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Bank Act

Version of section 520 from 2008-05-19 to 2024-10-30:


Marginal note:Prohibition re deposits

  •  (1) A foreign bank — or an entity that is associated with a foreign bank and that is incorporated or formed otherwise than by or under an Act of Parliament or of the legislature of a province — shall not, as part of its business in Canada,

    • (a) engage in the business of accepting deposit liabilities;

    • (b) engage in the business of acting as an agent for the acceptance of deposit liabilities for a foreign bank or an entity associated with a foreign bank; or

    • (c) represent to the public that any instrument issued by it is a deposit or that any liability incurred by it is a deposit.

  • Marginal note:Exception

    (2) Subsection (1) does not apply to

    • (a) a foreign bank that is an authorized foreign bank; or

    • (b) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society.

  • Marginal note:Exception

    (3) Paragraph (1)(b) does not apply to a foreign securities dealer that has received the approval of the Minister under paragraph 522.22(1)(f) or to a foreign insurance company — or to a prescribed entity — that engages in the business of acting as an agent for the acceptance of deposit liabilities for

    • (a) an authorized foreign bank;

    • (b) a foreign cooperative credit society that has received the approval of the Minister under paragraph 522.22(1)(f) to engage in or carry on the business of a cooperative credit society; or

    • (c) an entity referred to in paragraph 468(1)(a), (c), (d) or (h) or a trust or loan corporation referred to in paragraph 468(1)(g).

  • 1991, c. 46, s. 520
  • 1999, c. 28, s. 32
  • 2001, c. 9, s. 132
  • 2007, c. 6, s. 56

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