Marginal note:1996, c. 6, s. 41

• 211. (1) Paragraph 39.1(1)(b) of the Act is replaced by the following:

  • (b) the viability of the federal member institution cannot be restored or preserved by the exercise of the Superintendent’s powers under the Bank Act, the Trust and Loan Companies Act or the Cooperative Credit Associations Act,

• Marginal note:1996, c. 6, s. 41

  (2) Paragraph 39.1(2)(c) of the Act is replaced by the following:

  • (c) the federal member institution’s regulatory capital, within the meaning assigned to that expression by the Bank Act, the Trust and Loan Companies Act or the Cooperative Credit Associations Act, whichever is applicable, is or is about to become substantially deficient; or

• Marginal note:1996, c. 6, s. 41

  (3) Paragraph 39.1(3)(a) of the Act is replaced by the following:

  • (a) circumstances exist in respect of a federal member institution that would allow the Superintendent to take control of the federal member institution under the Bank Act, the Trust and Loan Companies Act or the Cooperative Credit Associations Act, and

Marginal note:1996, c. 6, s. 41

• 212. (1) Subsection 39.15(3) of the Act is replaced by the following:

  • Marginal note:Clearing arrangements

    (3) Subsections (1) and (2) do not apply so as to prevent a member of the Canadian Payments Association from acting or ceasing to act as a clearing agent for a federal member institution in accordance with the Canadian Payments Act and the by-laws and rules of that Association.

• Marginal note:1996, c. 6, s. 41

  (2) Paragraph 39.15(6)(b) of the Act is replaced by the following:

  • (b) the Superintendent, on the application of the federal member institution, exempted the security agreement from the application of those paragraphs and that subsection before the making of an order under subsection 39.13(1).

Marginal note:1996, c. 6, s. 41

• 213. (1) Paragraphs 39.19(1)(a) to (c) of the Act are replaced by the following:

  • (a) sections 372, 373, 374, 375, 376, 376.1, 376.2, 377, 377.1 379, 385, 401.2 and 401.3 of the Bank Act;

  • (b) sections 407, 407.01, 407.02, 407.03, 407.1, 407.2, 408, 411, 428 and 430 of the Insurance Companies Act; and

  • (c) sections 375, 375.1, 376, 379 and 396 and subsection 399(2) of the Trust and Loan Companies Act.

• Marginal note:1996, c. 6, s. 41

  (2) Subsection 39.19(2) of the Act is replaced by the following:

  • Marginal note:Public holding requirement re parent

    (2) An exemption from the application of section 385 of the Bank Act, section 411 of the Insurance Companies Act or section 379 of the Trust and Loan Companies Act that is granted under section 388 of the Bank Act, section 414 of the Insurance Companies Act or section 382 of the Trust and Loan Companies Act continues in force notwithstanding that the entity that controls the bank, insurance company, trust company or loan company is a federal member institution the shares of which are vested in the Corporation by an order made under paragraph 39.13(1)(a).

Marginal note:1996, c. 6, s. 43

214. Section 45.2 of the Act is replaced by the following:

Marginal note:1996, c. 6, s. 45

215. Section 47 of the Act is replaced by the following:

216. Subsection 2(4) of the schedule to the Act is repealed.

R.S., c. C-21Canadian Payments Association Act

217. The long title of the Canadian Payments Association Act is replaced by the following:

218. Section 1 of the Act is replaced by the following:

Marginal note:R.S., c. 18 (3rd Supp.), s. 33(2)

• 219. (1) The definitions “federation of cooperative credit societies” or “federation” and “Superintendent” in subsection 2(1) of the Act are repealed.

• (2) The definition “Chairman” in subsection 2(1) of the English version of the Act is repealed.

• (3) The definition “payment item” in subsection 2(1) of the Act is replaced by the following:

  “payment item”

  « instrument de paiement »

  “payment item” means a bill of exchange drawn on a member and includes any other class of items approved by by-law;

• (4) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:

  “cooperative credit association”

  « association coopérative de crédit »

  “cooperative credit association” means an association to which the Cooperative Credit Associations Act applies;

  “life insurance company”

  « société d’assurance-vie »

  “life insurance company” means

  • (a) a life company within the meaning of subsection 2(1) of the Insurance Companies Act,

  • (b) a foreign life company within the meaning of section 571 of that Act, acting in respect of its insurance business in Canada, or

  • (c) a body corporate that carries on under a constating instrument issued under an Act of the legislature of a province a business substantially similar to the business of a life company referred to in paragraph (a);

  “money market mutual fund”

  « fonds mutuel en instruments du marché monétaire »

  “money market mutual fund” means a fund

  • (a) the assets of which are fully or principally invested in short-term and highly liquid debt securities, and

  • (b) that satisfies conditions prescribed by regulation;

  “qualified corporation”

  « société admissible »

  “qualified corporation” means a body corporate

  • (a) that has issued shares to the public under a prospectus, filed in accordance with the laws of the province in which the shares were issued, having conditions attached to the shares requiring the body corporate to accept the surrender of any fully-paid shares, or fractions or portions of the shares,

    • (i) at the demand of their holder, and

    • (ii) at prices determined and payable in accordance with specified conditions,

  • (b) whose shares referred to in paragraph (a) have a fair market value, determined without regard to any voting rights attached to the shares, that is not less than 95 % of the fair market value of all of the issued shares of the capital stock of the body corporate, and

  • (c) having assets that constitute a money market mutual fund;

  “qualified trust”

  « fiducie admissible »

  “qualified trust” means an inter vivos trust

  • (a) in which the interest of its beneficiaries is described by reference to units of the trust that have been issued to the public under a prospectus, filed in accordance with the laws of the province in which the units were issued, having conditions attached to the units requiring the trustee to accept the surrender of any fully-paid units, or fractions or portions of the units,

    • (i) at the demand of their holder, and

    • (ii) at prices determined and payable in accordance with specified conditions,

  • (b) whose units referred to in paragraph (a) have a fair market value, determined without regard to any voting rights attached to the units, that is not less than 95 % of the fair market value of all of the issued units of the trust, and

  • (c) whose assets constitute a money market mutual fund;

  “securities dealer”

  « courtier en valeurs mobilières »

  “securities dealer” means a body corporate that is registered or licensed under the laws of a province to trade in securities, as agent or for its own behalf;

  “trustee”

  « fiduciaire »

  “trustee”, in respect of a qualified trust, means a trustee that is a body corporate;

  “user”

  « usager »

  “user” means

  • (a) in Part 1, a person who is a user of payment services but is not a member, and

  • (b) in Part 2, a person who is a user of services provided by a participant of a payment system but is not a participant in the system.

• (5) Subsection 2(1) of the English version of the Act is amended by adding the following in alphabetical order:

  “Chairperson”

  « président »

  “Chairperson” means the Chairperson of the Board referred to in section 15;

• Marginal note:1991. c. 45, s. 546(2)

  (6) Subsection 2(2) of the Act is replaced by the following:

  • Marginal note:Societies and federations

    (2) For the purposes of Part 1, a local cooperative credit society, a cooperative credit association, a central cooperative credit society or a federation of cooperative credit societies is deemed not to be a loan company or a trust company.

  • Marginal note:Rule not statutory instrument

    (3) A rule is not a statutory instrument for the purposes of the Statutory Instruments Act.