Business of IAC Limited Pending Amalgamation (continued)
18 For purposes of subsection 16(1), the following shall be considered not to constitute carrying on business or the acquisition of assets:
(a) the continued ownership of assets held prior to the effective day;
(b) the taking of all actions and the doing or executing of all deeds or documents that may be reasonably necessary in connection with the assets referred to in paragraph (a) and any other assets acquired without contravention of the Bank Act or this Act;
(c) the deposit or temporary investment of money derived from the recovery upon or sale of assets acquired without contravention of the Bank Act or this Act, if the deposit or investment is for the purpose of preserving the money for future investments not in contravention of the Bank Act or this Act;
(d) the making of investments, whether by way of purchase of shares or indebtedness, by IAC Limited or any restricted corporation in any other of those corporations or, subject to paragraph 8(a), in the Bank;
(e) subject to section 9, the borrowing of money; and
(f) matters reasonably necessary to facilitate the effective performance of the activities referred to in paragraphs (a) to (e) or otherwise permitted under this Act.
Marginal note:Protection of customers
19 A customer or other person dealing with IAC Limited or any restricted corporation is under no obligation to inquire into compliance by that corporation with sections 16 and 17, and a contravention of those sections does not affect any right or remedy otherwise available to that person.
Marginal note:Withdrawal of exemptions
20 If the Bank or IAC Limited or a director of the Bank or IAC Limited is, in the opinion of the Minister of Finance, in contravention of any requirement of sections 8, 9, 12, 13, 15 or 16, then the Minister may, unless that contravention is cured to his satisfaction not later than ninety days after written notice describing the contravention has been sent by prepaid registered mail by or on behalf of the Minister to the Bank, withdraw any or all of the exceptions to the Bank Act set out in subsection 7(3) of this Act or continue all or any of them on such terms and conditions as he may require.
Marginal note:Failure to amalgamate
21 If the Bank does not amalgamate with IAC Limited within ten years after this Act comes into force, the Bank shall not thereafter carry on the business of banking.
22 A violation of any of the provisions of the Bank Act made applicable to IAC Limited by sections 12 to 14 of this Act constitutes an offence against the Bank Act and the person committing the offence is liable to the penalties prescribed in the Bank Act for contravention of such provisions.
Marginal note:No approval to commence business
23 If no approval permitting the Bank to commence business is obtained by the Bank from the Governor in Council within one year after the coming into force of this Act, then, in addition to the consequences set out in subsection 15(1) of the Bank Act, the provisions of this Act that affect or restrict IAC Limited, the subsidiaries of IAC Limited or the shares of IAC Limited shall cease to have effect, except that subparagraph 7(3)(a)(ii) and paragraphs 7(3)(b) and (c) shall remain in effect for purposes of giving effect to subsections 15(2) to (9) of the Bank Act.
Marginal note:Amendment to Schedule A of Bank Act
|Name of Bank||Additional name under which Bank is authorized to carry on business||Authorized capital stock||Par value of shares||Head office of the Bank|
|Continental Bank of Canada||Banque Continentale du Canada||$100,000,000||$10||Toronto|
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