PART VICorporate Governance (continued)
Fundamental Changes (continued)
Marginal note:Issue of letters patent
(1.1) In the case of an application made under subsection 223(1.2) or (1.3), the Minister shall not issue letters patent of amalgamation unless the Minister has issued, under subsection 35(1), letters patent continuing as a federal credit union each applicant that was a local cooperative credit society.
Marginal note:Letters patent
(2) Where letters patent are issued pursuant to this section, section 28 applies with such modifications as the circumstances require in respect of the issue of the letters patent.
Marginal note:Publication of notice
- 1991, c. 46, s. 229
- 2014, c. 39, s. 276
- 2016, c. 7, s. 125
Marginal note:Court enforcement
229.1 (1) If a bank or any director, officer, employee or agent of a bank is contravening or has failed to comply with any term or condition made in respect of the issuance of letters patent of amalgamation, the Minister may, in addition to any other action that may be taken under this Act, apply to a court for an order directing the bank or the director, officer, employee or agent to comply with the term or condition, cease the contravention or do any thing that is required to be done, and on the application the court may so order and make any other order it thinks fit.
(2) An appeal from an order of a court under this section lies in the same manner as, and to the same court to which, an appeal may be taken from any other order of the court.
- 2001, c. 9, s. 86
Marginal note:Effect of letters patent
(a) the amalgamation of the applicants and their continuance as one bank becomes effective;
(b) the property of each applicant continues to be the property of the amalgamated bank;
(c) the amalgamated bank continues to be liable for the obligations of each applicant;
(d) any existing cause of action, claim or liability to prosecution is unaffected;
(e) any civil, criminal or administrative action or proceeding pending by or against an applicant may be continued to be prosecuted by or against the amalgamated bank;
(f) any conviction against, or ruling, order or judgment in favour of or against, an applicant may be enforced by or against the amalgamated bank;
(g) if any director or officer of an applicant continues as a director or officer of the amalgamated bank, any disclosure by that director or officer of a material interest in any contract made to the applicant shall be deemed to be disclosure to the amalgamated bank; and
(h) [Repealed, 2001, c. 9, s. 87]
(i) the letters patent of amalgamation are the incorporating instrument of the amalgamated bank.
(2) Any deemed disclosure under paragraph (1)(g) shall be recorded in the minutes of the first meeting of directors of the amalgamated bank.
- 1991, c. 46, ss. 230, 576
- 1997, c. 15, s. 27
- 1999, c. 28, s. 14
- 2001, c. 9, s. 87
231 (1) Notwithstanding any other provision of this Act or the regulations, the Minister may, by order, on the recommendation of the Superintendent, grant to a bank in respect of which letters patent were issued under subsection 229(1) permission to
(a) engage in a business activity specified in the order that a bank is not otherwise permitted by this Act to engage in and that one or more of the amalgamating bodies corporate was engaging in at the time application for the letters patent was made;
(b) continue to have issued and outstanding debt obligations the issue of which is not authorized by this Act if the debt obligations were outstanding at the time the application for the letters patent was made;
(c) [Repealed, 1994, c. 47, s. 16]
(d) hold assets that a bank is not otherwise permitted by this Act to hold if the assets were held by one or more of the amalgamating bodies corporate at the time the application for the letters patent was made;
(e) acquire and hold assets that a bank is not otherwise permitted by this Act to acquire or hold if one or more of the amalgamating bodies corporate were obliged, at the time the application for the letters patent was made, to acquire those assets; and
(f) maintain outside Canada any records or registers required by this Act to be maintained in Canada.
Marginal note:Duration of exceptions
(2) The permission granted under any of paragraphs (1)(a) to (f) shall be expressed to be granted for a period specified in the order not exceeding
(a) with respect to any matter described in paragraph (1)(a), 30 days after the date of issue of the letters patent or
(i) if the activity is conducted under an agreement existing on the date of issue of the letters patent, the expiry of the agreement, or
(ii) if the bank is a federal credit union and an undertaking to cease engaging in the activity has been given under subsection 973.02(1), the cessation date set out in the undertaking in respect of the activity;
(b) with respect to any matter described in paragraph (1)(b), ten years; and
(c) with respect to any matter described in any of paragraphs (1)(d) to (f), two years.
(3) Subject to subsection (4), the Minister may, by order on the recommendation of the Superintendent, renew a permission granted by order under subsection (1) with respect to any matter described in any of paragraphs (1)(b) to (e) for any further period or periods that the Minister considers necessary.
(4) The Minister shall not grant to a bank any permission
(a) with respect to matters described in paragraph (1)(b), that purports to be effective more than ten years after the date of the approval for the bank to commence and carry on business, unless the Minister is satisfied on the basis of evidence on oath provided by an officer of the bank that the bank will not be able at law to redeem at the end of the ten years the outstanding debt obligations to which the permission relates; and
(b) with respect to matters described in paragraphs (1)(d) and (e), that purports to be effective more than ten years after the date of issue of the letters patent.
- 1991, c. 46, s. 231
- 1994, c. 47, s. 16
- 1997, c. 15, s. 28
- 2007, c. 6, s. 15
- 2014, c. 39, s. 277
Transfer of Business
Marginal note:Sale by bank
232 (1) A bank may sell all or substantially all of its assets to a financial institution incorporated by or under an Act of Parliament or to an authorized foreign bank in respect of its business in Canada if the purchasing financial institution or authorized foreign bank assumes all or substantially all of the liabilities of the bank.
Marginal note:Sale agreement
(2) An agreement of purchase and sale (in subsection (3), section 233, subsections 234(1) and (4) and section 236 referred to as a “sale agreement”) shall set out the terms of, and means of effecting, the sale of assets referred to in subsection (1).
(3) Notwithstanding anything in this Act, the consideration for a sale referred to in subsection (1) may be cash or fully paid securities of the purchasing financial institution or authorized foreign bank or in part cash and in part fully paid securities of the purchasing financial institution or authorized foreign bank or any other consideration that is provided for in the sale agreement.
- 1991, c. 46, s. 232
- 1999, c. 28, s. 15
Marginal note:Agreement to Superintendent
233 A sale agreement must be sent to the Superintendent before it is submitted to shareholders or to members and shareholders, as the case may be, of the selling bank under subsection 234(1).
- 1991, c. 46, s. 233
- 2007, c. 6, s. 16
- 2010, c. 12, s. 2004
- Date modified: