Financial System Review Act (S.C. 2012, c. 5)
Full Document:
Assented to 2012-03-29
Marginal note:2001, c. 9, s. 98; 2007, c. 6, par. 132(r)
28. Subsection 393(1) of the Act is replaced by the following:
Marginal note:Loss of control — banks and bank holding companies
393. (1) Despite sections 374 and 377, a widely held bank or a widely held bank holding company may be a major shareholder of a bank with equity of twelve billion dollars or more and cease to control, within the meaning of paragraphs 3(1)(a) and (d), the bank if it has entered into an agreement with the Minister to do all things necessary to ensure that it is not a major shareholder of the bank on the expiration of the day specified in the agreement.
Marginal note:2001, c. 9, s. 98; 2007, c. 6, par. 132(s)
29. Subsection 393.1(1) of the Act is replaced by the following:
Marginal note:Loss of control — other entities
393.1 (1) Despite sections 374 and 377, an eligible foreign institution, an eligible Canadian financial institution, other than a bank, or a widely held insurance holding company may be a major shareholder of a bank with equity of twelve billion dollars or more and cease to control, within the meaning of paragraph 3(1)(d), the bank if it has entered into an agreement with the Minister to do all things necessary to ensure that it is not a major shareholder of the bank on the expiration of the day specified in the agreement.
Marginal note:2001, c. 9, s. 98; 2007, c. 6, par. 132(t)
30. The portion of subsection 394(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Change in status
394. (1) If a body corporate that is an eligible financial institution other than a bank controls, within the meaning of paragraph 3(1)(d), a bank with equity of twelve billion dollars or more and the body corporate subsequently ceases to be an eligible financial institution, the body corporate must do all things necessary to ensure that, on the day that is one year after the day it ceased to be an eligible financial institution,
Marginal note:2001, c. 9, s. 98; 2007, c. 6, par. 132(u)
31. Paragraph 396(2)(a) of the Act is replaced by the following:
(a) more than 10 per cent but no more than 20 per cent of any class of the outstanding voting shares of a widely held bank with equity of twelve billion dollars or more; or
Marginal note:2001, c. 9, s. 98
32. Subsection 401.2(2) of the Act is replaced by the following:
Marginal note:Exception
(2) Despite subsection (1), a bank may record in its securities register a transfer or issue of any share of the bank to a foreign bank, or to a foreign institution, that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share that is transferred or issued is beneficially owned by the foreign bank or foreign institution or by an entity controlled by the foreign bank or foreign institution.
Marginal note:2001, c. 9, s. 98
33. Subsection 401.3(2) of the Act is replaced by the following:
Marginal note:Exception
(2) Subsection (1) does not apply to a foreign bank, or to a foreign institution, that is controlled by the government of a foreign country or any political subdivision of a foreign country, or by any agent or agency of a foreign government, if the share referred to in subsection (1) is beneficially owned by the foreign bank or foreign institution or by an entity controlled by the foreign bank or foreign institution.
Marginal note:2007, c. 6, s. 24
34. (1) The portion of subsection 413.1(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Notice before opening account or providing prescribed product
413.1 (1) Before a bank referred to in paragraph 413(1)(b) or (c) opens a deposit account in Canada or provides in Canada a prescribed product that relates to a deposit, the bank shall, at the prescribed time and place and in the prescribed form and manner, give the person requesting the opening of the account or the provision of the product
Marginal note:2007, c. 6, s. 24
(2) The portion of subsection 413.1(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Other notice
(2) A bank referred to in paragraph 413(1)(b) or (c) shall, in accordance with the regulations,
Marginal note:2001, c. 9, s. 103(2)
(3) Paragraph 413.1(3)(a) of the Act is replaced by the following:
(a) prescribing the time and place at which and the form and manner in which notices referred to in subsection (1) are to be given and the other information to be contained in the notices; and
Marginal note:2009, c. 2, s. 270
35. Paragraph 418.1(3)(b) of the English version of the Act is replaced by the following:
(b) the time and place at which, the form and manner in which and the persons to whom information is to be disclosed; and
36. Subsection 425(1) of the Act is amended by adding the following in alphabetical order:
“unperfected”
« non parfaite »
“unperfected”, in relation to a security interest, means that the security interest has not been registered in a public register maintained under the law under which the security interest is created, or has not been perfected or published by any other means recognized by that law, where the registration or other means of perfection or publication would have made the security interest effective against third parties or would have determined priorities in rank in respect of rights in, on or in respect of the property that is subject to the security interest;
37. Subsection 426(7) of the Act is replaced by the following:
Marginal note:Priority of bank’s rights
(7) Subject to subsections (8), (9) and (10), all the rights and powers of a bank in respect of the property covered by security given under this section have priority over all rights subsequently acquired in, on or in respect of the property and also over the claim of any mechanics’ lien holder, of any unpaid vendor of equipment or casing or of any person who had a security interest in that property that was unperfected at the time the bank acquired its security in the property.
Marginal note:Exception
(7.1) The priority referred to in subsection (7) does not extend over the claim of any unpaid vendor who had a lien on the equipment or casing, or of any person who has a security interest in the property that was unperfected at the time the bank acquired its security in the property, if the bank acquired its security with knowledge of that unpaid vendor’s lien or that other person’s security interest.
38. Subsections 428(1) and (2) of the Act are replaced by the following:
Marginal note:Priority of bank’s rights
428. (1) All the rights and powers of a bank in respect of the property mentioned in or covered by a warehouse receipt or bill of lading acquired and held by the bank, and the rights and powers of the bank in respect of the property covered by security given to the bank under section 427 that are the same as if the bank had acquired a warehouse receipt or bill of lading in which that property was described, have, subject to subsection 427(4) and subsections (3) to (6) of this section, priority over all rights subsequently acquired in, on or in respect of that property, and also over the claim of any unpaid vendor or of any person who has a security interest in that property that was unperfected at the time the bank acquired its security in the property.
Marginal note:Affixation to real property
(1.1) If security is given to the bank under paragraph 427(1)(c) or (m) consisting of aquacultural equipment, under paragraph 427(1)(d) or (n) consisting of agricultural equipment, under paragraph 427(1)(k) consisting of aquacultural equipment or an aquacultural electric system, under paragraph 427(1)(l) consisting of agricultural equipment or a farm electric system or under paragraph 427(1)(p) consisting of forestry equipment, the priority referred to in subsection (1) exists even if the property is or becomes affixed to real property.
Marginal note:Exception
(2) The priority referred to in subsection (1) does not extend over the claim of any unpaid vendor who had a lien on the property, or of any person who has a security interest in the property that was unperfected at the time the bank acquired its warehouse receipt, bill of lading or security, if the bank acquired it with knowledge of that unpaid vendor’s lien or that other person’s security interest.
39. The portion of paragraph 443(a) of the Act before subparagraph (i) is replaced by the following:
(a) the time and place at which and the form and manner in which disclosure is to be made by a bank of
40. Sections 446 and 447 of the Act are replaced by the following:
Marginal note:Disclosure of charges
446. A bank shall disclose to its customers and to the public, at the prescribed time and place and in the prescribed form and manner, the charges applicable to deposit accounts with the bank and the usual amount, if any, charged by the bank for services normally provided by the bank to its customers and to the public.
Marginal note:No increase or new charges without disclosure
447. (1) A bank shall not increase any charge applicable to a personal deposit account with the bank or introduce any new charge applicable to a personal deposit account with the bank unless the bank discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept.
Marginal note:Mandatory disclosure
(2) With respect to prescribed services in relation to deposit accounts, other than personal deposit accounts, a bank shall not increase any charge for any such service in relation to a deposit account with the bank or introduce any new charge for any such service in relation to a deposit account with the bank unless the bank discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept.
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