PART VIIIBusiness and Powers (continued)
General Business (continued)
439.1 The following definitions apply in this section and in sections 445 to 448.2, 458.1, 459.2 and 459.4.
- low-fee retail deposit account
low-fee retail deposit account means a retail deposit account that has the prescribed characteristics. (compte de dépôt de détail à frais modiques)
- member bank
member bank means a bank that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act. (banque membre)
- personal deposit account
personal deposit account means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business. (compte de dépôt personnel)
- retail deposit account
retail deposit account means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed. (compte de dépôt de détail)
- 2001, c. 9, s. 113
Marginal note:Account charges
440 A bank shall not, directly or indirectly, charge or receive any sum for the keeping of an account unless the charge is made by express agreement between the bank and a customer or by order of a court.
Marginal note:Disclosure on opening account
441 (1) A bank shall not open or maintain an interest-bearing deposit account in Canada in the name of any natural person unless the bank discloses, in accordance with the regulations, to the person who requests the bank to open the account, the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.
(2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that may be prescribed.
- 1991, c. 46, s. 441
- 2001, c. 9, s. 114
Marginal note:Disclosure in advertisements
442 No person shall authorize the publication, issue or appearance of any advertisement in Canada that indicates the rate of interest offered by a bank on an interest-bearing deposit or a debt obligation unless the advertisement discloses, in accordance with the regulations, how the amount of interest is to be calculated.
Marginal note:Disclosure regulations
443 The Governor in Council may make regulations respecting
(a) the time and place at which and the form and manner in which disclosure is to be made by a bank of
(b) such other matters or things as may be necessary to carry out the requirements of sections 441 and 442.
- 1991, c. 46, s. 443
- 2012, c. 5, s. 39
444 [Repealed, 2001, c. 9, s. 115]
Marginal note:Disclosure required on opening a deposit account
445 (1) Subject to subsections (2) to (4), a bank shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, the bank provides in writing to the individual who requests the opening of the account
(a) a copy of the account agreement with the bank;
(b) information about all charges applicable to the account;
(c) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the account;
(d) information about the bank’s procedures relating to complaints about the application of any charge applicable to the account; and
(e) such other information as may be prescribed.
(2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the bank shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge.
(3) If a bank has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the bank has not complied with subsection (1) in respect of the opening of that other account, the bank shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened.
Marginal note:Disclosure in writing
(4) If a bank opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1).
Marginal note:Right to close account
(5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open.
(6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer.
- 1991, c. 46, s. 445
- 1997, c. 15, s. 48
- 2001, c. 9, s. 116
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.
- 1991, c. 46, s. 446
- 2012, c. 5, s. 40
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.
- 1991, c. 46, s. 447
- 2012, c. 5, s. 40
448 Sections 445 to 447 apply only in respect of charges applicable to deposit accounts with the bank in Canada and services provided by the bank in Canada.
- 1991, c. 46, s. 448
- 2001, c. 9, s. 117
Marginal note:Retail deposit accounts
448.1 (1) Subject to regulations made under subsection (3), a member bank shall, at any prescribed point of service in Canada or any branch in Canada at which it opens retail deposit accounts through a natural person, open a retail deposit account for an individual who meets the prescribed conditions at his or her request made there in person.
Marginal note:No minimum deposit or balance requirements
(2) A member bank shall not require that, in the case of an account opened under subsection (1), the individual make an initial minimum deposit or maintain a minimum balance.
(3) The Governor in Council may make regulations
- 2001, c. 9, s. 117
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