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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART XII.1Authorized Foreign Banks (continued)

Unclaimed Balances (continued)

Marginal note:Notice of unpaid amount

  •  (1) An authorized foreign bank shall mail to each person

    • (a) to whom a deposit referred to in paragraph 557(1)(a) is payable, or

    • (b) to whom or at whose request an instrument referred to in paragraph 557(1)(b) was issued, certified or accepted,

    at the person’s recorded address, in so far as is known to the authorized foreign bank, a notice stating that the deposit or instrument remains unpaid.

  • Marginal note:When notice to be sent

    (2) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period

    • (a) after the fixed period has terminated, in the case of a deposit made for a fixed period;

    • (b) in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor, in the case of any other deposit; and

    • (c) in respect of which the instrument has remained unpaid, in the case of a cheque, draft or bill of exchange.

  • Marginal note:Notification of transfer to the Bank of Canada

    (3) The notice to be sent during the month of January next following the end of the first nine-year period determined under paragraphs (2)(a) to (c), as the case may be, must also

    • (a) [Not in force]

    • (b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument.

  • 1991, c. 46, ss. 558, 580
  • 1996, c. 6, s. 20
  • 1999, c. 28, s. 35
  • 2007, c. 6, s. 88

Accounts

Marginal note:Account charges

 An authorized foreign bank shall not, directly or indirectly, charge or receive any sum for the keeping of an account unless the charge is made by express agreement between the authorized foreign bank and a customer or by order of a court.

  • 1991, c. 46, s. 559
  • 1997, c. 15, s. 90
  • 1999, c. 28, s. 35

Marginal note:Disclosure on opening account

  •  (1) An authorized foreign bank shall not open or maintain an interest-bearing deposit account in Canada in the name of any natural person unless it discloses, in accordance with the regulations, to the person who requests the opening of the account, the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.

  • Marginal note:Exception

    (2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that is prescribed.

  • 1991, c. 46, s. 560
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 150

Marginal note:Disclosure in advertisements

 No person shall authorize the publication, issue or appearance of any advertisement in Canada that indicates the rate of interest offered by an authorized foreign bank on an interest-bearing deposit or a debt obligation unless the advertisement discloses, in accordance with the regulations, how the amount of interest is to be calculated.

  • 1991, c. 46, s. 561
  • 1999, c. 28, s. 35

Marginal note:Disclosure regulations

 The Governor in Council may make regulations respecting

  • (a) the time and place at which and the form and manner in which disclosure is to be made by an authorized foreign bank of

    • (i) interest rates applicable to debts of the authorized foreign bank and deposits with it, and

    • (ii) the manner in which the amount of interest paid is to be calculated; and

  • (b) any other matters or things that may be necessary to carry out the requirements of sections 560 and 561.

  • 1991, c. 46, s. 562
  • 1999, c. 28, s. 35
  • 2012, c. 5, s. 63

Definition of personal deposit account

 For the purposes of sections 564 to 566, “personal deposit account means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business.

  • 1991, c. 46, s. 563
  • 1999, c. 28, s. 35

Marginal note:Disclosure required on opening a deposit account

  •  (1) Subject to subsections (2) to (4), an authorized foreign bank shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, it provides in writing to the individual who requests the opening of the account

    • (a) a copy of the account agreement;

    • (b) information about all charges applicable to the account;

    • (c) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the account;

    • (d) information about the authorized foreign bank’s procedures relating to complaints about the application of any charge applicable to the account; and

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

  • Marginal note:Exception

    (2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the authorized foreign bank shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge.

  • Marginal note:Exception

    (3) If an authorized foreign bank has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the authorized foreign bank has not complied with subsection (1) in respect of the opening of that other account, the authorized foreign bank shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened.

  • Marginal note:Disclosure in writing

    (4) If an authorized foreign bank opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1).

  • Marginal note:Right to close account

    (5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open.

  • Marginal note:Regulations

    (6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer.

  • 1991, c. 46, s. 564
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 151

Marginal note:Disclosure of charges

 An authorized foreign bank shall disclose, at the prescribed time and place and in the prescribed form and manner, to its customers and to the public, the charges applicable to deposit accounts with the authorized foreign bank and the usual amount, if any, charged by it for services normally provided to its customers and to the public.

  • 1991, c. 46, s. 565
  • 1997, c. 15, s. 91
  • 1999, c. 28, s. 35
  • 2012, c. 5, s. 64

Marginal note:No increase or new charges without disclosure

  •  (1) An authorized foreign bank shall not increase any charge applicable to a personal deposit account with the authorized foreign bank or introduce any new charge applicable to a personal deposit account with the authorized foreign bank unless it discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept.

  • Marginal note:Mandatory disclosure

    (2) An authorized foreign bank shall not increase any charge for any service that is prescribed in relation to a deposit account, other than a personal deposit account, with the authorized foreign bank, or introduce any new charge for any of those services unless the authorized foreign bank discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept.

  • 1991, c. 46, s. 566
  • 1997, c. 15, s. 92
  • 1999, c. 28, s. 35
  • 2012, c. 5, s. 64
 
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