Budget Implementation Act, 2009 (S.C. 2009, c. 2)

Assented to 2009-03-12

Division 41995, c. 28Business Development Bank of Canada Act

 Subsection 23(1) of the Business Development Bank of Canada Act is replaced by the following:

Marginal note:Authorized capital
  • 23. (1) The authorized capital of the Bank consists of an unlimited number of common shares with a par value of $100 each and an unlimited number of preferred shares without par value, but the paid-in capital of the Bank, together with any contributed surplus relating to it and any proceeds referred to in paragraph 30(2)(d) that have been prescribed as equity, must not at any time exceed $3,000,000,000.

Division 51998, c. 36Canada Small Business Financing Act

Amendments to the Act

  •  (1) Subsection 4(2) of the Canada Small Business Financing Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:

    • (b) in the case of a loan made before April 1, 2009, the outstanding loan amount in relation to the borrower does not exceed $250,000 or any prescribed lesser amount; and

    • (c) in the case of a loan made after March 31, 2009, the outstanding loan amount in relation to the borrower does not exceed $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner.

  • (2) Subsection 4(3) of the Act is replaced by the following:

    • Marginal note:Meaning of outstanding loan amount

      (3) The outstanding loan amount referred to in paragraph (2)(b) or (c) is the aggregate of the amount of the proposed loan and the principal amount outstanding, in respect of the borrower and all borrowers that are related to that borrower within the meaning of the regulations, of all loans made under this Act and guaranteed business improvement loans made under the Small Business Loans Act.

 Subsection 6(2) of the Act is amended by striking out “and” at the end of paragraph (b) and by replacing paragraph (c) with the following:

  • (c) 10%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it before April 1, 2009 that exceeds $500,000, and

  • (d) 12%, or any prescribed lesser percentage, of that part of the aggregate principal amount of the loans made by it after March 31, 2009 that exceeds $500,000.

 Subsection 7(1) of the Act is replaced by the following:

Marginal note:Maximum loan size
  • 7. (1) The Minister is not liable to make any payment to a lender, in respect of any loss sustained by it as a result of a loan made to a borrower, if the borrower has disclosed to the lender the outstanding amount of the loan or the lender has actual knowledge of that amount and if the outstanding loan amount in relation to the borrower is more than

    • (a) in the case of a loan made before April 1, 2009, $250,000 or any prescribed lesser amount; and

    • (b) in the case of a loan made after March 31, 2009, $500,000 or any prescribed lesser amount, of which a maximum of $350,000 or any prescribed lesser amount is for a purpose other than the purchase or improvement of real property or immovables of which the borrower is or will become the owner.

Coming into Force

Marginal note:Coming into force

 This Division comes into force on April 1, 2009 or, if it is later, on the day on which this Act receives royal assent.

Division 6Legislation Governing Financial Institutions

1991, c. 46Bank Act

 Paragraph 409(2)(d) of the French version of the Bank Act is replaced by the following:

  • d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes.

 The Act is amended by adding the following after section 418:

Marginal note:Restriction on charges to borrowers
  • 418.1 (1) Subject to any regulations made under subsection (2), a bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the bank of the insurance or guarantee.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) respecting the determination of the actual cost to a bank for the purposes of subsection (1);

    • (b) respecting the circumstances in which a bank is exempt from the application of subsection (1);

    • (c) respecting, in relation to insurance or a guarantee against default on a loan made by a bank in Canada on the security of residential property,

      • (i) the arrangements into which the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not enter, and

      • (ii) the payments or benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, may or may not accept from an insurer or the insurer’s affiliates; and

    • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

  • Marginal note:Regulations — disclosure

    (3) The Governor in Council may make regulations respecting the disclosure by a bank of information relating to insurance or a guarantee against default on a loan made by the bank in Canada on the security of residential property, including regulations respecting

    • (a) the information that must be disclosed, including information relating to

      • (i) the person who benefits from the insurance or guarantee,

      • (ii) the arrangements between

        • (A) the bank or any affiliates that it controls, or the representatives or the employees of each, and

        • (B) the insurer or the insurer’s affiliates, and

      • (iii) the payments and benefits that the bank and any affiliates that it controls, and the representatives and the employees of each, accept from an insurer or the insurer’s affiliates;

    • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

    • (c) the circumstances under which a bank is not required to disclose information.

 The Act is amended by adding the following after section 458.2:

Marginal note:Regulations — activities

458.3 The Governor in Council may make regulations respecting any matters involving a bank’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

  • (a) what a bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and

  • (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

Marginal note:1999, c. 28, s. 35(1)

 Paragraph 538(2)(d) of the French version of the Act is replaced by the following:

  • d) l’émission de cartes de paiement, de crédit ou de débit et, conjointement avec d’autres établissements, y compris les institutions financières, l’exploitation d’un système de telles cartes.

 The Act is amended by adding the following after section 551:

Marginal note:Restriction on charges to borrowers
  • 552. (1) Subject to any regulations made under subsection (2), an authorized foreign bank that has obtained insurance or a guarantee against default on a loan made in Canada on the security of residential property shall not charge a borrower an amount for the insurance or guarantee that exceeds the actual cost to the authorized foreign bank of the insurance or guarantee.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) respecting the determination of the actual cost to an authorized foreign bank for the purposes of subsection (1);

    • (b) respecting the circumstances in which an authorized foreign bank is exempt from the application of subsection (1);

    • (c) respecting, in relation to insurance or a guarantee against default on a loan made by an authorized foreign bank in Canada on the security of residential property,

      • (i) the arrangements into which the authorized foreign bank, its representatives and its employees may or may not enter, and

      • (ii) the payments or benefits that the authorized foreign bank, its representatives and its employees may or may not accept from an insurer or the insurer’s affiliates; and

    • (d) respecting any other matters necessary to carry out the purposes of subsection (1).

  • Marginal note:Regulations — disclosure

    (3) The Governor in Council may make regulations respecting the disclosure by an authorized foreign bank of information relating to insurance or a guarantee against default on a loan made by the authorized foreign bank in Canada on the security of residential property, including regulations respecting

    • (a) the information that must be disclosed, including information relating to

      • (i) the person who benefits from the insurance or guarantee,

      • (ii) the arrangements between the authorized foreign bank, its representatives or its employees and the insurer or the insurer’s affiliates, and

      • (iii) the payments and benefits that the authorized foreign bank, its representatives and its employees accept from an insurer or the insurer’s affiliates;

    • (b) the time, place and manner in which and the persons to whom information is to be disclosed; and

    • (c) the circumstances under which an authorized foreign bank is not required to disclose information.

 The Act is amended by adding the following after section 575:

Marginal note:Regulations — activities

575.1 The Governor in Council may make regulations respecting any matters involving an authorized foreign bank’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including

  • (a) what an authorized foreign bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 538 and any ancillary, related or incidental activities or services; and

  • (b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.

 
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