Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-07-01 and last amended on 2019-06-21. Previous Versions

PART VIIIBusiness and Powers (continued)

General Business (continued)

Marginal note:Networking

  •  (1) Subject to section 416, a bank 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 464(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.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations respecting the disclosure of

    • (a) the name of the principal for whom a bank is acting as agent pursuant to subsection (1); and

    • (b) whether any commission is being earned by a bank when acting as agent pursuant to subsection (1).

  • 1991, c. 46, s. 411
  • 2001, c. 9, s. 101

Marginal note:Restriction on fiduciary activities

 No bank 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 bank 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 by the bank authorizes it to accept deposits solely in accordance with subsection (3).

  • (2) [Repealed, 2001, c. 9, s. 102]

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

    (3) A bank referred to in paragraph (1)(b) or (c) shall ensure that, on each day that is at least 30 days after the bank 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 bank 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 bank at the end of a day in those preceding 30 days and payable in Canada.
  • Marginal note:Exchange rate

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

  • Definition of deposit

    (5) For the purpose of subsection (3), deposit has the meaning that would be given to it 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

    (6) The Governor in Council may make regulations

    • (a) prescribing the deposits referred to in subsection (5); and

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

  • 1991, c. 46, s. 413
  • 1997, c. 15, s. 43
  • 1999, c. 28, s. 21.1
  • 2001, c. 9, s. 102
  • 2007, c. 6, s. 23

Marginal note:Notice before opening account or providing prescribed product

  •  (1) Before a bank referred to in paragraph 413(1)(b) or (c) opens a deposit account in Canada or provides in Canada a prescribed product that relates to a deposit, the bank shall, at the prescribed time and place and in the prescribed form and 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 bank referred to in paragraph 413(1)(b) or (c) shall, in accordance with the regulations,

    • (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 bank are not insured by the Canada Deposit Insurance Corporation; and

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

  • Marginal note:Regulations

    (3) The Governor in Council may make regulations

    • (a) prescribing the time and place at which and the form and manner in which notices referred to in subsection (1) are to be given and the other information to be contained in the notices; and

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

  • 1997, c. 15, s. 43
  • 2001, c. 9, s. 103
  • 2007, c. 6, s. 24
  • 2012, c. 5, s. 34

Marginal note:Deposits less than $150,000

  •  (1) Subject to the regulations, a bank 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.

  • Meaning of deposit

    (2) In this section, deposit has the meaning assigned to that term by subsection 413(5).

  • Marginal note:Regulations

    (3) The Governor in Council may make regulations respecting the circumstances in which, and the conditions under which, a bank 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.

  • 2001, c. 9, s. 104
  • 2007, c. 6, s. 25

Marginal note:Shared premises

  •  (1) Subject to the regulations, no bank 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 bank.

  • Marginal note:Limitation

    (2) Subsection (1) only applies in respect of premises or any portion of premises on which both the bank 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 bank 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 bank, unless the bank 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 bank 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 bank 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).

  • 2001, c. 9, s. 104
  • 2007, c. 6, s. 26
 
Date modified: