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Trust and Loan Companies Act (S.C. 1991, c. 45)

Act current to 2019-08-28 and last amended on 2019-06-17. Previous Versions

PART VIIIBusiness and Powers (continued)

General Business (continued)

Marginal note:Networking

 Subject to section 416, a company may

  • (a) act as agent for any person in respect of the provision of any service that is provided by a financial institution, a permitted entity as defined in subsection 449(1) or a prescribed entity and may enter into an arrangement with any person in respect of the provision of that service; or

  • (b) refer any person to any such financial institution or entity.

  • 1991, c. 45, s. 411
  • 2001, c. 9, s. 531

Marginal note:Restriction on fiduciary activities

 No company, other than a company that is a trust company pursuant to subsection 57(2), shall act in Canada as

  • (a) an executor, administrator or official guardian or a guardian, tutor, curator, judicial adviser or committee of a mentally incompetent person; or

  • (b) a trustee for a trust.

Marginal note:Restriction on deposit taking

  •  (1) A company shall not accept deposits in Canada unless

    • (a) it is a member institution, as defined in section 2 of the Canada Deposit Insurance Corporation Act;

    • (b) it has been authorized under subsection 26.03(1) of that Act to accept deposits without being a member institution, as defined in section 2 of that Act; or

    • (c) the order approving the commencement and carrying on of business in Canada by the company authorizes it to accept deposits solely in accordance with subsection (2).

  • Marginal note:Deposits that fall below $150,000

    (2) A company referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after the company receives the authorization referred to in that paragraph,

    A/B ≤ 0.01

    where

    A
    is the sum of all amounts each of which is the sum of all the deposits held by the company at the end of a day in the preceding 30 days each of which deposits is less than $150,000 and payable in Canada; and
    B
    is the sum of all amounts each of which is the sum of all deposits held by the company at the end of a day in those preceding 30 days and payable in Canada.
  • Marginal note:Exchange rate

    (3) For the purpose of subsection (2), the rate of exchange to be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada is to be determined in accordance with rules prescribed under subsection 26.03(2) of the Canada Deposit Insurance Corporation Act.

  • Definition of deposit

    (4) For the purpose of subsection (2), deposit has the meaning that would be given to that term by the schedule to the Canada Deposit Insurance Corporation Act for the purposes of deposit insurance if that schedule were read without reference to subsections 2(2), (5) and (6) of that schedule, but does not include prescribed deposits.

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations

    • (a) prescribing the deposits referred to in subsection (4); and

    • (b) prescribing terms and conditions with respect to the acceptance of those deposits.

  • 1991, c. 45, s. 413
  • 2007, c. 6, s. 358

Marginal note:Notice before opening account or providing prescribed product

  •  (1) Before a company referred to in paragraph 413(1)(b) or (c) opens a deposit account in Canada or provides in Canada any prescribed product that relates to a deposit, the company shall, in the prescribed manner, give the person requesting the opening of the account or the provision of the product

    • (a) a notice in writing that deposits to the deposit account, or that the deposit that relates to the prescribed product, as the case may be, will not be insured by the Canada Deposit Insurance Corporation or, if the request is made by telephone, a verbal notice to that effect; and

    • (b) any other information that may be prescribed.

  • Marginal note:Other notice

    (2) A company referred to in paragraph 413(1)(b) or (c) shall, in accordance with any regulations that may be made,

    • (a) post notices at all of its branches, and at prescribed points of service, in Canada where deposits are accepted, and on all of its websites at which deposits are accepted in Canada, to inform the public that deposits with the company are not insured by the Canada Deposit Insurance Corporation; and

    • (b) include in its advertisements notices to inform the public that deposits with the company are not insured by the Canada Deposit Insurance Corporation.

  • Marginal note:Regulations

    (3) The Governor in Council may make regulations

    • (a) prescribing the manner in which notices referred to in subsection (1) are to be given and the additional information to be contained in the notices; and

    • (b) respecting notices for the purpose of subsection (2).

  • 2007, c. 6, s. 358

Marginal note:Deposits less than $150,000

  •  (1) Subject to the regulations, a company referred to in paragraph 413(1)(b) or (c) may not, in respect of its business in Canada, act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

  • Definition of deposit

    (2) In this section, deposit has the meaning assigned by subsection 413(4).

  • Marginal note:Regulations

    (3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a company referred to in subsection (1) may act as agent for any person in the taking of a deposit that is less than $150,000 and payable in Canada.

  • 2007, c. 6, s. 358

Marginal note:Shared premises

  •  (1) Subject to the regulations, no company referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are shared with those of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the company.

  • Marginal note:Limitation

    (2) Subsection (1) only applies in respect of premises or any portion of premises on which both the company and the member institution carry on business with the public and to which the public has access.

  • Marginal note:Adjacent premises

    (3) Subject to the regulations, no company referred to in paragraph 413(1)(b) or (c) shall carry on business in Canada on premises that are adjacent to a branch or office of a member institution, within the meaning of section 2 of the Canada Deposit Insurance Corporation Act, that is affiliated with the company, unless the company clearly indicates to its customers that its business and the premises on which it is carried on are separate and distinct from the business and premises of the affiliated member institution.

  • Marginal note:Regulations

    (4) The Governor in Council may make regulations

    • (a) respecting the circumstances in which, and the conditions under which, a company referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are shared with those of a member institution referred to in subsection (1); and

    • (b) respecting the circumstances in which, and the conditions under which, a company referred to in paragraph 413(1)(b) or (c) may carry on business in Canada on premises that are adjacent to a branch or office of a member institution referred to in subsection (3).

  • 2007, c. 6, s. 358

Marginal note:Restriction on guarantees

  •  (1) A company shall not guarantee on behalf of any person the payment or repayment of any sum of money unless

    • (a) the sum of money is a fixed sum of money with or without interest thereon; and

    • (b) the person on whose behalf the company has undertaken to guarantee the payment or repayment has an unqualified obligation to reimburse the company for the full amount of the payment or repayment to be guaranteed.

  • Marginal note:Exception

    (2) Paragraph (1)(a) does not apply where the person on whose behalf the company has undertaken to guarantee a payment or repayment is a subsidiary of the company.

  • Marginal note:Idem

    (3) Notwithstanding subsection (1), a company may guarantee repayment of the principal or payment of the interest, or both, of any moneys entrusted to the company for investment, on such terms and conditions as are agreed on.

  • Marginal note:Regulations

    (4) The Governor in Council may make regulations imposing terms and conditions in respect of guarantees permitted by this section.

  • 1991, c. 45, s. 414
  • 1997, c. 15, s. 376
  • 2001, c. 9, s. 532
 
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