Trust and Loan Companies Act (S.C. 1991, c. 45)

Act current to 2017-11-06 and last amended on 2017-01-15. Previous Versions

Marginal note:Branch of account with respect to deposits
  •  (1) For the purposes of this Act, the branch of account with respect to a deposit account is

    • (a) the branch the address or name of which appears on the specimen signature card or other signing authority signed by a depositor with respect to the deposit account or that is designated by agreement between the company and the depositor at the time of opening of the deposit account; or

    • (b) if no branch has been identified or agreed on as provided in paragraph (a), the branch that is designated as the branch of account with respect thereto by the company by notice in writing to the depositor.

  • Marginal note:Where debt payable

    (2) The amount of any debt owing by a company by reason of a deposit in a deposit account in the company is payable to the person entitled thereto only at the branch of account and the person entitled thereto is not entitled to demand payment or to be paid at any other branch of the company.

  • Marginal note:Idem

    (3) Notwithstanding subsection (2), a company may permit, either occasionally or as a regular practice, the person to whom the company is indebted by reason of a deposit in a deposit account in the company to withdraw moneys owing by reason of that deposit at a branch of the company other than the branch of account or to draw cheques or other orders for the payment of such moneys at a branch other than the branch of account.

  • Marginal note:Situs of indebtedness

    (4) The indebtedness of a company by reason of a deposit in a deposit account in the company shall be deemed for all purposes to be situated at the place where the branch of account is situated.

Marginal note:Effect of writ, etc.
  •  (1) Subject to subsections (3) and (4), the following documents are binding on property belonging to a person and in the possession of a company, or on money owing to a person by reason of a deposit account in a company, only if the document or a notice of it is served at the branch of the company that has possession of the property or that is the branch of account in respect of the deposit account, as the case may be:

    • (a) a writ or process originating a legal proceeding or issued in or pursuant to a legal proceeding;

    • (b) an order or injunction made by a court;

    • (c) an instrument purporting to assign, perfect or otherwise dispose of an interest in the property or the deposit account; or

    • (d) an enforcement notice in respect of a support order or support provision.

  • Marginal note:Notices

    (2) Any notification sent to a company with respect to a customer of the company, other than a document referred to in subsection (1) or (3), constitutes notice to the company and fixes the company with knowledge of its contents only if sent to and received at the branch of the company that is the branch of account of an account held in the name of that customer.

  • Marginal note:Notices: Minister of National Revenue

    (2.1) Despite subsections (1) and (2), a notice, demand, order or other document issued with respect to a customer of a company constitutes notice to the company and fixes the company with knowledge of its contents and, where applicable, is binding on property belonging to the customer and in the possession of the company or on money owing to the customer by reason of an account in the company, if it is sent to the branch of the company referred to in subsection (1) or (2), an office of the company referred to in paragraph (3)(a) or any other office agreed to by the company and the Minister of National Revenue and it relates to

    • (a) the administration of an Act of Parliament by the Minister of National Revenue; or

    • (b) the administration of an Act of the legislature of a province or legislation made by an aboriginal government, where the Minister or the Minister of National Revenue has entered into a tax collection agreement under an Act of Parliament with the government of the province or the aboriginal government.

  • Marginal note:Exception

    (3) Subsections (1) and (2) do not apply in respect of an enforcement notice in respect of a support order or support provision if

    • (a) the enforcement notice, accompanied by a written statement containing the information required by the regulations, is served at an office of a company designated in accordance with the regulations in respect of a province; and

    • (b) the order or provision can be enforced under the laws of that province.

  • Marginal note:Time of application

    (4) Subsection (3) does not apply in respect of an enforcement notice in respect of a support order or support provision until the second business day following the day of service referred to in that subsection.

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations

    • (a) respecting the designation by a company of a place, for the purpose of subsection (3), in any province for the service of enforcement notices in respect of support orders and support provisions;

    • (b) prescribing the manner in which a company shall publicize the locations of designated offices of the company; and

    • (c) respecting the information that must accompany enforcement notices in respect of support orders and support provisions.

  • Marginal note:Definitions

    (6) The following definitions apply in this section.

    designated office

    bureau désigné

    designated office means a place designated in accordance with regulations made for the purpose of subsection (3). (bureau désigné)

    enforcement notice

    avis d’exécution

    enforcement notice, in respect of a support order or support provision, means a garnishee summons or other instrument issued under the laws of a province for the enforcement of the support order or support provision. (avis d’exécution)

    support order

    ordonnance alimentaire

    support order means an order or judgment or interim order or judgment for family financial support. (ordonnance alimentaire)

    support provision

    disposition alimentaire

    support provision means a provision of an agreement relating to the payment of maintenance or family financial support. (disposition alimentaire)

  • 1991, c. 45, s. 448;
  • 2001, c. 9, s. 549;
  • 2005, c. 19, s. 64.

PART IXInvestments

Definitions and Application

Marginal note:Definitions
  •  (1) The following definitions apply in this Part.

    closed-end fund

    fonds d’investissement à capital fixe

    closed-end fund means an entity whose activities are limited to investing the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities, and whose securities are

    • (a) fixed in number and distributed to the public in an offering under a preliminary prospectus, prospectus, short-form prospectus or similar document in accordance with the laws of a province or a foreign jurisdiction;

    • (b) traded on an exchange or an over-the-counter market; and

    • (c) liquidated on a fixed future termination date, the proceeds of which are allocated to the holders of the securities on a proportional basis. (fonds d’investissement à capital fixe)

    commercial loan

    prêt commercial

    commercial loan means

    • (a) any loan made or acquired by a company, other than

      • (i) a loan to a natural person in an amount of two hundred and fifty thousand dollars or less,

      • (ii) a loan to the Government of Canada, the government of a province, a municipality, or to any agency thereof, or to the government of a foreign country or any political subdivision thereof, or any agency thereof, or to a prescribed international agency,

      • (iii) a loan that is guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in subparagraph (ii),

      • (iv) a loan that is secured by a mortgage on real property, if

        • (A) the mortgage is on residential property and the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, does not exceed 80% of the value of the property at the time the loan is made or acquired, or

        • (B) the mortgage is on real property other than residential property and

          • (I) the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, does not exceed 80% of the value of the property at the time the loan is made or acquired, and

          • (II) at the time the loan is made or acquired, the property provides an annual income sufficient to pay all annual expenses related to the property, including the payments owing under the mortgage and the mortgages having an equal or prior claim against the property,

      • (v) a loan that is secured by a mortgage on real property, if

        • (A) the mortgage is on residential property and

          • (I) the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, exceeds 80% of the value of the property at the time the loan is made or acquired, and

          • (II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintendent,

        • (B) the mortgage is on real property other than residential property and

          • (I) the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, exceeds 80% of the value of the property at the time the loan is made or acquired,

          • (II) repayment of the amount of the loan that exceeds 80% of the value of the property is guaranteed or insured by a government agency or private insurer approved by the Superintendent, and

          • (III) at the time the loan is made or acquired, the property provides an annual income sufficient to pay all annual expenses related to the property, including the payments owing under the mortgage and the mortgages having an equal or prior claim against the property, or

        • (C) the loan is one referred to in paragraph 418(2)(d),

      • (vi) a loan that

        • (A) consists of a deposit made by the company with another financial institution,

        • (B) is fully secured by a deposit with any financial institution, including the company,

        • (C) is fully secured by debt obligations guaranteed by any financial institution other than the company, or

        • (D) is fully secured by a guarantee of a financial institution other than the company, or

      • (vii) a loan to an entity controlled by the company;

    • (b) an investment in debt obligations, other than

      • (i) debt obligations that are

        • (A) guaranteed by any financial institution other than the company,

        • (B) fully secured by deposits with any financial institution, including the company, or

        • (C) fully secured by debt obligations that are guaranteed by any financial institution other than the company,

      • (ii) debt obligations issued by the Government of Canada, the government of a province, a municipality, or by any agency thereof, or by the government of a foreign country or any political subdivision thereof, or by any agency thereof, or by a prescribed international agency,

      • (iii) debt obligations that are guaranteed by, or fully secured by securities issued by, a government, a municipality or an agency referred to in subparagraph (ii),

      • (iv) debt obligations that are widely distributed, as that expression is defined by the regulations, or

      • (v) debt obligations of an entity controlled by the company; and

    • (c) an investment in shares of a body corporate or ownership interests in an unincorporated entity, other than

      • (i) shares or ownership interests that are widely distributed, as that expression is defined by the regulations,

      • (ii) shares or ownership interests of an entity controlled by the company, or

      • (iii) participating shares. (prêt commercial)

    factoring entity

    entité s’occupant d’affacturage

    factoring entity means a factoring entity as defined in the regulations. (entité s’occupant d’affacturage)

    finance entity

    entité s’occupant de financement

    finance entity means a finance entity as defined in the regulations. (entité s’occupant de financement)

    financial leasing entity

    entité s’occupant de crédit-bail

    financial leasing entity means an entity

    • (a) the activities of which are limited to the financial leasing of personal property and such related activities as are prescribed and whose activities conform to such restrictions and limitations thereon as are prescribed; and

    • (b) that, in conducting the activities referred to in paragraph (a) in Canada, does not

      • (i) direct its customers or potential customers to particular dealers in the leased property or the property to be leased,

      • (ii) enter into lease agreements with persons in respect of any motor vehicle having a gross vehicle weight, as that expression is defined by the regulations, of less than twenty-one tonnes, or

      • (iii) enter into lease agreements with natural persons in respect of personal household property, as that expression is defined by the regulations. (entité s’occupant de crédit-bail)

    loan

    prêt ou emprunt

    loan includes an acceptance, endorsement or other guarantee, a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit but does not include investments in securities. (prêt ou emprunt)

    motor vehicle

    véhicule à moteur

    motor vehicle means a motorized vehicle designed to be used primarily on a public highway for the transportation of persons or things, but does not include

    • (a) a fire-engine, bus, ambulance or utility truck; or

    • (b) any other special purpose motorized vehicle that contains significant special features that make it suitable for a specific purpose. (véhicule à moteur)

    mutual fund distribution entity

    courtier de fonds mutuels

    mutual fund distribution entity means an entity whose principal activity is acting as a selling agent of units, shares or other interests in a mutual fund and acting as a collecting agent in the collection of payments for any such interests if

    • (a) the proceeds of the sales of any such interests, less any sales commissions and service fees, are paid to the mutual fund; and

    • (b) the existence of a sales commission and service fee in respect of the sale of any such interest is disclosed to the purchaser of the interest before the purchase of the interest. (courtier de fonds mutuels)

    mutual fund entity

    entité s’occupant de fonds mutuels

    mutual fund entity means an entity

    • (a) whose activities are limited to the investing of the funds of the entity so as to provide investment diversification and professional investment management to the holders of its securities; and

    • (b) whose securities entitle their holders to receive, on demand, or within a specified period after demand, an amount computed by reference to the value of a proportionate interest in the whole or in a part of its net assets, including a separate fund or trust account of the entity. (entité s’occupant de fonds mutuels)

    participating share

    action participante

    participating share means a share of a body corporate that carries the right to participate in the earnings of the body corporate to an unlimited degree and to participate in a distribution of the remaining property of the body corporate on dissolution. (action participante)

    permitted entity

    entité admissible

    permitted entity means an entity in which a company is permitted to acquire a substantial investment under section 453. (entité admissible)

    prescribed subsidiary

    filiale réglementaire

    prescribed subsidiary means a subsidiary that is one of a prescribed class of subsidiaries. (filiale réglementaire)

    specialized financing entity

    entité s’occupant de financement spécial

    specialized financing entity means a specialized financing entity as defined in the regulations. (entité s’occupant de financement spécial)

  • Marginal note:Members of a company’s group

    (2) For the purpose of this Part, a member of a company’s group is any of the following:

    • (a) an entity referred to in any of paragraphs 453(1)(a) to (f) that controls the company;

    • (b) a subsidiary of the company or of an entity referred to in any of paragraphs 453(1)(a) to (f) that controls the company;

    • (c) an entity in which the company, or an entity referred to in any of paragraphs 453(1)(a) to (f) that controls the company, has a substantial investment; or

    • (d) a prescribed entity in relation to the company.

  • Marginal note:Non-application of Part

    (3) This Part does not apply in respect of

    • (a) money or other assets held in trust by a company, other than guaranteed trust money and assets held in respect thereof;

    • (b) the holding of a security interest in real property, unless the security interest is prescribed pursuant to paragraph 467(a) to be an interest in real property; or

    • (c) the holding of a security interest in securities of an entity.

  • 1991, c. 45, ss. 449, 560;
  • 1993, c. 34, s. 128(F);
  • 1997, c. 15, s. 386;
  • 2001, c. 9, s. 550;
  • 2007, c. 6, s. 369;
  • 2008, c. 28, s. 163.
 
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