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Bank Act

Version of section 488 from 2007-04-20 to 2022-07-25:


Meaning of transaction

  •  (1) For the purposes of this Part, entering into a transaction with a related party of a bank includes

    • (a) making a guarantee on behalf of the related party;

    • (b) making an investment in any securities of the related party;

    • (c) taking an assignment of or otherwise acquiring a loan made by a third party to the related party; and

    • (d) taking a security interest in the securities of the related party.

  • Marginal note:Interpretation

    (2) For the purposes of this Part, the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit, is part of the transaction, and not a separate transaction.

  • Meaning of loan

    (3) For the purposes of this Part, loan includes a deposit, a financial lease, a conditional sales contract, a repurchase agreement and any other similar arrangement for obtaining funds or credit, but does not include investments in securities or the making of an acceptance, endorsement or other guarantee.

  • Marginal note:Security of a related party

    (4) For the purposes of this Part, security of a related party includes an option, transferable by delivery, to demand delivery of a specified number or amount of shares of the related party at a fixed price within a specified time.

  • 1991, c. 46, s. 488
  • 2007, c. 6, s. 44
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