Bank Act (S.C. 1991, c. 46)
Full Document:
- HTMLFull Document: Bank Act (Accessibility Buttons available) |
- XMLFull Document: Bank Act [3184 KB] |
- PDFFull Document: Bank Act [5144 KB]
Act current to 2020-12-28 and last amended on 2020-05-09. Previous Versions
PART XVBank Holding Companies (continued)
DIVISION 7Ownership (continued)
Approval Process (continued)
Marginal note:Arrangements to effect compliance
919 (1) The directors of a bank holding company may make such arrangements as they deem necessary to carry out the intent of this Division and, in particular, but without limiting the generality of the foregoing, may
(a) require any person in whose name a share of the bank holding company is held to submit a declaration setting out
(b) require any person who wishes to have a transfer of a share registered in the name of, or to have a share issued to, that person to submit a declaration referred to in paragraph (a) as though the person were the holder of that share; and
(c) determine the circumstances in which a declaration referred to in paragraph (a) is to be required, the form of the declaration and the times at which it is to be submitted.
Marginal note:Order of Superintendent
(2) The Superintendent may, by order, direct a bank holding company to obtain from any person in whose name a share of the bank holding company is held a declaration setting out the name of every entity controlled by that person and containing information concerning
Marginal note:Compliance required
(3) As soon as possible after receipt by a bank holding company of a direction under subsection (2),
Marginal note:Outstanding declaration: effect
(4) Where, pursuant to this section, a declaration is required to be submitted by a shareholder or other person in respect of the issue or transfer of any share, a bank holding company may refuse to issue the share or register the transfer unless the required declaration is submitted.
- 2001, c. 9, s. 183
Marginal note:Reliance on information
920 A bank holding company and any person who is a director or an officer, employee or agent of the bank holding company may rely on any information contained in a declaration required by the directors pursuant to section 919 or on any information otherwise acquired in respect of any matter that might be the subject of such a declaration, and no action lies against the bank holding company or any such person for anything done or omitted to be done in good faith in reliance on any such information.
- 2001, c. 9, s. 183
Marginal note:Competition Act
921 Nothing in, or done under the authority of, this Act affects the operation of the Competition Act.
- 2001, c. 9, s. 183
DIVISION 8Business and Powers
Marginal note:Main business
922 (1) Subject to this Part, a bank holding company shall not engage in or carry on any business other than
Marginal note:Regulations
(2) The Governor in Council may make regulations prescribing businesses or services for the purposes of subsection (1).
- 2001, c. 9, s. 183
Marginal note:Restriction on guarantees
923 (1) A bank holding company shall not guarantee on behalf of any person the payment or repayment of any sum of money.
Marginal note:Exception
(2) Subsection (1) does not apply if
(a) the person on whose behalf the bank holding company has undertaken to guarantee the payment or repayment is a subsidiary of the bank holding company; and
(b) the subsidiary has an unqualified obligation to reimburse the bank holding company for the full amount of the payment or repayment to be guaranteed.
Marginal note:Regulations
(3) The Governor in Council may make regulations imposing terms and conditions in respect of guarantees permitted by this section.
- 2001, c. 9, s. 183
Marginal note:Restriction on partnerships
924 (1) Except with the approval of the Superintendent, a bank holding company shall not be a general partner in a limited partnership or a partner in a general partnership.
Meaning of general partnership
(2) For the purposes of subsection (1), general partnership means any partnership other than a limited partnership.
- 2001, c. 9, s. 183
DIVISION 9Investments
Interpretation
Marginal note:Definitions
925 (1) The definitions in subsection 464(1) apply in respect of bank holding companies, except that the reference to “section 468” in the definition permitted entity is to be read as a reference to “section 930” and the reference to “bank” in that definition is to be read as a reference to “bank holding company”.
Marginal note:Members of a bank holding company’s group
(2) For the purpose of this Division, a member of a bank holding company’s group is any of the following:
(a) an entity referred to in any of paragraphs 930(1)(a) to (f) that controls the bank holding company;
(b) a subsidiary of the bank holding company or of an entity referred to in any of paragraphs 930(1)(a) to (f) that controls the bank holding company;
(c) an entity in which the bank holding company, or an entity referred to in any of paragraphs 930(1)(a) to (f) that controls the bank holding company, has a substantial investment; or
(d) a prescribed entity in relation to the bank holding company.
Marginal note:Non-application of Division
(3) This Division does not apply in respect of
- 2001, c. 9, s. 183
Investments
Marginal note:Investments
926 Subject to this Division, a bank holding company may invest its funds in the shares of or ownership interests in any entity or make any other investment that its directors consider necessary or advisable to manage the bank holding company’s liquidity.
- 2001, c. 9, s. 183
General Constraints on Investments
Marginal note:Investment standards
927 The directors of a bank holding company shall establish and the bank holding company shall adhere to investment and lending policies, standards and procedures that a reasonable and prudent person would apply to avoid undue risk of loss and obtain a reasonable return.
- 2001, c. 9, s. 183
Marginal note:Limit — business growth fund
927.1 (1) The aggregate value of all ownership interests in the business growth fund and the entities that the business growth fund controls that a bank holding company and its subsidiaries hold must not exceed $200,000,000.
Marginal note:Application
(2) For the purposes of subsection (1), the value of an ownership interest is determined by the amount paid for it at the time of its issuance.
- 2018, c. 27, s. 143
- Date modified: