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


Bank Act

Version of section 495 from 2003-01-01 to 2007-04-19:

Marginal note:Services

  •  (1) A bank may enter into a transaction with a related party of the bank if the transaction

    • (a) subject to subsection (2), consists of a written contract for the purchase by the bank of services used in the ordinary course of business;

    • (b) subject to subsection (4), involves the provision of services normally offered to the public by the bank in the ordinary course of business;

    • (c) consists of a written contract with a financial institution or an entity in which the bank is permitted to have a substantial investment pursuant to section 468 that is a related party of the bank

      • (i) for the networking of any services provided by the bank or the financial institution or entity, or

      • (ii) for the referral of any person by the bank to the financial institution or entity, or for the referral of any person by the financial institution or entity to the bank;

    • (d) consists of a written contract for such pension or benefit plans or their management or administration as are incidental to directorships or to the employment of officers or employees of the bank or its subsidiaries; or

    • (e) involves the provision by the bank of management, advisory, accounting, information processing or other services in relation to any business of the related party.

  • Marginal note:Order concerning management by employees

    (2) Where a bank has entered into a contract pursuant to paragraph (1)(a) and the contract, when taken together with all other such contracts entered into by the bank, results in all or substantially all of the management functions of the bank being exercised by persons who are not employees of the bank, the Superintendent may, by order, if the Superintendent considers that result to be inappropriate, require the bank, within such time as may be specified in the order, to take all steps necessary to ensure that management functions that are integral to the carrying on of business by the bank are exercised by employees of the bank to the extent specified in the order.

  • Marginal note:Service corporations

    (3) Notwithstanding subsection 489(2), a bank is deemed not to have indirectly entered into a transaction in respect of which this Part applies if the transaction is entered into by a service corporation, as defined in subsection 464(1), that is controlled by the bank and the transaction is on terms and conditions at least as favourable to the bank as market terms and conditions, as defined in subsection 501(2).

  • Marginal note:Services

    (4) The provision of services, for the purposes of paragraph (1)(b), does not include the making of loans or guarantees.

  • 1991, c. 46, s. 495
  • 1997, c. 15, s. 70

Date modified: