PART VIIIBusiness and Powers (continued)
General Business (continued)
Special Security (continued)
Marginal note:Regulations — aircraft objects
436.1 (1) The Governor in Council may make regulations respecting the application of sections 426 to 436 to aircraft objects, including regulations
(a) removing classes of aircraft objects from the application of those sections or reinstating their application to those classes of aircraft objects; and
(b) eliminating rights and powers acquired under those sections in relation to aircraft objects.
Marginal note:Definition of aircraft objects
(2) In subsection (1), aircraft objects has the same meaning as in subsection 2(1) of the International Interests in Mobile Equipment (aircraft equipment) Act.
- 2005, c. 3, s. 10
Marginal note:Deposit acceptance
437 (1) A bank may, without the intervention of any other person,
(a) accept a deposit from any person whether or not the person is qualified by law to enter into contracts; and
(b) pay all or part of the principal of the deposit and all or part of the interest thereon to or to the order of that person.
(2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the bank pursuant to paragraph (1)(a) is claimed by some other person
(a) in any action or proceeding to which the bank is a party and in respect of which service of a writ or other process originating that action or proceeding has been made on the bank, or
(b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the bank not to make payment of that money or make payment thereof to some person other than the depositor has been served on the bank,
and, in the case of any such claim so made, the money so deposited may be paid to the depositor with the consent of the claimant or to the claimant with the consent of the depositor.
Marginal note:Execution of trust
(3) A bank is not bound to see to the execution of any trust to which any deposit made under the authority of this Act is subject.
Marginal note:Payment when bank has notice of trust
(4) Subsection (3) applies regardless of whether the trust is express or arises by the operation of law, and it applies even when the bank has notice of the trust if it acts on the order of or under the authority of the holder or holders of the account into which the deposit is made.
- 1991, c. 46, s. 437
- 2001, c. 9, s. 111
Marginal note:Unclaimed balances
438 (1) Where
(a) a deposit has been made in Canada that is payable in Canada in Canadian currency and in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor during a period of ten years
(i) in the case of a deposit made for a fixed period, from the day on which the fixed period terminated, and
(ii) in the case of any other deposit, from the day on which the last transaction took place or a statement of account was last requested or acknowledged by the creditor, whichever is later, or
(b) a cheque, draft or bill of exchange (including any such instrument drawn by one branch of a bank on another branch of the bank but not including such an instrument issued in payment of a dividend on the capital of a bank) payable in Canada in Canadian currency has been issued, certified or accepted by a bank in Canada and no payment has been made in respect thereof for a period of ten years after the date of issue, certification, acceptance or maturity, whichever is later,
the bank shall pay to the Bank of Canada not later than December 31 in each year an amount equal to the principal amount of the deposit or instrument, plus interest, if any, calculated in accordance with the terms of the deposit or instrument, and payment accordingly discharges the bank from all liability in respect of the deposit or instrument.
Marginal note:Provision of information
(2) A bank shall, on making a payment under subsection (1), provide the Bank of Canada, for each deposit or instrument in respect of which the payment is made, with the following information current as of the day the payment is made, in so far as it is known to the bank:
(a) in the case of a deposit,
(i) the name of the depositor in whose name the deposit is held,
(ii) the recorded address of the depositor,
(iii) the outstanding amount of the deposit, and
(iv) the branch of the bank at which the last transaction took place in respect of the deposit, and the date of that last transaction; and
(b) in the case of an instrument,
(i) the name of the person to whom or at whose request the instrument was issued, certified or accepted,
(ii) the recorded address of that person,
(iii) the name of the payee of the instrument,
(iv) the amount and date of the instrument,
(v) the name of the place where the instrument was payable, and
(vi) the branch of the bank at which the instrument was issued, certified or accepted.
Marginal note:Copies of signature cards and signing authorities
(2.1) A bank shall, on written request by the Bank of Canada, provide the Bank of Canada with copies of signature cards and signing authorities relating to any deposit or instrument in respect of which it has made a payment under subsection (1). If it does not have any with respect to a deposit or instrument to which the request relates, it shall so inform the Bank of Canada.
Marginal note:Payment to claimant
(3) Subject to section 22 of the Bank of Canada Act, where payment has been made to the Bank of Canada under subsection (1) in respect of any deposit or instrument, and if payment is demanded or the instrument is presented at the Bank of Canada by the person who, but for that section, would be entitled to receive payment of the deposit or instrument, the Bank of Canada is liable to pay, at its agency in the province in which the deposit or instrument was payable, an amount equal to the amount so paid to it together with interest, if interest was payable under the terms of the deposit or instrument,
(a) for a period not exceeding ten years from the day on which the payment was received by the Bank of Canada until the date of payment to the claimant; and
(b) at such rate and computed in such manner as the Minister determines.
Marginal note:Enforcing liability
(4) The liability of the Bank of Canada under subsection (3) may be enforced by action against the Bank of Canada in the court in the province in which the deposit or instrument was payable.
Marginal note:Application of subsection (1)
(5) Subsection (1) applies only in respect of
(a) deposits made, and cheques, drafts and bills of exchange issued, certified or accepted, in the ten year period immediately preceding the day on which this section comes into force; and
(b) deposits made, and cheques, drafts and bills of exchange issued, certified or accepted, on or after the day on which this section comes into force.
- 1991, c. 46, s. 438
- 1999, c. 28, s. 23
- 2007, c. 6, s. 29
Marginal note:Notice of unpaid amount
439 (1) A bank shall mail to each person, in so far as is known to the bank,
(a) to whom a deposit referred to in paragraph 438(1)(a) is payable, or
(b) to whom or at whose request an instrument referred to in paragraph 438(1)(b) was issued, certified or accepted,
at the person’s recorded address, 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) in the case of a deposit made for a fixed period, after the fixed period has terminated;
(b) in the case of any other deposit, in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor; and
(c) in the case of a cheque, draft or bill of exchange, in respect of which the instrument has remained unpaid.
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) [Repealed before coming into force, 2008, c. 20, s. 3]
(b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument.
- 1991, c. 46, s. 439
- 2007, c. 6, s. 30
- 2008, c. 20, s. 3
439.1 The following definitions apply in this section and in sections 445 to 448.2, 458.1, 459.2 and 459.4.
- low-fee retail deposit account
low-fee retail deposit account means a retail deposit account that has the prescribed characteristics. (compte de dépôt de détail à frais modiques)
- member bank
member bank means a bank that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act. (banque membre)
- personal deposit account
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. (compte de dépôt personnel)
- retail deposit account
retail deposit account means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed. (compte de dépôt de détail)
- 2001, c. 9, s. 113
Marginal note:Account charges
440 A 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 bank and a customer or by order of a court.
Marginal note:Disclosure on opening account
441 (1) A bank shall not open or maintain an interest-bearing deposit account in Canada in the name of any natural person unless the bank discloses, in accordance with the regulations, to the person who requests the bank to open the account, the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.
(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 may be prescribed.
- 1991, c. 46, s. 441
- 2001, c. 9, s. 114
Marginal note:Disclosure in advertisements
442 No person shall authorize the publication, issue or appearance of any advertisement in Canada that indicates the rate of interest offered by a 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.
Marginal note:Disclosure regulations
443 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 a bank of
(i) interest rates applicable to debts of the bank and deposits with the bank, and
(ii) the manner in which the amount of interest paid is to be calculated; and
(b) such other matters or things as may be necessary to carry out the requirements of sections 441 and 442.
- 1991, c. 46, s. 443
- 2012, c. 5, s. 39
444 [Repealed, 2001, c. 9, s. 115]
Marginal note:Disclosure required on opening a deposit account
445 (1) Subject to subsections (2) to (4), a bank shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, the bank provides in writing to the individual who requests the opening of the account
(a) a copy of the account agreement with the bank;
(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 bank’s procedures relating to complaints about the application of any charge applicable to the account; and
(e) such other information as may be prescribed.
(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 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.
(3) If a 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 bank has not complied with subsection (1) in respect of the opening of that other account, the 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 a 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.
(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. 445
- 1997, c. 15, s. 48
- 2001, c. 9, s. 116
Marginal note:Disclosure of charges
446 A bank shall disclose to its customers and to the public, at the prescribed time and place and in the prescribed form and manner, the charges applicable to deposit accounts with the bank and the usual amount, if any, charged by the bank for services normally provided by the bank to its customers and to the public.
- 1991, c. 46, s. 446
- 2012, c. 5, s. 40
- Date modified: