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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2022-06-20 and last amended on 2022-02-26. Previous Versions

PART XII.1Authorized Foreign Banks (continued)

Miscellaneous

Marginal note:Charges for prescribed products or services

 An authorized foreign bank shall not, directly or indirectly, charge or receive any sum for the provision of any prescribed products or services unless the charge is made by express agreement between it and a customer or by order of a court.

  • 2007, c. 6, s. 91

Marginal note:Prepayment protected

  •  (1) An authorized foreign bank shall not make a loan to a natural person that is repayable in Canada, the terms of which prohibit prepayment of the money advanced or any instalment on the money advanced before its due date.

  • Marginal note:Minimum balance

    (2) Except by express agreement between the authorized foreign bank and the borrower, the making in Canada of a loan or advance by an authorized foreign bank to a borrower shall not be subject to a condition that the borrower maintain a minimum credit balance with the authorized foreign bank.

  • Marginal note:Non-application of subsection (1)

    (3) Subsection (1) does not apply in respect of a loan

    • (a) that is secured by a mortgage on real property; or

    • (b) that is made for business purposes and the principal amount of which is more than $100,000 or any other amount that may be prescribed.

  • Marginal note:Government cheques

    (4) An authorized foreign bank shall not make a charge

    • (a) for cashing a cheque or other instrument drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada, or in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament or in any authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), in respect of its business in Canada;

    • (b) for cashing any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund; or

    • (c) in respect of any cheque or other instrument that is

      • (i) drawn in favour of the Receiver General, the Government of Canada or any department of the Government of Canada or any public officer acting in the capacity of a public officer, and

      • (ii) tendered for deposit to the credit of the Receiver General.

  • Marginal note:Deposits of Government of Canada

    (5) Nothing in subsection (4) precludes any arrangement between the Government of Canada and an authorized foreign bank concerning

    • (a) compensation for services performed by the authorized foreign bank for the Government of Canada; or

    • (b) interest to be paid on any or all deposits of the Government of Canada with the authorized foreign bank.

  • 1991, c. 46, s. 575
  • 1999, c. 28, s. 35
  • 2001, c. 34, s. 6(F)

Marginal note:Regulations — activities

 The Governor in Council may make regulations respecting any matters involving an authorized foreign bank’s dealings, or its employees’, representatives’, agents’ or other intermediaries’ 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 and place at which and the form and manner in which any of those activities are to be carried out or any of those services are to be provided.

  • 2009, c. 2, s. 274
  • 2012, c. 5, s. 70

Marginal note:Regulations re customer information

 The Governor in Council may make regulations

  • (a) requiring an authorized foreign bank to establish procedures regarding the collection, retention, use and disclosure of information about its customers or any class of its customers;

  • (b) requiring an authorized foreign bank to establish procedures for dealing with complaints made by a customer about the collection, retention, use or disclosure of information about the customer;

  • (c) respecting the disclosure by an authorized foreign bank of information relating to the procedures referred to in paragraphs (a) and (b);

  • (d) requiring an authorized foreign bank to designate officers and employees in Canada of the authorized foreign bank who are responsible for

    • (i) implementing the procedures referred to in paragraph (b), and

    • (ii) receiving and dealing with complaints made by a customer of the authorized foreign bank about the collection, retention, use or disclosure of information about the customer;

  • (e) requiring an authorized foreign bank to report information relating to

    • (i) complaints made by its customers about the collection, retention, use or disclosure of information, and

    • (ii) the actions taken by the authorized foreign bank to deal with the complaints; and

  • (f) defining information, collection and retention for the purposes of paragraphs (a) to (e) and the regulations made under those paragraphs.

  • 1991, c. 46, s. 576
  • 1999, c. 28, s. 35

Marginal note:Restriction on tied selling

  •  (1) An authorized foreign bank shall not impose undue pressure on, or coerce, a person to obtain a product or service from a particular person, including the authorized foreign bank and any of its affiliates, as a condition for obtaining another product or service from the authorized foreign bank.

  • Marginal note:Favourable authorized foreign bank product or service tied to other sale

    (2) For greater certainty, an authorized foreign bank may offer a product or service to a person on more favourable terms or conditions than the authorized foreign bank would otherwise offer, where the more favourable terms and conditions are offered on the condition that the person obtain another product or service from any particular person.

  • Marginal note:Favourable other sale tied to authorized foreign bank product or service

    (3) For greater certainty, an affiliate of an authorized foreign bank may offer a product or service to a person on more favourable terms or conditions than the affiliate would otherwise offer, where the more favourable terms and conditions are offered on the condition that the person obtain another product or service from the authorized foreign bank.

  • Marginal note:Approval

    (4) An authorized foreign bank may require that a product or service obtained by a borrower from a particular person as security for a loan from the authorized foreign bank meet with the authorized foreign bank’s approval. The approval shall not be unreasonably withheld.

  • Marginal note:Disclosure

    (4.1) An authorized foreign bank shall, in accordance with the regulations, disclose the prohibition on coercive tied selling set out in subsection (1) in a statement in plain language that is clear and concise, displayed and available to customers and the public at all of its branches where products or services are offered in Canada, on all of its websites through which products or services are offered in Canada and at all prescribed points of service in Canada.

  • Marginal note:Regulations

    (4.2) The Governor in Council may make regulations for the purposes of subsection (4.1)

    • (a) respecting the time and place at which, and the form and manner in which, the prohibition on coercive tied selling set out in subsection (1) is to be disclosed, displayed and made available;

    • (b) defining point of service; and

    • (c) prescribing points of service.

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations

    • (a) specifying types of conduct or transactions that shall be considered undue pressure or coercion for the purpose of subsection (1); and

    • (b) specifying types of conduct or transactions that shall be considered not to be undue pressure or coercion for the purpose of subsection (1).

  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 158
  • 2007, c. 6, s. 92
  • 2012, c. 5, s. 71

Marginal note:Regulations re disclosure

 The Governor in Council may, subject to any other provisions of this Act relating to the disclosure of information, make regulations respecting the disclosure of information by authorized foreign banks or any prescribed class of authorized foreign banks, including regulations respecting

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

    • (i) any product or service or prescribed class of products or services offered by them,

    • (ii) any of their policies, procedures or practices relating to the offer by them of any product or service or prescribed class of products or services,

    • (iii) anything they are required to do or to refrain from doing under a consumer provision, and

    • (iv) any other matter that may affect their dealings, or their employees’, representatives’, agents’ or other intermediaries’ dealings, with customers or the public;

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

  • (c) the content and form of any advertisement by authorized foreign banks or any prescribed class of authorized foreign banks relating to any matter referred to in paragraph (a).

  • 2001, c. 9, s. 159
  • 2007, c. 6, s. 93
  • 2012, c. 5, s. 72

Marginal note:Affiliates

 An authorized foreign bank shall not enter into any arrangement or otherwise cooperate with any of its representatives, agents or other intermediaries, with any of its affiliates that is controlled by an authorized foreign bank and that is a finance entity as defined in subsection 464(1) or other prescribed entity or with any of the representatives, agents or other intermediaries of such an affiliate, to sell or further the sale of a product or service of the authorized foreign bank or the affiliate in Canada unless

  • (a) the affiliate or the representative, agent or other intermediary of the authorized foreign bank or the affiliate, as the case may be, complies, with respect to the product or service, with the consumer provisions that apply to authorized foreign banks — other than section 573.1 — as if they were an authorized foreign bank, to the extent that those provisions are applicable to their activities; and

  • (b) the persons who request or receive the product or service have access to the authorized foreign bank’s procedures for dealing with complaints established under this Act.

  • 2012, c. 5, s. 73

Marginal note:Transmission in case of death

  •  (1) Where the transmission of a debt owing by an authorized foreign bank by reason of a deposit, of property held by an authorized foreign bank as security or for safe-keeping or of rights with respect to a safety deposit box and property deposited in it takes place because of the death of a person, the delivery to the authorized foreign bank of the following is sufficient justification and authority for giving effect to the transmission in accordance with the claim:

    • (a) an affidavit or declaration in writing in form satisfactory to the authorized foreign bank signed by or on behalf of a person claiming by virtue of the transmission stating the nature and effect of the transmission; and

    • (b) one of the following, namely,

      • (i) if the claim is based on a will or other testamentary instrument or on a grant of probate of a will or testamentary instrument or on such a grant and letters testamentary or other document of like import or on a grant of letters of administration or other document of like import, purporting to be issued by any court or authority in Canada or elsewhere, an authenticated copy or certificate of the document under the seal of the court or authority without proof of the authenticity of the seal or other proof, or

      • (ii) if the claim is based on a notarial will, an authenticated copy of the notarial will.

  • Marginal note:Evidence of transmission

    (2) Nothing in subsection (1) shall be construed to prevent an authorized foreign bank from refusing to give effect to a transmission until there has been delivered to the authorized foreign bank any documentary or other evidence of or in connection with the transmission that it may consider necessary.

  • 1991, c. 46, s. 577
  • 1999, c. 28, s. 35

Marginal note:Branch of account with respect to deposits

  •  (1) For the purposes of this Act, the branch of account with respect to a deposit account is

    • (a) the branch the address or name of which appears on the specimen signature card or other signing authority signed by a depositor with respect to the deposit account or that is designated by agreement between the authorized foreign bank and the depositor at the time of opening of the deposit account; or

    • (b) if no branch has been identified or agreed on as provided in paragraph (a), the branch that is designated as the branch of account with respect to the deposit account by the authorized foreign bank by notice in writing to the depositor.

  • Marginal note:Where debt payable

    (2) The amount of any debt owing by an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is payable to the person entitled to the amount only at the branch of account and the person is not entitled to demand payment or to be paid at any other branch of the authorized foreign bank.

  • Marginal note:Exception where authorization

    (3) Notwithstanding subsection (2), an authorized foreign bank may permit either occasionally or as a regular practice, the person to whom it is indebted by reason of a deposit in a deposit account in the authorized foreign bank to withdraw money owing by reason of the deposit at a branch of the authorized foreign bank other than the branch of account or to draw cheques or other orders for the payment of the money at a branch other than the branch of account.

  • Marginal note:Situs of indebtedness

    (4) The indebtedness of an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is deemed for all purposes to be situated at the place where the branch of account is situated.

  • Marginal note:Non-application of subsection (2)

    (5) Subsection (2) does not apply where the business in Canada of the authorized foreign bank is being wound up under the Winding-up and Restructuring Act.

  • 1991, c. 46, s. 578
  • 1999, c. 28, s. 35

Marginal note:Effect of writ, etc.

  •  (1) Subject to subsections (3) and (4), the following documents are binding on property belonging to a person and in the possession of an authorized foreign bank, or on money owing to a person by reason of a deposit account in an authorized foreign bank, only if the document or a notice of it is served at the branch of the authorized foreign bank that has possession of the property or that is the branch of account in respect of the deposit account, as the case may be:

    • (a) a writ or process originating a legal proceeding or issued in or pursuant to a legal proceeding;

    • (b) an order or injunction made by a court;

    • (c) an instrument purporting to assign, perfect or otherwise dispose of an interest in the property or the deposit account; or

    • (d) an enforcement notice in respect of a support order or support provision.

  • Marginal note:Notices

    (2) Any notification sent to an authorized foreign bank with respect to a customer of the authorized foreign bank, other than a document referred to in subsection (1) or (3), constitutes notice to the authorized foreign bank and fixes the authorized foreign bank with knowledge of its contents only if sent to and received at the branch of the authorized foreign bank that is the branch of account of an account held in the name of that customer.

  • Marginal note:Notices: Minister of National Revenue

    (2.1) Despite subsections (1) and (2), a notice, demand, order or other document issued with respect to a customer of an authorized foreign bank constitutes notice to the authorized foreign bank and fixes the authorized foreign bank with knowledge of its contents and, where applicable, is binding on property belonging to the customer and in the possession of the authorized foreign bank or on money owing to the customer by reason of an account in the authorized foreign bank, if it is sent to the branch of the authorized foreign bank referred to in subsection (1) or (2), an office of the authorized foreign bank referred to in paragraph (3)(a) or any other office agreed to by the authorized foreign bank and the Minister of National Revenue and it relates to

    • (a) the administration of an Act of Parliament by the Minister of National Revenue; or

    • (b) the administration of an Act of the legislature of a province or legislation made by an aboriginal government, where the Minister or the Minister of National Revenue has entered into a tax collection agreement under an Act of Parliament with the government of the province or the aboriginal government.

  • Marginal note:Exception

    (3) Subsections (1) and (2) do not apply in respect of an enforcement notice in respect of a support order or support provision if

    • (a) the enforcement notice, accompanied by a written statement containing the information required by the regulations, is served at an office of an authorized foreign bank designated in accordance with the regulations in respect of a province; and

    • (b) the order or provision can be enforced under the laws of that province.

  • Marginal note:Time of application

    (4) Subsection (3) does not apply in respect of an enforcement notice in respect of a support order or support provision until the second business day following the day of service referred to in that subsection.

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations

    • (a) respecting the designation by an authorized foreign bank, for the purpose of subsection (3), of a place in any province for the service of enforcement notices in respect of support orders and support provisions;

    • (b) prescribing the manner in which an authorized foreign bank shall publicize the locations of designated offices of the authorized foreign bank; and

    • (c) respecting the information that must accompany enforcement notices in respect of support orders and support provisions.

  • Marginal note:Definitions

    (6) The following definitions apply in this section.

    designated office

    designated office means a place designated in accordance with regulations made for the purpose of subsection (3). (bureau désigné)

    enforcement notice

    enforcement notice, in respect of a support order or support provision, means a garnishee summons or other instrument issued under the laws of a province for the enforcement of the support order or support provision. (avis d’exécution)

    support order

    support order means an order or judgment or interim order or judgment for family financial support. (ordonnance alimentaire)

    support provision

    support provision means a provision of an agreement relating to the payment of maintenance or family financial support. (disposition alimentaire)

  • 1991, c. 46, s. 579
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 160
  • 2005, c. 19, s. 58
 
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