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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2022-09-22 and last amended on 2022-06-30. Previous Versions

PART XII.1Authorized Foreign Banks (continued)

Business and Powers (continued)

Marginal note:Restriction on partnerships

  •  (1) Except with the approval of the Superintendent, an authorized foreign bank may not, in respect of its business in Canada, be a general partner in a limited partnership or a partner in a general partnership.

  • Meaning of general partnership

    (2) For the purposes of subsection (1), general partnership means any partnership other than a limited partnership.

  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 147

Definition of non-WTO Member authorized foreign bank

  •  (1) In this section, non-WTO Member authorized foreign bank means an authorized foreign bank that is not controlled by a WTO Member resident.

  • Marginal note:Limitation on branches in Canada of non-WTO Member authorized foreign bank

    (2) No non-WTO Member authorized foreign bank shall have any branch in Canada, other than its principal office and one branch, without the approval of the Minister.

  • 1991, c. 46, s. 554
  • 1999, c. 28, s. 35

Marginal note:Special security

 Sections 425 to 436, as they exist from time to time, apply, with any modifications that the circumstances require, in respect of the carrying on of business in Canada by an authorized foreign bank as if a reference to “bank” in any of those provisions were a reference to “authorized foreign bank”.

  • 1991, c. 46, s. 555
  • 1999, c. 28, s. 35

 [Repealed, 1999, c. 28, s. 35]

Deposit Acceptance

Marginal note:Deposit acceptance

  •  (1) Subject to this Part, an authorized foreign 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 on it to or to the order of that person.

  • Marginal note:Exception

    (2) Paragraph (1)(b) does not apply if, before payment, the money deposited in the authorized foreign bank pursuant to paragraph (1)(a) is claimed by some other person

    • (a) in any action or proceeding to which the authorized foreign 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 authorized foreign bank, or

    • (b) in any other action or proceeding pursuant to which an injunction or order made by the court requiring the authorized foreign bank not to make payment of that money or make payment of it to some person other than the depositor has been served on the authorized foreign bank,

    and, if a claim is made, the deposited money 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) An authorized foreign bank is not, in respect of its business in Canada, bound to see to the execution of any trust to which a deposit made under the authority of this Act is subject.

  • Marginal note:Payment when authorized foreign 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 authorized foreign 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. 556
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 148

Unclaimed Balances

Marginal note:Unclaimed balances

  •  (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) from the day on which the fixed period terminated, in the case of a deposit made for a fixed period, and

      • (ii) 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, in the case of any other deposit, or

    • (b) a cheque, draft or bill of exchange (including any of those instruments drawn by one branch of an authorized foreign bank on another of its branches but not including one issued in payment of a dividend on the capital of an authorized foreign bank) payable in Canada in Canadian currency has been issued, certified or accepted by an authorized foreign bank in Canada and no payment has been made in respect of it for a period of ten years after the date of issue, certification, acceptance or maturity, whichever is later,

    the authorized foreign 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 authorized foreign bank from all liability in respect of the deposit or instrument.

  • Marginal note:Provision of information

    (2) An authorized foreign 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 authorized foreign 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 authorized foreign 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 authorized foreign bank at which the instrument was issued, certified or accepted.

  • Marginal note:Copies of signature cards and signing authorities

    (2.1) An authorized foreign 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 any rate and computed in any manner that 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.

  • 1991, c. 46, s. 557
  • 1999, c. 28, s. 35
  • 2007, c. 6, s. 87

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) [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, ss. 558, 580
  • 1996, c. 6, s. 20
  • 1999, c. 28, s. 35
  • 2007, c. 6, s. 88
  • 2008, c. 20, s. 3

Miscellaneous

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

 [Repealed, 2018, c. 27, s. 327]

Marginal note:Transmission in case of death

  •  (1) Where the transmission of a debt owing by an authorized foreign bank by reason of a deposit, of property held by an authorized foreign bank as security or for safe-keeping or of rights with respect to a safety deposit box and property deposited in it takes place because of the death of a person, the delivery to the authorized foreign bank of the following is sufficient justification and authority for giving effect to the transmission in accordance with the claim:

    • (a) an affidavit or declaration in writing in form satisfactory to the authorized foreign bank signed by or on behalf of a person claiming by virtue of the transmission stating the nature and effect of the transmission; and

    • (b) one of the following, namely,

      • (i) if the claim is based on a will or other testamentary instrument or on a grant of probate of a will or testamentary instrument or on such a grant and letters testamentary or other document of like import or on a grant of letters of administration or other document of like import, purporting to be issued by any court or authority in Canada or elsewhere, an authenticated copy or certificate of the document under the seal of the court or authority without proof of the authenticity of the seal or other proof, or

      • (ii) if the claim is based on a notarial will, an authenticated copy of the notarial will.

  • Marginal note:Evidence of transmission

    (2) Nothing in subsection (1) shall be construed to prevent an authorized foreign bank from refusing to give effect to a transmission until there has been delivered to the authorized foreign bank any documentary or other evidence of or in connection with the transmission that it may consider necessary.

  • 1991, c. 46, s. 577
  • 1999, c. 28, s. 35

Marginal note:Branch of account with respect to deposits

  •  (1) For the purposes of this Act, the branch of account with respect to a deposit account is

    • (a) the branch the address or name of which appears on the specimen signature card or other signing authority signed by a depositor with respect to the deposit account or that is designated by agreement between the authorized foreign bank and the depositor at the time of opening of the deposit account; or

    • (b) if no branch has been identified or agreed on as provided in paragraph (a), the branch that is designated as the branch of account with respect to the deposit account by the authorized foreign bank by notice in writing to the depositor.

  • Marginal note:Where debt payable

    (2) The amount of any debt owing by an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is payable to the person entitled to the amount only at the branch of account and the person is not entitled to demand payment or to be paid at any other branch of the authorized foreign bank.

  • Marginal note:Exception where authorization

    (3) Notwithstanding subsection (2), an authorized foreign bank may permit either occasionally or as a regular practice, the person to whom it is indebted by reason of a deposit in a deposit account in the authorized foreign bank to withdraw money owing by reason of the deposit at a branch of the authorized foreign bank other than the branch of account or to draw cheques or other orders for the payment of the money at a branch other than the branch of account.

  • Marginal note:Situs of indebtedness

    (4) The indebtedness of an authorized foreign bank by reason of a deposit in a deposit account in the authorized foreign bank is deemed for all purposes to be situated at the place where the branch of account is situated.

  • Marginal note:Non-application of subsection (2)

    (5) Subsection (2) does not apply where the business in Canada of the authorized foreign bank is being wound up under the Winding-up and Restructuring Act.

  • 1991, c. 46, s. 578
  • 1999, c. 28, s. 35
 
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