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Bank Act

Version of section 494 from 2003-01-01 to 2007-04-19:


Marginal note:Acquisition of assets

  •  (1) A bank may purchase or otherwise acquire from a related party of the bank

    • (a) securities of, or securities guaranteed by, the Government of Canada or the government of a province;

    • (b) assets fully secured by securities of, or securities guaranteed by, the Government of Canada or the government of a province; or

    • (c) goods for use in the ordinary course of business.

  • Marginal note:Sale of assets

    (2) Subject to section 482, a bank may sell any assets of the bank to a related party of the bank if

    • (a) the consideration for the assets is fully paid in money; and

    • (b) there is an active market for those assets.

  • Marginal note:Asset transactions with financial institutions

    (3) Notwithstanding any of the provisions of subsections (1) and (2), a bank may, in the normal course of business and pursuant to arrangements that have been approved by the Superintendent in writing, acquire or dispose of any assets, other than real property, from or to a related party of the bank that is a financial institution.

  • Marginal note:Asset transactions in restructuring

    (4) Notwithstanding any of the provisions of subsections (1) and (2), a bank may acquire any assets from, or dispose of any assets to, a related party of the bank as part of, or in the course of, a restructuring, if the acquisition or disposition has been approved in writing by the Superintendent.

  • Marginal note:Goods or space for use in business

    (5) A bank may lease assets

    • (a) from a related party of the bank for use in the ordinary course of business of the bank, or

    • (b) to a related party of the bank

    if the lease payments are made in money.

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