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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-08-15 and last amended on 2019-06-21. Previous Versions

PART VIIIBusiness and Powers (continued)

General Business (continued)

Deposit Acceptance

Marginal note:Deposit acceptance

  •  (1) A bank may, without the intervention of any other person,

    • (a) accept a deposit from any person whether or not the person is qualified by law to enter into contracts; and

    • (b) pay all or part of the principal of the deposit and all or part of the interest thereon to or to the order of that person.

  • Marginal note:Exception

    (2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the bank pursuant to paragraph (1)(a) is claimed by some other person

    • (a) in any action or proceeding to which the bank is a party and in respect of which service of a writ or other process originating that action or proceeding has been made on the bank, or

    • (b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the bank not to make payment of that money or make payment thereof to some person other than the depositor has been served on the bank,

    and, in the case of any such claim so made, the money so deposited may be paid to the depositor with the consent of the claimant or to the claimant with the consent of the depositor.

  • Marginal note:Execution of trust

    (3) A bank is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject.

  • Marginal note:Payment when bank has notice of trust

    (4) Subsection (3) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the bank has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made.

  • 1991, c. 46, s. 437
  • 2001, c. 9, s. 111

Unclaimed Balances

Marginal note:Unclaimed balances

  •  (1) Where

    • (a) a deposit has been made in Canada that is payable in Canada in Canadian currency and in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor during a period of ten years

      • (i) in the case of a deposit made for a fixed period, from the day on which the fixed period terminated, and

      • (ii) in the case of any other deposit, from the day on which the last transaction took place or a statement of account was last requested or acknowledged by the creditor, whichever is later, or

    • (b) a cheque, draft or bill of exchange (including any such instrument drawn by one branch of a bank on another branch of the bank but not including such an instrument issued in payment of a dividend on the capital of a bank) payable in Canada in Canadian currency has been issued, certified or accepted by a bank in Canada and no payment has been made in respect thereof for a period of ten years after the date of issue, certification, acceptance or maturity, whichever is later,

    the bank shall pay to the Bank of Canada not later than December 31 in each year an amount equal to the principal amount of the deposit or instrument, plus interest, if any, calculated in accordance with the terms of the deposit or instrument, and payment accordingly discharges the bank from all liability in respect of the deposit or instrument.

  • Marginal note:Provision of information

    (2) A bank shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the bank:

    • (a) in the case of a deposit,

      • (i) the name of the depositor in whose name the deposit is held,

      • (ii) the recorded address of the depositor,

      • (iii) the outstanding amount of the deposit, and

      • (iv) the branch of the bank at which the last transaction took place in respect of the deposit, and the date of that last transaction; and

    • (b) in the case of an instrument,

      • (i) the name of the person to whom or at whose request the instrument was issued, certified or accepted,

      • (ii) the recorded address of that person,

      • (iii) the name of the payee of the instrument,

      • (iv) the amount and date of the instrument,

      • (v) the name of the place where the instrument was payable, and

      • (vi) the branch of the bank at which the instrument was issued, certified or accepted.

  • Marginal note:Copies of signature cards and signing authorities

    (2.1) A bank shall, on written request by the Bank of Canada, provide the Bank of Canada with copies of signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada.

  • Marginal note:Payment to claimant

    (3) Subject to section 22 of the Bank of Canada Act, where payment has been made to the Bank of Canada under subsection (1) in respect of any deposit or instrument, and if payment is demanded or the instrument is presented at the Bank of Canada by the person who, but for that section, would be entitled to receive payment of the deposit or instrument, the Bank of Canada is liable to pay, at its agency in the province in which the deposit or instrument was payable, an amount equal to the amount so paid to it together with interest, if interest was payable under the terms of the deposit or instrument,

    • (a) for a period not exceeding ten years from the day on which the payment was received by the Bank of Canada until the date of payment to the claimant; and

    • (b) at such rate and computed in such manner as the Minister determines.

  • Marginal note:Enforcing liability

    (4) The liability of the Bank of Canada under subsection (3) may be enforced by action against the Bank of Canada in the court in the province in which the deposit or instrument was payable.

  • Marginal note:Application of subsection (1)

    (5) Subsection (1) applies only in respect of

    • (a) deposits made, and cheques, drafts and bills of exchange issued, certified or accepted, in the ten year period immediately preceding the day on which this section comes into force; and

    • (b) deposits made, and cheques, drafts and bills of exchange issued, certified or accepted, on or after the day on which this section comes into force.

  • 1991, c. 46, s. 438
  • 1999, c. 28, s. 23
  • 2007, c. 6, s. 29

Marginal note:Notice of unpaid amount

  •  (1) A bank shall mail to each person, in so far as is known to the bank,

    • (a) to whom a deposit referred to in paragraph 438(1)(a) is payable, or

    • (b) to whom or at whose request an instrument referred to in paragraph 438(1)(b) was issued, certified or accepted,

    at the person’s recorded address, a notice stating that the deposit or instrument remains unpaid.

  • Marginal note:When notice to be sent

    (2) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period

    • (a) in the case of a deposit made for a fixed period, after the fixed period has terminated;

    • (b) in the case of any other deposit, in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor; and

    • (c) in the case of a cheque, draft or bill of exchange, in respect of which the instrument has remained unpaid.

  • Marginal note:Notification of transfer to the Bank of Canada

    (3) The notice to be sent during the month of January next following the end of the first nine-year period determined under paragraphs (2)(a) to (c), as the case may be, must also

    • (a) [Not in force]

    • (b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument.

  • 1991, c. 46, s. 439
  • 2007, c. 6, s. 30
 
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