An Act to amend the law governing financial institutions and to provide for related and consequential matters (S.C. 2007, c. 6)

Marginal note:No acquisition of control without approval

• 354.1 (1) No person shall acquire control, within the meaning of paragraph 3(1)(e), of an association without the approval of the Minister.

• Marginal note:Amalgamation, etc., constitutes acquisition

  (2) If the entity that would result from an amalgamation, a merger or a reorganization would control, within the meaning of paragraph 3(1)(e), an association, the entity is deemed to be acquiring control, within the meaning of that paragraph, of the association through an acquisition for which the approval of the Minister is required under subsection (1).

Marginal note:Restriction on deposit taking

• 378.1 (1) A retail association shall not accept deposits in Canada unless

  • (a) it is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act;

  • (b) it has been authorized under subsection 26.03(1) of that Act to accept deposits without being a member institution, as defined in section 2 of that Act; or

  • (c) the order approving the commencement and carrying on of business by the retail association authorizes it to accept deposits solely in accordance with subsection (2).

• Marginal note:Deposits that fall below $150,000

  (2) A retail association referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after it receives the authorization referred to in that paragraph,

  A/B ≤ 0.01

  where

  A 

  is the sum of all amounts each of which is the sum of all the deposits held by it at the end of a day in the preceding 30 days each of which deposits is less than $150,000 and payable in Canada; and

  B 

  is the sum of all amounts each of which is the sum of all deposits held by it at the end of a day in those preceding 30 days and payable in Canada.

• Marginal note:Exchange rate

  (3) For the purpose of subsection (2), the rate of exchange to be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada is to be determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act.

• Definition of “deposit”

  (4) For the purpose of subsection (2), “deposit” has the meaning that would be given to it by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits.

• Marginal note:Regulations

  (5) The Governor in Council may make regulations

  • (a) prescribing the deposits referred to in subsection (4); and

  • (b) prescribing terms and conditions with respect to the acceptance of those deposits.

Marginal note:Notice before opening account or providing prescribed product

• 378.2 (1) Before a retail association referred to in paragraph 378.1(1)(b) or (c) opens a deposit account in Canada or provides in Canada any prescribed product that relates to a deposit, the retail association shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product

  • (a) a notice in writing that deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and

  • (b) any other information that may be prescribed.

• Marginal note:Other notice

  (2) A retail association referred to in paragraph 378.1(1)(b) or (c) shall, in accordance with any regulations that may be made,

  • (a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the association are not insured by the Canada Deposit Insurance Corporation; and

  • (b) include in its advertisements notices to inform the public that deposits with the retail association are not insured by the Canada Deposit Insurance Corporation.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations

  • (a) prescribing the manner in which notices referred to in subsection (1) are to be given and the additional information to be contained in the notices; and

  • (b) respecting notices for the purpose of subsection (2).

Marginal note:Deposits less than $150,000

• 378.3 (1) Subject to the regulations, a retail association referred to in paragraph 378.1(1)(b) or (c) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

• Meaning of “deposit”

  (2) In this section, “deposit” has the meaning assigned to that term by subsection 378.1(4).

• Marginal note:Regulations

  (3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a retail association referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

Marginal note:Shared premises

• 378.4 (1) Subject to the regulations, no retail association referred to in paragraph 378.1(1)(b) or (c) shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the retail association.

• Marginal note:Limitation

  (2) Subsection (1) only applies in respect of premises or any portion of premises on which both the retail association and the member institution carry on business with the public and to which the public has access.

• Marginal note:Adjacent premises

  (3) Subject to the regulations, no retail association referred to in paragraph 378.1(1)(b) or (c) shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the retail association, unless the retail association clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.

• Marginal note:Regulations

  (4) The Governor in Council may make regulations

  • (a) respecting the circumstances in which, and the conditions under which, a retail association referred to in paragraph 378.1(1)(b) or (c) may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and

  • (b) respecting the circumstances in which, and the conditions under which, a retail association referred to in paragraph 378.1(1)(b) or (c) may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3).

Marginal note:Restriction on residential mortgages

• 382.1 (1) A retail association shall not make a loan in Canada on the security of residential property in Canada for the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim against the property, would exceed 80 per cent of the value of the property at the time of the loan.

• Marginal note:Ordonnance de modification

  (2) Le surintendant peut, par ordonnance, obliger l’association à modifier ces principes selon les modalités qu’il précise dans l’ordonnance.

• Marginal note:Provision of information

  (2) A retail association shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the retail association:

  • (a) in the case of a deposit,

    • (i) the name of the depositor in whose name the deposit is held,

    • (ii) the recorded address of the depositor,

    • (iii) the outstanding amount of the deposit, and

    • (iv) the branch of the association at which the last transaction took place in respect of the deposit, and the date of that last transaction; and

  • (b) in the case of an instrument,

    • (i) the name of the person to whom or at whose request the instrument was issued, certified or accepted;

    • (ii) the recorded address of that person;

    • (iii) the name of the payee of the instrument;

    • (iv) the amount and date of the instrument;

    • (v) the name of the place where the instrument was payable; and

    • (vi) the branch of the association at which the instrument was issued, certified or accepted.

• Marginal note:Copies of signature cards and signing authorities

  (2.1) A retail association shall, on written request by the Bank of Canada, provide the Bank of Canada with copies of any signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada.