Marginal note:Restriction on control and substantial investments
466 (1) Subject to subsections (2) to (4), no bank shall acquire control of, or hold, acquire or increase a substantial investment in, any entity other than a permitted entity.
Marginal note:Exception: indirect investments
(2) A bank may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity other than a permitted entity by way of
(a) an acquisition of control of an entity referred to in any of paragraphs 468(1)(a) to (j), or of a prescribed entity, that controls or has a substantial investment in the entity; or
(b) an acquisition of shares or ownership interests in the entity by
(i) an entity referred to in any of paragraphs 468(1)(a) to (j), or a prescribed entity, that is controlled by the bank, or
(ii) an entity controlled by an entity referred to in any of paragraphs 468(1)(a) to (j), or a prescribed entity, that is controlled by the bank.
Marginal note:Exception: temporary investments, realizations and loan workouts
(3) A bank may, subject to Part XI, acquire control of, or acquire or increase a substantial investment in, an entity by way of
(a) a temporary investment permitted by section 471;
(b) an acquisition of shares of a body corporate or of ownership interests in an unincorporated entity permitted by section 472; or
(c) a realization of security permitted by section 473.
Marginal note:Exception: specialized financing regulations
(4) A bank may, subject to Part XI, acquire control of, or hold, acquire or increase a substantial investment in, an entity other than a permitted entity if it does so in accordance with regulations made under paragraph 467(d) concerning specialized financing.
Marginal note:Exception: uncontrolled event
(5) A bank is deemed not to contravene subsection (1) if the bank acquires control of, or acquires or increases a substantial investment in, an entity solely as the result of an event not within the control of the bank.
- 1991, c. 46, s. 466
- 1997, c. 15, s. 57
- 2001, c. 9, s. 127
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