Bank of Canada Act

Marginal note:Rest fund

27 The Bank shall establish a rest fund and after making such provision as the Board thinks proper for bad and doubtful debts, depreciation in assets, pension funds and all such matters as are properly provided for by banks, the ascertained surplus available from the operations of the Bank during each financial year shall be applied by the Board as follows:

• (a) if the rest fund of the Bank is less than the paid-up capital, one-third of the surplus shall be allocated to the rest fund and the residue shall be paid to the Receiver General and form part of the Consolidated Revenue Fund;

• (b) if the rest fund is not less than the paid-up capital, one-fifth of the surplus shall be allocated to the rest fund until the rest fund reaches an amount five times the paid-up capital and the residue shall be paid to the Receiver General and form part of the Consolidated Revenue Fund; and

• (c) if the rest fund is not less than five times the paid-up capital, the whole of the surplus shall be paid to the Receiver General and form part of the Consolidated Revenue Fund.