institution if

  • (a) the amount paid to the Bank was less than $1,000; and

  • (b) at least 40 years have gone by since the later of

    • (i) the last time a transaction took place on the books of the federal financial institution in respect of the unpaid debt, and

    • (ii) the last time a statement of account was requested of or acknowledged to the federal financial institution by the former creditor in respect of the unpaid debt.

• Marginal note:Time limit for instruments

  (1.1) The Bank is not liable in respect of any instrument in respect of which a federal financial institution has made a payment to the Bank under the relevant Act in respect of the federal financial institution if

  • (a) the amount paid to the Bank was less than $1,000; and

  • (b) no payment has been made in respect of the instrument for at least 40 years after the day the instrument was issued or accepted.

• Marginal note:Time limit for liquidation claims

  (1.2) The Bank is not liable in respect of any claim against a liquidator in respect of the winding-up of a federal financial institution if

  • (a) the amount of the claim has been paid to the Minister and by the Minister to the Bank under the relevant Act in respect of the federal financial institution;

  • (b) the amount paid to the Bank was less than $1,000; and

  • (c) at least 40 years have gone by since the later of

    • (i) the last time a transaction took place on the books of the federal financial institution in respect of the subject-matter of the claim, and

    • (ii) the last time a statement of account was requested of or acknowledged to the federal financial institution by the former creditor in respect of the subject-matter of the claim.

• Marginal note:Time limit for returned payments

  (1.21) The Bank is not liable in respect of any returned payment as defined in section 2 of the Canada Deposit Insurance Corporation Act in respect of which the Canada Deposit Insurance Corporation has made a payment to the Bank under subsection 14.01(1) of that Act if

  • (a) the amount paid to the Bank was less than $1,000; and

  • (b) at least 40 years have gone by since the applicable date referred to in subsection 14(2.9) of that Act.

• Marginal note:Limitation of Bank’s liability

  (1.3) The Bank is not liable in respect of a debt referred to in subsection (1), an instrument referred to in subsection (1.1), a claim referred to in subsection (1.2) or a returned payment referred to in subsection (1.21) if the amount paid to the Bank in respect of the debt, instrument, claim or returned payment was $1,000 or more and at least 100 years have gone by since the payment was made to the Bank.

• Marginal note:Application

  (1.4) For greater certainty, subsections (1) to (1.3) also apply in respect of amounts paid to the Bank before the coming into force of this subsection.

• Marginal note:No liability where claims paid

  (2) The Bank is not liable in respect of

  • (a) any unpaid debt or any instrument in respect of which a federal financial institution has paid an amount to the Bank in accordance with the relevant Act in respect of the federal financial institution, or

  • (b) any claim against a liquidator in respect of the winding-up of a federal financial institution the amount of which claim has been paid to the Minister and by the Minister to the Bank under the relevant Act in respect of the federal financial institution,

  where an amount equal to the amount so paid has been paid by the Bank to the creditor in accordance with the relevant Act in respect of the federal financial institution or to the Receiver General under subsection (3).

• Marginal note:No liability where claims paid — returned payments

  (2.1) The Bank is not liable in respect of any returned payment as defined in section 2 of the Canada Deposit Insurance Corporation Act in respect of which the Canada Deposit Insurance Corporation has paid an amount to the Bank under subsection 14.01(1) of that Act if an amount equal to the amount so paid has been paid by the Bank to a claimant under subsection 14.01(4) of that Act or to the Receiver General under subsection (3).

• Marginal note:Amounts to be paid to Receiver General

  (3) An amount equal to the amount paid to the Bank in respect of a debt referred to in subsection (1), an instrument referred to in subsection (1.1), a claim referred to in subsection (1.2) or a returned payment referred to in subsection (1.21) shall, within two months after the end of the calendar year in which the applicable 40-year period expired, be paid by the Bank without interest to the Receiver General and the Bank may destroy all records relating to the debt, instrument, claim or returned payment.

• Marginal note:Amounts part of C.R.F.

  (4) Any amount paid by the Bank to the Receiver General under subsection (3) shall form part of the Consolidated Revenue Fund.

• Marginal note:Definitions

  (5) For the purposes of this section,

  “federal financial institution”

  « institution financière fédérale »

  “federal financial institution” means a bank, an authorized foreign bank, a company to which the Trust and Loan Companies Act applies or an association to which the Cooperative Credit Associations Act applies;

  “relevant Act”

  « loi pertinente »

  “relevant Act” in respect of a federal financial institution means

  • (a) in the case of a bank or authorized foreign bank, the Bank Act,

  • (b) [Repealed, 1999, c. 28, s. 97]

  • (c) in the case of a company to which the Trust and Loan Companies Act applies, that Act, and

  • (d) in the case of an association to which the Cooperative Credit Associations Act applies, that Act.