Financial Consumer Agency of Canada Act (S.C. 2001, c. 9)
Full Document:
Assented to 2001-06-14
533. Section 417 of the Act is replaced by the following:
Marginal note:Restriction on leasing
417. A company shall not engage in Canada in any personal property leasing activity in which a financial leasing entity, within the meaning of subsection 449(1), is not permitted to engage.
Marginal note:1999, c. 31, s. 219(E)
534. Section 419 of the Act is replaced by the following:
Marginal note:Policies re security interests
419. (1) The directors of a company shall establish and the company shall adhere to policies regarding the creation of security interests in property of the company to secure obligations of the company and the acquisition by the company of beneficial interests in property that is subject to security interests.
Marginal note:Order to amend policies
(2) The Superintendent may, by order, direct a company to amend its policies as specified in the order.
Marginal note:Compliance
(3) A company shall comply with an order made under subsection (2) within the time specified in the order.
Marginal note:Regulations and guidelines
419.1 The Governor in Council may make regulations and the Superintendent may make guidelines respecting the creation by a company of security interests in its property to secure obligations of the company and the acquisition by the company of beneficial interests in property that is subject to security interests.
Marginal note:Exception
419.2 Sections 419 and 419.1 do not apply in respect of a security interest created by a company to secure an obligation of the company to the Bank of Canada or the Canada Deposit Insurance Corporation.
535. Subsection 421(1) of the Act is replaced by the following:
Marginal note:Restriction on partnerships
421. (1) Except with the approval of the Superintendent, a company may not be a general partner in a limited partnership or a partner in a general partnership.
536. Subsection 423(6) of the Act is replaced by the following:
Marginal note:Execution of trust
(6) A company is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject, other than a trust of which the company is a trustee.
Marginal note:Payment when company has notice of trust
(7) Subsection (6) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the company has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made.
537. The heading “Interest and Charges” before section 426 of the Act is repealed.
538. The Act is amended by adding the following before section 426:
Marginal note:Definitions
425.1 The following definitions apply in this section and in sections 431 to 434, 444.1 and 444.3.
“member company”
« société membre »
“member company” means a company that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act.
“personal deposit account”
« compte de dépôt personnel »
“personal deposit account” means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business.
“retail deposit account”
« compte de dépôt de détail »
“retail deposit account” means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed.
539. Subsection 427(2) of the Act is replaced by the following:
Marginal note:Exception
(2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that may be prescribed.
540. Section 430 of the Act is repealed.
Marginal note:1997, c. 15, s. 378
541. (1) The portion of subsection 431(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Disclosure required on opening a deposit account
431. (1) Subject to subsections (2) to (4), a company shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, the company provides in writing to the individual who requests the opening of the account
Marginal note:1997, c. 15, s. 378
(2) Subsections 431(2) to (5) of the Act are replaced by the following:
Marginal note:Exception
(2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the company shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge.
Marginal note:Exception
(3) If a company has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the company has not complied with subsection (1) in respect of the opening of that other account, the company shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened.
Marginal note:Disclosure in writing
(4) If a company opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1).
Marginal note:Right to close account
(5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open.
Marginal note:Regulations
(6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer.
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